Susan Abayomi
The Federal Government has approved a $2 billion investment in the proposed East-West Super Grid as part of efforts to expand Nigeria’s electricity transmission capacity, improve grid stability and address persistent power supply challenges.
The project, which is expected to deliver an additional transmission capacity of at least 19,000 megawatts, is a major component of the Tinubu administration’s electricity sector reform agenda.
The Minister of Power, Joseph Tegbe, disclosed this during a television interview on TVC, describing the initiative as a strategic intervention aimed at resolving longstanding transmission limitations and strengthening the country’s electricity infrastructure.
According to him, the proposed Super Grid will connect Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin. The project is expected to be completed within 18 to 24 months, while procurement activities have commenced following presidential approval.
He explained that the new infrastructure would operate alongside the existing national grid rather than replace it, providing additional capacity to facilitate electricity transmission across different parts of the country.
The initiative is also part of a wider government programme involving a comprehensive technical assessment of the transmission network and the rehabilitation or replacement of essential equipment.
Tegbe said the government initiated a technical audit of the power sector shortly after he assumed office to identify infrastructure gaps responsible for persistent challenges in electricity transmission and distribution.
The assessment revealed deficiencies involving transmission towers, insulators, conductors and relays across several sections of the network.
He stressed that the exercise would enable the government to direct investments towards equipment and facilities that require urgent attention, ensuring that available resources address the actual causes of disruptions.
Following presidential approval of the necessary funding, the replacement and rehabilitation of critical infrastructure across the national grid are expected to begin in the coming months.
The government is equally working to restore important transmission lines, including the Oshogbo–Ikeja West corridor, which is projected to contribute an additional 400 megawatts to the Lagos electricity network when fully restored.
On the financial challenges confronting electricity generation companies, the Minister disclosed that the Federal Government had paid ₦1.23 trillion out of the approximately ₦3.3 trillion owed to Generation Companies (GenCos), leaving an outstanding debt of about ₦2 trillion.
He noted that the accumulated liabilities had affected the financial capacity of generation companies to meet their obligations to gas suppliers, thereby limiting electricity generation despite the country’s abundant natural gas resources.
According to him, the administration is working towards clearing the outstanding debt in 2027 to improve the financial position of GenCos, strengthen gas supply arrangements and enable power plants to operate closer to their available capacity.
The Minister also highlighted plans to improve electricity generation from underutilised power facilities, particularly those located in the Niger Delta.
He explained that power plants operated by the Niger Delta Power Holding Company (NDPHC) have a combined installed capacity exceeding 3,000 megawatts but currently generate approximately 400 megawatts.
He said improving the performance of these facilities, alongside resolving gas supply and transmission challenges, would significantly increase electricity available for distribution.
Tegbe further identified the Electricity Act 2023 as a major development in the restructuring of Nigeria’s electricity industry, explaining that the legislation has opened the sector to greater participation by state governments and private investors.
He noted that the law allows states to establish independent electricity markets and pursue solutions tailored to their individual needs, including power generation, mini-grids and gas-fired electricity projects that can complement the national grid.
States such as Lagos, Ogun, Abia and Enugu have already begun exploring different approaches to developing their electricity markets.
The Minister added that the legislation also permits bilateral electricity arrangements, enabling power generators to supply electricity directly to willing customers or transmit their output through regulated grid arrangements.
According to him, these opportunities are expected to encourage competition, attract fresh investments and support the recapitalisation of the electricity sector.
He further disclosed that the Federal Government anticipates increased private sector participation in electricity transmission within the next two to three years, complementing ongoing government-funded infrastructure projects.
Tegbe reaffirmed the administration’s commitment to addressing longstanding structural challenges across the electricity value chain while promoting an investment-friendly environment, improving operational efficiency and ensuring more reliable electricity supply to Nigerians.
