Categories: EnergyNews

FG signs $328m contract with Chinese firm to boost power supply

The Federal Government has signed an Engineering, Procurement, Construction, and Financing (EPC&F) contract with the China Machinery Engineering Corporation (CMEC) for the improvement of power supply in Nigeria.

The contract was signed between the FGN Power Company (FGNPC) and CMEC in Abuja on Wednesday, April 9, 2025.

Speaking at the signing, the Minister of Power, Adebayo Adelabu, said the contract valued at $328,818,916.99 signifies a major leap in the implementation of phase one of the Presidential Power Initiative (PPI).

Adelabu said the contract will ensure efficiency and prevent stranded capacity in the national grid, adding that the projects have been strategically divided into two priority batches.

The minister stated that Priority 1 comprises seven brownfield and 10 greenfield lines, totalling 544km with a load capacity of 7,140MW.

Power generation hits 6,003 megawatts

He said the infrastructure will act as the arteries that carry the increased power generated through Nigeria’s mid-stream transmission projects directly to the homes, businesses, and industries that power the nation’s economy.

Adelabu said: “This project is not an isolated endeavor. It is deliberately designed to seamlessly complement the ongoing mid-stream transmission enhancements.

“Today’s signing ceremony is more than just the exchange of documents; it is a tangible demonstration of the unwavering commitment of the federal government, under the leadership of President Bola Ahmed Tinubu, to deliver on our promise of a stable and reliable power supply for all Nigerians. We are determined to break down the barriers that have hindered progress in the past and build a power sector that is fit for the 21st century and beyond.

“To Nigerians, I say this: we understand the challenges you have faced with power supply, and we are working tirelessly to address them. Today’s event is a testament to our commitment to deliver tangible improvements. We ask for your continued patience and support as we embark on this transformative journey.”

The Star

Segun Ojo

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