Nigeria Set for Improved Electricity as FG Announces New Partnership With Chinese Company
- For $328.8 million, FG entered into a contract with China Machinery Engineering Corporation (CMEC), a Chinese business
- The goal is to expand and improve Nigeria's electrical transmission infrastructure and enhance grid dependability
- The agreement covers engineering, procurement, construction, and financing for the building of 330kV and 132kV transmission lines
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Under Phase 1 of the Presidential Power Initiative (PPI), the Federal Government has contracted with China Machinery Engineering Corporation (CMEC), a Chinese company, for $328.8 million to upgrade and extend Nigeria's electrical transmission system.
Source: Getty Images
The deal addresses Engineering, Procurement, Construction, and Financing (EPC+F) for the nationwide construction of 330kV and 132kV transmission lines with the goal of lowering stranded generation capacity and enhancing grid dependability.
A special purpose company created by the federal government to supervise the PPI's implementation, FGN Power Company, will coordinate the initiative.
Speaking at the contract signing ceremony in Abuja, Power Minister Adebayo Adelabu stated that the arrangement would cover 544 kilometers of transmission lines on both brownfield and greenfield locations, with a combined load capacity of 7,140 megawatts.
He clarified that the nation's economy would be strengthened by these vital infrastructure projects, which would serve as the primary conduits for supplying more power from midstream transmission straight to residences, workplaces, and industry.
In order to address enduring bottlenecks in Nigeria's power value chain, the Power Minister characterized it as an essential step. He underlined that improving the transmission network is crucial to guaranteeing the effective delivery of generated electricity to end customers.
He said that the agreement's signing showed how committed the federal government, led by President Bola Tinubu, is to provide Nigerians with steady and dependable electricity.
7 firms leave national grid to generate electricity
Meanwhile, as Nigeria continues to battle its power outage and incessant grid collapses, more institutions are leaving the national grid to generate power.
Another six firms and one private university have just secured their license from the Nigerian Electricity Regulatory Commission to generate and distribute electricity.
The seven firms, which include the Nile University of Nigeria in Abuja, will be generating up to 30MW of electricity under different arrangements.
Source: Getty Images
According to the NERC, Daybreak Power Solutions Limited secured a one-off grid generation license with a gross capacity of 2.63 MW in Q4, 2024. Another four applicants also got permits to generate captive power amounting to 22.50MW.
These include the Nile University of Nigeria, Airport Road, Jabbi Abuja (10 MW); Quantum Paper Limited, Agbara, Ogun State (7 MW); Ro-Marong Nigeria Limited in Amuwo-Odofin, Lagos (4.40 MW); and Psaltry International Company Limited, Alayide village, Oyo State (1.10 MW).
Nigerians react to poor power supply amid higher electricity tariffs
Legit.ng reported that barely weeks after the Nigerian power sector achieved a new record in power generation, Nigerians have been experiencing prolonged blackout for days without explanation.
This has triggered reactions from people, especially customers on the Band A feeder who pay more for electricity, and expect to get at least 20 hours of power supply daily.
Reports show that customers in some states are protesting online and offline, demanding answers from the electricity distribution companies with which they directly interface.
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Source: Legit.ng
