LAGOS, Nov 10 – Nigeria has approved a $2 billion investment in a new East-West Super Grid designed to expand the country’s electricity transmission capacity by at least 19,000 megawatts, as the government seeks to address longstanding constraints across the power sector.
Minister of Power Olasunkanmi Tegbe disclosed the approval in a statement on Monday, according to the News Agency of Nigeria. The project is expected to be delivered within 18 to 24 months, with procurement processes already underway following presidential approval.
The proposed transmission infrastructure will run through Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin. Tegbe said the Super Grid would complement the existing national grid rather than replace it, providing additional capacity to support electricity transmission and distribution across the country.
The investment forms part of a broader effort to strengthen existing transmission infrastructure. A technical audit launched shortly after Tegbe assumed office identified deficiencies involving transmission towers, insulators, conductors and relays across several transmission corridors.
The findings are expected to guide the replacement of critical equipment, with the government aiming to direct funding towards identified infrastructure failures. Tegbe said the replacement programme would begin in the coming months following presidential funding approval.
The Oshogbo-Ikeja West transmission line has also been identified as a priority for rehabilitation. “When restored, the line is expected to provide an additional 400 megawatts into the Lagos electricity complex,” he said.
GenCo debt settlement and underutilised power plants
Alongside transmission investment, the government is seeking to address financial constraints affecting electricity generation companies (GenCos).
Tegbe said the Federal Government had paid ₦1.23 trillion ($913.47 million) out of approximately ₦3.3 trillion ($2.45 billion) owed to GenCos, leaving an outstanding balance of about ₦2 trillion ($1.49 billion).
The unpaid obligations have constrained generation companies’ ability to meet financial commitments to gas suppliers. The government is targeting settlement of the remaining balance in 2027, a move intended to improve liquidity across the generation segment and support electricity production.
The minister also identified underutilised power plants in the Niger Delta as an opportunity to increase available supply. Facilities operated by the Niger Delta Power Holding Company have a combined installed capacity exceeding 3,000MW but currently contribute approximately 400MW to the national electricity supply.
Improving the performance of these plants, alongside addressing gas supply and transmission constraints, could increase the volume of electricity delivered to consumers.
Electricity Act expands state and private-sector participation
Tegbe also highlighted the Electricity Act 2023 as a central component of the government’s efforts to restructure the industry. The legislation allows state governments and private investors to participate in electricity generation, transmission and distribution.
Under the framework, states can 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.
The legislation also provides for bilateral electricity arrangements, allowing generators to supply willing off-takers directly or deliver electricity into the national grid. According to Tegbe, these provisions are creating opportunities for investment, competition and recapitalisation across the sector.
The Federal Government expects private-sector participation in electricity transmission to expand over the next two to three years.
President Bola Tinubu signed the Electricity Act 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.
The latest investment approval builds on a broader reform programme. In March 2026, the government said power-sector reforms had attracted $2 billion in investment and reduced liabilities to ₦146 billion. It also reported that 16 state electricity markets had been activated.
However, regulatory coordination remains a challenge as more states establish independent electricity markets. In April 2026, PricewaterhouseCoopers said the success of Nigeria’s electricity reforms depended on clearer regulatory frameworks and stronger coordination between federal and state authorities.
The East-West Super Grid, rehabilitation of existing transmission lines and efforts to resolve GenCo payment obligations are intended to address several constraints simultaneously. Their impact will depend on timely project delivery, effective procurement and improvements in the gas supply and generation segments.
