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FG approves 16 power contracts across Nigeria, gives breakdown

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The Federal Government of Nigeria on Thursday approved 16 memos presented by Minister of Power, Engr. Abubakar Aliyu.

The approval was given at the weekly Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo.

Aliyu told State House reporters that the action was in response to the demand for increased electricity supply across the nation.

The minister said the major problem Nigeria faces in the Electricity Supply Industry is the ability to evacuate sufficient electricity and distribute them.

“We have a very weak transmission grid and distribution segment of the value chain. We may not be having much problem with generation”, he explained.

“Unless we’re able to strengthen the electricity grid, expand, and be able to evacuate, what the grid can take to consumers will cause a lot of problems.

“What we’re doing through various interventions is repair the grid by constructing new transmission lines and bring in new equipments to replace old ones at substations.

“Then, we will release more capacity to the distribution and leading to the customers. The operational capacity is hovering around 5,000 megawatts and the transmission and distribution.

“These projects brought to council today and got approvals are all geared towards strengthening the willing capacity of the transmission and towards distribution.

“The distribution segment of the NESI (Nigerian Electricity Supply Industry) is been privatized, but we cannot fold our arms and allow them to continue not to do much to evacuate what the transmission can bring.

“We need to put more investment into the transmission so that we can improve the willing capacity of the TCN to be able to take up enough electricity from the generation.”

In the breakdown, approval was given for the construction of a 2X60MVA 132/33 KVA substation at Ikare-Akoko and 2×132 KV Lines Bay Extension at Oke-Agbe, Ondo State at the cost of $9,9928,912 and N2,037,076,700.

There will be supply of 65 Hilux vehicle and 20 SUVs nationwide at the cost of N2,741,787,500. Also covered is 1,500 drums of transformer nationwide at N322,500,000.

A total of 19 Sergi transformer explosion and fire protection devices nationwide will be supplied at €5,326,663 and N347,629,092

The FEC also approved the construction of 142KV double circuit line in Ikere-Ijesa-Isu-Ilupeju towns, Ado-Ekiti State, $30,880,393 and N8,344,898,490.

Others include the construction of New National Control Center at Osogbo, Osun State at N1,168,318,638;

Construction of New National Control Center at Gwagwalada, FCT, at N1,161,915,480 and the supply of 180 of Grounding Equipment nationwide at €686,043 and N41,378,244.

There will be additional work on 330KV double line to Mando substation in Kaduna at N893,011,356.

The rest: ”Construction of 2X60MVA, 132/33KV substation at Ogbomosho and 2X 132KVLine Bags Extension at Ganmo substation at Ilorin at €5,274,245 and N457,708,341;

“Contracts for design, manufacture, supply at N4,325,652,643; Installation and commissioning of transmission lines of 330/132/33 KV Lekki, Lagos. LOT 1 and LOT 2, at N2,812,767,499:

”Augmentation for the construction of 2X60MVA 132/33 KVA substation at Malumfashi and 4X132KV Line Bats at Kankara at Katsina at N176,517,897.

”Supply and delivering of 40 each of primary and secondary injection test sets nationwide at €3,865,700 and N212,386,640.”