FG approves N13bn compensation, $34m transformer procurement to boost power supply
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By Johnbosco Agbakwuru
ABUJA — The Federal Executive Council, FEC, on Wednesday approved four major proposals from the Ministry of Power aimed at reforming and strengthening Nigeria’s national electricity grid.
At a briefing with State House correspondents following the council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja, the Minister of Power, Adebayo Adelabu, revealed that the initiatives seek to modernize ageing transmission infrastructure, enhance power supply reliability, and meet the country’s increasing electricity demand.
According to him, the first approval involves the release of N13 billion as compensation for right-of-way acquisitions under the Lagos Industrial Transmission Project. This project is financed through a $238 million development loan from the Japan International Cooperation Agency (JICA) and targets improved power supply to critical industrial clusters in Lagos, which generate a significant portion of Nigeria’s manufacturing output.
“This funding will compensate property owners and communities affected by the transmission line routes. Upon completion, the Lagos Industrial Transmission Project will provide dedicated, stable power to our industrial estates, fostering economic growth and job creation,” Adelabu explained.
The council also approved the procurement and installation of high-capacity power transformers valued at $34 million, with an additional N5.2 billion allocated for related expenses. The transformers will replace outdated and overloaded units on the national grid.
The transformer procurement includes: wo units of 150 MVA 330/132 kV transformers, three units of 100 MVA 132/33 kV transformers, five units of 60 MVA 132/33 kV transformers, and two units of 30 MVA 132/33 kV transformers
“These transformers will be strategically deployed across the grid to alleviate overloaded facilities, improve voltage stability, and increase transmission capacity,” the minister stated.
Adelabu highlighted that Nigeria’s national grid has been in service for over 50 years, with much of its infrastructure operating beyond its intended lifespan. Many transformers, cables, and components are weak and susceptible to failure.
“Regular maintenance and the timely replacement of these assets are crucial to achieving a stable, reliable, and efficient grid that meets the electricity needs of households, offices, small businesses, and industries,” he emphasized.
The minister affirmed that these approvals represent a significant advancement in the administration’s wider power sector reform agenda. This agenda focuses on resolving transmission bottlenecks, reducing system collapses, and laying the groundwork for sustainable economic growth through improved access to electricity.
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