FG approves $34m, N13bn to boost power supply

The Federal Executive Council (FEC) has approved major funding to upgrade power infrastructure across the country, in a bid to boost electricity supply and support national industrial growth.

‎The Minister of Power, Adebayo Adelabu, disclosed this after the FEC meeting chaired by President Bola Tinubu at the Presidential Villa in Abuja on Wednesday, August 13, 2025.

‎Adelabu said four key proposals were approved, marking a new phase in the country’s ongoing power sector transformation agenda.

‎Adelabu said the first approved proposal involves the resumption of compensation payments for right-of-way access for key industrial and transmission projects.

‎The minister stated: “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 approval for the sum of 13 billion naira for the Lagos trans industrial of transmission project, which is being funded through a $230 million development loan from Japanese International Cooperation Agency.

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

The minister said the project will boost electricity to industrial corridors in Lagos and Ogun States, ensuring manufacturers receive a stable power supply.

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

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‎“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.”

‎Adelabu said the project supports the government’s vision to “use what we produce and produce what we use” by powering local industries and reducing reliance on imports.

‎He stressed that stable electricity is vital for industrialisation, job creation, and sustainable economic development.

‎The minister added that the remaining three approved proposals relate to the procurement of new power transformers to upgrade the national grid.

‎Adelabu noted that much of the national grid is over 50 years old and struggles with frequent overloads and equipment failures.

‎To address this, Adelabu said FEC approved the purchase of 14 high-capacity transformers costing $34 million, plus an additional N5.2 billion.

‎“The new transformers include two 150MVA 330/132/33kV units, five 100MVA 132/33kV units, five 60MVA 132/33kV units, and two 30MVA 132/33kV units,” he stated.

‎The minister said the upgrades will ease pressure on overstretched sections of the grid and improve system efficiency.

‎Adelabu also assured Nigerians of improved electricity access across homes, offices, small businesses, and industries.

The Star