The Federal Executive Council (FEC), chaired by President Bola Tinubu on Monday, approved €161.3 million for contracts under the first phase of the Siemens Power projects across Nigeria.

After extensive discussions, President Tinubu also approved ₦1.7 billion for the acquisition of an office complex for the National Electricity Liability Management Company (NEMCO) in Abuja.

Following the meeting, Minister of Power, Adebayo Adelabu, briefed the press, explaining that two key approvals were granted for the Ministry of Power. The first involved awarding a contract for the engineering, procurement, construction, and financing of upgrades to 331/132 kV and 132/33 kV substations as part of Phase 1 of the Presidential Initiative, commonly known as the Siemens project. This approval came after the successful completion of the pilot phase.

Adelabu further noted that the FEC approval aligns with commitments made by President Tinubu in his recent meeting with the President of Germany. The total cost for the first batch of Phase 1 is €161,328,228, focusing on upgrading and expanding the transmission network. This includes revamping 14 existing substations (brownfield) and constructing 21 new substations (greenfield) across the country.

The first batch includes upgrades for the Onitsha 331/33 kV substation (Enugu Electricity Distribution Company), the Offa 132/33 kV substation (Ibadan Electricity Distribution Company), and new substations in Abeokuta, Ayede, and Sokoto.

These upgrades are expected to significantly improve and stabilize the transmission segment of Nigeria’s power sector.

Additionally, FEC approved the acquisition of an office complex for NEMCO in Abuja, located at Plot No. 2148, Cadastral Zone, Wuse 1 District. The cost of the acquisition is ₦1.7 billion, inclusive of VAT. NEMCO, established under the Electricity Power Sector Reform Act of 2005, plays a critical role in the sector’s reform. The acquisition will help avoid rising rent costs and accommodate NEMCO’s expanded mandate and workforce.