Thursday, August 14, 2025 - The Federal Executive Council (FEC) has approved major funding to upgrade power infrastructure across the country, in a bid to boost electricity supply and support national industrial growth.
Minister of Power, Adebayo Adelabu, disclosed this after
Wednesday’s FEC meeting chaired by President Bola Tinubu at the Presidential
Villa, Abuja.
He said four key proposals were approved, marking a new
phase in the country’s ongoing power sector transformation agenda.
Adelabu said that the first approved proposal involves the
resumption of compensation payments for right-of-way access for key industrial
and transmission projects.
”FEC approved N13 billion for compensation under the Lagos
Transmission Industrial Project, backed by a $238 million loan from the Japan
International Cooperation Agency (JICA).
“The request submitted was approval for the sum of 13
billion naira for the Lagos trans industrial of transmission project which is
being funded through a $230 million development loan from Japanese
International Cooperation Agency jaika.
“This project, when completed, will not only improve
capacity and credibility of power supply along the industrial axis of Lagos
Ogun, it will also be good news for industrial development and ensure that
industries around that axis enjoy improved supply.”
The minister said the project will boost electricity to
industrial corridors in Lagos and Ogun States, ensuring manufacturers receive
stable power supply.
“This funding covers compensation to property owners and
communities affected by the transmission lines’ route.”
“Once completed, the Lagos Industrial Transmission Project
will ensure that our industrial estates have the dedicated, stable power they
need to drive economic growth and create jobs,” the minister said.
Adelabu said the project supports the government’s vision to
“use what we produce and produce what we use” by powering local industries and
reducing reliance on imports.
He stressed that stable electricity is vital for
industrialisation, job creation, and sustainable economic development.
He added that the remaining three approved proposals relate
to the procurement of new power transformers to upgrade the aging national
grid.
“The other three papers were actually in respect of approval
for procurement of various grids of power transformers to replace weak and
dilapidated ones across the national grid.
“If this is done, it will not only enhance power supply, but
to also relieve overloaded power transformers that is operating across the
national grid, and this will also enable us to cope with the increased wheeling
capacity of the national grid.
He noted that much of the national grid is over 50 years old
and struggles with frequent overloads and equipment failures.
“Many of the transformers, cables and related components are
weak and prone to failure. Regular maintenance and timely replacement are
essential if we are to achieve a stable, reliable and effective grid that meets
the needs of households, offices, small businesses and industries.”
To address this, he said FEC approved the purchase of 14 high-capacity
transformers costing $34 million, plus an additional N5.2 billion.
“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 said the upgrades will ease pressure on
overstretched sections of the grid and improve system efficiency.
He added that enhanced transformer capacity will help the
grid support increased electricity generation and wheeling capabilities.
He emphasised the need for continuous maintenance and
modernization to avoid breakdowns and ensure uninterrupted supply.
Adelabu assured Nigerians of improved electricity access
across homes, offices, small businesses, and industries.
The minister described the development as “good news for
Nigerians,” saying reliable power is essential for growth and competitiveness.
He reaffirmed the government’s commitment to ensuring that
the power sector reforms translate into tangible improvements in the daily
lives of citizens
 approves $34m, N13 bn for power sector transformation){kind=link}
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