FG signs $21m power plant rehabilitation deal with Japanese govt

The Federal Government has signed an agreement with the Japanese government for the rehabilitation of the Lagos Transmission Substation.

The agreement was signed by the Minister of Budget and National Planning, Senator Udo Udoma on behalf of the Federal Government while the Japanese Ambassador to Nigeria, Mr. Yutaka Kikuta, signed on behalf of the government of Japan.

According to the minister, the project is donated by the Japanese government at the cost of ¥2.349bn ($21.08m).

Udoma, in a statement issued on Saturday, said that attaining self-sufficiency in the power sector is one of the goals of the Economic Recovery and Growth Plan of the Federal Government.

He said: “As you know the ERGP sets out our four-year plan for the transformation of our country.

“The ERGP aims to restore growth, invest in people and build a globally competitive economy.

“But not just to restore growth, but a growth that is diversified, inclusive and sustainable.

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“Among its execution priorities is the attainment of energy self-sufficiency in power and petroleum products.”

The minister also recalled that in 2016, Nigeria had signed an Exchange of Note for emergency improvement of electricity supply in Abuja with the Government of Japan, adding that the project has been completed and now contributing to the power supply in Abuja.

Udoma further said that Japan had equally played a role in the design of a master plan on the development of a National power system in Nigeria.

The Japanese Ambassador, in his remarks, said that power supply is key to industrialization for any country, adding that this is one of the factors foreign investors consider when coming into the country.

According to him, the need to strengthen power infrastructure in Lagos is because of its economic position as a commercial and industrial center of Nigeria, saying that this underlines the strategic importance of the project.

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