Power sector to get over $2.4bn from Tinubu’s new foreign loan

Power sector to get over $2.4bn from Tinubu’s new foreign loan

Nigeria’s power sector is set to receive a significant capital injection of more than $2.4bn from the newly approved foreign loan package championed by President Bola Ahmed Tinubu and ratified by the Senate.

The funding is part of a broader six-year external borrowing plan estimated at $21.5bn, €2.1bn, and ¥150bn (yen), aimed at unlocking strategic infrastructure projects across energy, transportation, healthcare, agriculture, security, and climate resilience.

A breakdown of the loan, as gathered, revealed that at least four power-related projects have been earmarked under the plan, with two major super grid projects taking centre stage.

A total of $2.21bn will go toward constructing the Eastern and Western Super Grids, with $1.14bn and $1.07bn allocated respectively.

These grids are expected to significantly enhance electricity transmission capacity, reduce losses across the national grid, and support future integration of renewable energy sources.

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In addition, a Chinese-backed investment of $100m will go into the Presidential Power Initiative, the federal government’s flagship programme designed to improve power distribution infrastructure in collaboration with Siemens AG.

Also included is a $116m allocation for the construction of high-voltage transmission lines to evacuate up to 700 megawatts of electricity from the recently completed Zungeru hydropower plant into the national grid.

These projects represent some of the most prominent power sector interventions tied to the loan, which Tinubu described as essential to closing Nigeria’s infrastructure deficit and catalysing economic growth.

“This borrowing plan is not about debt for consumption. It is a deliberate step to position Nigeria for inclusive, sustainable growth through strategic infrastructure investments,” the President said in his letter to the National Assembly.

Beyond the power sector, the loan package also covers other high-impact projects including $3bn for the Port Harcourt–Maiduguri Eastern Rail Line, $2bn for the Lagos Green Line Rail, $508m for upgrading eastern ports, and $700m for the Lagos–Calabar Coastal Highway.

Also, the loan would cover healthcare, youth entrepreneurship, border security, climate action, and food security.

Power sector to get over $2.4bn from Tinubu’s new foreign loan