The Federal Executive Council (FEC), chaired by President Bola Tinubu, has approved ₦13 billion in compensation payments to property owners and communities affected by the Lagos Transmission Industrial Project. This initiative, backed by a $238 million development loan from the Japan International Cooperation Agency (JICA), is designed to strengthen power supply to Lagos and Ogun States’ industrial corridors. Minister of Power, Adebayo Adelabu, announced the decision after the FEC meeting in Abuja, noting that the project is a critical step in Nigeria’s power sector transformation agenda and will provide dedicated, stable electricity to drive industrial growth and job creation.
The compensation funding forms part of the JICA-backed Lagos Transmission Industrial Project, which aims to modernise power transmission lines serving key manufacturing zones. In addition, the Council approved $34 million and ₦5.2 billion for the procurement of 14 high-capacity transformers to replace ageing infrastructure on the national grid. These include two 150MVA 330/132/33kV units, five 100MVA 132/33kV units, five 60MVA 132/33kV units, and two 30MVA 132/33kV units.
Once completed, the Lagos Transmission Industrial Project will deliver more reliable and consistent electricity to industries in Lagos and Ogun, supporting the government’s vision to “use what we produce and produce what we use.” The national grid upgrades are expected to ease pressure on overloaded transformers, reduce system failures, and improve overall efficiency. Collectively, these investments aim to boost industrial productivity, reduce import dependence, create new jobs, and provide more stable electricity to homes, offices, and small businesses nationwide.
