FG APPROVES $2 BILLION EAST–WEST SUPER GRID TO BOOST NIGERIA’S POWER TRANSMISSION CAPACITY
…19,000MW transmission capacity targeted as Tinubu administration accelerates grid modernisation, settles ₦1.23 trillion GenCo debts and opens sector to private investment.
The Federal Government has approved a $2 billion investment in a new East–West Super Grid designed to strengthen Nigeria’s electricity transmission network, increase system resilience and support the country’s growing power demand.
The Honourable Minister of Power, Joseph Tegbe, disclosed this during a television interview on TVC this morning, describing the project as a major component of the Tinubu administration’s strategy to address longstanding transmission constraints and build a more reliable electricity system.
According to the Minister, the proposed Super Grid will traverse Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, providing additional transmission capacity of at least 19,000 megawatts. The project is expected to be delivered within one and a half to two years, with procurement processes already underway following presidential approval.
He clarified that the new infrastructure will complement, rather than replace, the existing national grid, providing additional capacity and strengthening the country’s ability to move electricity across different regions.
The project forms part of a broader infrastructure intervention that includes a technical audit of the transmission network and the planned replacement and rehabilitation of critical equipment across the grid.
Tegbe explained that the government commenced a technical audit of the power sector shortly after he assumed office to identify the specific infrastructure deficiencies affecting electricity transmission and distribution.
The exercise has identified problems involving transmission towers, insulators, conductors and relays across different corridors.
He noted that the audit is important to ensure that government investments address actual equipment failures rather than deploying resources on infrastructure that may not be responsible for the disruptions.
With the President’s approval for funding, infrastructure replacement across the grid is expected to commence within the coming months.
The government is also prioritising the restoration of critical transmission corridors, including the Oshogbo–Ikeja West line, which is expected to provide an additional 400 megawatts into the Lagos electricity complex when restored.
Addressing the financial challenges affecting electricity generation, the Minister disclosed that the Federal Government had paid ₦1.23 trillion out of approximately ₦3.3 trillion owed to generation companies, leaving an outstanding balance of about ₦2 trillion.
He explained that the accumulated debts had constrained the ability of GenCos to meet their financial obligations to gas suppliers, despite Nigeria’s significant natural gas resources.
According to him, the administration is targeting the settlement of the outstanding balance in 2027 to improve the financial liquidity of generation companies and enable them to procure gas and optimise their available capacity.
The Minister further disclosed that the government is working to improve output from underutilised generation assets, particularly in the Niger Delta, where plants operated by the Niger Delta Power Holding Company (NDPHC) have a combined installed capacity exceeding 3,000 megawatts but currently contribute approximately 400 megawatts.
Optimising these facilities, alongside addressing gas supply and transmission constraints, is expected to improve electricity delivery from existing infrastructure.
Tegbe identified the Electricity Act 2023 as a major turning point in the country’s electricity sector, noting that the legislation has decentralised the industry and created opportunities for states and private investors to participate in electricity generation, transmission and distribution.
He explained that the framework allows states to develop electricity markets suited to their needs, including independent power generation, mini-grids and gas-fired power solutions that complement the national grid.
States including Lagos, Ogun, Abia and Enugu are already exploring different approaches to developing their electricity markets.
The legislation also provides for bilateral electricity arrangements, allowing generators to supply power directly to willing off-takers or feed electricity into the grid through regulated arrangements.
According to the Minister, these provisions are encouraging investment, competition and the recapitalisation of the sector.
He added that the Federal Government expects private sector participation in transmission to expand within the next two to three years, complementing ongoing public sector infrastructure investments.
Tegbe reaffirmed that the administration’s strategy is to address the structural challenges across the electricity value chain while creating an environment that attracts long-term investment, improves operational efficiency and delivers more reliable electricity to Nigerians.
