The Federal Executive Council (FEC) has approved significant investments in Nigeria’s power sector, including €161.33 million for the Siemens project and N1.7 billion for the purchase of an office complex for the Nigeria Electricity Liability Management Company (NEMCO).
Minister of Power, Adebayo Adelabu, announced the approvals on Monday following the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the presidential Villa in Abuja on Monday.
The first approval was for the engineering, procurement, construction, and financing of upgrades to 330/132 KV and 132/33 KV substations under Phase One of the Presidential Power Initiative, commonly known as the Siemens project.
“This phase involves upgrading 14 existing (‘brownfield’) substations and building 21 new (‘greenfield’) substations across the country to improve transmission capacity,” Adelabu said.
The initial rollout will target five key substations including Onitsha 330/132 KV substation (Enugu Electricity Distribution Company), Offa 132/33 KV substation (Ibadan Electricity Company), Abeokuta 330/132 KV substation, Ayede 330/132 KV substation, and Sokoto 132/33 KV substation.
Adelabu noted that the project follows the successful completion of the pilot phase and aims to address transmission bottlenecks in Nigeria’s power sector.
He said the approval aligns with President Bola Tinubu’s recent discussions with German President Frank-Walter Steinmeier to accelerate progress on the Siemens initiative.
“This initiative will stabilise and expand the transmission segment of the power sector value chain in the near future,” Adelabu said.
The second approval was the N1.7 billion purchase of an office complex for NEMCO in Abuja’s Wuse 1 District. The cost includes 7.5% Value Added Tax.
NEMCO, established under the 2005 Electric Power Sector Reform Act, plays a critical role in managing legacy liabilities in the power sector.
The Minister explained that the acquisition was necessary to curb rising rental costs due to inflation and accommodate the company’s growing workforce.
“NEMCO currently occupies the facility, and outright purchase will ensure operational stability while supporting its expanded mandate,” Adelabu said.
