The Federal Government of Nigeria has finalized a $328.8 million contract with China Machinery Engineering Corporation (CMEC) for the rehabilitation and expansion of the country’s electricity transmission network, under Phase 1 of the Presidential Power Initiative (PPI).
This agreement, which covers Engineering, Procurement, Construction, and Financing (EPC+F), will see the development of 330kV and 132kV transmission lines across Nigeria. The goal is to enhance grid reliability and address the issue of stranded generation capacity, ensuring more efficient power distribution nationwide.
The project will be managed by FGN Power Company, a special purpose vehicle established by the federal government to oversee PPI implementation. According to the Minister of Power, Adebayo Adelabu, the contract will involve the construction of 544 kilometers of transmission lines with a load capacity of 7,140 megawatts. The infrastructure will cover both existing and new sites, referred to as brownfield and greenfield projects, respectively.
Adelabu highlighted the significance of these transmission lines, stating they would act as essential channels for delivering electricity from midstream transmission directly to homes, businesses, and industries. This initiative is expected to play a crucial role in strengthening Nigeria’s economy by improving the reliability and efficiency of electricity delivery.
The Minister emphasized that the project was a critical step toward resolving long-standing challenges in Nigeria’s power sector. He stressed that expanding the transmission network is vital to ensuring that electricity generated is effectively delivered to end-users. He also noted that the signing of the agreement underscored the federal government’s commitment, under the leadership of President Bola Tinubu, to providing stable and dependable electricity to the country.
Kenny Anuwe, Managing Director of FGN Power Company, described the partnership with CMEC as an important move toward building a robust transmission network capable of supporting future increases in generation capacity. He also pointed out that CMEC’s involvement complements the ongoing collaboration with Siemens Energy, which focuses on advancing generation and high-voltage transmission technologies.
Li Xiaoyu, Vice President of SINOMACH, expressed gratitude to the Nigerian government for placing its trust in CMEC, adding that the project would significantly contribute to improving electricity delivery across the country.
