The Minister of Power, Chief Adebayo Adelabu, has disclosed that Nigeria is finalizing a $2.3 billion funding arrangement under the Presidential Power Initiative (PPI), also known as the Siemens deal, to revamp the country’s electricity transmission infrastructure and supply the country with a reliable power source.
Adelabu, who disclosed this at a meeting with Gautier Mignot, the European Union (EU) ambassador to Nigeria in Abuja explained that the intervention was one of the viable improvements since the new administration came into power.
The minister stated that the pilot phase of the Siemens Presidential Power Initiative (PPI) has reached 90% completion, a major step towards stabilizing the national grid and delivering more reliable electricity across the country. The pilot phase includes the installation of 10 power transformers and 10 mobile substations, resulting in a 700-megawatt increase in the national transmission grid capacity.
According to him, the power sector has seen notable progress since the start of the Tinubu-led administration, particularly in expanding non-grid power supply to rural and semi-urban areas. Adelabu highlighted improvements in energy access and transmission, crediting the ongoing transformation in the sector to President Tinubu’s decisive move in signing the Electricity Act of 2023.
“The second intervention with regard to the transmission is the Presidential Power Initiative (PPI), and you will recognize it better when I say Siemens Project. So, we are actually securing the finance of close to $2.3 billion to ensure that we revamp or transform our transmission segments.
“And the government of Germany has been very instrumental in ensuring this works. Siemens is handling lots of the critical transmission projects there. We also have some reputable Chinese firms that are doing some distribution projects, based on each company’s specialty and track record. That is working well.
He further stated that the pilot phase of the Presidential Power Initiative is nearing completion, highlighting the importation, installation, commissioning, and energisation of 10 power transformers and 10 mobile substations across the country. He noted that about 90 per cent of the work has been done, already boosting the transmission grid capacity by over 700 megawatts—an improvement he says is now evident in the increased stability of the national grid.
According to him, with an average of 5,000mw to 8,000mw, it’s not by accident that the administration recorded two major milestones in the power sector in daily power consumption, with achievement of over 20,000 kilowatt hours and transmission as well as distribution of the highest energy volume of 5,801.63mw.
He said: “We have achieved a valuable generation capacity of 6,003 megawatts in Nigeria. We have also achieved the highest transmitted and distributed energy in the volume of 5,801.63, which has broken the previous record achieved in 2021.”
Adelabu acknowledged the support of international partners, such as Germany, France, and development agencies as Deutsche Gesellschaft für Internationale Zusammenarbeit, GIZ, Agence Française de Développement, AFD, and the European Union, EU, particularly in not just renewables alone even in grid infrastructure.
Adelabu emphasised the need for greater support from development partners, pointing out that numerous areas, particularly financial assistance, require urgent attention, given the current economic challenges facing the country. He also reaffirmed the federal government’s commitment to transforming the power sector to meet the needs of Nigerians by ensuring the delivery of effective, affordable, available, and stable electricity to all Nigerians.
