The Federal Government of Nigeria is in advanced talks with China for a $2 billion loan aimed at overhauling the nation’s ailing power transmission network, a move officials say will significantly boost electricity supply and reduce nationwide blackouts.
According to sources at the Ministry of Power, negotiations are ongoing with China Exim Bank to finance critical upgrades to the national grid infrastructure, including the rehabilitation of transmission lines, expansion of substations, and installation of modern monitoring systems across key regions.
Minister of Power, Chief Adebayo Adelabu, confirmed the development in Abuja on Monday, noting that the loan is part of President Bola Tinubu’s broader energy reform plan to stabilize power generation and distribution.
“Our target is to achieve a more reliable and efficient grid that can sustain industrial growth and domestic demand. The Chinese facility will enable us to modernize the system and cut down on transmission losses,” Adelabu stated.
He added that discussions include technical collaboration with major Chinese engineering firms already involved in Nigeria’s power projects, such as the Zungeru Hydropower Plant and several rural electrification initiatives.
The planned $2 billion investment is expected to improve grid stability, increase transmission capacity to over 10,000 megawatts, and support the integration of renewable energy sources into the national supply chain.
However, energy analysts have called for transparency in the loan’s management and urged the government to ensure the deal does not deepen Nigeria’s debt burden.
The Ministry of Finance said final terms of the loan agreement will be announced after due diligence and approval by the Federal Executive Council, as Nigeria intensifies efforts to resolve its long-standing power crisis.
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