FEC approves $34m, ₦13bn for National Power Sector overhaul

‎By Muhyideen Jimoh

The Federal Executive Council (FEC) has approved a combined $34 million and ₦13 billion to accelerate the transformation of Nigeria’s power infrastructure, in a move aimed at boosting electricity supply, industrial productivity, and economic growth.

Minister of Power, Adebayo Adelabu, announced the approvals after Wednesday’s FEC meeting, chaired by President Bola Tinubu at the Presidential Villa, Abuja.

He said the funding covers four key proposals, signalling a fresh phase in the government’s power sector reform agenda.

The first approval, Adelabu said, involves the resumption of compensation payments to property owners and communities affected by right-of-way acquisition for the Lagos Industrial Transmission Project.

The project is supported by a $238 million development loan from the Japan International Cooperation Agency (JICA) and will serve industrial corridors in Lagos and Ogun States.

“This project will significantly improve the capacity and reliability of electricity supply to our industrial estates, enhance manufacturing competitiveness, and support our vision to ‘use what we produce and produce what we use’,” Adelabu said.

The minister added that the remaining three approvals are for the procurement of 14 high-capacity transformers to replace aging and overstretched units on the national grid, many of which are over 50 years old.

The $34 million and ₦5.2 billion investment will fund two 150MVA 330/132/33kV transformers, five 100MVA 132/33kV units, five 60MVA 132/33kV units, and two 30MVA 132/33kV units.

“These upgrades will relieve overloaded transformers, reduce system failures, and enable the grid to handle increased wheeling capacity from generation plants,” he explained.

Adelabu stressed that modernising the grid is critical to sustaining reliable power for households, small businesses, and industries, while also reducing the nation’s reliance on imports through stronger domestic production.

He described the approvals as “good news for Nigerians,” assuring that the reforms will deliver tangible improvements in electricity access, economic growth, and job creation. (NAN)