The Federal Executive Council (FEC) has approved a combined $34 million and ₦13 billion to accelerate Nigeria’s power sector transformation, aiming to improve electricity supply, spur industrial growth, and drive economic expansion.

Minister of Power, Adebayo Adelabu, announced the approvals after Wednesday’s FEC meeting chaired by President Bola Tinubu at the Presidential Villa, Abuja. He said the funds cover four major proposals under a new phase of the government’s power reform agenda.

The first approval is for the resumption of compensation payments to property owners and communities affected by right-of-way acquisitions for the Lagos Industrial Transmission Project. Backed by a $238 million development loan from the Japan International Cooperation Agency (JICA), the project will serve industrial corridors in Lagos and Ogun States.

“This project will significantly improve the capacity and reliability of electricity supply to our industrial estates, enhance manufacturing competitiveness, and support our vision to ‘use what we produce and produce what we use’,” Adelabu stated.

The remaining three approvals involve procuring 14 high-capacity transformers to replace aging units on the national grid some in operation for over 50 years. The $34 million and ₦5.2 billion allocation will fund two 150MVA 330/132/33kV transformers, five 100MVA 132/33kV units, five 60MVA 132/33kV units, and two 30MVA 132/33kV units.

According to Adelabu, the upgrades will ease overloaded transformers, reduce system failures, and expand the grid’s wheeling capacity from generation plants. He stressed that modernising the grid is vital for reliable electricity supply to households, small businesses, and industries, while supporting local production and reducing imports.

Describing the approvals as “good news for Nigerians,” Adelabu assured that the reforms will deliver measurable improvements in electricity access, economic growth, and job creation.