The Federal Executive Council (FEC) has approved ₦13 billion in compensation payments for the Lagos Transmission Industrial Project, a flagship initiative designed to modernize Nigeria’s power infrastructure and deliver stable electricity to industrial hubs in Lagos and Ogun States.
Minister of Power Adebayo Adelabu announced the decision on Wednesday after the FEC meeting chaired by President Bola Ahmed Tinubu in Abuja. He said the project is funded through a $230 million loan from the Japan International Cooperation Agency (JICA) and will significantly boost industrial productivity.
“Once completed, this project will improve the capacity and credibility of power supply along the industrial axis of Lagos and Ogun, ensuring our factories and manufacturers enjoy the stable power they need to drive economic growth and create jobs,” Adelabu said.
The ₦13 billion covers compensation for property owners and communities affected by the transmission line’s route. According to Adelabu, the project aligns with the Tinubu administration’s push to “use what we produce and produce what we use,” by powering local industries and cutting dependence on imports.
Major National Grid Overhaul Approved
In addition to the Lagos project, FEC approved three separate proposals to procure high-capacity transformers aimed at replacing aging and overloaded units across the 50-year-old national grid.
The upgrade package includes 14 new transformers valued at $34 million plus ₦5.2 billion, comprising:
- 2 × 150MVA 330/132/33kV units
- 5 × 100MVA 132/33kV units
- 5 × 60MVA 132/33kV units
- 2 × 30MVA 132/33kV units
Adelabu said the upgrades will relieve pressure on overstretched grid sections, improve system efficiency, and help Nigeria cope with its expanding wheeling capacity.
“This is good news for Nigerians. Reliable power is not just about comfort; it is the backbone of industrialisation, job creation, and sustainable economic development,” he stressed.
The minister assured citizens that the reforms will translate into tangible improvements in electricity access for homes, offices, small businesses, and industries nationwide.
