FEC Approves N39.6bn For Power Sector Equipment

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.

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.

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.”

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