N1.7 billion has been approved by the Federal Executive Council (FEC) to buy an office building for the Nigeria Electricity Liability Management Company (NEMCO), and €161.33 million has been allowed for the Siemens power project.
Following Monday’s Federal Executive Council (FEC) meeting, which was chaired by President Bola Ahmed Tinubu at the State House in Abuja, Minister of Power Adebayo Adelabu made the announcement.
As a component of the Presidential Power Initiative, the Siemens initiative aims to improve Nigeria’s transmission infrastructure.
Phase One entails the engineering, acquisition, building, and funding of 21 new substations around the country in addition to the renovation of 14 existing ones, according to Adelabu.
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Upgrades have been identified for five important substations as part of the initial rollout.
Ayede 330/132 KV, Abeokuta 330/132 KV, Sokoto 132/33 KV, Offa 132/33 KV, and Onitsha 330/132 KV substations are among them.
The initiative intends to address transmission constraints that have long afflicted Nigeria’s electricity sector, according to Adelabu, and builds on the successful conclusion of the pilot phase.
“This project will soon stabilize and grow the transmission portion of the power sector value chain,” he stated.
In order to expedite the Siemens project to increase Nigeria’s power supply, he pointed out that the approval is in line with recent talks between President Tinubu and German President Frank-Walter Steinmeier.
In a different approval, the FEC also approved NEMCO’s N1.7 billion acquisition of an office building in the Wuse 1 District of Abuja. The value-added tax is 7.5% of the buying price.
The management of legacy liabilities in the power industry is the responsibility of NEMCO, which was established by the Electric Power Sector Reform Act of 2005.
Adelabu clarified that in order to handle the company’s expanding personnel and rising rental expenses, the office building had to be purchased.
The site is now occupied by NEMCO, and an outright purchase will support its enlarged mandate and provide operating stability, he stated.
