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Home Business / Energy

FG unveils $2bn East-West super grid to boost power

The proposed transmission network will connect six locations across Nigeria, target 19,000MW capacity and complement efforts to address ₦3.3 trillion in electricity sector debts.

Peter Yakub by Peter Yakub
November 9, 2026
in Business / Energy, News
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FG

FG unveils $2bn East-West super grid to boost power

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The Federal Government (FG) has approved a $2 billion East-West Super Grid project aimed at expanding Nigeria’s electricity transmission capacity to 19,000 megawatts (MW), as the administration of President Bola Ahmed Tinubu intensifies efforts to address longstanding infrastructure challenges in the power sector.

The Minister of Power, Chief Joseph Olasunkanmi Tegbe, disclosed this during a television interview on TVC on Monday, 9 November 2026, describing the proposed project as a major intervention designed to strengthen grid resilience, improve electricity transmission and support the country’s growing energy demand.

Also read: FG restores Benin-Egbin line, boosts Lagos power

According to Tegbe, the proposed transmission network will connect Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, creating a strategic corridor across different parts of the country.

The project is expected to be delivered within 18 to 24 months, with procurement processes already underway following presidential approval.

The minister clarified that the new infrastructure would complement the existing national grid rather than replace it, providing additional transmission capacity and improving the movement of electricity between different regions.

He explained that the proposed investment forms part of a broader government strategy to address structural weaknesses that have continued to limit the country’s ability to transmit available electricity to consumers.

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Tegbe noted that a technical audit of the power sector, initiated shortly after he assumed office, had identified several infrastructure deficiencies, including damaged transmission towers, faulty insulators, ageing conductors and defective relays across critical transmission corridors.

The findings are expected to guide the replacement and rehabilitation of essential equipment, ensuring that investments are directed towards areas requiring urgent attention.

Beyond the proposed super grid, the government is also prioritising the restoration of existing transmission infrastructure, particularly the Osogbo-Ikeja West transmission line, which is expected to deliver an additional 400MW to the Lagos electricity complex when fully restored.

The minister said the restoration of the line would improve transmission capacity into Lagos and reduce pressure on existing electricity corridors.

Addressing the financial challenges affecting electricity generation, Tegbe disclosed that the Federal Government had paid ₦1.23 trillion out of approximately ₦3.3 trillion owed to generation companies (GenCos), leaving an outstanding balance of about ₦2 trillion.

He explained that the accumulated debts had affected the financial capacity of generation companies to meet their obligations to gas suppliers, contributing to constraints on electricity generation despite Nigeria’s considerable natural gas resources.

The administration is targeting the settlement of the outstanding balance in 2027, a move the minister believes would improve liquidity across the electricity value chain and enable power plants to optimise their available generation capacity.

The government is also looking towards underutilised electricity generation facilities in the Niger Delta as another opportunity to improve supply.

According to Tegbe, power plants operated by the Niger Delta Power Holding Company (NDPHC) have a combined installed capacity exceeding 3,000MW, but currently contribute approximately 400MW to electricity supply.

He said improving the performance of these facilities, alongside addressing gas supply and transmission limitations, would help the country maximise existing generation investments.

The proposed infrastructure expansion also comes against the backdrop of reforms introduced under the Electricity Act 2023, which opened up greater opportunities for state governments and private investors to participate in electricity generation, transmission and distribution.

Tegbe described the legislation as a significant turning point for the sector, explaining that it allows states to develop independent electricity markets suited to their economic needs.

States including Lagos, Ogun, Abia and Enugu are already exploring different approaches, including independent power generation, mini-grids and gas-fired electricity solutions.

The Act also provides for bilateral electricity arrangements, allowing generators to supply electricity directly to willing off-takers or sell power into the national grid through regulated agreements.

The minister said the framework was encouraging competition, attracting investment and creating opportunities for private sector participation in the electricity market.

He added that the Federal Government expects private investment in electricity transmission to expand within the next two to three years, complementing ongoing public infrastructure projects.

Nigeria’s transmission infrastructure has remained a major bottleneck in the electricity value chain, with the country frequently struggling to deliver available generation capacity to consumers.

Challenges involving ageing equipment, inadequate investment, gas supply constraints and grid instability have continued to affect reliable electricity delivery.

While the proposed East-West Super Grid represents an ambitious infrastructure plan, its eventual impact will depend on timely procurement, financing, construction and the availability of sufficient electricity generation to utilise the expanded transmission network.

The minister acknowledged that achieving lasting improvements would require sustained investment rather than short-term interventions.

Speaking on the timeline for improved electricity reliability, Tegbe said: “So give me a time horizon of three to five years. Nigeria will enjoy stable life. And as demand improves, it will get better.”

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The proposed project therefore represents a significant test of the administration’s commitment to modernising Nigeria’s electricity infrastructure and addressing challenges across the generation, transmission and distribution segments.

Also read: FG restores Benin-Egbin line, boosts Lagos power

For households, businesses and industries that continue to depend on alternative power sources, the ultimate measure of success will be whether the investment translates into more consistent, accessible and affordable electricity.

Peter Yakub
Peter Yakub

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