The Federal Government of Nigeria has signed a $328.8 million contract with China Machinery Engineering Corporation (CMEC) to rehabilitate and expand the country’s electricity transmission network, marking a significant milestone under Phase 1 of the Presidential Power Initiative (PPI).
The contract encompasses Engineering, Procurement, Construction, and Financing (EPC+F) for the development of 330kV and 132kV transmission lines nationwide. The goal is to improve grid reliability and reduce stranded generation capacity that currently hampers electricity delivery to consumers.
Expanding Power Infrastructure
Speaking at the signing ceremony in Abuja, Minister of Power, Adebayo Adelabu, said the project will span approximately 544 kilometers of transmission lines with a total load capacity of 7,140 megawatts. These upgrades will include both brownfield (existing) and greenfield (new) sites across Nigeria.
“These transmission lines are the arteries that will enable generated power to flow more efficiently to homes, businesses, and industries,” Adelabu noted. “Strengthening the transmission network is vital for improving power delivery and supporting Nigeria’s economic growth.”
The initiative will be implemented through FGN Power Company, a special purpose vehicle (SPV) established by the federal government to manage the rollout of the PPI.
Strategic International Partnerships
Kenny Anuwe, Managing Director of FGN Power Company, described the agreement with CMEC as a strategic step toward building a stronger national grid. He highlighted the complementary role this project plays alongside the ongoing collaboration with Siemens Energy, which is also working to upgrade Nigeria’s power infrastructure, particularly in generation and high-voltage technologies.
“This partnership strengthens our capacity to meet growing energy demands and improves the overall efficiency of the power sector,” Anuwe said.
China Commits to Long-Term Partnership
Li Xiaoyu, Vice President of SINOMACH (parent company of CMEC), expressed gratitude for Nigeria’s trust in CMEC. He reaffirmed the company’s commitment to delivering quality infrastructure that will contribute to better electricity distribution across the country.
“We are honored to support Nigeria in this critical energy transformation. This project will make a real difference in the daily lives of millions,” Li added.
The Federal Government emphasized that the contract reflects President Bola Tinubu’s administration’s unwavering commitment to achieving stable and reliable electricity supply for all Nigerians.
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