Nigeria to secure $190m loan from Japan for renewable energy, national grip expansion

51
The Minister of Power, Adebayo Adelabu has revealed that Nigeria is planning to secure a $190 million renewable energy loan “supported by the Japan International Cooperation Agency (JICA)”.
According to a statement from the ministry on Saturday, Adelabu announced the plan during the 9th Tokyo international conference on African development (TICAD 9) in Yokohama, Japan.

The ministry said Nigerian delegation, led by President Bola Tinubu, engaged in high-level discussions focused on power, infrastructure, and industrial transformation as levers for sustainable development.

Speaking during the engagement, Adelabu said the facility is designed to scale distributed renewable energy solutions across underserved communities.

“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,” the statement said.

The ministry said Adelabu also engaged Japanese corporations, including Toshiba, Hitachi, Japan’s transmission and distribution corporation, and energy exchange corporations.

The discussions, the ministry said, centred on transmission infrastructure, operational efficiency, and strategies to reduce system losses.

“These engagements built on the recent Federal Executive Council approvals for counterpart funding of N19,083,192,805.30 to catalyse a loan funding of $238 million from the Japan International Cooperation Agency (JICA),” the statement further reads.

“This 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, two 132/33kv substations, two 330kV line bays extension, two 132kV line bays extension, and one 132kV Substation.”

The ministry said three substations funded by JICA through a $32 million grant are set for commissioning in Apo (FCT), Keffi (Nasarawa), and Apapa (Lagos).

The projects, the ministry said, are expected to strengthen supply reliability to households, businesses, and industrial clusters, including the Lagos Port.

During a panel session, titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa”, Adelabu said only 55-60 percent of Nigeria’s population currently has access to electricity, much of which remains unreliable.

He said the government is closing the gap by expanding grid access in urban areas while accelerating off-grid solutions such as solar mini-grids and standalone systems for rural and peri-urban communities.

The minister acknowledged current challenges such as limited access to affordable capital, high costs for rural households, and under-utilisation of productive-use equipment.

He, however, reaffirmed the government’s commitment to addressing the issues through supportive policies, private-sector partnerships, and local manufacturing of renewable energy components.

Adelabu also commended JICA and the government of Japan for their “long-standing support” to Nigeria’s power sector, citing their contributions to infrastructure, technical studies, training, and renewable energy financing.

He expressed optimism for strengthened collaboration and partnership between the governments of Japan and Nigeria.