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The Federal Executive Council (FEC) has approved four critical reforms aimed at strengthening Nigeria’s national electricity grid and addressing the country’s power sector challenges.
The approval, announced on Wednesday, comes as part of the government’s renewed efforts to modernise transmission infrastructure, improve supply reliability, and meet the rising electricity demand nationwide.
Naija News reports that the Minister of Power, Adebayo Adelabu, announced the development after the FEC meeting, which was presided over by President Bola Tinubu.
The first major approval was the release of ₦13 billion for compensation related to the Lagos Industrial Transmission Project.
This initiative is part of a broader strategy to modernise transmission infrastructure in Lagos and its surrounding industrial hubs.
Adelabu explained that the project, funded through a $238 million development loan from the Japan International Cooperation Agency (JICA), targets improving power supply to key industrial clusters in Lagos.
“This funding covers compensation to property owners and communities affected by the transmission lines’ route,” Adelabu said.
“Once completed, the Lagos Industrial Transmission Project will ensure that our industrial estates have the dedicated, stable power they need to drive economic growth and create jobs.”
New High-Capacity Transformers for National Grid
In addition to the compensation approval, three more reforms were endorsed by FEC, focusing on improving Nigeria’s power supply infrastructure.
These include the procurement and installation of high-capacity transformers to replace weak, overloaded, and obsolete units currently on the national grid.
The procurement, valued at $34 million, will be supplemented by ₦5.2 billion for associated costs. The package includes:
- Two units of 150MVA 330/132kV transformers
- Three units of 100MVA 132/33kV transformers
- Five units of 60MVA 132/33kV transformers
- Two units of 30MVA 132/33kV transformers
Adelabu stated, “These transformers will be deployed strategically across the grid to relieve overloaded facilities, improve voltage stability, and accommodate the increased transmission capacity we are building.”
The Minister described Nigeria’s national grid as ageing, noting that many components, such as transformers and cables, had been in operation for over five decades and were operating beyond their intended lifespan.
“Many of the transformers, cables and related components are weak and prone to failure,” Adelabu acknowledged.
“Regular maintenance and timely replacement are essential if we are to achieve a stable, reliable and effective grid that meets the needs of households, offices, small businesses and industries.”
He emphasised that the new reforms were part of the Tinubu administration’s broader strategy to eliminate transmission bottlenecks, reduce system collapses, and create a foundation for sustainable economic growth through improved electricity access.
Naija News reports that the latest reforms are seen as a significant step in tackling Nigeria’s power sector woes.
The upgrades are expected to not only address the immediate concerns of grid stability but also serve as a foundation for Nigeria’s long-term economic ambitions, enabling reliable electricity access for all sectors of the economy.
Adelabu stressed that the government’s goal is to ensure the power sector becomes a key driver of economic growth and job creation, with the private sector expected to play a critical role in the execution of these reforms.
The post FEC Approves ₦13 Billion Compensation, $34 Million Transformers Procurement For Power Sector Reforms appeared first on Naija News.
