The Federal Executive Council (FEC) has approved new funding packages to modernise power infrastructure across the country, in a bid to boost electricity supply and strengthen industrial growth.
The approvals were announced by the Minister of Power after Wednesday’s FEC meeting chaired by President Bola Tinubu at the Presidential Villa in Abuja. He said the council endorsed four key proposals, marking a new phase in the country’s power sector transformation agenda.
One of the approvals involves the resumption of compensation payments for right-of-way access under the Lagos Industrial Transmission Project. The project, supported by a $238 million loan from the Japan International Cooperation Agency (JICA), will see ₦13 billion allocated to affected property owners and communities along the transmission corridor.
According to the minister, the project will deliver stable and dedicated electricity to industrial zones in Lagos and Ogun States, giving manufacturers reliable supply for production and reducing operational costs. He described the development as a major step toward strengthening Nigeria’s industrial base, boosting job creation, and advancing the government’s goal of powering local industries to reduce dependence on imports.
The minister further revealed that FEC approved the procurement of 14 high-capacity transformers to replace aging equipment across the national grid. The transformers, valued at $34 million and an additional ₦5.2 billion, include two 150MVA units, five 100MVA units, five 60MVA units, and two 30MVA units.
He explained that much of the country’s power grid is over 50 years old, with weak and overloaded transformers frequently causing system failures. Replacing outdated infrastructure, he said, will ease pressure on the grid, improve wheeling capacity, and enhance efficiency in power delivery to homes, businesses, and industries.
The minister stressed that stable electricity is central to industrialisation, poverty reduction, and sustainable economic growth, assuring that the new measures will expand access to reliable power nationwide.
He described the approvals as “good news for Nigerians,” reaffirming the government’s commitment to ensuring that ongoing power sector reforms translate into tangible improvements in the lives of citizens and in the competitiveness of local industries.
