FG signs $328.81m deal with China to boost power supply

The federal government has signed a $328.81 million deal with China Machinery Engineering Corporation (CMEC) to improve power supply in Nigeria.

According to the News Agency of Nigeria (NAN), the contract covers engineering, procurement, construction, and financing for the implementation of transmission lines under phase 1 of the Presidential Power Initiative (PPI).

At the signing ceremony in Abuja on Wednesday, Adebayo Adelabu, Minister of Power, said CMEC would undertake key responsibilities in implementing the project.

He said some of the responsibilities include the rehabilitation and construction of 330 kilovolt (kV) and 132kV transmission lines.

The minister said the FGN Power Company, a federal government special purpose vehicle (SPV), will be coordinating the execution of the project under the PPI.

Adelabu said the project was designed to enhance grid efficiency and prevent stranded capacity, adding that the initiative had been strategically divided into two priority batches.

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Priority one includes seven brownfield and 10 greenfield lines, totaling 544 kilometers with a load capacity of 7,140 megawatts,” he said.
“These vital infrastructure projects will serve as the arteries to carry increased power generated through mid-stream transmission directly to homes, businesses, and industries powering our economy.

“This project is not an isolated effort. It is strategically designed to complement ongoing mid-stream transmission enhancements. Our vision is holistic—from generation to the last mile of distribution.

By upgrading and expanding the transmission network, he said the country is directly addressing a key bottleneck in the power value chain.

Adelabu noted that tackling the bottlenecks would result in improved electricity reliability and access for millions of Nigerians, thereby fostering economic growth, job creation, and improved quality of life.

“Today’s signing is a tangible demonstration of the federal government’s unwavering commitment, under the leadership of President Bola Tinubu, to deliver stable and reliable power to all Nigerians,” he said.

“We are determined to eliminate the obstacles that have hindered past progress and build a 21st-century-ready power sector.”

Also speaking at the event, Kenny Anuwe, managing director (MD) of FGN Power Company, emphasised the importance of expanding and upgrading transmission infrastructure to deliver generated power to required areas.

“At FGN Power Company, our mandate is clear: to deliver improved power supply to all Nigerians. A robust and reliable transmission network is the backbone of a stable power sector,” Anuwe said.

The MD described the partnership with CMEC as a strategic move to strengthen the backbone, ensuring that investments in power generation translate into tangible benefits for the Nigerian people.

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