ANGERED by the appalling situation of Nigeria’s electricity supply sector over several decades of doing the wrong things by successive governments with no remedy in sight, even after hundreds of billions of public funds had been expended, President Muhammadu Buhari in 2018 chose a different path that had worked in other jurisdictions.
He reached out to the then German Chancellor Angela Merkel to help solve the protracted power gridlock in Nigeria. The discussion between the two leaders gave birth to the FG-Siemens Energy AG Presidential Power Initiative in 2019. Under the terms of the agreement of the Nigerian Electrification Roadmap, Siemens Energy would ramp up electricity generation in Nigeria to 25,000 megawatt in six years, in three phases, from an average of 4000 megawatts the country had been stuck with for decades.
President Buhari was quite bullish about the project such that he put it under the direct supervision of his office with his Chief of Staff, late Abba Kyari, as the directing officer. The former president who didn’t want the project to be derailed by bureaucratic bottlenecks and red-tape made sure all man-made obstacles and deliberate obstructions were bulldozed with Abba Kyari in charge.
The unfortunate demise of Kyari in 2020 arising from Covid-19 while in Germany to get the power project underway rolled back the speedy implementation of what would have been a game-changer in Nigeria’s elusive quest for a stable and reliable power supply. Nigeria’s economy had been blighted by years of poor electricity supply. From available records, Federal Government has spent over $30 billion dollars to revamp the sector in the last three decades without any substantial progress. The economy is run on generators with Nigerians spending a staggering $10billion dollars (N7.6 trillion) annually on petrol and diesel to run their generators including the cost of maintenance, according to a 2024 report, “Beyond Gensets: Advancing the energy transition in Lagos State” published by Sustainable Energy for All (SEforALL).
True to his campaign promise to build on the achievements of his predecessor across all sectors and improve on governance performance in areas where it is required, President Tinubu, in demonstration of his unshaken believe in continuity of governance, took on the FG-Siemens Power Project as part of his priority projects in the energy sector.
It is necessary to state that this all-important power project had suffered undue delays since July, 29, 2020 when the Federal Executive Council approved the payment of €15.21m and N1.708bn as part of Nigeria’s counterpart funding for the offshore and onshore components of the project.
Managing Director, Siemens Energy Nigeria, Seun Suleiman, was quoted as saying then that, “Siemens Energy is committed to working with the Federal Government of Nigeria through the FGNPowerCo to see a successful implementation of the presidential power initiative. We have successfully carried out a similar project in Egypt.
“This project will transform the energy landscape of the country, and we are grateful the government has entrusted us with this notable initiative. We are capable, and we will deliver excellent results.”
In 2021, FGN Power Company, the Special Purpose Vehicle established by the Federal Government of Nigeria for the implementation of the PPI, announced the commencement of the grid network studies and power simulation training for technical experts in the Discos, TCN, NAPTIN and NERC, including provision of specialized power simulation softwares for TCN, NERC and all Discos. By December 2024, more than 100 experts across the sector have been trained on power systems simulation and network planning with skills to better manage the grid operations at various levels.
In the same year 2021, the Federal Executive Council approved the contract for the supply of 10 mobile substations and 10 power transformers by Siemens Energy for quick reinforcement of the grid as part of the pilot Phase of the project. Reports by FGN Power Company indicate that all the equipment have since been supplied and installed across the country.
However, the overall pace of the project delivery in terms of meeting timelines has not been impressive.
On assumption of office, President Tinubu saw the need to continue with the project and how timely delivery can transform the power sector for a country that desperately needs a reliable power supply for industrialisation and grow its economy. The status of the project came up at a bilateral meeting between President Tinubu and German Chancellor Olaf Scholz during the latter’s working visit to Nigeria in August 2024 in Abuja.
At a follow-up engagement in Dubai in December 2024 during COP28, the Nigerian Government and Siemens Energy AG signed an accelerated performance agreement aimed at expediting the implementation of the Presidential Power Initiative (PPI) to improve electricity supply in Nigeria. The agreement that was signed by Kenny Anuwe, Managing Director/CEO of FGN Power Company and Ms. Nadja Haakansson, Siemens Energy’s Senior Vice President and Managing Director for Africa, was witnessed by President Tinubu and Chancellor Scholz.
Under the accelerated performance agreement, Siemens Energy 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.
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).
In a major demonstration of President Tinubu’s commitment to the power project and a positive shift towards execution, the President led the Federal Executive Council on December 16, 2024 to approve €161.3 million Euros for the execution of the contracts in the first batch of the Phase one of the projects across the country following earlier approval of the transaction by the Bureau of Public Procurement.
Addressing journalists after the FEC approval, an enthusiastic Minister of Power, Adebayo Adelabu, with the renewed vigour to deliver on the project said, “at the Federal Executive Council meeting, there were basically two approvals for the Federal Ministry of Power, as I presented. The first was actually an approval for the award of contract for engineering, procurement, construction and financing for the implementation of the 331 32 KV And 132 33 KV substations upgrade under Phase One of the Presidential Initiative, popularly known as the Siemens project consequent upon completion of the pilot phase of this project.
“So, the Federal Executive Council considered it necessary for us to move forward as promised by the President of the Federal Republic of Nigeria at a meeting he held with the President of the Republic of Germany.”
The latest FEC approved scope of work includes upgrade of TCN substations in five locations of Abeokuta (330/132/33kV), Ayede (330/132/33kV), Offa (132/33kV), Onitsha (330/132/33kV) and Sokoto (132/33kV). These substations were carefully selected as Batch 1 of the brownfield scope of the Phase 1 projects to increase the wheeling capacity of the transmission network grid.
In the same vein, FGN Power Company will implement assets upgrade and enhancement in the distribution networks, in collaboration with the Distribution Companies (Discos) to ensure last-mile delivery of the evacuated power to industrial customers and residential consumers. These locations are load centres that are currently underserved and require swift enhancements. The execution of the project will be fast tracked and completed under the President Bola Ahmed Tinubu administration.
It’s important to state that the FGN Power Company has started working on other priority brownfield and Greenfield projects in target load centres across the country. Special attention is also being paid to the execution of systems and products to enhance grid resilience and stability to reduce the frequent occurrences of grid disturbances.
In December 2024, Minister of Power Adelabu commissioned the mobile substation in Saapade, a suburb of Shagamu in Ogun State. This has enhanced power evacuation and delivery to industrial customers within the Shagamu hub. Similarly, another mobile substation was commissioned at the Ajibode area of the University of Ibadan to enhance power delivery to the university community and adjoining areas. Before then, mobile substations and power transformers have been commissioned and energized in Ajah Lagos, Mando Kano, Jebba Kwara State, Okene Kogi, Amukpe Delta, Potiskum Yobe, Apo Abuja and Ihovbor Edo.
While the implementation of the Presidential Power Initiative is going on, President Tinubu has equally inaugurated the Presidential Metering Initiative, which aims to increase the rate of smart metering of all customers in a commercially sustainable manner. The roll out of the metering solutions has started. It is expected that the combined impact of assets upgrade through Presidential Power Initiative (PPI) and metering through the Presidential Metering Initiative (PMI), coupled with efforts of subnational electricity markets will bring lasting solutions to the challenges of electricity supply in Nigeria.
With President Tinubu’s committed leadership, the parlous state of the power sector will be reversed, and Nigerians and the economy will experience a new lease of life with reliable electricity supply that will geometrically increase productive activities. Indeed, the president’s strategic approach to resolving the multifaceted challenges in the power sector is yielding visible results.
The restructuring of the tariff regime, intervention in the commercial imbroglio on gas supply, additional investments in infrastructure through PPI, enactment of the new Electricity Act which provides legal framework for further decentralisation of the sector and devolution of more responsibilities to the subnational governments, are all part of the renewed hope agenda for the power sector to bring sustainable solutions.
- Ajayi is Senior Special Assistant to President Tinubu on Media and Publicity.