The Federal Government has approved a $2 billion investment in an East-West Super Grid designed to strengthen Nigeria’s electricity transmission network and provide additional capacity of at least 19,000 megawatts.
Minister of Power, Olasunkanmi Tegbe, said the project received presidential approval and would traverse Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin. Delivery is expected within 18 to 24 months. Nairametrics
The minister said the Super Grid would complement, rather than replace, the existing national grid and help address critical weaknesses identified across the transmission network.
A technical audit conducted after his assumption of office identified deficiencies involving transmission towers, insulators, conductors and relays across several transmission corridors.
The government also plans to restore the Oshogbo-Ikeja West transmission line, which Tegbe said could add about 400MW to the Lagos electricity complex.
On the financial challenges facing the power sector, the minister said the Federal Government had paid N1.23 trillion out of about N3.3 trillion owed to electricity generating companies, leaving an outstanding balance of roughly N2 trillion.
He said the unpaid debt had affected GenCos’ ability to meet their financial obligations to gas suppliers, with the government targeting settlement of the outstanding balance in 2027.
Tegbe also disclosed that power plants operated by the Niger Delta Power Holding Company have installed capacity exceeding 3,000MW but currently contribute only about 400MW to national electricity supply.
He said improving the performance of the plants, alongside resolving gas and transmission constraints, would help increase electricity delivered to consumers.
The minister further said the Electricity Act 2023 had opened opportunities for states and private investors to participate in electricity generation, transmission and distribution, including through independent power projects, mini-grids and bilateral electricity arrangements.
