Nigeria turns to China for a new $2 billion loan to rebuild ailing power grid

After decades of unreliable electricity and frequent blackouts, Nigeria is seeking a $2 billion lifeline to rebuild its ailing power grid and restore confidence in its industrial energy supply.

Minister of Power, Mr. Adebayo Adelabu, confirmed the development during an economic summit in Abuja, noting that the new grid will connect Nigeria’s eastern and western regions, where a significant proportion of industrial activities are concentrated.

“It is part of the government’s plan to decentralise power generation and encourage large-scale commercial users, who exited the national grid due to its unreliability, to return,” Adelabu stated.

A Persistent Power Deficit

Nigeria’s energy crisis remains one of the most pressing constraints on its economic growth. Despite an installed generation capacity of about 13 gigawatts, the national grid delivers barely 4 gigawatts to more than 200 million citizens.

Frequent blackouts and outdated infrastructure have pushed many factories, businesses, and households to rely on self-generated power from diesel and gas generators.

The resulting operational costs have constrained productivity, raised inflationary pressures, and diminished competitiveness in the manufacturing sector.

By contrast, South Africa, with about a quarter of Nigeria’s population, has an installed generation capacity of roughly 70 gigawatts, underscoring the vast energy gap that continues to constrain Nigeria’s industrial competitiveness.

However, the proposed super grid is expected to enhance transmission efficiency, improve reliability, and ensure greater power delivery to key industrial zones. Minister Adelabu confirmed that the Federal Executive Council has already approved the project’s financing framework.

Expanding China’s Energy Footprint in Africa

The $2 billion super grid loan forms part of President Bola Tinubu’s broader economic and energy reform strategy designed to attract foreign investment and reposition Nigeria as a key player in Africa’s power market.

It also reinforces China’s growing role in financing major infrastructure projects across the continent.

Beyond the EximBank talks, Nigeria has secured $1.1 billion from the African Development Bank (AfDB) to expand electricity access, $70 million from the International Finance Corporation (IFC) for mini-grid development, and $328.8 million from Chinese firm CMEC to upgrade transmission infrastructure.

In October 2023, the government also signed a $2 billion Memorandum of Understanding (MoU) with three Chinese firms to invest in power generation and digital economy projects. In addition, Nigeria and China renewed a $2 billion currency-swap agreement in late 2024 to strengthen bilateral trade and investment ties.

Adelabu’s team confirmed to Bloomberg that discussions with China’s EximBank are ongoing and “progressing positively.”

Tariff Reforms and Financial Stability

The minister further revealed that recent tariff adjustments for urban consumers have improved the financial sustainability of the electricity sector. Industry revenues increased by 70 percent in 2024 and are projected to rise by a further 41 percent this year, reaching ₦2.4 trillion ($1.6 billion).

“These changes will enable power firms to reinvest in infrastructure, expand access, and improve reliability,” Adelabu said.

The tariff reforms, though controversial, are part of the government’s effort to create a cost-reflective pricing system capable of attracting long-term investment.


Powering Africa’s Industrial Ambitions

The “super grid” initiative aligns with President Tinubu’s wider economic reforms, including the removal of fuel subsidies, overhaul of tax laws, and improved security in oil-producing regions to boost crude output.

Since assuming office in 2023, Tinubu has placed energy reform at the heart of his administration’s agenda for industrialisation and job creation.

Despite ongoing interventions, Nigeria’s national grid continues to suffer from instability. Data from the Nigerian Electricity Regulatory Commission (NERC) show multiple partial and total collapses in 2024, including two nationwide blackouts.

Adelabu said the proposed super grid would deploy advanced transmission technology to increase capacity and reduce system failures.


Toward a Regional Power Hub

Nigeria’s energy reform efforts have continental implications. The development of a super grid could not only stabilise domestic supply but also enable the country to export power to neighbouring states through the West African Power Pool (WAPP) framework, advancing regional energy integration.

By Olamilekan Okebiorun, Business Insider Africa

Related story: Chinese firms launch solar project to light up Nigerian capital city

The Dangote Refinery Strike Cost Nigeria 600,000 Barrels of Oil Output

A three-day national strike prompted by layoffs at the Dangote refinery has led to production losses of 600,000 barrels, the chief executive of the Nigerian National Petroleum Company has said.

"I think it was unfortunate that the Dangote and PENGASSAN issue led to strike and whenever there is strike and critical staff manning critical facilities are not available and optimum production is almost impossible. In this particular case, we actually lost significant production of over 200,000 bpd that was deferred," Bayo Ojulari told media.

The main Nigerian oil union launched a nationwide strike last month after the Dangote refinery fired as many as 800 workers. The strike lasted for three days, threatening to reduce fuel supply in the country relying on the new processing facility and in several neighboring countries, which import fuels from Dangote.

The Nigerian oil workers' union, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that the Dangote refinery, owned by Africa's richest man Aliko Dangote, has fired the workers for unionizing. The Dangote management, for its part, said that the dismissals were part of staff restructuring and those dismissed engaged in "acts of sabotage".

The strike came at a time when Nigeria's oil industry is staging a recovery, with oil production on the rise and investments climbing. Production as of September-before the strike-averaged between 1.7 million barrels daily and 1.83 million barrels daily, with active rigs rising from 31 at the start of the year to 50 by July, according to a report from the oil ministry.

According to NNPC's Ojulari, the September average was 1.68 million barrels, which was an increase from August. In natural gas, Nigeria produced 7 billion cubic feet daily last month, the top executive also told media, adding that by the end of the year, oil production should rebound to 1.8 million barrels daily.

By Irina Slav, Oilprice.com

Nigeria’s life expectancy ranked lowest globally

Nigeria now stands as the world’s lowest life expectancy, according to a new United Nations data for 2025, which confirms a national average of just 54.9 years. This statistic, highlighted in the latest UN global health report, places Nigeria behind every other country in the world.

The numbers show men in Nigeria live an average of 54.3 years, while women reach 54.9, each figure far below Africa’s continental average and less than three-quarters of the global benchmark of 73.7 years. For comparison, Chad and the Central African Republic barely surpass Nigeria, with life expectancies of 55.2 and 57.7 years, respectively.

Why is this the case

Experts link Nigeria’s dismal ranking to persistent health system challenges, including a high burden of infectious diseases, poor access to quality care, and frequent health worker strikes. Widespread insecurity, poverty, and environmental pollution compound the crisis, reflecting the broader structural struggles impacting millions of Nigerians daily.

These statistics come at a time of increased focus on global health inequalities, with calls rising for urgent government and international interventions. Public health advocates warn that unless Nigeria addresses critical shortages in medical infrastructure and tackles the underlying socio-economic issues, its population will remain among the world’s most vulnerable.

The UN report underscores that Nigeria’s situation is not simply a health challenge but a warning signal for social and economic progress. As world leaders prepare for upcoming global summits, Nigeria’s record-low life expectancy demands action and stands as a stark reminder of the urgent need for reform.

Africa News

Nigeria’s first national microchip design framework to drive digital sovereignty

The National Information Technology Development Agency (NITDA), in partnership with U.S.-based ChipMango, unveiled Nigeria’s first national microchip design framework, a move seen by many in the industry as a defining step toward digital sovereignty.

For a nation that has long depended on imported technology, the announcement during the GITEX Nigeria 2025 in Lagos marked a bold pivot.

“We are building a future where Nigerian talent leads in semiconductor design,” said Kashifu Inuwa Abdullahi, NITDA’s director general, during the launch. “This framework embodies our vision for digital sovereignty and inclusion, creating jobs, exports, and innovation for generations to come.”

The framework rests on three pillars: capacity building, outsourcing, and policy alignment. Central to this plan is ChipMango’s AI-powered e-learning platform, which will provide Nigerian students with hands-on training, simulation tools, and globally recognised certifications. Already in use in U.S. universities, the platform is designed to turn learners into industry-ready chip designers.

Beyond education, the framework positions Nigeria as a global hub for microchip design outsourcing, linking local talent to international projects worth billions of dollars. Policy integration with President Bola Ahmed Tinubu’s Renewed Hope Agenda and NITDA’s Strategic Roadmap and Action Plan (SRAP 2.0) ensures the initiative is tied to national economic goals.

A distinctive feature is inclusion. Women, often underrepresented in STEM, are placed at the centre of the effort through outreach, mentorship, and scholarship programmes to ensure a diverse and innovative talent pool.

The unveiling also launched the NITDA–ChipMango Innovation Challenge 2025, a nationwide competition inviting students across Nigeria’s six geopolitical zones to design chip-based solutions for healthcare, agriculture, robotics, and AI. Winning teams will gain recognition, mentorship, and industry certification.

For ChipMango’s Nigerian-born CEO, Ola Fadiran, the mission is clear. “This is more than a framework; it is a national strategy,” he said. “Together with NITDA, we are nurturing experts, innovators, and leaders who will power Nigeria’s microchip design economy.

Momentum will continue at Digital Nigeria 2025, where discussions will focus on building a national outsourcing ecosystem around the framework.

For many students in the audience, the launch was more than policy; it was a glimpse into a future where Nigeria’s chips could power the world. As one whispered to a friend, eyes wide with possibility, Maybe the next iPhone chip could come from Nigeria.

By Chinwe Michael, Business Day

Chinese firms launch solar project to light up Nigerian capital city

Two Chinese construction firms, China Civil Engineering Construction Corporation (CCECC) and CGCOC Group Co., Ltd., have officially broken ground on the "Light Up Abuja" project, a flagship infrastructure initiative of Nigeria's Federal Capital Territory Administration (FCTA).

Government officials and residents gathered on Thursday for the launch ceremony in Abuja, the Nigerian capital, which marked the start of comprehensive installations of advanced hybrid solar streetlights across the city -- a move expected to significantly enhance security and urban development.

The project, divided into two main parts, assigns CCECC and CGCOC key responsibilities for delivering integrated solar lighting systems across major districts and expressways in the FCTA.

Speaking at the ceremony, FCTA Minister Nyesom Wike highlighted the project's importance in improving residents' quality of life and safety. He noted that conventional streetlights had become largely dysfunctional due to vandalism and poor maintenance, while the new hybrid solar systems are equipped with built-in resilience and advanced features to overcome these challenges.

A key innovation, Wike said, is the integration of surveillance modules into the streetlights. These will connect to a centralized control room, enabling real-time monitoring and rapid response to vandalism and other security threats. This technology, he added, is expected to deter criminal activity and safeguard government investments in public infrastructure.

Wike hailed the deepening comprehensive strategic partnership between China and Nigeria in infrastructure development, describing the project as a tangible outcome of President Bola Tinubu's state visit to Beijing in September 2024 and a reinforcement of the mutually beneficial ties between the two countries.

Scheduled for completion within six to seven months, the project aims to transform Abuja's nighttime landscape ahead of the city's 50th anniversary in 2026. Under the agreement, the two Chinese firms will not only install but also maintain the solar lighting systems for four to five years.

"This project actually captures all the major areas of Abuja. As we all know, light is essential to our lives and livelihood. In this work, what we will deliver to Nigerians is not only the streetlight, but we will also proffer solutions to power supply and lighting problems, using solar energy," said Guan Shuai, managing director of CCECC in Nigeria.

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