The FEC has approved contracts for the engineering, procurement, and building of new substations. This is a part of the presidential power initiative (PPI) to strengthen Nigeria’s power sector.
The contracts were approved at the council’s meeting in Abuja on Monday.
Adebayo Adelabu, Minister of Power, told journalists following the meeting that the contracts, worth around €161 million, would allow for the upgrade of 14 existing substations and the construction of 21 new ones across the country.
He stated that the project aims to increase the nation’s electrical supply.
Adelabu said:
“The approval marks a crucial step in delivering on President Bola Ahmed Tinubu’s promise to enhance Nigeria’s power capacity.”
Adelabu stated that the program seeks to achieve an operational capacity of 12,000 megawatts (MW) within four years. This, he said, would be with a short-term goal of 8,000 MW in the next 12 to 24 months.
He mentioned Onitsha, Abeokuta, and Sokoto as key substation locations.
“These upgrades are essential for stabilising our transmission network and ensuring reliable power supply to Nigerians,” Adelabu added.
“There were basically two approvals for the Federal Ministry of Power as presented.
“The first was an approval for the award of contract, for engineering, procurement, construction and financing for the implementation of the 330/132 KV and 132/33 KV substations upgrade under the phase one of the presidential initiative, popularly known as the Siemens project.
“Subsequent upon completion of the pilot phase of this project, the FEC at today’s meeting considered it necessary for us to move forward as promised by the president of the Federal Republic of Nigeria at a meeting he held with the President of the Republic of Germany last week.”
Adelabu said the approved cost of the first batch of the “phase one of the Siemens project was €161.33 million”.
“Phase one of this Siemens project, as it relates to the transmission, upgrade and expansion, actually includes 14 brownfield substations that need upgrade and revamping, and 21 Greenfield substations, which are new substations to be built across the country to improve the transmission segment,” the minister said.
“The first batch of this phase one of the projects include one Onitsha, 330/133 KV substation under the Enugu electricity distribution company.
“Two, Offa 132/33 KV substation under the Ibadan electricity company. There is the new Abeokuta 330/132 KV substation.
“We have Ayede 330/132 KV substation. And lastly, Sokoto 132/33 KV substation. Those are the five substations to be worked upon under the first batch of phase one of the Siemens project.”
Adelabu went on to say that the FEC had approved the acquisition of an office building in Abuja for the Nigeria Electricity Liability Management Company (NELMCO) for N1.7 billion.
He stated that the permission was intended to reduce spiralling rental prices. He also guaranteed that NELMCO can successfully manage its enlarged duties in the reorganised power sector.
“The office complex approved for outright purchase is at Plot 2148, Cadastra Zone A02 Wuse 1 District Abuja. The cost of this acquisition is N1.7 billion inclusive of 7.5 per cent VAT,” Adelabu said.
The minister stated that the acquisition is necessary to “avoid the escalating rent, which is being increased regularly due to inflation.”
