Electric Future: FEC Approves $34M And N13B To Transform Nigeria’s Power Industry

The Federal Executive Council (FEC) has approved significant funding aimed at upgrading power infrastructure nationwide, a move designed to enhance electricity supply and bolster Nigeria’s industrial growth, according to iReporter Online.

Minister of Power, Adebayo Adelabu, revealed this development following Wednesday’s FEC meeting chaired by President Bola Tinubu at the Presidential Villa, Abuja. He stated that four key proposals received approval, marking a fresh phase in the country’s ongoing power sector transformation agenda.

According to iReporter Online, the first approved proposal involves the resumption of compensation payments for right-of-way access linked to crucial industrial and transmission projects.

Specifically, FEC sanctioned N13 billion for compensation under the Lagos Transmission Industrial Project, which is supported by a $238 million loan from the Japan International Cooperation Agency (JICA).

Adelabu explained, “This project, once completed, will significantly improve power capacity and reliability along the Lagos-Ogun industrial corridor.

It promises to be a major boost for industrial development, ensuring that industries in that region enjoy a more stable electricity supply.”

The funding will cover compensation to property owners and communities affected by transmission line routes.

The minister emphasized that the project aligns with the government’s vision to “use what we produce and produce what we use,” aiming to power local industries and reduce import dependence.

The other three approved proposals relate to procuring new power transformers to upgrade Nigeria’s aging national grid.

According to iReporter Online, Adelabu noted that much of the grid’s equipment is over 50 years old, with many transformers and cables prone to failure due to overload and wear. The new transformers, totaling 14 units at a cost of $34 million plus N5.2 billion, will replace weak and dilapidated units to improve the grid’s efficiency and capacity.

“The upgraded transformers include two 150MVA 330/132/33kV units, five 100MVA 132/33kV units, five 60MVA 132/33kV units, and two 30MVA 132/33kV units,” Adelabu said, highlighting the anticipated relief to overstretched parts of the grid and enhanced wheeling capabilities for increased electricity generation.

He stressed the importance of continuous maintenance and modernization to prevent breakdowns and guarantee uninterrupted power supply across homes, offices, small businesses, and industries.

According to iReporter Online, Adelabu assured Nigerians that these developments represent good news, reiterating the government’s commitment to translating power sector reforms into tangible improvements that will drive national growth and competitiveness.

”IREPORTER REPORTS”