FG's $328.8M Deal with CMEC—What You Should Know

The Federal Government of Nigeria has signed a $328.8M deal with CMEC—China Machinery Engineering Corporation to upgrade and expand the country’s power transmission network. This deal marks a key part of Phase 1 of the Presidential Power Initiative (PPI).

On Wednesday, government officials met with CMEC representatives at the Ministry of Power headquarters in Abuja to seal the deal. Power Minister Adebayo Adelabu described the agreement as a bold move to fix long-standing problems in Nigeria’s electricity supply.

The contract includes engineering, procurement, construction, and financing services. It will cover 544 kilometers of 330 kV and 132 kV power transmission lines across Nigeria. These projects aim to boost the grid’s load capacity by 7,140 megawatts and reduce energy waste.

Minister Adelabu said, “This project will ensure we get more electricity to homes, businesses, and industries across the country. It’s a key part of our goal to fix bottlenecks in the power sector.”

The FGN Power Company, a special body created by the government, will lead the project’s execution.

Siemens Equipment Already Improving Power Supply

The minister also shared updates on the delivery and installation of ten power transformers and ten mobile substations from Siemens Energy. These are now being set up in places like Okene, Amukpe, Potiskum, and Apo. So far, they have added over 700 megawatts to Nigeria’s power transmission capacity.

“These installations are already making a difference,” Adelabu said. “They are helping ease pressure on the grid and getting us closer to reliable electricity.”

Stronger Partnerships for a Stronger Grid

Kenny Anuwe, Managing Director of FGN Power Company, said the $328.8M Deal with CMEC shows the government’s serious commitment to fixing Nigeria’s electricity challenges. He explained that the project will move electricity from power plants directly to the people who need it most.

Anuwe said, “A strong transmission network is key. Without it, we can’t deliver the electricity we’re generating. This deal with CMEC will help us close that gap.”

He added that CMEC’s global track record in engineering and project delivery made it the right choice for the job. He also mentioned that the company will work closely with Siemens, which is already involved in improving power generation and transmission in Nigeria.

Li Xiaoyu, Vice President of SINOMACH (CMEC’s parent company), thanked the Nigerian government for trusting CMEC. He promised that the project will help improve power supply across the country.

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