The Federal Government has approved a $2bn investment in a new East–West Super Grid expected to add at least 19,000 megawatts of transmission capacity to Nigeria’s electricity network within two years.
The Minister of Power, Olasunkanmi Tegbe, disclosed this in a statement on Monday, describing the project as a major intervention by President Bola Tinubu’s administration to address persistent transmission constraints and improve electricity supply.
Tegbe said the proposed transmission network would traverse Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, providing additional capacity to complement the existing national grid.
“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 Super Grid would not replace the existing national grid but strengthen the country’s transmission infrastructure.
He said the project was part of broader government interventions, including a technical audit and replacement of critical transmission equipment.
According to him, the audit, which commenced shortly after he assumed office, identified deficiencies involving transmission towers, insulators, conductors and relays across various transmission corridors.
Tegbe said the exercise was designed to ensure that government investments addressed actual equipment failures and prevented unnecessary expenditure.
He added that the replacement of faulty infrastructure was expected to commence in the coming months following presidential approval of funding.
The minister also identified the Oshogbo–Ikeja West transmission line as a priority project, saying its restoration would inject an additional 400 megawatts into the Lagos electricity complex.
On the financial challenges confronting electricity generation companies (GenCos), Tegbe disclosed that the Federal Government had paid N1.23trn out of the approximately N3.3trn owed to the companies.
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He said the outstanding debt stood at about N2trn, limiting the ability of generation companies to meet their financial obligations to gas suppliers.
According to him, the government is targeting the settlement of the outstanding balance in 2027 to improve liquidity and increase electricity generation.
Tegbe also disclosed plans to increase output from underutilised power plants, particularly in the Niger Delta.
He said facilities operated by the Niger Delta Power Holding Company had a combined installed capacity of more than 3,000 megawatts but currently contributed only about 400 megawatts to national electricity supply.
The minister said optimising the facilities, alongside addressing gas supply and transmission challenges, would significantly improve electricity delivery.
He further identified the Electricity Act 2023 as a major turning point in the power sector, noting that it had decentralised electricity generation, transmission and distribution.
According to him, the legislation allows state governments and private investors to develop independent electricity markets through mini-grids, gas-fired power plants and other generation solutions.
Tegbe identified Lagos, Ogun, Abia and Enugu as states already exploring different approaches to developing their electricity markets.
He added that the law also permitted bilateral electricity arrangements, allowing power generators to supply willing customers directly or transmit electricity into the national grid.
The minister said the provisions were encouraging investment, competition and recapitalisation across the electricity sector.
He expressed optimism that private sector participation in electricity transmission would expand within the next two to three years, reaffirming the government’s commitment to resolving structural challenges across the power value chain.
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