The Federal Government has dismissed insinuations that its deal with Siemens of Germany, which would see Nigeria’s total electricity generation capacity rise from 4,500 megawatts (mw) to 25,000mw, had failed.
In July last year, the Federal Executive Council (FEC), approved the payment of €15.21million offshore and N1.708 billion onshore as part of Nigeria’s counterpart funding for the deal, which had somehow stalled since then.
About 18 months after Nigeria and Siemens signed the necessary papers, nothing concrete was done by the German firm. Their engineers are not even on ground in Nigeria. The 10 months for the first phase of the power project had also elapsed.
But Minister of Power, Abubakar Aliyu, who spoke at a workshop organised by the Power Correspondents Association of Nigeria (PCAN), in Abuja, noted that the project, which industry experts regard as a game-changer, remains fully on course.
Aliyu, who was represented by the Minister of State, Power, Goddy Jedy-Agba, stressed that the project “has the capacity to expand Nigeria’s electricity supply system.”
He stated that the Siemens Presidential Power Initiative (PPI) “is in three phases” and that it is estimated for completion in 2025, adding that these phases cover the upgrading and expansion of the transmission networks and the Distribution Companies’ (DisCos) networks.
In addition, Aliyu noted that the project would improve access to affordable, efficient and reliable electricity and provide support for industrial and economic growth in the country.
He added: “This first phase, which began in 2021, will go on for a period of 10 months with the end goal of pushing to 7,000mw. So far, there has been no hitch, as the team is currently on the pre-engineering phase.
“The second phase will raise the availability to 11,000mw and the third phase will raise the availability to 25,000mw. Given Siemens AG’s accomplishment of a similar plan in Egypt and also its reputation as an international giant in the power sector-related engagements, it is strongly believed that the Nigeria Electricity Roadmap (NER) is possible and achievable.”
The minister also explained that government was currently evaluating the procurement process and was confident that a positive outcome would emerge, saying that the project had reached an advanced stage of activities in line with the Siemens project implementation plan.
However, he argued that sustainable growth in the power sector could only be achieved by adding renewable sources to the energy mix, noting that today, 80 per cent of Nigeria’s energy comes from gas-fired plants.
“Government is driving the change to increase the quantum of renewable energy sources using solar, wind and hydro across the nation. We are encouraging investments in renewable sources in areas with comparative advantages,” he said.
While stressing that mini-grids remained a unique solution model that would increase the renewable energy penetration in Nigeria, Aliyu noted that they were already being deployed in Ministries, Departments and Agencies (MDAs) in the country.
Speaking in his own right, Jedy-Agba who was the Chairman of the occasion, noted that the theme of the workshop: “Moving the Power Sector Beyond the Transition Electricity Market” was carefully selected to expand the discussion on moving from absolute government-controlled structure to a private sector driven competitive market.
“As a government, we will continue to create an enabling environment for private investors to thrive in the power sector. We understand that government can’t do it all, this is why we’ve opened the vista for more people to invest in the sector,” he stated.
Jedy-Agba stressed that no meaningful development could be achieved without the support of the media, stressing that journalists owe it a duty to factually project the “reformation” going on in the power sector.
In his welcome address, Chairman of PCAN, Mr. Obas Esiedesa, assured the minister that journalists covering the sector would continue to remain neutral in their reports, stressing that the growth of the sector was paramount to all Nigerians.
Also present at the event were: representative of the Market Operator, Mr Edmund Eje; representatives of the Niger Delta Power Holding Company (NDPHC), Prof. Steve Ogaji and Mr Emmanuel Ojor; as well as representative of the Nigerian Electricity Regulatory Commission (NERC), Abba Terab.
