FEC Greenlights €161m Siemens Power Project

N1.7 billion for the acquisition of an office complex for the Nigeria Electricity Liability Management Company (NEMCO) and €161.33 million for the Siemens power project have been approved by the Federal Executive Council (FEC).

Adebayo Adelabu, the Minister of Power, made the announcement Monday during the Federal Executive Council (FEC) meeting at the State House in Abuja, which was chaired by President Bola Ahmed Tinubu.

Nigeria’s transmission system is being upgraded as part of the Siemens project, which is a component of the Presidential Power Initiative.
According to Adelabu, Phase One entails the design, acquisition, building, and funding of 21 new substations across the country as well as the renovation of 14 existing ones.

Five important substations have been chosen for renovations as part of the initial rollout.
The Enugu Electricity Distribution Company’s Onitsha 330/132 KV substation, the Ibadan Electricity Distribution Company’s Offa 132/33 KV substation, the Abeokuta 330/132 KV substation, the Ayede 330/132 KV substation, and the Sokoto 132/33 KV substation are among them.

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According to Adelabu, the project intends to address transmission constraints that have long afflicted Nigeria’s electricity sector and builds on the successful completion of the pilot phase.

“The transmission segment of the power sector value chain will soon be stabilized and expanded by this initiative,” he stated.

He pointed out that the decision is in line with recent talks between German President Frank-Walter Steinmeier and President Tinubu, which aimed to expedite Siemens’ plan to increase Nigeria’s power supply.

The FEC also approved the N1.7 billion purchase of an office complex for NEMCO in the Wuse 1 District of Abuja in a different approval. A 7.5% value-added tax is included in the buying price.

NEMCO was created in accordance with the Electric Power Sector Reform Act of 2005, and its responsibility is to manage legacy liabilities in the power industry.

Adelabu clarified that in order to handle increased rental prices and make room for the company’s expanding workers, the office building had to be purchased.

“NEMCO currently occupies the facility, and an outright purchase will support its expanded mandate while ensuring operational stability,” he stated.