President Bola Tinubu and the Chancellor Olaf Scholz presided over the further signing of Presidential Power Initiative (PPI) agreement between Nigeria and Germany designed to add 12,000mw of electricity to the national grid.
The agreement was signed on Friday in Dubai, United Arab Emirates (UAE) at the sidelines of the United Nations Climate Conference (COP28), at tue Expo City in Dubai.
Managing Director of the FGN Power Company, Kenny Anue and the Managing Director (Africa) Siemens AG, Nadja Haakansson signed the agreement.
Anue, while speaking on the pact, harped on the commitment of President Tinubu to the development of power infrastructure, emphasising that infrastructure development is critical to the ongoing reforms.
He affirmed that electricity and financing are at the heart of the economic reform agenda of the administration, adding that the PPI by design encapsulates both elements with the support of partners, Siemens Energy and the financiers that are backed by the German government.
Addressing the President, Anue commended President Tinubu’s dynamic leadership through the Minister of power, seeking to expedite the program in the presidential power initiative through this accelerated agreement today.
He said the German government has, nominated the mandated lead arrangers and financiers, adding that Siemens energy has also successfully delivered 10 units of power transformers and 10 units of mobile substations.
In his remarks, Chairman of Siemens Energy Supervisory Board, Joe Kaeser, traced the history of the initial agreement to the Muhammadu Buhari administration in 2018, expressing delight that both parties have now been able to drive the process forward.
Speaking on the project, the Minister of Power, Adebayo Adelabu, said the target of the PPI is to add 12,000mw of electricity to the national grid.
He said with the signing on Friday, the process will now proceed to ensure constant supply of electricity to Nigerians.
On the financial implications, he revealed that the project is to be financed under the Government export credit facility that is being provided by a couple of German banks to Nigeria.
“The original agreement we had was for $2.3 billion. But what we have is up to date, just in region of $60 million, which has to do with the importation of the 10 transformers and the 10 power mobile substations, which Siemens have delivered to the country.
“They have been commissioned and we are in the presence of installation of these transformers. So far, it has cost us $60 million dollars, he said.”
The agreement signed will see to the end-to-end modernization and expansion of Nigeria’s electric power transmission grid with the full supply, delivery and installation of Siemens-manufactured equipment under the time line of 18 to 24 months.
Furthermore, the agreement will ensure project sustainability and maintenance with full technology transfer and training for Nigerian engineers at the Transmission Company of Nigeria (TCN).
Present at the ceremony were Nigerian officials such as Attorney-General of the Federation, Lateef Fagbemi; Minister of Aviation, Festus Keyamo; Power, Adelabu; Environment, Balarabe Lawal; Transportation, Said Alkali; Industry, Trade and Investment, Dr Dorris Anite as well as Agriculture, Abubakar Kyari.