From Juliana Taiwo-Obalonye, Abuja
The Federal Executive Council (FEC) has approved contracts for the engineering, procurement, and construction of new substations under the Presidential Power Initiative (PPI).
Minister of Power Adebayo Adelabu made the disclosure to State House Correspondents at the end of the council meeting, yesterday.
According to him, this first phase will involve upgrades to existing infrastructure and the construction of new substations aimed at increasing the national electricity supply.
“The approval marks a crucial step in delivering on President Bola Ahmed Tinubu’s promise to enhance Nigeria’s power capacity,” Adelabu stated.
He explained that the initiative aims to achieve an operational capacity of 12,000 megawatts within four years, with an immediate target of 8,000 megawatts in the next 12 to 24 months.
The contracts, worth approximately €161 million, will see upgrades to 14 existing substations and the establishment of 21 new ones across the country.
Key locations for these substations include Onitsha, Abeokuta, and Sokoto. “These upgrades are essential for stabilizing our transmission network and ensuring reliable power supply to Nigerians,” Adelabu added.
The PPI is a collaborative effort with Siemens AG, which has already delivered 10 mobile substations and 10 power transformers as part of its commitment.
“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. So 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. The cost of this first batch of the phase one of the Siemens project that was approved this afternoon is Euro161.33 million.
The phase one of this Siemens project, as it relates to the transmission, upgrade and expansion, actually include 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 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 this phase one of the Siemens project. And we expect that this will further improve and stabilise the transmission segment of the power sector value chain in no distant future on completion.”
Adelabu, said additionally, FEC approved the acquisition of an office complex for the Nigeria Electricity Liability Management Company (NELMCO) in Abuja for N1.7 billion.
This is aimed at reducing escalating rental costs and ensuring NELMCO can effectively manage its expanded responsibilities in the reformed electricity sector.
The minister said: “The second approval relates to the award of a contract for the acquisition of an office complex for the Nigeria Electricity Liability Management Company, which we all know as NELMCO.
“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.
“We all know that NELMCO is the product of the electricity power sector reform act of 2005 DPSRA, with a very specialised role to play in ensuring the success of the electricity sector reform. And 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. So this offer of outright purchase was opted for, and this will also enable the company to meet up with its expanded mandate and increase in staff strength to meet up with its obligation.”