In a major stride toward revamping Nigeria’s power infrastructure, the Federal Government, through its special purpose vehicle, FGN Power Company, on Wednesday signed a $328.8 million Engineering, Procurement, Construction, and Financing (EPC&F) agreement with China Machinery Engineering Corporation (CMEC) for the implementation of new transmission lines under the Presidential Power Initiative (PPI).
The agreement, signed in Abuja, marks a key milestone in Phase I of the PPI, a flagship programme aimed at modernising Nigeria’s electricity grid and expanding transmission capacity to meet growing energy demand.
Speaking at the ceremony, Minister of Power, Chief Adebayo Adelabu, described the contract as a “bold step forward” for the Nigerian Electricity Supply Industry (NESI), noting that the project will rehabilitate and construct 330kV and 132kV transmission lines across the country.
“This agreement, valued at $328,818,916.99, signifies a major leap in the implementation of Phase I of the PPI. These lines will serve as the arteries that deliver power from midstream infrastructure to homes, businesses, and industries,” Adelabu said.
The minister explained that the contract includes seven Brownfield and ten Greenfield transmission line projects, totaling 544 kilometers with a load capacity of 7,140MW. He emphasized that the expansion is designed to prevent stranded power generation and ease bottlenecks in the grid.
“This project complements ongoing transmission enhancements and is part of a broader vision to improve reliability and accessibility of electricity, create jobs, and foster economic development,” he added.
Adelabu also referenced the recent arrival and deployment of ten mobile substations and transformers from Siemens Energy, already adding over 700MW to the national grid and easing critical transmission constraints.
Speaking at the event, Managing Director of FGN Power Company, Kenny Anuwe, hailed the deal as a “significant stride forward” and a testament to collaborative effort and meticulous planning under the PPI.
“A robust and reliable transmission network is the backbone of a stable power sector. This partnership with CMEC is a strategic move to ensure that the investments being made in generation are not wasted,” Anuwe stated.
He further expressed confidence in CMEC’s engineering capabilities and global track record, saying the firm’s involvement would ensure timely and quality delivery of the project.
The agreement marks yet another phase in Nigeria’s ongoing efforts to reform its power sector and deliver improved electricity supply to its over 200 million citizens.
