The Federal Executive Council (FEC) has approved ₦13 billion in compensation for property owners and communities affected by the Lagos-Ogun transmission project, as part of a broader push to overhaul Nigeria’s ageing electricity infrastructure.
Minister of Power Adebayo Adelabu announced the approvals on Wednesday while briefing journalists after the council meeting presided over by President Bola Tinubu at the State House, Abuja.
The Lagos-Ogun transmission project, valued at $238 million, is financed through a development loan from the Japan International Cooperation Agency (JICA). According to Adelabu, the ₦13 billion allocation will specifically cover right-of-way compensation along the transmission line route.
“This project aims to bolster power supply to major industrial clusters in Lagos, which contribute significantly to Nigeria’s manufacturing output,” the minister said. “Once completed, it will ensure industrial estates receive dedicated and stable electricity — a key driver of economic growth and job creation.”
Transformer Upgrade Initiative
In a separate approval, FEC also cleared a $34 million package, plus an additional ₦5.2 billion, for the purchase and installation of high-capacity transformers to strengthen the national grid.
The investment will deliver:
- 2 units of 150MVA 330/132kV transformers
- 3 units of 100MVA 132/33kV transformers
- 5 units of 60MVA 132/33kV transformers
- 2 units of 30MVA 132/33kV transformers
Adelabu said these transformers will be strategically deployed to relieve overloaded substations, improve voltage stability, and accommodate increased transmission capacity from ongoing projects.
Aging Grid Under Pressure
The minister admitted that parts of Nigeria’s national grid have been in operation for more than 50 years, with transformers, cables, and other critical components now prone to frequent failure.
“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,” he said.
Adelabu described the latest FEC approvals as “significant strides” in the Tinubu administration’s power sector reform agenda, which prioritises:
- Eliminating transmission bottlenecks
- Reducing system collapses
- Laying the foundation for sustained economic growth through reliable electricity supply
