FEC approves N13bn compensation, $34m transformer procurement to boost power supply

The Federal Executive Council (FEC) on Wednesday approved four major proposals from the Ministry of Power in a renewed drive to reform and strengthen the nation’s national electricity grid.

Minister of Power, Adebayo Adelabu, told journalists at the State House, Abuja, after the FEC meeting presided over by President Bola Tinubu, that the measures aim to modernise ageing transmission infrastructure, improve supply reliability, and meet rising electricity demand nationwide.

He said the first approval was the release of ₦13 billion for compensation on right-of-way acquisitions under the Lagos Industrial Transmission Project, funded through a $238 million development loan from the Japan International Cooperation Agency (JICA).

The project, he noted, is targeted at boosting supply to key industrial clusters in Lagos, which account for a large share of Nigeria’s manufacturing output.

“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,” Adelabu explained.

The other three approvals, according to him, centre on the procurement and installation of high-capacity transformers to replace weak, overloaded, and obsolete units on the national grid.

The equipment procurement is valued at $34 million, with an additional ₦5.2 billion for associated costs.

The breakdown includes: 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.

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“These transformers will be deployed strategically across the grid to relieve overloaded facilities, improve voltage stability, and accommodate the increased transmission capacity we are building,” the minister said.

Adelabu described Nigeria’s national grid as an ageing system, much of which has been in operation for over five decades and is operating beyond its intended lifespan.

“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,” he added.

He assured that the latest approvals represent a significant step in the Tinubu administration’s broader power sector reform agenda, aimed at eliminating transmission bottlenecks, reducing system collapses, and laying a foundation for sustainable economic growth through improved electricity access.