The Federal Executive Council (FEC) has approved the release of N13 billion to settle right-of-way compensation claims for communities and property owners impacted by the Lagos-Ogun Transmission Project.
Minister of Power, Adebayo Adelabu, disclosed this to State House correspondents on Wednesday following the council’s weekly meeting presided over by President Bola Tinubu in Abuja.
The $238 million transmission project, financed through a development loan from the Japan International Cooperation Agency (JICA), is designed to enhance electricity supply to Lagos’ major industrial hubs, which are key contributors to Nigeria’s manufacturing output.
“The N13 billion will be used to compensate property owners and communities affected by the transmission line routes,” Adelabu explained. “Once completed, this project will ensure that our industrial estates receive dedicated and stable electricity, which is critical for economic growth and job creation.”
In a related move, FEC also approved $34 million and an additional N5.2 billion for the procurement and installation of high-capacity transformers, part of ongoing efforts to modernize Nigeria’s aging national grid.
The funds will cover the purchase of:
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
“These transformers will be strategically deployed across the network to relieve overloaded substations, improve voltage stability, and support new transmission capacity currently under development,” Adelabu said.
He highlighted the urgent need for such upgrades, noting that much of Nigeria’s transmission infrastructure is decades old and prone to failure. “Routine maintenance and timely replacements are essential to ensure a stable and reliable grid for households, businesses, and industries,” he added.
Adelabu described the approvals as major milestones in the Tinubu administration’s power sector reforms, aimed at eliminating transmission bottlenecks, reducing system collapses, and laying the foundation for sustainable economic growth through dependable electricity supply.
