FG Approves N39.6bn For Power Sector to Revamp Electricity

The sum of N39.6bn was on Wednesday, approved by the Federal Executive Council for massive rehabilitation projects in the power sector for extensive electricity distribution. 

Investors King reports that the FEC endorsed the three memos presented by the Minister of Power, Abubakar Aliyu which includes the Ekiti transmission project.

Aliyu disclosed this while addressing newsmen shortly after the FEC meeting presided over by the vice president, Yemi Osinbajo in Abuja.

The minister hinted that out of the N39.6bn contract, N15.6bn would cover works within Nigeria while $53m will go for the offshore components. 

He stated that the first memo presented was on the purchase of transmission lines for the Transmission Company of Nigeria (TCN) which cost $6m and N145m for the offshore and onshore value respectively.

On the second memo, Aliyu said it contained the construction of a 15km turn in-turn out line of the current Akure-Ado-Ekiti 132KV single-circuit transmission line at Akure 330KV, 132KV, 33KV sub-stations contract.

He noted that the Akure sub-station had been in existence since 2021 but wasn’t active due to lack of line, adding that the contract will cater for the activation of transmission lines which will improve electricity circulation in the area and environs.

The third memo submitted, according to him, consists of five projects of the ministry to construct and install 132KV sub-stations and transmission lines at various designated areas in Nigeria as outlined by the TCN.

The projects’ contract was awarded to several contractors with an offshore cost of $53m while the onshore cost is N15.6bn.

His words, “The first memo sought the council’s approval for the procurement of transmission line materials for re-conductoring works for the Transmission Company of Nigeria in favour of Messrs Legacy Power in the sum of $6m; that’s the offshore value. The component for the onshore is N145m inclusive of all the taxes and 12 months of completion.”

“The contract in the second memo was in favour of Messrs Legacy Power Limited in the sum of $2.5m as the offshore component and N988.5m as the onshore component. By the time we are able to energise the Akure line, this project would have been completed so that the whole area will have no problem of electricity. This project will be completed in 12 months and was also approved by the council.”

“The projects in the third memo are all similar—design, supply and install 2 by 60MVA 132 33kV transmission sub-station across the country. We have one in Misau Local Government Area, Bauchi State. We have another one in Mashi Local Government in Kastina State. We have the third one in Benue State, which is Api and North Bank in Makurdi; then we have the fourth one which is at Ebonyi State, one 60MVA transformer at a university in Ebonyi State; then, we have the other one at Ebonyi Airport; then, the fifth one is a line of 30km at Rimin Zakara to Kayin in Kano.”