FG Signs $328.8 Million Electricity Transmission Agreement with Chinese Firm

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The Federal Government of Nigeria has signed a significant $328.8 million contract with China Machinery Engineering Corporation (CMEC) to rehabilitate and expand the country’s electricity transmission network. This agreement, signed on April 9, 2025, marks a crucial step in Phase 1 of the Presidential Power Initiative (PPI). The contract covers the engineering, procurement, construction, and financing of 330 kV and 132 kV transmission lines aimed at improving the reliability of the electricity grid and reducing stranded generation capacity across Nigeria.

The project will involve the construction and rehabilitation of 544 kilometers of transmission lines, with a load capacity of 7,140 megawatts, covering both existing and new sites. This will help address power bottlenecks in the country’s energy infrastructure, allowing for more efficient delivery of electricity to homes, businesses, and industries. Power Minister, Chief Adebayo Adelabu, highlighted the transformative nature of this agreement, which will significantly enhance the nation’s electricity transmission capacity.

The initiative is being coordinated by FGN Power Company, a special purpose vehicle set up by the government to oversee the implementation of the PPI. Adelabu emphasized that this partnership is part of a broader strategy to tackle the critical issues in Nigeria’s electricity sector, including transmission and distribution bottlenecks. In addition to the transmission expansion, the government has also made progress in the deployment of ten power transformers and ten mobile substations, adding over 700 MW to the national grid.

The partnership with CMEC is seen as a critical move towards strengthening Nigeria’s power infrastructure. According to FGN Power Company’s Managing Director, Kenny Anuwe, the collaboration will support the country’s growing electricity generation capacity, ensuring that power produced can be effectively transmitted to end-users. The project is also expected to foster economic growth, create jobs, and improve the quality of life for Nigerians. CMEC’s involvement underscores their expertise and commitment to the success of this ambitious energy initiative.

Source: punch

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