Nigeria and Germany Forge Alliance to Boost Power Generation by 12,000MW
In a landmark development, Nigeria and Germany solidified their commitment to enhancing the nation’s power infrastructure by signing the Presidential Power Initiative (PPI) agreement.
This monumental accord, designed to augment the national grid with an additional 12,000 megawatts of electricity, was formally sealed in the vibrant city of Dubai, at the sidelines of the United Nations Climate Conference (COP28) hosted at Expo City.
Presiding over the signing ceremony were President Bola Ahmed Tinubu of Nigeria and Chancellor Olaf Scholz of Germany.
The agreement, a testament to the enduring partnership between the two nations, was inked by Kenny Anue, Managing Director of the Federal Government of Nigeria Power Company, and Nadja Haakansson, Managing Director (Africa) of Siemens AG.
Kenny Anue, speaking on behalf of President Tinubu, reiterated the leader’s unwavering commitment to power infrastructure development, underscoring its pivotal role in ongoing reforms.
Anue emphasized that electricity and financing were central to the economic reform agenda, with the PPI seamlessly integrating both elements.
He acknowledged the support of key partners, Siemens Energy and German-backed financiers, in advancing this crucial initiative.
Highlighting the progress made, Anue disclosed that the Federal Government of Nigeria Power Company had been established as the special purpose vehicle for project implementation. The German government, he added, had nominated mandated lead arrangers and financiers. Siemens Energy, as a key player, had successfully delivered 10 power transformers and 10 mobile substations.
Addressing the audience, Joe Kaeser, Chairman of Siemens Energy Supervisory Board, expressed his delight at the evolution of the initiative since its inception in 2018 during the administration of former President Muhammadu Buhari.
Kaeser commended the collaborative efforts that have now brought the project to fruition, emphasizing the shared goal of supplying energy for the greater good of the Nigerian people.
Minister of Power, Adebayo Adelabu, outlined the PPI’s ambitious target of injecting 12,000MW into the national grid.
With the signing ceremony marking a significant milestone, Adelabu assured that the process would now proceed swiftly to ensure a consistent electricity supply for Nigerians.
Adelabu acknowledged the delays faced since the project’s initial agreement in 2018, citing various factors, including the COVID-19 pandemic.
However, he expressed optimism about the commitment demonstrated by both governments and anticipated significant progress in the coming months.
Regarding financing, Adelabu revealed that the project would be funded through a Government export credit facility provided by several German banks to Nigeria.
While the original agreement stood at $2.3 billion, the current expenditure was approximately $60 million, covering the importation and installation of the 10 transformers and mobile substations.
Present at the ceremony were prominent Nigerian officials, including Attorney-General of the Federation Lateef Fagbemi, Minister of Aviation and Aerospace Development Festus Keyamo, and Minister of Environment Balarabe Lawal, among others.
Source: Daily Trust
