The Federal Executive Council (FEC) has approved €161,328,228 for the first batch of the Phase One Siemens Power Projects aimed at upgrading the country’s electricity transmission infrastructure.
Additionally, ₦1.7 billion has been allocated for the acquisition of an office complex for the Nigeria Electricity Liability Management Company (NEMCO) in Abuja.
The Minister of Power, Adebayo Adelabu, disclosed this during a press briefing after the FEC meeting, chaired by President Bola Tinubu at the Presidential Villa in Abuja.
€161.3m Siemens Power Project Approval
Speaking on the Siemens project, Adelabu said, “The Federal Executive Council 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.”
He explained that the approved funds would cover engineering, procurement, construction, and financing for the implementation of upgrades under the Phase One of the Presidential Initiative on Power (Siemens Project).
“The cost of this first batch of the Phase One of the Siemens project is €161,328,228. This phase includes 14 brownfield substations for upgrades and 21 greenfield substations, which are new substations to be built across the country,” the Minister stated.
The five substations selected for this phase include:
Onitsha 330/132/33 KV substation under the Enugu Electricity Distribution Company.
Offa 132/33 KV substation under the Ibadan Electric Distribution Company.
New Abeokuta 330/132/33 KV substation.
Ayede 330/132/33 KV substation.
Sokoto 132/33 KV substation.
Adelabu expressed optimism about the project’s impact, saying, “We expect that this will further improve and stabilize the transmission segment of the power sector value chain in no distant future upon completion.”
₦1.7bn NEMCO Office Acquisition
The council also approved ₦1.7 billion, including 7.5% VAT, for the outright purchase of NEMCO’s current office complex at Plot 2148, Cadastral Zone, Wuse 1 District, Abuja.
“NEMCO, established under the Electricity Power Sector Reform Act of 2005, plays a specialized role in ensuring the success of electricity sector reform,” Adelabu explained.
He emphasized that purchasing the property would reduce escalating rental costs and accommodate the company’s expanded mandate and staff strength.
“The company currently resides in this particular facility, but it is expedient that the property be acquired to avoid the escalating rent, which is being increased regularly due to inflation. This will also enable the company to meet up with its expanded mandate,” Adelabu added.
The approvals highlight the government’s commitment to enhancing Nigeria’s power sector and supporting reforms to address critical infrastructure needs.