FG Targets Underserved Communities with New $190m JICA Renewable Energy Loan

Adebayo Adelabu, Minister of Power, has announced that Nigeria is planning to secure a $190 million renewable energy loan “supported by the Japan International Cooperation Agency (JICA)”, specifically designed to scale solutions for underserved communities.

The minister announced the plan at the 9th Tokyo international conference on African development (TICAD 9) in Yokohama, Japan, as part of a Nigerian delegation led by President Bola Tinubu.

Adelabu stated that the facility is targeted at expanding distributed renewable energy solutions. “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,” a statement from the ministry read.

The minister’s engagements in Japan also included meetings with major corporations like Toshiba and Hitachi to discuss improving transmission infrastructure and operational efficiency.

These talks were bolstered by recent government approvals for a N19 billion counterpart funding to catalyze a separate $238 million JICA loan for a major national grid expansion. This funding will support the addition of over 200km of new transmission lines and several new substations.

Furthermore, three JICA-funded substations in Apo (FCT), Keffi (Nasarawa), and Apapa (Lagos) are set for commissioning, which will strengthen supply reliability to key areas, including the Lagos Port.

The urgent need for these investments was highlighted during a panel session where Adelabu revealed that “only 55-60 percent of Nigeria’s population currently has access to electricity, much of which remains unreliable.” He stated the government is closing this gap by expanding the grid and accelerating off-grid solutions.

While acknowledging challenges like limited access to affordable capital, Adelabu reaffirmed the government’s commitment to addressing the issues through supportive policies.

He also commended JICA and the government of Japan for their “long-standing support” to Nigeria’s power sector, expressing optimism for a strengthened partnership.