FG, China Signs $328.8m Deal to Improve Power Supply

  • FG signed a $328.8m deal with CMEC for transmission line projects under Phase 1 of the Presidential Power Initiative.
  • These lines will serve as critical conduits to move electricity from generation points to consumers nationwide.

The Federal Government signed a $328.8 million contract agreement with China Machinery Engineering Corporation (CMEC) on Wednesday, April 9, 2025, to significantly strengthen Nigeria’s electricity transmission network.

The agreement, signed under Phase 1 of the Presidential Power Initiative (PPI), includes the engineering, procurement, construction, and financing of high-voltage transmission infrastructure across the country. It marks a strategic step towards bridging Nigeria’s long-standing electricity supply gap.

Chief Adebayo Adelabu, Minister of Power, described the deal as a turning point in the government’s mission to build a power sector that meets modern demands. “This contract is not just the signing of documents; it represents our unwavering commitment to ensure every Nigerian enjoys stable and reliable electricity,” he said during the ceremony.

Furthermore, Adelabu praised the collaboration between FGN Power Company and CMEC, urging both parties to sustain the pace and deliver on the project’s goals. He assured Nigerians that the administration tackled power sector challenges head-on and called for continued patience and support.

The project scope includes rehabilitating and constructing 544 kilometres of 330kV and 132kV transmission lines, covering seven brownfield and 10 greenfield sites with a combined capacity of 7,140 megawatts.

While Siemens is upgrading generation and transmission infrastructure under the PPI’s midstream component, CMEC’s involvement complements this effort by focusing on the distribution segment. This is expected to accelerate reliable power delivery to homes, businesses, and industries across Nigeria.

The Ministry of Power emphasised that this agreement reflects President Bola Ahmed Tinubu’s broader economic agenda, prioritising infrastructure, industrial growth, and improved quality of life for citizens.

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