The Federal Executive Council (FEC) has approved ₦13 billion in compensation payments for the Lagos Transmission Industrial Project. This decision is part of a broader plan to improve Nigeria’s power infrastructure and provide a more stable electricity supply for industrial growth.
Lagos Power Project
The ₦13 billion compensation will be paid to property owners and communities affected by the transmission lines. This project is funded by a $238 million loan from the Japan International Cooperation Agency (JICA).
According to Adebayo Adelabu, Minister of Power, the Lagos Industrial Transmission Project will:
- Boost electricity supply to key industrial areas in Lagos and Ogun states.
- Support economic growth by giving manufacturers the stable power they need to operate efficiently.
- Create jobs and help Nigeria reduce its reliance on imported goods.
National Grid Upgrades
In addition to the Lagos project, the FEC also approved three proposals to upgrade the aging national grid. Many parts of the grid are over 50 years old and suffer from frequent overloads and equipment failures.
To address this, the government has approved the purchase of 14 high-capacity transformers at a cost of $34 million plus an additional ₦5.2 billion. The new transformers will:
- Replace old and weak transformers across the national grid.
- Relieve pressure on overloaded sections of the grid.
- Improve system efficiency and increase the national grid’s capacity to transport power.
Minister Adelabu stated that these upgrades are “good news for Nigerians” and will lead to tangible improvements in electricity access for homes, businesses, and industries.
