The Federal Government has approved a $2 billion investment in a new East-West Super Grid aimed at expanding Nigeria’s electricity transmission capacity and improving power supply across the country.
Minister of Power, Joseph Tegbe, disclosed this during an interview on TVC, describing the project as a major part of the government’s efforts to address longstanding challenges in the electricity sector.
According to the minister, the proposed transmission network will run through Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, with the capacity to transmit at least 19,000 megawatts of electricity.
He said the project is expected to be completed within 18 to 24 months, adding that procurement activities had begun following President Bola Tinubu’s approval.
Tegbe explained that the new network would complement the existing national grid rather than replace it, providing additional capacity and making it easier to move electricity between different parts of the country.
The project is part of a wider plan to modernise the transmission network, which also includes a technical audit to identify faulty equipment and infrastructure requiring replacement or rehabilitation.
The minister said the audit, initiated shortly after he assumed office, had identified problems involving transmission towers, insulators, conductors and relays across several parts of the network. He noted that the findings would help the government direct investments towards the areas most in need of repairs.
He also highlighted ongoing efforts to restore critical transmission routes, including the Oshogbo–Ikeja West line, which is expected to deliver an additional 400 megawatts to the Lagos electricity complex once it returns to service.
On the financial challenges facing electricity generation companies, Tegbe disclosed that the Federal Government had paid ₦1.23 trillion out of an estimated ₦3.3 trillion owed to the companies, leaving an outstanding balance of about ₦2 trillion.
He said the outstanding debts had affected the ability of generation companies to meet their obligations to gas suppliers, limiting their capacity to generate electricity despite the country’s substantial natural gas resources.
According to him, the government is targeting the settlement of the remaining debt in 2027 to improve the financial position of generation companies and support better electricity generation.
The minister also pointed to the low output from power plants operated by the Niger Delta Power Holding Company (NDPHC). He said the facilities have a combined installed capacity of more than 3,000 megawatts but currently contribute only about 400 megawatts.
He explained that improving the performance of these plants, alongside resolving gas supply and transmission challenges, would help the country get more value from its existing electricity infrastructure.
Tegbe further identified the Electricity Act 2023 as an important development in efforts to reform the sector, noting that it has opened up opportunities for state governments and private investors to participate in electricity generation, transmission and distribution.
He said states such as Lagos, Ogun, Abia and Enugu were exploring different approaches to developing their electricity markets, including independent power generation, mini-grids and gas-powered solutions.
The minister added that the law also allows generators to enter into regulated bilateral arrangements to supply electricity directly to willing customers or transmit power through the national grid.
He expressed optimism that private sector participation in electricity transmission would increase over the next two to three years, complementing government investments and supporting the expansion of the sector.
Tegbe said the administration’s broader plan was to tackle challenges across the electricity value chain, improve operational efficiency and attract the investment needed to deliver more reliable power to Nigerians.
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