The Federal Executive Council (FEC) Wednesday approved ₦13 billion for right-of-way compensation for the Lagos Industrial Transmission Project.
The council also approved $34 million for the purchase and installation of high-capacity transformers to strengthen the country’s aging national electricity grid infrastructure.
Minister of Power, Mr Adebayo Adelabu, said this while briefing State House correspondents at the end of the FEC meeting chaired by President Bola Ahmed Tinubu.
He said the approvals form a critical component of the administration’s revitalised agenda to refurbish Nigeria’s power transmission framework, ensuring enhanced reliability of electricity supply amid rising demand.
“The ₦13 billion will be utilized to compensate property owners and communities affected by the transmission line routes under the Lagos Industrial Transmission Project, which is being financed by a $238 million development loan from the Japan International Cooperation Agency (JICA).
“This project aims to bolster power supply to major industrial clusters in Lagos, which contribute significantly to Nigeria’s manufacturing output.
“Once completed, it will guarantee that our industrial estates receive dedicated and stable electricity, which is essential in driving economic growth and generating employment opportunities,” he said.
The minister also announced comprehensive funding plan of $34 million and additional ₦5.2 billion for transformer upgrade initiative.
He said the cost would address the procurement and deployment of critical transformer units designed to replace outdated and overloaded equipment on the national grid.
He said the upgrade includes two units of 150MVA 330/132kV transformers, three units of 100MVA 132/33kV transformers, five units of 60MVA 132/33kV transformers, and two units of 30MVA 132/33kV transformers.
“These transformers will be positioned strategically across the network to alleviate pressure on overloaded substations, improve voltage stability, and accommodate the new transmission capacity that is currently being developed,” he said.
Highlighting a key challenge, the described the national grid as largely antiquated with infrastructure components running for over five decades.
“Numerous transformers, cables, and related parts have grown weak and prone to failure. It is imperative that we institute routine maintenance and timely replacements to maintain a stable and dependable grid that meets the needs of households, offices, small businesses, and industries,” he said.
The minister characterised these latest approvals as significant strides in the Tinubu-led federal government’s broader power sector reform strategy. This agenda is aimed at removing transmission bottlenecks, minimizing system collapses, and establishing a foundation for sustainable economic development through reliable electricity access.
