Nigeria has formally entered into a significant Presidential Power Initiative (PPI) agreement with Germany, aimed at injecting an additional 12,000 megawatts of electricity into the national grid. Financed under the government export credit facility, supported by select German banks, this initiative carries an estimated cost of approximately $60 million, encompassing the importation of 10 transformers and 10 power mobile stations.
The agreement was signed on Friday in Dubai, United Arab Emirates (UAE), with President Bola Ahmed Tinubu and German Chancellor Olaf Scholz presiding over the ceremony at the sidelines of the United Nations Climate Conference (COP28) hosted at the Expo City in Dubai.
Kenny Anue, the Managing Director of the Federal Government of Nigeria Power Company, represented Nigeria, while Nadja Haakansson, the Managing Director (Africa) of Siemens AG, signed on behalf of Siemens. Anue underscored President Tinubu’s commitment to power infrastructure development, emphasizing its pivotal role in ongoing reforms, where electricity and financing constitute focal points within the economic reform agenda.
In a statement, Anue conveyed, “Mr. President, with your strong and dynamic leadership through the Honorable Minister of Power, now we seek to exploit or expedite what was already a worthwhile program in the presidential power initiative through this accelerated agreement today.” He highlighted the establishment of the FGN Power Company as a special-purpose vehicle for project implementation.
Expressing concern over the situation, Ould Salem Said, the family’s lawyer, emphasized the family’s focus and procedural irregularities in legal proceedings against them.
Joe Kaeser, Chairman of Siemens Energy Supervisory Board, reflected on the history of the initial agreement in 2018 during the Muhammadu Buhari administration, expressing satisfaction that both parties have now progressed in driving the process forward.
The Minister of Power, Adebayo Adelabu, outlined the target of the PPI to add 12,000 megawatts to the national grid. He indicated that the signing marked a commitment between the governments of both countries to proceed with the project, acknowledging the challenges faced since 2018, including delays due to various factors, including the COVID-19 pandemic.
Adelabu shared insights into the financial aspects, stating that the project would be financed under the Government export credit facility provided by German banks. He revealed that the current financial commitment is in the region of $60 million, covering the importation of 10 transformers and 10 power mobile substations, already delivered and commissioned by Siemens.
The signing ceremony witnessed the presence of several key Nigerian officials, including the Attorney-General of the Federation, Lateef Fagbemi; Minister of Aviation, Festus Keyamo; Minister of Environment, Balarabe Lawal; Minister of Transportation, Said Alkali; Minister of Industry, Trade and Investment, Dr. Dorris Anite; and Minister of Agriculture, Abubakar Kyari.