The Federal Government plans to invest $2 billion in a new electricity transmission network to increase Nigeria’s capacity to move power across the country to 19,000 megawatts as persistent infrastructure weaknesses continue to limit electricity supply to businesses and households.
The proposed East-West Super Grid will connect major transmission corridors across six locations, including Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, providing an additional route for distributing electricity between generating plants and consumption centres.
Minister of Power Joseph Tegbe disclosed the plan on Monday, November 9, 2026, saying the government had commenced procurement following presidential approval.
Construction is expected to take approximately 18 to 24 months, although the government has not provided a confirmed commencement date or a detailed breakdown of the project’s financing arrangements.
The investment is intended to address one of the most significant weaknesses in Nigeria’s electricity industry: the inability of the existing transmission network to reliably transport available electricity to consumers.
Despite substantial investments in power generation over the years, Nigeria continues to struggle with grid instability, transmission bottlenecks and inadequate electricity distribution.
These problems have forced manufacturers, commercial establishments and households to depend heavily on generators and alternative energy sources, increasing operating costs and weakening business competitiveness.
The proposed super grid would complement the existing national transmission system rather than replace it.
However, expanding transmission capacity to 19,000MW will not automatically translate into an equivalent amount of electricity available to consumers.
Actual electricity supply will still depend on generating companies producing sufficient power, gas suppliers meeting their obligations and distribution companies maintaining the infrastructure required to deliver electricity to customers.
The government is also confronting substantial financial obligations across the electricity market.
According to Tegbe, approximately N1.23 trillion has been paid towards an estimated N3.3 trillion owed to electricity generation companies, leaving outstanding obligations of roughly N2 trillion.
The debts have weakened the ability of generating companies to meet their financial commitments, including payments to gas suppliers and expenditure on equipment maintenance.
The minister also identified underutilised power stations operated by the Niger Delta Power Holding Company as a potential source of additional electricity.
Although the facilities have combined installed capacity exceeding 3,000MW, their current contribution to the national grid is estimated at approximately 400MW.
Improving their utilisation could increase electricity supply without requiring the construction of entirely new generating stations.
Nevertheless, the success of the proposed $2 billion transmission project will depend on the government’s ability to secure financing, complete procurement transparently and coordinate improvements across electricity generation, transmission and distribution.
For Nigerian businesses, the critical measure will not be the size of the transmission network alone but whether the investment produces more reliable electricity and reduces dependence on costly self-generation.
Until these operational and financial constraints are addressed, additional transmission infrastructure may improve the grid’s potential capacity without delivering a corresponding increase in electricity available to consumers.