The Federal Government has approved a $2 billion investment in a new East-West Super Grid project aimed at expanding Nigeria’s electricity transmission capacity to at least 19,000 megawatts and addressing persistent challenges in the power sector.
The Minister of Power, Joseph Tegbe, disclosed this during an interview on TVC on Monday, describing the project as a major intervention by the President Bola Tinubu administration to strengthen the national electricity network and improve power supply across the country.
According to Tegbe, the proposed transmission infrastructure will traverse Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, creating additional capacity to move electricity across different regions.
He said the project is expected to be completed within 18 to 24 months, adding that procurement processes had commenced following presidential approval.
The minister clarified that the Super Grid would complement, rather than replace, the existing national grid, providing additional transmission capacity and improving the resilience of the electricity network.
He explained that the investment forms part of a broader government intervention involving a technical audit of the transmission infrastructure and the replacement and rehabilitation of critical equipment.
According to him, the audit, which commenced shortly after he assumed office, identified infrastructure deficiencies involving transmission towers, insulators, conductors and relays across different transmission corridors.
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Tegbe said the exercise would enable the government to direct investments towards faulty equipment and infrastructure responsible for disruptions in electricity transmission.
He added that the replacement of critical infrastructure was expected to commence in the coming months, following the President’s approval of funding.
The minister also identified the restoration of the Oshogbo-Ikeja West transmission line as a priority, noting that its rehabilitation 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 N1.23 trillion out of approximately N3.3 trillion in outstanding debts owed to the companies.
He said the outstanding balance stood at about N2 trillion, explaining that the accumulated debts had affected 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 liabilities in 2027 to improve the financial position of GenCos, enhance gas supply and enable power plants to operate closer to their available capacity.
Tegbe further disclosed that the government was working to optimise underutilised electricity generation assets, particularly those operated by the Niger Delta Power Holding Company (NDPHC).
He said the company’s power plants in the Niger Delta have a combined installed capacity exceeding 3,000 megawatts but currently contribute approximately 400 megawatts to the national electricity supply.
The minister explained that addressing gas supply challenges and transmission limitations would help unlock the generation potential of these facilities.
On reforms in the electricity industry, Tegbe described the Electricity Act 2023 as a significant development that has decentralised the sector and opened up opportunities for state governments and private investors to participate in electricity generation, transmission and distribution.
He noted that the legislation allows states to establish independent electricity markets and develop solutions suited to their peculiar needs, including mini-grids, independent power generation and gas-fired electricity projects.
States such as Lagos, Ogun, Abia and Enugu, he said, were already exploring different approaches to developing their electricity markets.
The minister added that the law also provides for bilateral electricity transactions, allowing power generators to supply electricity directly to willing off-takers or feed into the national grid through regulated arrangements.
He said the reforms were creating opportunities for increased private investment, competition and recapitalisation across the electricity value chain.
Tegbe further disclosed that the Federal Government expects private sector participation in electricity transmission to expand within the next two to three years, complementing ongoing public infrastructure investments.
He reaffirmed the administration’s commitment to addressing structural challenges across the power sector, improving operational efficiency and attracting long-term investments to deliver more reliable electricity to Nigerians.