Nigeria Secures $238m JICA Loan to Expand National Power Grid, Improve Power Supply

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Nigeria has secured a $238 million loan from the Japan International Cooperation Agency (JICA) to expand and modernize its national power grid. The deal was finalized during the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan, and is aimed at tackling one of the country’s most pressing challenges—unreliable electricity supply.

The loan will fund a large-scale transmission expansion project that will strengthen electricity infrastructure across the country. It includes the construction of new high-capacity transmission lines and modern substations, as well as significant upgrades to existing facilities. These improvements are designed to boost transmission capacity, reduce losses, and enhance overall efficiency in the power sector.

Particular focus will be placed on industrial hubs such as Lagos and Ogun States, where demand for reliable electricity is growing rapidly. The government hopes the project will stabilize supply, improve business competitiveness, and ease the burden of frequent blackouts on households.

Analysts say the initiative could mark a turning point for Nigeria’s electricity sector, which has long suffered from inadequate investment, technical inefficiencies, and widespread outages. By partnering with JICA, Nigeria is not only improving its energy infrastructure but also laying the foundation for long-term economic growth and industrial development.