Insinuations that the federal government’s arrangement with Siemens of Germany, which would increase Nigeria’s overall electricity producing capacity from 4,500MW to 25,000MW, had failed have been denied.
The Federal Executive Council (FEC) authorised the payment of €15.21 million offshore and N1.708 billion onshore in July of last year as part of Nigeria’s counterpart funding for the agreement, which had been stuck since then.
Siemens did nothing concrete for around 18 months after Nigeria and Siemens signed the relevant agreements. Their engineers aren’t even in Nigeria yet.
The first phase of the power project’s initial ten months had likewise passed.
But, according to Abubakar Aliyu, Minister of Power, who spoke at a workshop organized by the Power Correspondents Association of Nigeria (PCAN) in Abuja, the project, which industry analysts consider a game-changer, is still on track.
Aliyu, who was accompanied by Goddy Jedy Agba, Minister of State for Power, said the project “has the capacity to extend Nigeria’s electrical supply system.”
He noted that the Siemens Presidential Power Initiative (PPI) is “in three phases” and is expected to be completed in 2025, adding that these phases encompass the upgrading and development of transmission networks as well as the networks of Distribution Companies -DISCOs
Furthermore, Aliyu stated that the project would increase access to inexpensive, efficient, and dependable electricity, as well as promote the country’s industrial and economic growth.
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This initial phase, which began in 2021, will go for ten months with the final goal of pushing to 7,000MW,” he continued.
As the team is now in the pre-engineering phase, there has been no glitch so far.
The minister also stated that the government was now analyzing the procurement process and was optimistic in a positive outcome, stating that the project had progressed to an advanced stage of activities in accordance with the Siemens project execution plan.
However, he claimed that the only way to achieve long-term growth in the power sector is to include renewable energy sources in the mix, noting that gas-fired power plants currently provide 80% of Nigeria’s electricity.
While Aliyu emphasized that mini grids remained a unique solution model for increasing renewable energy penetration in Nigeria, he also stated that they were already being deployed in the country’s Ministries, Departments, and Agencies.
