Nigeria is advancing a $190 million renewable energy loan facility supported by the Japan International Cooperation Agency (JICA), aimed at expanding distributed renewable energy solutions across underserved communities.
The announcement was made by the Minister of Power, Adebayo Adelabu, during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan.
Adelabu explained that the government is determined to use this loan to scale renewable energy projects that will directly impact rural and urban households. “This facility is designed to provide clean energy access to communities that have remained underserved for years,” he said.
The Nigerian delegation at TICAD 9 was led by President Bola Ahmed Tinubu, who participated in a series of high-level meetings focused on power, infrastructure, and industrial transformation.
Tinubu stated that Nigeria’s presence at the summit was not for trade exhibitions but to build strategic partnerships that can drive real change. “We are deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results,” the President said.
At the summit, Adelabu also held talks with leading Japanese energy corporations such as Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange companies. These discussions centered on strengthening Nigeria’s transmission infrastructure, improving operational efficiency, and reducing system losses.
The Minister revealed that the loan builds on the recent Federal Executive Council approvals for counterpart funding of ₦19,083,192,805.30 to unlock $238 million in additional financing from JICA.
This funding will be used to expand the national grid through projects that include 102.95 kilometers of new 330kV double circuit lines, 104.59 kilometers of 132kV double circuit lines, four 330/132/33kV substations, two 132/33kV substations, two 330kV line bay extensions, two 132kV line bay extensions, and one 132kV substation.
In addition, Adelabu confirmed that the government had earlier launched a $750 million World Bank Distributed Access through Renewable Energy Scale-up (DARES) programme under the Mission 300 Compact. This initiative is expected to deliver reliable and clean electricity to more than 17 million Nigerians.
At the same time, three new substations funded by JICA through a $32 million grant are set for commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). These substations will improve power supply to homes, businesses, industrial clusters, and key facilities such as the Lagos Port.
Partnerships with JICA also extend to human capacity development. The National Power Training Institute of Nigeria (NAPTIN) has commissioned new training equipment in Abuja with JICA’s support. This facility is targeted at building the skills of engineers who manage electricity distribution networks. According to Adelabu, the training institute is critical for long-term sustainability in Nigeria’s power sector.
Speaking during a panel session titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Adelabu highlighted the country’s energy challenges. He noted that only 55 to 60 percent of Nigeria’s population of over 200 million people currently have access to electricity, and much of it is unreliable.
He stressed that the government is tackling this issue by expanding the national grid in cities while also promoting off-grid solutions like solar mini-grids and standalone systems for rural communities.
The Minister pointed out that despite the opportunities, there are obstacles such as limited access to affordable capital, high costs for rural households, and under-utilisation of renewable energy equipment.
However, he reassured that the government remains committed to overcoming these challenges by encouraging private sector investment, implementing supportive policies, and promoting local manufacturing of renewable energy components.
Adelabu praised JICA and the Government of Japan for their long-standing partnership with Nigeria. He acknowledged their contributions to infrastructure projects, renewable energy financing, technical studies, and workforce training. “We recognise JICA as a reliable partner in advancing Nigeria’s energy transition and expanding access to sustainable electricity,” he said.
Through these agreements and ongoing projects, Nigeria aims to strengthen energy security, reduce reliance on fossil fuels, and expand access to affordable electricity for millions of citizens. The partnerships struck at TICAD 9 underline Nigeria’s commitment to building an energy sector that supports industrial growth, job creation, and sustainable economic development.