The Federal Executive Council (FEC) has authorized the allocation of 161.3 million Euros for the enhancement of various electricity substations in Nigeria.
Minister of Power Chief Adebayo Adelabu disclosed this to State House Correspondents at the end of Wednesday’s meeting of the council chaired by President Bola Tinubu.
He said upgrading of the facilities would be carried out under phase one of the Presidential power initiative.
“There were two approvals for the Ministry of Power. The first was an approval for the award of a contract for engineering procurement, construction and financing for the implementation of the 330/132 KV and 132/33 KV substations upgrade under phase I of the presidential initiative popularly known as the Siemens Project.
“Subsequent upon completion of the pilot phase of this project, the Federal Executive Council at today’s meeting considered it necessary for us to move forward as promised by the President of the Federal Republic of Nigeria at a meeting with the President of the Republic of Germany last week.
“The cost of this first batch of this Siemens Project as approved is 161, 328, 228 Euros. This phase one of the project as it relates to the transmission, upgrade and expansion includes 14 brownfield substations that need revamping and 21 greenfield substations which are new ones to be built across the country to improve the transmission segment,” the Minister explained.
The Power Minister also announced that the council approved the purchase of office accommodation for the Nigeria Electricity Liability Management Company (NEMCO) at the cost of one point seven billion naira.
“The second approval that was given at FEC relates to the award of contract for the acquisition of an office complex for the Nigeria Electricity Liability Management Company (NEMCO) Electricity Liability Management Company (NEMCO) and the cost for this acquisition is N1.7 billion inclusive of 7.5 per cent Value Added Tax –VAT,” he said.
Adelabu added that NEMCO has a very specialized role to play in ensuring the success of the electricity sector reforms in Nigeria.
He also said the company already resides in the property but it was decided that it should be bought outright to avoid escalating rent as well as to ensure that the company meets up with its mandate and increase its Staff strength.
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