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FEC approves N39.6bn for equipment in power sector

FEC approves N39.6bn for equipment in power sector
March 01
20:48 2023

The federal executive council (FEC) has approved the sum of N39.6 billion for various transmission line contracts in the power sector. 

The council meeting, presided over by Vice-President Yemi Osinbajo, was held on Wednesday. 

Briefing journalists at the end of the meeting, Abubakar Aliyu, minister of power, said the various projects comprise several amounts, including an offshore component of $53 million and an onshore component of N15.6 billion.

“I presented three memos to council today and I got approval for the three memos,” Aliyu said.

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“The first memo sought the council’s approval for the procurement of transmission line materials for reconductoring works for the Transmission Company of Nigeria (TCN) in favour of Messrs Legacy Power in the sum of $6 million; that’s the offshore value. The component for the onshore is N145 million inclusive of all the taxes and 12 months of completion.”

Aliyu said the second memo sought the council’s approval for the award of contract for the construction of “15 kilometres turn in-turn out line of the existing Akure-Ado-Ekiti 132 single-circuit transmission line at Akure; 330, 132, 33 sub-stations of the TCN in favour of Messrs Legacy Power Limited in the sum of $2.5 million for offshore component and N988.5 million for the onshore component”.

“The sub-station in Akure, which has been completed over two years ago, is a 330 sub-station, and we could not energise the sub-station because of lack of line,” he added.

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Aliyu said the line is supposed to originate in Benin, where a new line is currently being constructed.

“I have spoken to (sic) this project here several times; it is the project that has a problem of right way which we are dealing with gradually, and the line is supposed to energise the Akure sub-station which was completed over two years ago,” Aliyu said. 

“The line is coming from Benin north to Oshogbo, which will pass and energise the Akure sub-station. So, this project is 132 line from the Akure sub-station going to Akure-Ado-Ekiti which is simultaneously going on with the Benin north-Akure line.

“By the time we are able to energise the Akure line, this project would have been completed so that the whole area will have no problem of electricity.”

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The minister said the project, which had also been approved by the council, would be completed in 12 months.

INSTALLATION OF 32KV SUBSTATIONS

Further speaking, Aliyu said the last memo presented sought to design, supply, and install a total of 132 32KV (kilovolts) substations and transmission lines across the country.

“The last memo, which has five projects on it, sought to design, supply, and install 132 32KV substations and transmission lines across different locations in the country for TCN in favour of several contractors for a total of $53 million. This is the offshore. Then, the onshore is N15.6 billion,” he said. 

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“The projects are all similar –design, supply, and install 2 by 60MVA 132 33kV transmission substation across the country as I stated earlier.

“We have one in Misau local government area, Bauchi state. We have another one in Mashi local government in Kastina state. We have the third one in Benue state, which is Api and north Bank in Makurdi. 

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“Then we have the fourth one in Ebonyi state, I by 60MVA transformer at a university in Ebonyi state; then, we have the other one at Ebonyi airport; then, the fifth one is a line of 30 kilometre at Rimin Zakara to Kayin in Kano.

“So, these are the various projects that constitute the various amounts — offshore of $53 million and onshore component of N15.6 billion.”

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