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Compensation Stalls $200m Lagos/Ogun States’ Transmission Project



An estimated N8 billion resettlement claims for those whose property and farms would be affected by the Green Field Lagos/Ogun states transmission Right of Way (RoW) is stalling the project, which is intended to provide uninterrupted power supply to industrial clusters around the corridor.

The Transmission Company of Nigeria (TCN) has initiated the project construction which comprises 203 kilometers new power lines and five power substations located in five locations across Ogun State. 

The $200 million power projects are being funded by World Bank to increase power supplies to industrial areas where much energy is needed to power manufacturing operations and it is being undertaken as a response to increasing manufacturing activities at the emerging largest Nigerian industrial hub – Ogun State and some industrial areas in Lagos State.

The infrastructure would increase energy supplies to main industrial areas and some residential areas in both states and beyond. The power projects which would be sited in Abeokuta, Ajegunle Area of Agbara include Ejio in Ewekoro local government, Redemption Camp in Sagamu and Mountain of Fire Camp along Lagos-Ibadan expressway corridor, would facilitate unhindered energy transmission and trading to both industrial and residential areas with Ogun and Lagos States.

But the managing director of TCN, Usman Mohammed, at a power roundtable organised by Sahara Group in Lagos said arrangements were being made to accelerate the process of compensation to enable the project move as scheduled, assuring that the compensation issue would not be allowed to stop the project considering its contribution to address energy supplies deficit in that corridor.

He said further that the company was going on with other projects which include the Abuja Wheeling Scheme, which targets transmission weaknesses in Abuja, a project he said was costing about $170 million and the northern corridor projects targeting Kainji, Birnin Kebbi, Sokoto, Katsina and Daura.

He said that the company has secured about $1.5 billion to embark on supply of critical transmission infrastructures across the country.


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