By Jemimah Wellington, JKNewsMedia Correspondent
RIGHT-OF-way compensation totalling N13billion has been approved under the Lagos-Ogun Transmission Project, alongside $34 million for high-capacity transformer upgrades, the Federal Executive Council (FEC) confirmed on Wednesday.
Minister of Power, Adebayo Adelabu, announced the approvals while briefing journalists after the meeting chaired by President Bola Tinubu in Abuja.
The Lagos-Ogun Transmission Project, valued at $238 million, is financed by a development loan from the Japan International Cooperation Agency (JICA).
According to Adelabu, the N13billion allocation will compensate property owners and communities affected by transmission line routes.
The project is designed to enhance electricity supply to major industrial clusters in Lagos, which contribute significantly to Nigeria’s manufacturing output.
“The N13billion will be utilised to compensate property owners and communities affected by the transmission line routes under the Lagos-Ogun Transmission Project, which is being financed by a $238 million development loan from the Japan International Cooperation Agency (JICA),” the minister stated.
He added that upon completion, industrial estates in the project area would receive stable, dedicated electricity to support economic growth and employment creation.
On the transformer upgrade initiative, Adelabu said FEC approved a total of $34 million plus an additional N5.2 billion for related expenses.
This funding will be used to procure and deploy critical transformer units to replace obsolete and overloaded equipment within the national electricity grid.
The planned deployment includes two units of 150MVA 330/132kV transformers, three units of 100MVA 132/33kV transformers, five units of 60MVA 132/33kV transformers, and two units of 30MVA 132/33kV transformers.
The minister said the transformers will be strategically placed to reduce pressure on overloaded substations, enhance voltage stability, and accommodate new transmission capacity currently being developed.
Adelabu noted that much of the national grid infrastructure has been in use for more than five decades, with numerous transformers, cables, and related components now weakened and prone to failure.
He emphasised the importance of regular maintenance and timely replacement to ensure a stable and dependable grid capable of meeting the needs of households, offices, small businesses, and industries.
He described the approvals as critical steps in the federal government’s broader power sector reform agenda.
The programme seeks to eliminate transmission bottlenecks, reduce the frequency of system collapses, and provide a dependable electricity supply as a foundation for sustainable economic growth.
The minister reiterated that the combination of the Lagos-Ogun Transmission Project and the transformer upgrade initiative aligns with the administration’s commitment to strengthening Nigeria’s energy infrastructure to match growing demand and support industrial expansion.
