Electricity Shake-Up: FG Backs ₦13bn Settlements, $34m Equipment Purchase For Sector Revival

The Federal Executive Council (FEC) has approved four major reforms aimed at strengthening Nigeria’s national electricity grid and tackling persistent challenges in the power sector.....KINDLY READ THE FULL STORY HERE▶

Announced on Wednesday, the decision marks part of the government’s renewed drive to modernise transmission infrastructure, boost supply reliability, and meet the growing electricity demand across the country.

Minister of Power, Adebayo Adelabu, revealed the approvals after the FEC meeting presided over by President Bola Tinubu.

₦13bn Compensation for Lagos Industrial Transmission Project
The first key approval involves the release of ₦13 billion in compensation for the Lagos Industrial Transmission Project. The initiative, backed by a $238 million loan from the Japan International Cooperation Agency (JICA), is designed to upgrade transmission systems in Lagos and surrounding industrial hubs. The funding will be used to compensate property owners and communities affected by the transmission line routes.

According to Adelabu, the project will deliver stable, dedicated power to industrial estates, driving economic growth and creating jobs.

$34m Transformer Procurement to Upgrade the Grid
The FEC also endorsed three additional reforms, including the procurement and installation of high-capacity transformers to replace overloaded and obsolete units on the national grid. This upgrade, worth $34 million with an extra ₦5.2 billion for associated costs, will include:

• Two units of 150MVA 330/132kV transformers

• Three units of 100MVA 132/33kV transformers

• Five units of 60MVA 132/33kV transformers

• Two units of 30MVA 132/33kV transformers

These transformers will be strategically deployed to ease overloaded facilities, enhance voltage stability, and support increased transmission capacity.

Adelabu noted that much of Nigeria’s grid infrastructure—some of it over 50 years old—has long surpassed its intended lifespan, making regular replacement and maintenance essential.

The reforms, he stressed, form part of the Tinubu administration’s broader plan to remove transmission bottlenecks, reduce system collapses, and lay the groundwork for sustainable economic growth through reliable electricity access.

By improving grid stability and capacity, the upgrades are expected to address immediate power challenges while enabling long-term development, with the private sector playing a vital role in their execution.