FG Approves ₦13bn Compensation, $34m Transformer Procurement to Boost Power Supply
The Federal Executive Council (FEC) has approved two major funding packages aimed at strengthening Nigeria’s electricity transmission network, including ₦13 billion for compensation payments and $34 million for the procurement of high-capacity transformers.
According to the Minister of Power, Bayo Adelabu, the ₦13 billion allocation will be used to pay compensation to property owners affected by right-of-way acquisitions for the Lagos Industrial Transmission Project.
The project, funded by a $238 million loan from the Japan International Cooperation Agency (JICA), is designed to modernize transmission infrastructure serving industrial clusters in Lagos, enhancing power delivery to key economic zones.
In a separate approval, FEC endorsed the procurement and installation of multiple high-capacity transformers valued at $34 million, alongside an additional ₦5.2 billion for related costs. The purchase list includes two 150 MVA 330/132 kV transformers, three 100 MVA 132/33 kV units, five 60 MVA 132/33 kV units, and two 30 MVA 132/33 kV transformers.
Adelabu explained that these measures are targeted at eliminating transmission bottlenecks, improving voltage stability, and ensuring greater grid reliability nationwide. He noted that the government’s continued investment in the power sector reflects its determination to meet Nigeria’s growing electricity demand while promoting industrial productivity.
The approvals come amid renewed emphasis on infrastructure upgrades and policy reforms to stabilize power supply, with the Ministry of Power projecting significant improvements once the projects are completed.
