The Federal Government of Nigeria has secured a $238 million loan agreement with the Japan International Cooperation Agency (JICA) to expand and modernize the country’s national power grid. The agreement was finalized on the sidelines of the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama.
The financing is targeted at strengthening Nigeria’s electricity transmission infrastructure through the construction of high-capacity transmission lines and modern substations. According to officials, the project is designed to enhance efficiency within the national grid, reduce technical losses, and improve the reliability of power supply across key regions.
Energy sector analysts note that Nigeria’s grid has long struggled with inadequate transmission capacity, which often results in frequent power outages despite available generation. The partnership with JICA is therefore viewed as a strategic step toward stabilizing electricity delivery and supporting economic growth.
The Federal Government described the agreement as part of its broader efforts to attract foreign investment into the energy sector, while Japanese officials reaffirmed their commitment to supporting sustainable infrastructure development in Africa.
The project is expected to commence in the coming months, with a phased implementation plan that will integrate the new transmission assets into the existing grid system.
