Nigeria is set to obtain a $190 million renewable energy loan backed by the Japan International Cooperation Agency (JICA), according to Minister of Power, Adebayo Adelabu.
The ministry revealed in a statement on Saturday that Adelabu made the disclosure at the 9th Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan.
The Nigerian delegation, led by President Bola Tinubu, held high-level talks on power, infrastructure, and industrial transformation as key drivers of sustainable development.
Adelabu explained that the facility is intended to expand distributed renewable energy solutions, especially in underserved communities.
“This builds on the recently launched $750 million World Bank Distributed Access through Renewable Energy Scale-up (DARES) programme under the Mission 300 Compact, which aims to bring clean and reliable electricity to more than 17 million Nigerians,” the ministry noted.
The minister also held discussions with leading Japanese companies, including Toshiba, Hitachi, Japan’s transmission and distribution corporation, and energy exchange firms. Talks centered on improving transmission infrastructure, boosting efficiency, and cutting system losses.
According to the ministry, the initiative aligns with recent Federal Executive Council approval of counterpart funding of ₦19.08 billion to unlock a $238 million JICA loan for grid expansion. The funding will support projects such as 102.95km of new 330kV double circuit lines, 104.59km of 132kV double circuit lines, four 330/132/33kV substations, two 132/33kV substations, and multiple line bay extensions.
It added that three JICA-funded substations — built through a $32 million grant — are nearing commissioning in Apo (FCT), Keffi (Nasarawa), and Apapa (Lagos). These are expected to improve electricity reliability for households, industries, and businesses, including the Lagos Port.
Speaking on a panel themed “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Adelabu highlighted Nigeria’s electricity challenges, noting that only 55–60 percent of citizens currently have access, much of it unreliable.
He outlined government plans to boost grid coverage in urban centers while expanding off-grid solutions like solar mini-grids and standalone systems in rural and peri-urban areas. He also acknowledged obstacles such as limited affordable financing, high upfront costs for rural consumers, and low adoption of productive-use equipment.
Despite these barriers, Adelabu reaffirmed government commitment to energy sector reforms through enabling policies, stronger private-sector participation, and local manufacturing of renewable components.
He commended JICA and the Japanese government for their “long-standing support” in Nigeria’s power sector, particularly in infrastructure, capacity-building, technical studies, and financing, expressing confidence in deeper partnerships to drive Nigeria’s energy transition.
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