The Federal Executive Council has approved N13 billion for compensation under the Lagos Transmission Industrial Project, as part of efforts to modernize Nigeria’s power infrastructure and boost electricity supply for industrial development.

Minister of Power Adebayo Adelabu announced this on Wednesday following the FEC meeting chaired by President Bola Tinubu in Abuja.

He noted that four key proposals were approved, signaling a new phase in the nation’s ongoing power sector transformation.

Adelabu stated that the first approved proposal entails the resumption of compensation payments for right-of-way access for major industrial and transmission projects.

“FEC approved N13 billion for compensation under the Lagos Transmission Industrial Project, backed by a $238 million loan from the Japan International Cooperation Agency (JICA).

“The request submitted was approved for the sum of 13 billion naira for the Lagos trans-industrial transmission project, which is being funded through a $230 million development loan from the Japanese International Cooperation Agency (JICA).

‎“This project, when completed, will not only improve capacity and credibility of power supply along the industrial axis of Lagos and Ogun, but it will also be good news for industrial development and ensure that industries around that axis enjoy improved supply,” Adelabu said.

The minister said the project will enhance electricity supply to industrial corridors in Lagos and Ogun States, providing manufacturers with a more reliable power source.

“This funding covers compensation to property owners and communities affected by the transmission lines’ route.

‎“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,” he added.

Adelabu noted that the project aligns with the government’s vision to “use what we produce and produce what we use,” by powering local industries and reducing dependence on imports.

He emphasized that stable electricity is crucial for industrialization, job creation, and sustainable economic growth.

The minister added that the Council also approved three proposals for procuring new power transformers to modernize the aging national grid.

“The other three papers were actually in respect of approval for procurement of various grids of power transformers to replace weak and dilapidated ones across the national grid.

‎“If this is done, it will not only enhance power supply, but also relieve overloaded power transformers that are operating across the national grid, and this will also enable us to cope with the increased wheeling capacity of the national grid,” the Minister said.

He highlighted that much of the national grid is over 50 years old and prone to frequent overloads and equipment failures.

To tackle these challenges, he said the FEC approved the purchase of 14 high-capacity transformers at a cost of $34 million, along with an additional N5.2 billion.