Keypoints
- FG targets 6,000MW electricity wheeling capacity before December 2026.
- Power Minister Joseph Tegbe says 20 transmission projects will be commissioned before year-end.
- Ijora substation capacity rises from 90MVA to 230MVA following transformer upgrades.
- The Ijora project adds about 125MW of bulk transmission capacity.
- World Bank approves additional $200m for Nigeria’s DARES off-grid electricity programme.
- DARES has reached 5.3 million Nigerians against a 16.2 million target.
Main Story
The Federal Government has set a target to increase Nigeria’s electricity wheeling capacity to 6,000 megawatts before December 2026, as it intensifies investment in transmission infrastructure to improve the movement of available power to homes, businesses and industries.
The Minister of Power, Joseph Tegbe, disclosed this in Lagos while commissioning two new 100 MVA, 132/33 kV transformers at the Ijora Transmission Substation.
Tegbe also announced plans to commission 20 transmission projects before the end of the year, saying the investments were part of efforts to strengthen the national grid and increase its capacity to evacuate available electricity from generation plants.
According to him, the Federal Government’s priority is not simply to increase generation but to build a power system capable of reliably delivering electricity to consumers at the required quality and cost.
“The objective of this commitment is not just to generate more megawatts. The objective is to create a power system that can reliably deliver electricity to where it is needed, when it is needed, and at a quality and cost that supports economic activity.”
The minister said the Ijora upgrade was particularly significant because the substation serves one of Lagos’ major economic corridors, with industries, ports, commercial centres and communities depending on the facility.
He explained that the substation previously had three 30 MVA transformers, giving it an installed capacity of 90 MVA. Two of the transformers have now been replaced with 100 MVA units, taking the total installed capacity to 230 MVA.
Tegbe said the upgrade represents approximately 184MW of capacity and provides an additional 125MW of bulk transmission capacity, which he expects to translate into greater economic value.
The project is expected to improve electricity supply to Ijora, Costain, Oyigbo, Customs and Ajegunle, while supporting businesses and consumers within the Eko Electricity Distribution Company franchise area.
Earlier, Tegbe unveiled a 2×60 MVA, 132/33 kV gas-insulated switchgear substation on Apapa Road, funded by the Japan International Cooperation Agency.
He said strengthening transmission infrastructure was essential to achieving President Bola Tinubu’s ambition of transforming Nigeria into a $1 trillion economy, noting that transmission had historically constituted a major constraint to the performance of the electricity sector.
World Bank approves $200m for off-grid power
Meanwhile, the World Bank has approved an additional $200 million financing for Nigeria’s off-grid electricity sector under the Distributed Access through Renewable Energy Scale-Up (DARES) programme.
The funding is expected to support the deployment of solar mini-grids and other decentralised renewable-energy systems in communities, businesses and public institutions that remain underserved by the national grid.
The intervention comes amid persistent challenges of unreliable electricity, high energy costs and limited grid coverage, which have forced many businesses, particularly MSMEs, to depend heavily on petrol and diesel generators.
Under DARES, the Federal Government and development partners are also seeking to expand private-sector participation in the off-grid market, creating opportunities for renewable-energy companies, mini-grid developers, equipment suppliers and other players in the clean-energy value chain.
The programme is particularly targeted at areas where extending the conventional grid is technically difficult or economically unviable.
DARES reaches 5.3m Nigerians
DARES has so far reached 5.3 million Nigerians, against a target of 16.2 million people by the close of the programme.
Solar home unit deployment stands at 1.046 million, compared with a target of 2.75 million.
The World Bank released the additional funding after Nigeria met four performance conditions under the programme, although it continues to rate the country’s political and macroeconomic risks as high.
Mini-grid reforms create investment opportunities
Alongside the financing, changes to Nigeria’s mini-grid regulatory framework are expected to provide clearer operating guidelines for developers and improve the environment for private investment.
A more predictable regulatory framework could encourage renewable-energy companies to expand mini-grid projects as demand for alternative electricity sources increases among households, commercial users and industrial consumers.
For underserved communities, the combination of financing, private-sector participation and regulatory reforms could provide an alternative to waiting for conventional grid expansion.
The Issues
Nigeria’s electricity challenge extends beyond generation. Even when additional power is available, inadequate transmission and distribution infrastructure can prevent it from reaching consumers.
The country also faces a significant electricity-access gap, particularly in communities where extending the national grid is costly or technically challenging.
For businesses, unreliable electricity translates into higher operating costs because of dependence on diesel and petrol generators. The success of the current interventions will therefore depend not only on the number of projects commissioned but on whether they produce measurable improvements in reliability, affordability and access.
What’s Being Said
Joseph Tegbe, Minister of Power
“The most important thing is to be able to wheel comfortably, 6,000 megawatts before December.”
Tegbe said the government was working towards commissioning 20 transmission projects before the end of 2026 as part of efforts to remove structural constraints within the electricity value chain.
He also stressed that the objective was to ensure available electricity could be moved efficiently to where it was needed.
What’s Next
The Federal Government is expected to continue commissioning transmission projects as it works towards its 6,000MW wheeling target before December.
The World Bank’s additional $200 million financing will support further deployment of decentralised renewable-energy systems under DARES, while proposed mini-grid regulatory changes are expected to improve the operating environment for private-sector developers.
The combined interventions are expected to strengthen the national grid while expanding access to electricity in communities beyond the reliable reach of conventional grid infrastructure.
Bottom Line
The Federal Government’s 6,000MW wheeling target and the World Bank’s additional $200 million DARES financing represent a two-track response to Nigeria’s electricity challenge: strengthening the national transmission network while expanding decentralised renewable energy access.
The ultimate measure of success, however, will be whether the investments translate into more reliable electricity for households and businesses, lower dependence on generators and improved productivity across the economy.
