- FG, Siemens differ conditions for the Siemens deal
- Disagrees on Local content, counterpart funding, among others
- Disagreement threatens the success of the $2.3 billion deal
The much-publicised Federal Government (FG), Siemens deal for the Presidential Power Initiative (PPI) is threatened by a disagreement between the FG and its German counterpart, Siemens Energy, on some project conditions. Progress on the PPI has stalled following the disagreement on issues ranging from counterpart funding to local content, among others.
According to Vanguard Newspapers, the German government through Siemens Energy has insisted on 50% local content, 100% automation and counterpart funding from the Nigerian government. On the other hand, the FG insists on 75% local content and 40% automation while failing to commit to its counterpart funding for the PPI.
Speaking on the PPI, Siemens Energy Corporate Communications Manager Titilola Taiwo said: ”A lot of work is currently ongoing behind the scenes. There is need for everyone to be patient as we are very committed to the execution of this important project.”
The project is expected to add up to 25,000MW capacity to the national grid network by 2025.