Federal Government Approves ₦13 Billion Compensation And $34 Million For Transformer Procurement.
The Federal Executive Council (FEC) has authorised a significant investment to strengthen Nigeria’s electricity infrastructure, approving ₦13 billion for right-of-way compensation under the Lagos Industrial Transmission Project and $34 million for the procurement of high-capacity transformers. The announcement, made on Wednesday, 13 August 2025, represents a crucial step towards tackling the nation’s persistent power supply issues.
The Minister of Power, Adebayo Adelabu, disclosed details of the approvals during a briefing with State House correspondents after the FEC meeting, chaired by President Bola Tinubu at the Presidential Villa in Abuja. These initiatives form part of a wider effort to modernise Nigeria’s ageing national grid, enhance reliability, and meet the increasing electricity demands of households, businesses, and industrial hubs.
The ₦13 billion allocation will compensate property owners and communities impacted by the Lagos Industrial Transmission Project, funded by a $238 million development loan from the Japan International Cooperation Agency (JICA). This project aims to provide stable, dedicated power to industrial clusters in Lagos, a key hub for Nigeria’s manufacturing sector. “Once completed, this initiative will ensure our industrial estates benefit from reliable electricity, boosting economic growth and job creation,” Adelabu said.
In addition, the FEC approved $34 million, alongside an additional ₦5.2 billion for related costs, to procure and install high-capacity transformers. These include two 150 MVA 330/132 kV transformers, three 100 MVA 132/33 kV transformers, five 60 MVA 132/33 kV transformers, and two 30 MVA 132/33 kV transformers. The new equipment will replace outdated and overloaded units, improving voltage stability and expanding transmission capacity across the national grid.
Adelabu emphasised the urgency of these upgrades, pointing out that much of Nigeria’s grid infrastructure, operational for over 50 years, is susceptible to failures due to ageing components. “Regular maintenance and timely replacement of transformers, cables, and other equipment are vital for a stable and efficient grid that supports homes, offices, small businesses, and industries,” he noted.
These approvals align with the Tinubu administration’s comprehensive power sector reform agenda, which aims to eliminate transmission bottlenecks, reduce system collapses, and promote sustainable economic growth through improved electricity access. The minister expressed confidence that the projects would significantly enhance the reliability of Nigeria’s power supply, paving the way for industrial and economic progress.
Industry stakeholders have greeted the FEC’s decision with cautious optimism, seeing it as a critical move to address Nigeria’s longstanding power challenges. As the nation awaits the implementation of these initiatives, there is hope that they will deliver meaningful improvements in electricity supply, supporting economic development and enhancing the daily lives of millions of Nigerians.