FGN Power secures deal to boost power supply

The Federal Government Nigeria, FGN, Power Company, and China Machinery Engineering Corporation, CMEC, signed a contract agreement worth $328.8 million on Wednesday aimed at improving power supply across Nigeria.

The contract, valued at $328.819 million, covers Engineering, Procurement, Construction, and Financing for the implementation of transmission lines under Phase 1 of the Presidential Power Initiative.

The Minister of Power, Mr. Adebayo Adelabu, at the signing ceremony in Abuja, explained that CMEC would undertake key responsibilities in the project, including the rehabilitation and construction of 330kV and 132kV transmission lines.

The Federal Government’s special purpose vehicle, the FGN Power Company, will coordinate the execution of the project under the PPI.

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

“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, we are directly addressing a key bottleneck in the power value chain.”

Adelabu emphasized that tackling these bottlenecks would result in improved electricity reliability and access for millions of Nigerians, 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.

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“I commend the teams at FGN Power Company and CMEC for their tireless efforts in bringing this critical project to fruition.

“I urge them to maintain the momentum and ensure its successful execution,” he added.

Mr. Kenny Anuwe, Managing Director of FGN Power Company, also emphasized the importance of expanding and upgrading transmission infrastructure to effectively deliver generated power to areas in need.

“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 stated.

“This partnership with CMEC is a strategic move to strengthen that backbone, ensuring that investments in generation translate into tangible benefits for the Nigerian people.

“We are especially pleased to collaborate with CMEC on this transformative project. Their global reputation for engineering excellence and project execution is well-established, and we are confident in their ability to deliver high-quality infrastructure on time and to standard.”

Anuwe also acknowledged the ongoing collaboration with Siemens Energy, noting their expertise in power generation and high-voltage transmission equipment.

“While Siemens brings advanced technology to generation and transmission, CMEC complements this with expertise in distribution line construction and rehabilitation.

“This partnership enables a comprehensive approach to upgrading the entire power infrastructure value chain,” he said.

Together, Anuwe added, the companies formed a strong alliance to meet Nigeria’s expanding energy and infrastructure needs.

He further described the contract signing as more than just a procedural step.

“It is a reaffirmation of the government’s commitment to transparency, accountability, and delivering on its promises to Nigerians.

“We are determined to ensure that this project is executed with diligence, efficiency, and the highest standards of quality and timeliness,” Anuwe concluded.

Also present at the event, Mr. Li Xiaoyu, Vice President of SINOMACH, expressed gratitude to the federal government for entrusting CMEC with the project, which he said would contribute significantly to improving Nigeria’s power supply.

NAN