The Federal Government and China Machinery Engineering Corporation (CMEC) have signed a contract agreement worth $328.8 million aimed at improving power supply across the country.
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 (PPI).
Minister of Power, Adebayo Adelabu, while speaking at the signing ceremony on Wednesday, in Abuja, said CMEC would undertake key responsibilities in the project.
The minister listed some of the responsibilities to include the rehabilitation and construction of 330kV and 132kV transmission lines.
He also disclosed that the FGN Power Company, a federal government special purpose vehicle, would be coordinating the execution of the project under the PPI.
Adelabu said the project was designed to enhance grid efficiency and prevent stranded capacity.
He explained that the initiative had been strategically split into two priority batches.
“Priority one includes seven brownfield and 10 greenfield lines, totalling 544 kilometres with a load capacity of 7,140 megawatts.
“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,” the minister said.
According to Adelabu, tackling these bottlenecks would result in improved electricity reliability and access for millions of Nigerians, thereby fostering economic growth, job creation, and improved quality of life.
Also speaking, Mr. Kenny Anuwe, Managing Director of FGN Power Company, emphasised the importance of expanding and upgrading transmission infrastructure to effectively deliver generated power to areas of need.
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, he 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 said.
Vice President of SINOMACH, Mr. Li Xiaoyu, expressed gratitude to the federal government for entrusting CMEC with the project, which he said would contribute significantly to improving Nigeria’s power supply.
