Nigeria Signs $328.8M Electricity Deal with Chinese Firm
The Nigerian government has entered into a $328.8 million agreement with China Machinery Engineering Corporation (CMEC) to enhance and expand the nation's electricity transmission infrastructure. This initiative falls under the first phase of the Presidential Power Initiative (PPI) and aims to boost power supply and address transmission bottlenecks.
The agreement, which includes Engineering, Procurement, Construction, and Financing (EPC+F), will focus on the development and upgrade of 330kV and 132kV transmission lines throughout Nigeria. The goal is to improve grid efficiency and reduce the volume of electricity that currently goes unused due to transmission limitations.
According to a report by the News Agency of Nigeria (NAN), the contract will be managed by FGN Power Company—a government-established special purpose vehicle responsible for overseeing PPI implementation.
At the contract signing ceremony held in Abuja, the Minister of Power, Adebayo Adelabu, emphasized that the project would cover 544 kilometers of transmission infrastructure, capable of handling 7,140 megawatts of electricity. This development spans both existing and new transmission routes, contributing to improved power distribution nationwide.
Minister Adelabu highlighted the significance of the project, stating it represents a major milestone in the federal government’s efforts to address long-standing inefficiencies in the power sector. He explained that by expanding the transmission network, electricity generated from various sources can be effectively delivered to homes, industries, and commercial users—bolstering Nigeria’s economic growth.
The agreement is a key part of President Bola Tinubu's administration’s broader strategy to stabilize and modernize Nigeria’s electricity supply, demonstrating a strong commitment to long-term energy solutions.
Kenny Anuwe, Managing Director of FGN Power Company, described the collaboration with CMEC as a crucial step in building a resilient transmission system that can accommodate growing generation capacity. He also noted that this partnership complements the ongoing work with Siemens Energy, which is centered on energy generation and high-voltage transmission technologies.
Also present at the event was Li Xiaoyu, Vice President of SINOMACH, CMEC’s parent company, who expressed gratitude to the Nigerian government for entrusting the firm with such a critical infrastructure project. He reaffirmed the company's dedication to supporting Nigeria’s energy transformation and ensuring a more reliable power supply for citizens across the country.