FG Approves $238m Power Project to Boost Electricity Supply to Lagos Industrial Clusters
The Federal Government has approved a $238 million power supply project aimed at boosting electricity to industrial clusters in Lagos State, in a move designed to enhance manufacturing output and support economic growth.
The approval was granted during the Federal Executive Council (FEC) meeting held on Wednesday and presided over by President Bola Ahmed Tinubu.
According to the Minister of Power, the project will be financed through a development loan from the Japan International Cooperation Agency (JICA) and will focus on the Lagos Industrial Transmission Project.
The initiative seeks to modernise transmission infrastructure feeding Lagos’s key industrial hubs, which are central to Nigeria’s manufacturing and export capacity.
As part of the package, the FEC also approved the release of ₦13 billion as compensation for right-of-way acquisitions, paving the way for the smooth execution of the transmission project. In addition, the council sanctioned the procurement and installation of new transformers worth $34 million, alongside an extra ₦5.2 billion for associated works. The equipment to be supplied includes 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 Minister explained that these upgrades are part of the administration’s broader plan to reform the power sector, strengthen the national grid, and improve the reliability of electricity supply to meet rising demand. By targeting Lagos’s industrial zones, the government aims to reduce production downtime, cut operational costs for manufacturers, and boost job creation.
The $238 million project forms a significant component of the Tinubu administration’s infrastructure agenda, which prioritises energy security as a driver of economic stability. Industry stakeholders have welcomed the move, noting that consistent and reliable power supply remains critical to Nigeria’s ambition of becoming a leading manufacturing hub in Africa.
