To strengthen Nigeria’s national energy system and address the issues facing the power sector, the Federal Executive Council (FEC) has authorized four important reforms.
The permission was made public on Wednesday and is a part of the government’s increased efforts to satisfy the growing demand for power across the country, modernize transmission infrastructure, and increase supply reliability.
Following the FEC meeting, which was chaired by President Bola Tinubu, the announcement was reportedly made by Minister of Power Adebayo Adelabu.
₦13 billion was released as compensation for the Lagos Industrial Transmission Project, which was the first significant approval.
The modernization of transmission infrastructure in Lagos and the industrial centers nearby is the goal of this project.
The project, which is financed by a $238 million development credit from the Japan International Cooperation Agency (JICA), aims to improve electricity supply to important industrial clusters in Lagos, according to Adelabu.
Property owners and towns impacted by the transmission lines’ path will get compensation thanks to this cash, Adelabu stated.
“Once the Lagos Industrial Transmission Project is finished, our industrial estates will have the committed, reliable power they require to spur economic expansion and job creation.”
National Grid to Install New High-Capacity Transformers
Three further improvements aimed at enhancing Nigeria’s power supply infrastructure were approved by the FEC in addition to the compensation approval.
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Among these are the acquisition and installation of high-capacity transformers to replace the nation’s current grid’s aging, overburdened, and weak units.
₦5.2 billion will be added to the $34 million purchase price to cover related expenses. The contents of the package include:
Two 150MVA 330/132kV transformer units
Three 100MVA 132/33kV transformer units
5 pieces of 132/33kV, 60MVA transformers
Two 30MVA 132/33kV transformer units
“These transformers will be strategically placed throughout the grid to relieve overburdened facilities, enhance voltage stability, and support the additional transmission capacity we are constructing,” Adelabu said.
Nigeria’s national grid is aging, according to the minister, who also mentioned that many of its parts—like cables and transformers—had been in use for more than 50 years and were now beyond their designed lifespan.
“A large number of the transformers, cables, and associated parts are weak and prone to failure,” Adelabu admitted.
“A stable, dependable, and efficient grid that serves the needs of homes, workplaces, small businesses, and industries requires regular maintenance and prompt replacement.”
He emphasized that the new changes were a component of the Tinubu administration’s larger plan to remove transmission bottlenecks, lessen system failures, and lay the groundwork for long-term economic growth by facilitating better access to power.
The most recent improvements are reportedly regarded as a major step toward resolving Nigeria’s electricity industry issues.
In addition to addressing the current issues with grid stability, the modifications are anticipated to lay the groundwork for Nigeria’s long-term economic goals by providing dependable access to power for all economic sectors.
With the private sector considered to be crucial to the implementation of these changes, Adelabu emphasized that the government’s objective is to make sure the power sector becomes a major driver of economic growth and job creation.
