- The German Government and the Nigerian Government, alongside the Siemens project, are progressive.
- The $2 billion Siemens deal is divided into three phases.
- Siemens to execute a total of 7000MW for the country.
According to the Federal Government, the German Government’s 2020 arrangement with Siemens is still on track and is already yielding results. Nigeria’s Minister of Power, Abubakar Aliyu, said this while presenting updates on the deal during the Power Dialogue hosted by The Electricity Hub in Abuja on Tuesday, June 14, 2022.
“Recently, I travelled to Germany to inspect the products and equipment for which we have placed orders as part of the contract,” Engr Aliyu explained. “September to December will be the months when the equipment arrives.”
“The equipment includes ten mobile sub-stations and ten Unitra transformers. We have got approval from the Bureau for Public Enterprise (BPE) to proceed with necessary procurements. We are evaluating the offers, which will soon get to the Federal Executive Council for approval,” he stated.
According to the minister, the Siemens deal intends to boost Nigeria’s electricity generation to 25,000 megawatts in six years. The $2 billion Siemens deal is divided into three phases: increasing grid operational capacity from less than 5,000 megawatts to 7000 megawatts by 2021; increasing capacity to 11,000 megawatts by 2023, and increasing total operational generation and national grid capacity to 25,000 megawatts by 2025. It is projected to save Nigeria more than $1 billion per year.
“I am pleased to announce that we have begun implementing the Siemens PPI by purchasing ten mobile transformers and ten sub-stations. In addition, the pre-engineering segment of the Presidential Power Initiative (PPI) contract is complete, and we expect contract offers on 127 Transmission and Distribution projects (Brownfield and Greenfield) from Siemens,” Engr Aliyu stated.