- The Nigerian government signs a $463 million contract with a Chinese consortium to upgrade distribution lines in several regions
- The China Exim Bank finances the project and aims to enhance power distribution infrastructure in Nigeria
The Federal Government of Nigeria, through the Ministry of Power, has officially signed a contract worth $463 million (equivalent to N365 billion at an exchange rate of N789/$ on NAFEM) with a Chinese consortium to upgrade distribution lines in the country. The China Exim Bank will provide the financing for this project.
This significant contract, with both offshore and onshore components, will focus on upgrading distribution lines infrastructure in various regions served by distribution companies in Nigeria. These regions include Jos, Kano, Abuja, and Kaduna.
The contract was officially signed during the 3rd Belt and Road Initiative (BRI) event in Beijing, China. It involved a Memorandum of Understanding (MoU) signed between the Federal Government of Nigeria Power Company and the Special Purpose Vehicle (SPV) responsible for implementing the Presidential Power Initiative (PPI) on behalf of the Ministry of Power. The Chinese consortium comprises China Civil Engineering Construction (CCECC) and TBEA Energy.
In addition to this distribution line upgrade contract, another MoU was signed between the Transmission Company of Nigeria (TCN), CCECC, and TBEA to establish a super grid for the power sector. The Minister of Power, Chief Adebayo Adelabu, expressed his commitment to a long-term partnership with both companies, underscoring the strong relationship between China and Nigeria that was further strengthened at the Belt and Road Initiative event.
Minister Adelabu also outlined the government’s plans to revitalize the power sector by addressing critical requirements and implementing impactful projects. He noted that efforts are underway to finalize the sector’s reform through a new Electricity Act signed by President Bola Tinubu, aiming to achieve the set goals.
Despite its current challenges, Nigeria remains a unique and viable investment environment, according to the minister.