The Federal Executive Council has officially approved a significant investment of N262.75 billion (approximately €161.33 million) for the first phase of the Presidential Power Initiative, commonly referred to as the Siemens Project.
This ambitious initiative aims to enhance Nigeria’s electricity infrastructure by engineering, procuring, constructing, and financing 330/132 KV and 132/33 KV substations in key locations, including Onitsha, Offa, Abeokuta, Ayede, and Sokoto. The Minister of Power confirmed that this funding approval comes after achieving over 80% completion of the project’s pilot phase.
Earlier this month, Nigeria and Germany finalized an agreement under the Presidential Power Initiative, targeting the addition of 12,000 megawatts to the national grid. This agreement was reached during a high-profile meeting between Nigeria’s President and the German Chancellor at the recent United Nations Climate Change Summit.
The Siemens Project was initially introduced during the previous administration and has garnered renewed momentum under the current government. The Minister of Power underscored the importance of advancing this initiative, which involves both upgrading existing substations and constructing new ones to improve the power transmission capacity across Nigeria.
Adelabu elaborated that the first stage of the project encompasses enhancements to 14 brownfield substations and the establishment of 21 new Greenfield substations aimed at bolstering the transmission sector. The specified locations for the first phase include the Onitsha and Offa substations, as well as new facilities in Abeokuta, Ayede, and Sokoto.
In addition to the Siemens Project, the Council also approved an acquisition contract for a new office complex for the Nigeria Electricity Liability Management Company (NELMCO), critical for supporting the reform of the electricity sector. The purchase, costing N1.7 billion, aims to provide a stable base for the company amidst rising rental costs.
The timely approval was crucial as it aligned with the commercial terms discussed during the recent visit of the German President, ensuring compliance with impending deadlines. The Minister highlighted the progress made thus far and emphasized that the pilot phase involved significant components, including the commissioning of power transformers and mobile substations, now nearing completion.
On the recurring issue of grid collapses, the Minister attributed a significant number of disturbances to vandalism, which has compounded the challenges associated with an aging power infrastructure. He assured the public that efforts are ongoing to enhance grid management and reduce disturbances, with a commitment to timely recovery following any incidents.
The Minister called for long-term strategies, proposing the creation of regional or state-specific grids. This approach would insulate local power systems from national grid disturbances, providing a more reliable electricity supply. He expressed optimism that concurrent projects, including mini-grids and solar power initiatives, would further stabilize Nigeria’s energy landscape and garner support from state governors to enhance local energy resilience.