FEC approves ₦13bn compensation, $34m transformer deal to upgrade national grid
By Kunle Sanni –
The Federal Executive Council (FEC) has approved ₦13 billion for right-of-way compensation under the Lagos Industrial Transmission Project and $34 million for the procurement and installation of high-capacity transformers to strengthen Nigeria’s electricity grid.
Minister of Power, Adebayo Adelabu, announced the approvals after Wednesday’s FEC meeting chaired by President Bola Tinubu at the Presidential Villa, Abuja.
Adelabu said the ₦13 billion allocation will compensate property owners and communities affected by transmission line routes for the Lagos project, which is funded through a $238 million loan from the Japan International Cooperation Agency (JICA).
“This project is targeted at boosting power supply to key industrial clusters in Lagos, which account for a significant share of Nigeria’s manufacturing output,” Adelabu said. “When completed, it will provide stable electricity to our industrial estates, drive economic growth, and create jobs.”
The $34 million transformer deal, alongside an additional ₦5.2 billion for related costs, will finance the replacement of weak and overloaded units across the national grid. The procurement includes two 150MVA 330/132kV transformers, three 100MVA 132/33kV transformers, five 60MVA 132/33kV transformers, and two 30MVA 132/33kV transformers.
“These transformers will be deployed strategically to relieve stressed facilities, improve voltage stability, and enhance the transmission capacity we are building nationwide,” the minister explained.
Adelabu described Nigeria’s grid as an ageing network, much of it over 50 years old, with components prone to failure. He stressed that timely upgrades were essential to ensure reliable supply for homes, offices, businesses, and industries.
He said the approvals align with the Tinubu administration’s broader power sector reform agenda aimed at eliminating transmission bottlenecks, reducing system collapses, and providing the stable electricity needed to power sustainable economic growth.
