FG signs $329m deal with Chinese firm to boost power transmission

The Federal Government of Nigeria has signed a $328.8 million agreement with China Machinery Engineering Corporation (CMEC) to expand and rehabilitate the country’s electricity transmission network, marking a significant step in addressing persistent challenges in the power sector. Signed under Phase 1 of the Presidential Power Initiative (PPI), the contract includes engineering, procurement, construction, and financing (EPC+F) of new 330kV and 132kV transmission lines, spanning 544 kilometres nationwide. The project will be coordinated by FGN Power Company, a government-established special purpose vehicle for implementing the PPI. Speaking at the ceremony in Abuja, Minister of Power Adebayo Adelabu emphasised the project’s importance in enhancing electricity delivery and unlocking Nigeria’s economic potential. “These critical infrastructure projects act as the main arteries to deliver increased power from midstream transmission directly to homes, businesses, and industries,” Adelabu said. “This is a key step in eliminating bottlenecks across our power value chain.” READ ALSO: Tinubu to Nigerians: ‘Don’t expect magical solution to epileptic power supply’ Tinubu committed to adequate power supply – Adelabu Adelabu reaffirmed President Bola Tinubu’s commitment to achieving stable and reliable electricity nationwide, noting the project’s 7,140-megawatt load capacity as pivotal for national development. Kenny Anuwe, Managing Director of FGN Power Company, described the partnership with CMEC as “a strategic move to develop a robust transmission network capable of supporting increased generation.” Anuwe added that CMEC’s role would complement ongoing work with Siemens Energy on high-voltage infrastructure. Li Xiaoyu, Vice President of SINOMACH, CMEC’s parent company, thanked the Nigerian government for its trust and said the initiative would “greatly enhance electricity delivery and improve the daily lives of Nigerians.” The agreement signals renewed momentum in Nigeria’s quest for a more reliable power supply, aiming to unlock stranded generation and boost economic productivity.