FEC Approves €161.3 Million for Siemens Power Projects and N1.7 Billion for NEMCO Office Acquisition

The Federal Executive Council (FEC), presided over by President Bola Tinubu on Monday, approved €161,328,228 for contracts under the first batch of Phase 1 of the Siemens Power Projects aimed at upgrading and expanding the nation’s power infrastructure.

Additionally, the council approved ₦1.7 billion for the acquisition of an office complex for the National Electricity Liability Management Company (NEMCO) in Abuja.

Speaking to journalists after the meeting, Minister for Power, Adebayo Adelabu, explained that the Siemens project involves engineering, procurement, construction, and financing to upgrade 14 existing (brownfield) substations and construct 21 new (greenfield) substations across the country.

Key substations in this first batch include:
– Onitsha 331/132/33 kV under the Enugu Electricity Distribution Company,
– Offa 132/33 kV under the Ibadan Electricity Distribution Company,
– New Abeokuta 331/132/33 kV substation,
– Ayede 331/132/33 kV substation, and
– Sokoto 132/33 kV substation.

Adelabu noted that these projects are expected to stabilize and improve the transmission segment of the power sector value chain upon completion.

For NEMCO, the council approved the purchase of a permanent office complex at Plot No. 2148, Cadastral Zone, Wuse 1 District, Abuja, for ₦1.7 billion, inclusive of 7.5% VAT.

The minister highlighted that this acquisition would help NEMCO avoid escalating rental costs and enable it to meet its expanding mandate and growing staff requirements. NEMCO, a product of the 2005 Electricity Power Sector Reform Act, plays a crucial role in the success of Nigeria’s electricity sector reforms.

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