PPI: Adelabu confirms consensus on Nigeria-Germany power financing pilot projects, Ambassador Tuggar says “Siemens deal is fully back”

Oredola Adeola

Adebayo Adelabu, Minister of Power announced that the Nigerian Government has secured consensus on the Nigeria-Siemens power financing pilot projects, revealing that all the stakeholders involved in the deal have committed to strategically reshape the Presidential Power Initiative (PPI) agreements to expedite Nigeria’s power transmission infrastructure.

Adelabu, Minister of Power who was part of President Bola Tinubu’s team at the ongoing G20 Compact with Africa Economic Conference in Germany, made this known in a statement obtained by EnergyDay on Tuesday.

EnergyDay’s check showed that in 2019, the Nigerian Government signed a power project deal with Siemens Energy, in partnership with Siemens AG, to deliver 7,000 megawatts of electricity to the national grid by 2021 and 11,000 megawatts by 2023, but the project was delayed due to COVID-related disruptions in supply chains, causing cost overruns.

Meanwhile, Adelabu, the Power Minister in his remark on Tuesday, said he had discussions with Robert Habeck, German Vice-Chancellor alongside key officials and Siemens AG Africa representatives.

According to him, “Our goal is to fast-track the Presidential Power Initiative (PPI) to fulfill the President’s vision for reliable electricity in Nigeria.

He said, “Deep-dived into vital talks, focusing on expediting PPI agreements and overcoming transmission challenges. Thrilled to share that we’ve secured consensus on financing pilot projects and strategically reshaped the program to fortify our transmission infrastructure.

“As the Minister of Power, my commitment is unwavering. We’re determined to eliminate obstacles hindering the Siemens-supported PPI. Recognizing its transformative impact, we’re dedicated to surmounting challenges and ensuring success in reshaping Nigeria’s power sector,” Adelabu said.

The Power Minister therefore emphasised that all partners are on board with a feeling of urgency and are ready to contribute to PPI’s success.

Adelabu further said, “It’s not just about overcoming hurdles; it’s about seizing opportunities to revolutionize Nigeria’s power landscape. Excited for the journey ahead.”

Ambassador Maitama Tuggar, Minister of Foreign Affairs, who also corroborated the statement of Adelabu, said that Nigerians will start to experience improved power supply by the first half of 2024, following the revisiting of the Siemens power deal between Nigeria and Germany.

Tuggar, who is also part of President Bola Tinubu’s team at the ongoing G20 Compact with Africa Economic Conference in Germany, made this known when he was featured as a Guest on a Channels Television programme, Politics Today, on Tuesday, November 21, 2023.

According to him, “the Siemens deal is “fully back”.

He said, “In the coming year, by the first half of next year (2024) God willing, there would be a remarkable improvement in electricity supply in Nigeria.

‘’The setbacks that happened in the past, some were man-made, some were not, for instance, the Covid-19 pandemic, we had no control over that and that was part of the problem.

“But there is the reinvigoration of the commitment to deliver the power project under President Tinubu’s administration and the German side has the same feeling.

‘’The 2 sides are working closely; you have to bear in mind Chancellor Scholz visited Nigeria about two weeks ago or there about before President Tinubu was invited to attend this summit and engage with not only Germany but also other countries as well as African countries and international financial cooperation and development financial institutions.

‘’So, it’s something that will be felt within a very short period’’ the Minister of Foreign Affairs said.

EnergyDay’s recent findings revealed that the Siemens-PPI power project’s pilot scheme experienced a delay due to many factors.

This was after the Nigerian Government approved the payment of €15.21 million and N1.708 billion as counterpart funding for the project in 2019.

In December 2021, the Federal Executive Council (FEC) approved $1.9 million and €62.9 million for phase one of the project, which included the procurement of 10 mobile equipment and 10 transformers.

However, the delivery period of 12 to 18 months suffered a delay, as after two years only one mobile transformer has been installed and energized at Ajah Transmission Substation.

A new 60MVA 132/33kV power transformer was delivered to TCN’s 132/33kV transmission substation in Ojo, and a new 100MVA 132/33kV power transformer and its accessories were delivered at the Maryland Transmission Substation, all in Lagos.

In November 14, 2023, Federal Government of Nigeria Power Company also confirmed the delivery a 60MVA,132/33kV Power Transformer to Birnin Kebbi Transmission Substation.