Nigeria’s power sector has received a lifeline from the Federal Executive Council (FEC) with an approval of total investment of #65.2 billion. The sum comprises both ₦13 billion for compensation under the Lagos Transmission Industrial Project and $34 million for the procurement of high-capacity transformers.
The funding aims to stabilise the electricity supply and bolster industrial development nationwide.
Minister of Power, Adebayo Adelabu, announced the approvals following Wednesday’s FEC meeting presided over at the Presidential Villa in Abuja by President Bola Tinubu.
Adelabu revealed that ₦13 billion has been earmarked for compensation under the Lagos Transmission Industrial Project, which is backed by a $238 million development loan from the Japan International Cooperation Agency (JICA). The funds will be used to compensate property owners and communities affected by the transmission line route.
Adelabu stated that the project would significantly enhance the capacity and reliability of power supply along the Lagos-Ogun industrial corridor upon completion, thereby supporting industrial development, and ensuring that manufacturers in the region enjoy improved electricity access.
The minister emphasised that the initiative conforms with the expansive vision of the government to promote local production and reduce import dependence.
“Stable electricity is critical for industrialisation, job creation, and sustainable economic development,” he said.
In addition to the compensation package, FEC approved the procurement of 14 high-capacity power transformers valued at $34 million, alongside an additional ₦5.2 billion in local funding. The transformers are intended to replace ageing and overloaded units across the national grid.
Adelabu noted that much of Nigeria’s power infrastructure is over five decades old and prone to frequent failures. “Many transformers and cables are weak and require urgent replacement. These upgrades will relieve pressure on overstretched sections of the grid and improve overall system efficiency,” he explained.
The new transformers include two 150MVA 330/132/33kV units, five 100MVA 132/33kV units, five 60MVA 132/33kV units, and two 30MVA 132/33kV units.”
The minister stressed the importance of continuous maintenance and modernisation to ensure an uninterrupted power supply to homes, offices, small businesses, and industries.
Adelabu described the approvals as a significant step in the government’s ongoing power sector transformation agenda. He encouraged citizens that the reforms would bring remarkable regeneration in the country’s electricity access and reliability.
“This is good news for Nigerians,” he said. “Reliable power is essential for economic growth, competitiveness, and improving the quality of life.”
The minister reaffirmed the administration’s commitment to delivering sustainable energy solutions that meet the country’s growing demand.