The Federal Executive Council (FEC) has approved four major reforms aimed at overhauling Nigeria’s ageing national electricity grid, in a renewed push to boost supply reliability and meet growing demand.
Minister of Power, Adebayo Adelabu, announced the approvals after the FEC meeting at the State House, Abuja, presided over by President Bola Ahmed Tinubu.
According to Adelabu, the first approval authorised the release of ₦13 billion in compensation for right-of-way acquisitions under the Lagos Industrial Transmission Project, funded through a $238 million development loan from the Japan International Cooperation Agency (JICA). The initiative targets power supply to key industrial clusters in Lagos, which account for a significant share of the country’s manufacturing output.
“This funding covers compensation for property owners and communities along the transmission route. Once completed, the project will ensure dedicated, stable power for our industrial estates, driving economic growth and creating jobs,” the minister said.
The other three approvals focus on the procurement and installation of high-capacity transformers to replace obsolete, overloaded units nationwide. The $34 million investment, plus ₦5.2 billion in related costs, will fund:
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
“These transformers will be strategically deployed to relieve overloaded facilities, improve voltage stability, and support the increased transmission capacity we are building,” Adelabu stated.
The minister described the national grid as an ageing system, with some infrastructure in service for over five decades. “Many transformers, cables, and components are weak and prone to failure. Without regular upgrades, we can’t achieve a stable, reliable, and effective grid for households, offices, small businesses, and industries,” he warned.
Adelabu said the approvals form part of the Tinubu administration’s broader power sector reform agenda to eliminate transmission bottlenecks, reduce system collapses, and lay the groundwork for sustainable economic growth through better electricity access.
