FEC Approves Major Funding for Power Sector: N13B Compensation, $34M Transformers

In order to improve Nigeria’s national electrical system and solve the issues facing the power sector, the Federal Executive Council (FEC) has authorized four important reforms.
The government’s ongoing efforts to modernize transmission infrastructure, increase supply reliability, and satisfy the growing demand for power across the country include the permission, which was announced on Wednesday.
The development was reportedly disclosed by Adebayo Adelabu, the Minister of Power, following the FEC meeting, which was chaired by President Bola Tinubu.
The issuance of ₦13 billion for compensation associated with the Lagos Industrial Transmission Project was the first significant clearance.

This project is a component of a larger plan to update transmission infrastructure in Lagos and the industrial centers nearby.

According to Adelabu, the project, which was made possible by a $238 million development credit from the Japan International Cooperation Agency (JICA), aims to improve the electricity supply to important industrial clusters in Lagos.

According to Adelabu, “this funding covers compensation to property owners and communities affected by the transmission lines’ route.”

“The Lagos Industrial Transmission Project, when finished, will guarantee that our industrial estates have the committed, reliable power they require to spur economic expansion and job creation.”

National Grid’s New High-Capacity Transformers
FEC approved three more amendments aimed at enhancing Nigeria’s power supply infrastructure in addition to the compensation approval.

Among these are the purchase and installation of high-capacity transformers to replace the nation’s current grid’s aging, overburdened, and weak equipment.

The $34 million purchase would have ₦5.2 billion added for related expenses. What’s in the package:

A pair of 150MVA 330/132kV transformers
Three 100MVA, 132/33kV transformer units
Five 60MVA 132/33kV transformer units
A pair of 30MVA 132/33kV transformers
“To relieve overloaded facilities, improve voltage stability, and accommodate the increased transmission capacity we are building, these transformers will be strategically deployed across the grid,” said Adelabu.

The Minister characterized Nigeria’s national grid as aging, pointing out that many of its parts—like cables and transformers—had been in use for more than 50 years and were now beyond their built-in lifespan.

Adelabu admitted, “A lot of the transformers, cables, and associated components are weak and prone to failure.”

Read Also: Why Institutional Reforms, Civic Empowerment, and Accountability Are Crucial for Nigeria – Akingbade

“If we want to create a stable, dependable, and efficient grid that serves the needs of homes, workplaces, small businesses, and industries, regular maintenance and prompt replacement are crucial.”

He emphasized that the new reforms were a component of the Tinubu administration’s larger plan to decrease system failures, remove transmission bottlenecks, and increase availability to power in order to lay the groundwork for long-term economic growth.

According to reports, the recent reforms are regarded as a major step in resolving Nigeria’s problems in the power sector.

In addition to addressing the current grid stability issues, the improvements are anticipated to lay the groundwork for Nigeria’s long-term economic goals by providing dependable energy access for all economic sectors.

The private sector is anticipated to be crucial in carrying out these reforms, Adelabu emphasized, and the government’s objective is to make sure the power industry becomes a major engine of economic growth and employment creation.