FG Approves $238 Million Power Project For Lagos Industrial Clusters — Adelabu


By Efa Sunday 


The Minister of Power, Bayo Adelabu, has announced the Federal Government’s approval of a $238 million power supply project aimed at boosting electricity access in Lagos’ industrial clusters.



Adelabu says the project is expected to enhance productivity, attract investments, and support economic growth in the state’s manufacturing and business hubs.


Briefing newsmen shortly after Federal Executive Council Meeting on Thursday, the minister breaking down the sum stated, " FE approved N13 billion for right-of-way compensation under the Lagos Industrial Transmission Project and $34 million for the procurement and installation of high-capacity transformers to strengthen Nigeria’s national electricity grid.


" What that means is that the N13 billion allocation will compensate property owners and communities affected by transmission line routes under the Lagos Industrial Transmission Project, which is funded through a $238 million loan from the Japan International Cooperation Agency (JICA).


The Council meeting, chaired by President Bola Tinubu at the Presidential Villa, Abuja, Adelabu says form part of the administration’s renewed effort to modernise the nation’s ageing transmission infrastructure, improve supply reliability, and meet growing electricity demand.


 He further added that the project is designed to boost power supply to the industrial cluster areas, which contribute significantly to Nigeria’s manufacturing output. 



On transformer upgrades, the minister said $34 million, alongside ₦5.2 billion for associated costs, will fund the replacement of obsolete and overloaded units on the grid. The package covers two units of 150MVA 330/132kV transformers.


“These transformers will be strategically deployed to decongest overloaded substations, improve voltage stability, and expand overall transmission capacity,” Adelabu noted.


He described the national grid as an ageing system, much of which has operated for more than 50 years, stressing the need for continuous upgrades and timely replacements to prevent failures.


The minister added that the latest approvals mark a significant step in the Tinubu administration’s power sector reform agenda aimed at eliminating bottlenecks, reducing system collapses, and laying the foundation for sustainable economic growth through improved electricity access

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