• Monday, May 20, 2024
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FEC approves N10.48b, $27.09m for power sector

FEC approves N10.48b, $27.09m for power sector

The Federal Executive Council, FEC, on Wednesday approved contracts worth N10.48 billion and $27.09 million respectively for the Federal Ministry of Power for the power sector.

Abubakar Aliyu, minister of power, while briefing State House Journalists, after the weekly Council meeting presided over by President Muhammadu Buhari, said the contracts are for the purchase of major electricity transmission equipment that will further boost electricity supply across the country.

“I presented three memos today, the first one was a variation of a subsisting contract for the Katampe to National Stadium, 132 direct circuit line which is about 90 percent completed.

He disclosed that the contractor had sought the variation because of some delays on the project, adding that “ the necessary due processes have been followed and the variation approved by FEC today is N201,949,811.00”, he said.

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The contracts are also for the procurement of two sets of power transformers and the construction of a transmission line in Kebbi State.

“The second approval was for the design, manufacture and supply of two 60 MVA 132/33 KV power transformers. The cost has two components; the offshore is $1,294,447 then the onshore is N16,485,000.

“The third approval is a contract to also design, construction and installation of a 260 kilometre transmission line from Birnin-Kebbi, through Zuru to Yauri in Kebbi State. Also, the cost has two components; the offshore is $25.8 million and the onshore is N10.2 billion,” he explained.

As the nation’s power sector continues with its epileptic outputs, Aliyu expressed optimism that the Presidential Power Initiative (PPI), remains on course to deliver on incremental power supply, despite the setbacks with the Siemens power deal and reported sabotage on power infrastructure.

Also speaking after the FEC meeting, Minister of Science and Technology, Ogbonnaya Onu, announced FEC’s approval of Nigeria’s Revised Energy Policy (2022).

He explained that the revision of the policy became imperative to enable Nigeria to take optimum advantage of all the available sources of energy in the country.

He noted that Nigeria has abundance of crude oil, fossil fuels, and variants of renewable energy (solar, hydro, wind, geothermal and biomass), in commercial quantities, and a good mix of all these will greatly improve energy supply in the country.