In a move to bolster Nigeria’s electricity infrastructure, the Federal Government has entered into a $328.8 million agreement with China Machinery Engineering Corporation (CMEC) to revamp and expand the country’s transmission grid as part of the first phase of the Presidential Power Initiative (PPI).
The contract, structured under an Engineering, Procurement, Construction, and Financing (EPC+F) model, will see the development of 330kV and 132kV transmission lines nationwide. The aim is to enhance the reliability of the national grid and reduce the volume of unused power due to transmission limitations.
The initiative will be spearheaded by FGN Power Company, a government-established special purpose vehicle responsible for executing the PPI.
Speaking during the signing event held in Abuja, Minister of Power Adebayo Adelabu said the project covers the construction and rehabilitation of 544 kilometers of high-capacity transmission lines capable of handling up to 7,140 megawatts. The infrastructure will span both new (greenfield) and existing (brownfield) sites across the country.
“These critical infrastructure projects will serve as the main arteries for delivering increased power from midstream transmission directly to homes, businesses, and industries,” Adelabu stated, highlighting the initiative’s importance to Nigeria’s economic development.
The minister added that the deal reflects the government’s unwavering focus on overcoming long-standing inefficiencies in the power sector. “The signing of this agreement is a strong indication of the federal government’s commitment, under President Bola Tinubu’s leadership, to ensuring stable and dependable electricity supply for all Nigerians,” he said.
Kenny Anuwe, Managing Director of FGN Power Company, hailed the collaboration with CMEC as a strategic step towards establishing a resilient transmission system that can accommodate increased power generation.
He further noted that CMEC’s role will enhance ongoing efforts with Siemens Energy, which is currently focused on modernizing power generation and high-voltage transmission infrastructure.
Also speaking at the event, Li Xiaoyu, Vice President of SINOMACH—CMEC’s parent firm—thanked the Nigerian government for its confidence in the Chinese company, saying, “This project will play a significant role in improving electricity delivery across the country.”
This agreement marks a significant milestone in the ongoing reforms of Nigeria’s electricity sector, aimed at delivering reliable power to fuel economic growth and improve citizens’ quality of life.
