FG, Chinese Firm Sign $328.8m Electricity Transmission Agreement

THURSDAY April 10, 2025 |
By thenewsdesk.ng

The Federal Government on Wednesday signed a $328.8m contract with Chinese firm China Machinery Engineering Corporation to rehabilitate and expand Nigeria’s electricity transmission network under Phase 1 of the Presidential Power Initiative.

The pact was for engineering, procurement, construction, and financing for the development of 330 kV and 132 kV transmission lines across the country, aimed at improving grid reliability and reducing stranded generation capacity.

The report added that the project will be coordinated by FGN Power Company, a special purpose vehicle established by the federal government to oversee implementation of the PPI.

Speaking at the contract signing ceremony held at the ministry headquarters in Abuja, the power minister, Chief Adebayo Adelabu, said the agreement is a bold and transformative step forward in the industry, one that promises to improve electricity transmission standards in the country.

He explained that the agreement would cover 544 kilometres of transmission lines with a load capacity of 7,140 megawatts, spanning both brownfield and greenfield sites.

The contract, valued at $328.8m, according to him, will ensure efficiency and prevent stranded capacity in the grid. These projects have been strategically divided into two priority batches.

He said, “Today, we take an even bolder step forward. We are here to witness the formal signing of a landmark Engineering, Procurement, Construction, and Financing contract between the FGN Power Company and the esteemed China Machinery Engineering Corporation.

“This agreement, valued at $328,818,916.99m, signifies a major leap in the implementation of Phase I of the PPI.”

He said the project will result in CMEC undertaking the vital task of rehabilitating and constructing an extensive network of 330 kV and 132 kV transmission lines under Phase I of the Presidential Power Initiative.

He explained that these critical infrastructure projects would act as the main arteries for delivering increased power from midstream transmission directly to homes, businesses, and industries, helping to strengthen the country’s economic foundation.

Providing more insights into the project, the power minister described it as a vital step toward resolving persistent bottlenecks in Nigeria’s power value chain. He emphasised that enhancing the transmission network is essential to ensure that generated electricity is delivered efficiently to end-users.

He noted that the signing of the agreement demonstrated the federal government’s commitment, under the leadership of President Bola Tinubu, to providing stable and reliable electricity to Nigerians.

“This project is not an isolated endeavour. It is deliberately designed to seamlessly complement the ongoing mid-stream transmission enhancements. Our vision is a holistic one – from generation to the last mile of distribution.

“By focusing on upgrading and expanding our transmission network, we are directly addressing a key bottleneck in the power value chain.