The Federal Government has approved a $2 billion investment in a new East-West Super Grid aimed at strengthening Nigeria’s electricity transmission network and increasing power supply capacity.
The Minister of Power, Mr Olasunkanmi Tegbe, disclosed this in a statement on Monday, describing the project as a major component of President Bola Tinubu’s efforts to address longstanding transmission challenges and improve electricity reliability.
Tegbe said the proposed Super Grid would traverse Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, providing an additional transmission capacity of at least 19,000 megawatts.
He said the project was expected to be completed within 18 to 24 months, adding that procurement processes had commenced following presidential approval.
The minister clarified that the new infrastructure would complement the existing national grid rather than replace it.
He said the project was part of broader interventions to address infrastructure deficiencies, including a technical audit of critical transmission equipment and plans for their replacement.
According to him, the audit, which commenced shortly after he assumed office, identified faults involving transmission towers, insulators, conductors and relays across several transmission corridors.
Tegbe said the exercise would ensure that government investments targeted actual equipment failures and prevented unnecessary expenditure.
He added that the replacement of faulty infrastructure would begin in the coming months following presidential funding approval.
The minister also identified the Oshogbo-Ikeja West transmission line as a priority for restoration, saying its rehabilitation would deliver an additional 400 megawatts to the Lagos electricity complex.
On the financial challenges facing electricity generation companies (GenCos), Tegbe disclosed that the Federal Government had paid N1.23 trillion out of approximately N3.3 trillion owed to the companies.
He said the outstanding debt stood at about N2 trillion, a situation that had constrained the ability of GenCos to meet their financial obligations to gas suppliers.
According to him, the government is targeting the settlement of the outstanding debt in 2027 to improve liquidity and increase electricity generation.
Tegbe further disclosed plans to increase output from underutilised power plants, particularly those in the Niger Delta operated by the Niger Delta Power Holding Company (NDPHC).
He said the facilities had a combined installed capacity of more than 3,000 megawatts but currently contributed approximately 400 megawatts to the national electricity supply.
The minister explained that optimising the plants, alongside resolving gas supply and transmission challenges, would significantly improve electricity delivery.
On electricity sector reforms, Tegbe described the Electricity Act 2023 as a major turning point, noting that it had decentralised the sector and created opportunities for state governments and private investors to participate in electricity generation, transmission and distribution.
He said states could now develop electricity markets suited to their needs through independent power 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 added that the legislation allowed bilateral electricity arrangements, enabling power generators to supply willing off-takers directly or transmit electricity into the national grid.
According to him, the provisions are encouraging investment, competition and recapitalisation across the electricity sector.
Tegbe expressed optimism that private sector participation in electricity transmission would expand within the next two to three years.
He reaffirmed the Federal Government’s commitment to addressing structural challenges across the electricity value chain and attracting long-term investment into the sector.
