Federal Government Seeks Japan Loan for National Grid Expansion

 The Federal Government of Nigeria, on August 22, 2025, announced plans to secure a loan from Japan to expand the national electricity grid, aiming to improve power supply nationwide. 

Revealed during President Bola Tinubu’s visit to Japan for the 9th Tokyo International Conference on African Development, the initiative seeks to modernize Nigeria’s aging grid infrastructure. The government emphasized that the project will enhance electricity access for households and businesses.

The loan, negotiated with Japanese officials, will fund upgrades to transmission lines and substations, addressing frequent power outages that hinder development. The Ministry of Power, leading the initiative, highlighted Japan’s expertise in energy infrastructure as key to the partnership. The project builds on Nigeria’s efforts to diversify energy sources and strengthen the grid, following years of underinvestment and technical challenges.

The plan has sparked discussions about Nigeria’s energy future, with some praising the focus on infrastructure, while others call for transparency in loan agreements. The initiative, echoing past international partnerships, tests Nigeria’s ability to deliver reliable power. As negotiations progress, the collaboration with Japan signals a commitment to addressing energy challenges, shaping Nigeria’s path toward sustainable development and economic growth.