Abuja: The Federal Executive Council (FEC) has approved significant funding aimed at upgrading power infrastructure across Nigeria. This move seeks to enhance electricity supply and bolster national industrial growth. Minister of Power, Adebayo Adelabu, announced this development following the FEC meeting presided over by President Bola Tinubu at the Presidential Villa.
According to News Agency of Nigeria, Adelabu revealed that four key proposals were approved, marking a significant phase in the country’s ongoing power sector transformation agenda. The first approved proposal focuses on resuming compensation payments for right-of-way access for critical industrial and transmission projects. The FEC approved N13 billion for compensation under the Lagos Transmission Industrial Project, supported by a $238 million loan from the Japan International Cooperation Agency (JICA).
Adelabu highlighted that the Lagos Industrial Transmission Project aims to enhance power supply capacity and reliability along the industrial corridor of Lagos and Ogun States. This enhancement is expected to benefit industrial development and ensure that industries in that area receive improved power supply. The allocated funding will cover compensation to property owners and communities affected by the transmission lines’ route.
The minister noted that the project aligns with the government’s vision of supporting local industries by reducing reliance on imports and promoting the use of local production. He stressed that stable electricity is crucial for industrialization, job creation, and sustainable economic development.
In addition to the compensation payments, the remaining three approved proposals involve procuring new power transformers to upgrade the aging national grid. These upgrades are expected to enhance power supply and relieve overloaded transformers across the national grid. The minister pointed out that much of the national grid infrastructure is over 50 years old, with frequent overloads and equipment failures.
To address these challenges, FEC approved the purchase of 14 high-capacity transformers at a cost of $34 million, along with an additional N5.2 billion. The new transformers will help ease pressure on overstretched sections of the grid and improve overall system efficiency.
Adelabu emphasized the importance of continuous maintenance and modernization to prevent breakdowns and ensure uninterrupted power supply. He assured Nigerians of improved electricity access across homes, offices, small businesses, and industries, highlighting the development as a positive step towards reliable power, which is essential for growth and competitiveness.