The Federal Executive Council (FEC) has given the green light for the release of N13 billion to settle right-of-way compensation claims for communities and property owners affected by the Lagos-Ogun transmission project.
Minister of Power, Adebayo Adelabu, disclosed this to State House correspondents on Wednesday after the council’s weekly meeting presided over by President Bola Tinubu in Abuja.
According to Adelabu, the transmission project—valued at $238 million—is being financed through a development loan from the Japan International Cooperation Agency (JICA) and is targeted at improving electricity supply to major industrial hubs in Lagos.
“The N13 billion will be utilised to compensate property owners and communities affected by the transmission line routes under the Lagos-Ogun Transmission Project, which is being financed by a $238 million development loan from the Japan International Cooperation Agency (JICA),” Adelabu explained.
“This project aims to bolster power supply to major industrial clusters in Lagos, which contribute significantly to Nigeria’s manufacturing output,” he added.
The minister assured that, once completed, the initiative will guarantee that “our industrial estates receive dedicated and stable electricity, which is essential in driving economic growth and generating employment opportunities.”
In a related development, FEC also approved $34 million and an additional N5.2 billion for the purchase and installation of high-capacity transformers as part of efforts to modernise Nigeria’s ageing national grid.
Adelabu said the funds will cover the procurement of two units of 150MVA 330/132kV transformers, three units of 100MVA 132/33kV transformers, five units of 60MVA 132/33kV transformers, and two units of 30MVA 132/33kV transformers.
“These transformers will be positioned strategically across the network to alleviate pressure on overloaded substations, improve voltage stability, and accommodate the new transmission capacity that is currently being developed,” he noted.
He expressed concern that much of Nigeria’s transmission infrastructure is decades old.
“Numerous transformers, cables, and related parts have grown weak and prone to failure,” Adelabu said. “It is imperative that we institute routine maintenance and timely replacements to maintain a stable and dependable grid that meets the needs of households, offices, small businesses, and industries.”
The minister described the approvals as “significant strides” in the Tinubu administration’s broader power sector reforms, aimed at eliminating transmission bottlenecks, reducing system collapses, and laying the foundation for sustainable economic growth through dependable electricity supply.
