THE federal government has signed a $328.8 million contract with Chinese firm, China Machinery Engineering Corporation (CMEC), to rehabilitate and expand the electricity transmission network under Phase 1 of the Presidential Power Initiative (PPI).

The agreement was reportedly sealed on Wednesday, April 9.

It will cover the aspects of engineering, procurement, construction, and financing for the development of 330kV and 132kV transmission lines across the country.

It aims to improve grid reliability and reduce stranded generation capacity.

At the signing of the contract signing ceremony in Abuja, the Minister of Power, Adebayo Adelabu, said the agreement would cover 544 kilometres of transmission lines with a load capacity of 7,140 megawatts, spanning both brownfield and greenfield sites.

“The Federal Government and China Machinery Engineering Corporation (CMEC) on Wednesday signed a contract agreement worth 328.8 million dollars aimed at improving power supply across the country.”

He said the projects would act as the main arteries for delivering increased power from midstream transmission directly to homes, businesses, and industries.

Adelabu described the agreement as a vital step toward resolving persistent bottlenecks in Nigeria’s power value chain.

He stressed that enhancing the transmission network is essential to ensure that generated electricity is delivered efficiently to end-users.

He added that the signing of the agreement demonstrated the federal government’s commitment, under the leadership of President Bola Tinubu, to providing stable and reliable electricity to Nigerians.

On his part, the vice president of SINOMACH, Li Xiaoyu, commented that the project would play a significant role in improving electricity delivery across the country.

The ICIR reports that the PPI aims to modernise and expand Nigeria’s electricity grid through a partnership with Siemens Energy, which comes to increase electricity supply and boost economic growth, managed by the FGN Power Company.

However, Nigeria’s electricity supply has been in a sorry state for the past years.

Last year, the national grid collapsed about 11, raising concerns over grid stability and reliance on a centralised grid system.

Each time the grid collapses, it affects households, businesses, and critical sectors like healthcare, where a consistent power supply is essential.