The Federal Executive Council (FEC) has approved N13 billion in compensation payments for the Lagos Transmission Industrial Project as part of efforts to modernise Nigeria’s power infrastructure and boost electricity supply for industrial growth.
Minister of Power, Adebayo Adelabu, announced this on Wednesday after the council’s meeting chaired by President Bola Tinubu in Abuja.
He said four major proposals were approved, signalling a new phase in Nigeria’s power sector transformation agenda. The first involves resuming compensation for right-of-way access on key industrial and transmission projects.
According to Adelabu, the N13 billion is part of a project funded by a $230 million development loan from the Japan International Cooperation Agency (JICA).
The Lagos Industrial Transmission Project, he explained, will improve power capacity along industrial corridors in Lagos and Ogun, benefitting manufacturers with stable supply.
The funds will cover compensation for property owners and communities along the transmission route.
“This project will ensure our industrial estates get the dedicated, stable power they need to drive economic growth and create jobs,” Adelabu said, adding that it aligns with the government’s vision to boost local production and reduce imports.
Grid Upgrades Approved
FEC also approved three proposals for the procurement of 14 high-capacity transformers to replace aging, overloaded units on the national grid, much of which is over 50 years old.
Valued at $34 million and an additional N5.2 billion, the new equipment includes two 150MVA, five 100MVA, five 60MVA, and two 30MVA units.
Adelabu said the upgrades will ease pressure on overstretched sections, improve efficiency, and enhance electricity supply across homes, businesses, and industries.
Describing the development as “good news for Nigerians,” the minister reaffirmed the government’s commitment to delivering reliable power as a foundation for industrialisation, job creation, and sustainable economic growth.
