February 12, 2016
On February 11, Japan International Cooperation Agency (JICA) signed a grant agreement (G/A) with the Government of the Federal Republic of Nigeria to provide grant aid of up to 1.317 billion yen for the Project for Emergency Improvement of Electricity Supply Facilities in Abuja
This project will install power capacitor banks at two substations in Abuja—the capital city in the Federal Capital Territory—and neighboring Nasarawa State to reduce the voltage drop in the power transmission system, decrease the transmission power loss in the region and improve the quality of the power supply.
Although Nigeria has an estimated maximum power demand of 12,800 megawatts, the installed generation capacity in the country is only 6,579 megawatts (2013), and due to inadequate expansion of the power transmission network, power outages occur frequently. Given that there is a large power transmission loss, power is available in Abuja and neighboring regions an average of only about eight hours a day from the distant power-generation facilities.
This project will improve these circumstances, upgrading two substations in Abuja and neighboring Nasarawa State, which will stabilize the power supply in the regions served by those substations. This project is expected to provide a stable power supply to approximately 7,000 households. By improving the power supply capacity and reliability, this project is expected to stimulate economic activities and improve the lives of residents. In conjunction with this project, JICA is providing assistance for hydroelectric power plant rehabilitation, solar power generation system development and master plan formulation in the power sector, and continues comprehensive support for further development of power sector in Nigeria.