Nigeria Signs $328.81 Million Deal with China to Boost Electricity Supply
The Federal Government has inked a $328.81 million agreement with China Machinery Engineering Corporation (CMEC) to upgrade the country’s electricity transmission infrastructure.
The deal, signed under Phase 1 of the Presidential Power Initiative (PPI), encompasses engineering, procurement, construction, and financing of key transmission lines aimed at transforming power delivery nationwide.
Speaking at the signing ceremony in Abuja, Minister of Power Adebayo Adelabu described the agreement as a landmark step toward addressing Nigeria’s chronic electricity challenges. He said CMEC will spearhead the rehabilitation and construction of critical 330kV and 132kV transmission lines, to enhance grid efficiency and reduce stranded power capacity.
“This initiative is not just about wires and towers—it’s about lighting up homes, powering industries, and driving economic growth,” Adelabu stated. “With this project, we are laying the groundwork for a modern, resilient power sector.”
According to the minister, the project is strategically structured into two priority batches. Priority One includes the development of seven brownfields and ten greenfield transmission lines, spanning 544 kilometres with a combined load capacity of 7,140 megawatts.
“These transmission lines will serve as the arteries of our power grid, channelling energy from mid-stream transmission facilities directly to end users across Nigeria,” he added. “It is a critical step in removing the bottlenecks that have long hindered electricity delivery.”
Coordinated by FGN Power Company, a special-purpose vehicle established by the Federal Government, the project aligns with ongoing efforts to modernize Nigeria’s energy infrastructure from generation through to distribution.
Kenny Anuwe, Managing Director of FGN Power Company, underscored the project’s significance, calling the partnership with CMEC a “strategic move to fortify the backbone of Nigeria’s power supply system.”
“At FGN Power Company, our mandate is clear—deliver improved electricity to every Nigerian,” Anuwe said. “Without a strong transmission network, even the best power generation efforts will fall short. This project bridges that gap.”
