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FG boosts grid with $328.8m CMEC contract, Siemens assets add 700MW transmission capacity

 JKNM JKNMApril 10, 2025 3652 Minutes read0
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By Jemimah Wellington, JKNewsMedia Reporter 

MULTI-TRACK efforts to overhaul Nigeria’s power infrastructure advanced this week with the Federal Government signing a $328,818,916.99 contract with China Machinery Engineering Corporation (CMEC) for high-voltage transmission upgrades.

Simultaneously, Siemens-supplied transformers and mobile substations—now being deployed nationwide—have added 700 megawatts to the transmission grid.

Minister of Power, Chief Adebayo Adelabu, announced both developments during the signing ceremony held on Wednesday.

He said the Engineering, Procurement, Construction, and Financing (EPC&F) contract between the FGN Power Company (FGNPC) and CMEC marked a pivotal leap in implementing Phase 1 of the Presidential Power Initiative (PPI), designed to eliminate inefficiencies and strengthen the country’s grid transmission capacity.

The contract covers 544km of new and rehabilitated 330kV and 132kV lines, split into seven brownfield and ten greenfield projects, with a combined capacity of 7,140 megawatts.

“These critical corridors will act as the arteries of our power system, carrying newly generated electricity from midstream infrastructure to the homes, businesses, and industries powering our economy,” Adelabu stated.

This comes on the heels of tangible progress made earlier in the week, following the successful receipt and deployment of ten state-of-the-art transformers and ten mobile substations supplied by Siemens Energy.

These installations—strategically located in hubs including Okene, Amukpe, Potiskum, and Apo—have already increased the nation’s transmission capacity by 700MW.

According to the Minister, the infrastructure now being rolled out is “not an isolated endeavour” but a targeted intervention to complement broader midstream transmission improvements.

The aim, he said, is to create a seamless flow of electricity from generation to end-user, thereby resolving one of the most persistent bottlenecks in Nigeria’s power delivery system.

Adelabu lauded CMEC’s global track record and Siemens’ technology leadership, emphasising that the partnership allows the Federal Government to tap into each company’s specialisation—Siemens in innovation and generation, and CMEC in construction and distribution.

“This collaborative approach ensures world-class execution, timely delivery, and alignment with our long-term power goals,” he said.

Mr Kenny Anuwe, Managing Director of FGN Power Company, reinforced the strategic nature of the partnership, describing the current progress as “a comprehensive solution to meet Nigeria’s growing energy and infrastructure needs.”

He reaffirmed the government’s resolve to make electricity a fundamental right for all Nigerians.

Concluding the ceremony, Adelabu urged Nigerians to remain patient as the Federal Government pushes forward with long-overdue structural changes.

“The difficulties are real, but so is our resolve. These investments mark a new era for Nigeria’s power sector—one focused on reliability, access, and sustainable growth.”

Tags
Energy sectorNigeria InfrastructureSiemens CMEC Partnership
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