The Federal Government of Nigeria has finalized a $238 million loan deal with the Japan International Cooperation Agency (JICA) to strengthen its national power grid infrastructure. The agreement was reached during the Ninth Tokyo International Conference on African Development (TICAD9), which took place in Yokohama, Japan. The engagement was spearheaded by President Bola Ahmed Tinubu and Minister of Power, Chief Adebayo Adelabu.
In a statement released by the Ministry of Power, President Tinubu stressed that Nigeria’s involvement at TICAD9 went beyond ceremonial diplomacy.
“Nigeria’s participation at TICAD 9 was not about trade exhibitions, but about forging strategic, outcome-driven partnerships that would deliver tangible results for the Nigerian people. We are deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results,” the President declared.
The $238 million JICA loan is supported by counterpart funding of N19,083,192,805.30 approved by the Federal Executive Council. It will finance critical grid projects including 102.95km of new 330kV double circuit lines, 104.59km of 132kV double circuit lines, four 330/132/33kV substations, two 132/33kV substations, and multiple line bay extensions aimed at reducing inefficiencies and losses.
Minister Adelabu emphasized the strategic importance of partnerships with Japanese firms such as Toshiba, Hitachi, and the Japan Transmission & Distribution Corporation.
“Our focus is on transmission infrastructure, operational efficiency, and strategies to reduce system losses. This $238 million loan from JICA provides the backbone for that transformation,” Adelabu said.
He also lauded Japan’s role in Nigeria’s energy transition, adding: “JICA has proven to be a reliable partner in advancing Nigeria’s energy transition and expanding access to reliable, affordable, and sustainable electricity. Their contributions across infrastructure, technical studies, training, and financing continue to play a vital role in strengthening our power sector.”
Currently, only 55–60 percent of Nigerians have access to electricity, a gap the government is determined to close. “We are expanding grid access in urban areas while accelerating off-grid solutions for rural communities. Despite cost and financing challenges, we remain committed to supportive policies, strategic partnerships, and local manufacturing to drive a sustainable energy future,” Adelabu explained.
This deal follows the $750 million World Bank Distributed Access through Renewable Energy Scale-up programme under the Mission 300 Compact, which targets 17 million Nigerians with clean energy.
Additionally, three substations funded by JICA through a $32 million grant are set for commissioning in Apo (Federal Capital Territory), Keffi (Nasarawa State), and Apapa (Lagos State), enhancing supply to businesses, households, and industrial zones, including Lagos Port.
okay.ng reports that the collaboration has also extended to capacity building through the National Power Training Institute of Nigeria in Abuja, where state-of-the-art training equipment was recently inaugurated to boost the expertise of engineers managing the grid.
