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FG Secures $238 Million Loan From JICA


 

The Minister of Power, Chief Adebayo Adelabu who was part of the national delegation during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan held high-level engagements with Japanese stakeholders said the federal government delegation had discussion, which focused on transmission infrastructure, operational efficiency, and strategies to reduce system losses.

He stated that these engagements built on the recent Federal Executive Council approvals for counterpart funding of ₦19,083,192,805.30 to catalyse a loan funding of $238 million from the Japan International Cooperation Agency (JICA).

According to a statement yesterday by the minister’s media aide, Mr. Bolaji Tunji, the minister added that the loan funding will support the expansion of the national grid with the addition of 102.95km of new 330kV double circuit (DC) line, 104.59km of new 132kV double circuit (DC) line, four 330/132/33kV substations, two132/33kv substations, two 330kV line bays extension, two 132kV line bays extension, and one 132kV Substation.

Tunji said that during the engagement, the Minister also announced that Nigeria is advancing a $190 million renewable energy loan facility supported by the Japan International Cooperation Agency (JICA), designed to scale distributed renewable energy solutions across underserved communities.

He stated that this builds on the recently launched $750 million World Bank Distributed Access through Renewable Energy Scale-up (DARES) programme under the Mission 300 Compact, which aims to bring clean and reliable electricity to more than 17 million Nigerians.

Tunji said: “In parallel, three substations funded by JICA through a $32 million grant are set for commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). These projects will directly strengthen supply reliability to households, businesses, and industrial clusters, including critical facilities such as the Lagos Port and surrounding industrial areas.

“In addition, through the partnership with JICA, the National Power Training Institute of Nigeria (NAPTIN) has commissioned a state-of-the-art training equipment in Abuja to strengthen the skills of distribution engineers and tackle network losses. This facility is designed to deepen local expertise and promote long-term sustainability in sector operations through capacity development which remains a cornerstone of Nigeria’s power sector strategy.”

Speaking during a panel session titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Adelabu highlighted Nigeria’s current energy realities, noting that only 55–60 percent of the country’s population of over 200 million has access to electricity, much of which remains unreliable.

He explained that the Federal Government is addressing this gap by expanding grid access in urban areas while simultaneously accelerating off-grid solutions, including solar mini-grids and standalone systems, for rural and peri-urban communities. Despite persistent challenges such as limited access to affordable capital, cost barriers for rural households, and under-utilization of productive-use equipment, Minister Adelabu reaffirmed the government’s commitment to overcoming these obstacles through supportive policies, strategic private-sector partnerships, and local manufacturing of renewable energy components.

He expressed deep appreciation to JICA and the Government of Japan for their long-standing support to the Nigeria’s power sector, recognizing JICA as a reliable partner in advancing the country’s energy transition and expanding access to reliable, affordable, and sustainable electricity. Minister Adelabu highlighted JICA’s contributions across infrastructure development, technical studies, training, and renewable energy financing and expressed optimism for further strengthened collaboration and partnership between the Governments of Japan and the Federal Government of Nigeria.



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