The Federal Government has approved a $2 billion investment in a new East–West Super Grid to strengthen Nigeria’s electricity transmission network and increase capacity.
The Minister of Power, Mr Olasunkanmi Tegbe described the project as a major component of President Bola Tinubu’s strategy to address longstanding transmission constraints and improve electricity reliability.
He said the proposed Super Grid would 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 said.
The minister clarified that the new infrastructure would complement, rather than replace, the existing national grid.
He said the project formed part of broader interventions, including a technical audit and replacement of critical transmission equipment.
According to him, the government began the audit shortly after he assumed office to identify infrastructure deficiencies affecting electricity transmission and distribution.
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The exercise identified problems involving transmission towers, insulators, conductors and relays across various transmission corridors.
Tegbe said the audit would ensure that government investments addressed actual equipment failures and avoided unnecessary expenditure.
He added that infrastructure replacement was expected to commence within the coming months following presidential funding approval.
The minister also identified the Oshogbo–Ikeja West transmission line as a priority corridor for restoration.
“When restored, the line is expected to provide an additional 400 megawatts into the Lagos electricity complex,” he said.
On the financial challenges facing electricity generation companies, GenCos, Tegbe disclosed that the Federal Government had paid ₦1.23 trillion out of approximately ₦3.3 trillion owed.
He said the outstanding debt stood at about ₦2 trillion, constraining GenCos’ ability to meet financial obligations to gas suppliers.
According to him, the government is targeting settlement of the outstanding balance in 2027 to improve liquidity and boost electricity generation.
Tegbe also disclosed plans to increase output from underutilised generation facilities, particularly in the Niger Delta.
He said power plants operated by the Niger Delta Power Holding Company had combined installed capacity exceeding 3,000 megawatts.
However, the facilities currently contribute approximately 400 megawatts to the national electricity supply.
He said optimising the plants, alongside addressing gas supply and transmission constraints, would improve electricity delivery.
The minister identified the Electricity Act 2023 as a major turning point, noting that it had decentralised the sector.
He said the legislation created opportunities for state governments and private investors to participate in electricity generation, transmission and distribution.
According to him, states could develop electricity markets suited to their needs through independent generation, mini-grids and gas-fired power solutions.
Tegbe identified Lagos, Ogun, Abia and Enugu as states already exploring different approaches to developing their electricity markets.
He said the legislation also permitted bilateral electricity arrangements, enabling generators to supply willing off-takers directly or feed electricity into the national grid.
These provisions, he said, were encouraging investment, competition and recapitalisation across the electricity sector.
Tegbe added that the Federal Government expected private sector participation in transmission to expand within the next two to three years.
He reaffirmed the administration’s commitment to addressing structural challenges across the electricity value chain and attracting long-term investment.
