The Federal Government has approved a $2 billion investment in a new East-West Super Grid project aimed at strengthening Nigeria’s electricity transmission network and adding at least 19,000 megawatts (MW) of transmission capacity.
The Minister of Power, Olasunkanmi Tegbe, disclosed this on Monday in a statement reported by the News Agency of Nigeria (NAN).
The proposed infrastructure will pass through Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, with completion expected within 18 to 24 months.
Tegbe said procurement processes had commenced following presidential approval, adding that the project would complement the existing national grid rather than replace it.
The investment is part of the Federal Government’s broader efforts to address infrastructure gaps across the transmission network and improve electricity delivery to consumers.
East-West Super Grid to expand transmission capacity
The minister explained that the proposed Super Grid would provide additional transmission capacity and strengthen the movement of electricity across different parts of the country.
- He said a technical audit launched shortly after he assumed office identified weaknesses involving transmission towers, insulators, conductors and relays across several transmission corridors.
- The findings are expected to guide the replacement of faulty and ageing equipment, ensuring that government spending addresses specific infrastructure problems.
- According to Tegbe, the replacement programme is expected to begin in the coming months following presidential funding approval.
- He also identified the Oshogbo-Ikeja West transmission line as a priority for restoration.
“When restored, the line is expected to provide an additional 400 megawatts into the Lagos electricity complex,” he said.
FG settles N1.23tn GenCo debts, targets 2027 for balance
Beyond transmission infrastructure, Tegbe said the government was addressing financial challenges affecting electricity generation companies (GenCos).
- He disclosed that the Federal Government had paid N1.23 trillion out of approximately N3.3 trillion owed to the companies, leaving an outstanding balance of about N2 trillion.
According to him, the unpaid obligations have affected the ability of generation companies to meet their financial commitments to gas suppliers.
The government is targeting 2027 to settle the outstanding balance, a move expected to improve liquidity and support electricity generation.
Tegbe also identified underutilised power plants in the Niger Delta as an opportunity to increase electricity supply.
Facilities operated by the Niger Delta Power Holding Company (NDPHC) have a combined installed capacity of more than 3,000MW but currently contribute approximately 400MW to the national electricity supply.
He said improving the performance of these facilities, alongside resolving gas supply and transmission challenges, would help increase the volume of electricity delivered to consumers.
Electricity Act opens power market to states
The minister identified the Electricity Act 2023 as a major development in the restructuring of Nigeria’s electricity sector.
- The legislation allows state governments and private investors to participate in electricity generation, transmission and distribution.
- He said states could develop electricity markets suited to their needs through independent power generation, mini-grids and gas-fired power solutions.
- Lagos, Ogun, Abia and Enugu are among the states exploring different approaches to developing their electricity markets.
- The law also permits bilateral electricity arrangements, allowing power generators to supply willing customers directly or feed electricity into the national grid.
- According to Tegbe, these provisions are creating opportunities for investment, competition and recapitalisation across the sector.
- He added that the Federal Government expects private-sector participation in electricity transmission to expand over the next two to three years.
FG intensifies electricity sector reforms
Last month, the minister outlined a roadmap to stabilise Nigeria’s electricity grid and expand transmission capacity, with emphasis on improving power supply and attracting fresh investment.
President Bola Tinubu signed the Electricity Act 2023 into law in June 2023, replacing the Electric Power Sector Reform Act 2005 and establishing a framework for the post-privatisation phase of the Nigerian Electricity Supply Industry.
In March 2026, the Federal Government said electricity sector reforms had attracted $2 billion in investment and reduced liabilities to N146 billion. It also reported that 16 state electricity markets had been activated.
However, regulatory coordination remains a major issue.
In April 2026, PricewaterhouseCoopers (PwC) said the success of Nigeria’s electricity reforms depended on clearer regulatory frameworks and stronger coordination between federal and state authorities.
