FEC approves N13bn for Lagos-Ogun transmission project, $34m for transformers procurement

The federal executive council (FEC) has approved the sum of N13 billion for right-of-way compensation under the Lagos-Ogun transmission project.

Adebayo Adelabu, minister of power, announced the approval while briefing journalists on Wednesday after the council meeting, chaired by President Bola Tinubu in Abuja.

He said the Lagos-Ogun transmission project, valued at $238 million, is being financed by the Japan International Cooperation Agency (JICA).

The minister said the council also approved $34 million for the purchase and installation of high-capacity transformers to strengthen the country’s ageing national electricity grid infrastructure.

He said the budgetary approvals are a key part of the administration’s renewed plan to upgrade Nigeria’s power transmission network, aimed at improving electricity reliability in the face of growing demand.

“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),” he said.

“This project aims to bolster power supply to major industrial clusters in Lagos, which contribute significantly to Nigeria’s manufacturing output.”

Adelabu said once completed, the project will guarantee that “our industrial estates receive dedicated and stable electricity, which is essential in driving economic growth and generating employment opportunities”.

‘TRANSFORMER UPGRADE INITIATIVE TO GULP $34M’

On the transformer upgrade initiative, he said a total funding package of $34 million plus an additional N5.2 billion has been allocated to cover related expenses.

He said the funds will be used to procure and deploy critical transformer units to replace obsolete and overloaded equipment on the national grid.

The upgrade, Adelabu said, will deliver 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 said.

Adelabu said the national grid is outdated, with some infrastructure in operation for more than 50 years.

“Numerous transformers, cables, and related parts have grown weak and prone to failure,” he 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 latest approvals as significant strides in the Tinubu-led federal government’s broader power sector reform strategy.

He said the agenda focuses on eliminating transmission bottlenecks, reducing system collapses, and laying the groundwork for sustainable economic growth through dependable electricity supply.