The Federal Government is ramping up plans to begin the first phase of the Siemens Presidential Power Initiative (PPI) three years after signing the deal.
The Minister of Finance, Budget and National Planning, Zainab Ahmed revealed this at the flag-off of the PPI training on network development studies by Power Company in Abuja.
The Siemens project is a $2.3bn power deal signed between the Nigerian government and Siemens AG in July 2019.
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But the project has been described stalled as no work has commenced on the 25,000 megawatts PPI.
The immediate past German Chancellor, Angela Dorothea Merkel had told Chimamanda Adichie that the issue with the project was tied to funding of the project.
Markel had said the Nigerian government was demanding too much local content for the German investor.
She had said, “I will make a point of going to ask Siemens what happened. There are several reasons and one of the reasons is that there were problems to do with funding. Very often when investments are supposed to take place, people ask about what ways of financing are available.
“We made a mistake a couple of years ago because people say that the minute you appear with your company since you don’t provide the right financing that you will easily get the job done.”
As part of the last minute effort for the administration’s legacy project, the FG said its electricity deal with Siemens was on course.
Zainab said the first phase will also witness creation of 11,000 direct and indirect jobs.
She revealed that the first phase would raise power generation by 2,000 megawatts.
Zainab said, “The first phase of the Presidential Power Initiative will provide over 40 million people with more reliable electricity supply, create 11,000 direct and indirect jobs for Nigerians from power system engineers to electricians and contractors, and this will in turn improve the standard of living while providing homes and businesses with constant, reliable and affordable electricity supply.”
The Minister of Power, Abubakar Aliyu, represented by the Minister of State, Power, Goddy Jedy-Agba, hinted that additional 2,000 megawatts that will be added to the national grid will come in the next 18 months.
By implication, the minister said the Siemens project would raise the national grid about 7,000 megawatts.
He said, “The objective of the PPI is to increase the end-to-end grid operational capacity of the power system in Nigeria to 25 gigawatts, but the focus in the next 18 months is to deliver the first additional 2,000 megawatts.
“This will create a rapid transformation in the on-grid electricity value chain, spur economic growth, create jobs and opportunities for Nigerian youth and enterprises.”
Speaking on the development, the Project Director, Siemens Energy, Nigeria, Sean Manley, said the company has brought in trainers from Germany to kickstart the training.
Manley explained that the Siemens would ensure successful execution of the electrification programme captured in the PPI.