FG Okays N13bn, $34m for Transmission Project, Transformer Upgrade

The federal government has approved N13 billion for right-of-way compensation under the Lagos Industrial Transmission Project, as well as $34 million for the procurement and installation of high-capacity transformers to upgrade Nigeria’s national electricity grid.

Minister of Power, Adebayo Adelabu, disclosed this to State House correspondents after the Federal executive council meeting presided over by President Bola Tinubu at the presidential Villa, Abuja.
He said the approvals were part of the administration’s renewed drive to modernise ageing transmission infrastructure, improve supply reliability, and meet rising electricity demand nationwide.

Adelabu explained that the N13 billion would be used to compensate property owners and communities affected by the route of transmission lines for the Lagos Industrial Transmission Project, which is funded through a $238 million development loan from the Japan International Cooperation Agency (JICA).

“This project is targeted at boosting supply to key industrial clusters in Lagos, which account for a large share of Nigeria’s manufacturing output,” the minister said. “Once completed, it will ensure our industrial estates have the dedicated, stable power they need to drive economic growth and create jobs.”

On the transformer procurement, Adelabu said $34 million and an additional ₦5.2 billion for associated costs will fund the replacement of weak, overloaded, and obsolete units on the national grid.
The breakdown includes two units of 150MVA 330/132kV transformers, three units of 100MVA 132/33kV transformers, five units of 60MVA 132/33kV transformers, and two units of 30MVA 132/33kV transformers.

“These transformers will be deployed strategically across the grid to relieve overloaded facilities, improve voltage stability, and accommodate the increased transmission capacity we are building,” he stated.

Describing the national grid as an ageing system, much of which has been in operation for over five decades, Adelabu noted that many transformers, cables, and related components were weak and prone to failure.

He stressed the need for regular maintenance and timely replacement to achieve a stable, reliable grid that meets the needs of households, offices, small businesses, and industries.
The minister said the latest approvals marked a significant step in the Tinubu administration’s broader power sector reform agenda, which aimed to eliminate transmission bottlenecks, reduce system collapses, and lay the foundation for sustainable economic growth through improved electricity access.