Angered by the appalling scenario of Nigeria’s electrical energy provide sector over a number of many years of doing the flawed issues by successive governments, with no treatment in sight, even after a whole bunch of billions of public funds had been expended, President Muhammadu Buhari in 2018 selected a special path that had labored in different jurisdictions.
He reached out to the then German Chancellor, Angela Merkel, to assist remedy the protracted energy gridlock in Nigeria. The dialogue between the 2 leaders gave start to the FG-Siemens Vitality AG Presidential Energy Initiative in 2019. Beneath the phrases of the settlement of the Nigerian Electrification Roadmap, Siemens Vitality would ramp up electrical energy era in Nigeria to 25,000 megawatt in six years, in three phases, from a mean of 4000 megawatts the nation had been caught with for many years.
President Buhari was fairly bullish concerning the venture such that he put it below the direct supervision of his workplace along with his Chief of Workers, late Abba Kyari, because the directing officer. The previous president who didn’t need the venture to be derailed by bureaucratic bottlenecks and red-tape made positive all man-made obstacles and deliberate obstructions have been bulldozed with Abba Kyari in cost.
The unlucky demise of Kyari in 2020 arising from COVID-19 whereas in Germany to get the facility venture underway rolled again the speedy implementation of what would have been a game-changer in Nigeria’s elusive quest for a secure and dependable energy provide. Nigeria’s financial system had been blighted by years of poor electrical energy provide.
From accessible information, Federal Authorities has spent over $30 billion to revamp the sector within the final three many years with none substantial progress. The financial system is run on mills with Nigerians spending a staggering $10 billion (N7.6 trillion) yearly on petrol and diesel to run their mills together with the price of upkeep, in accordance with a 2024 report, “Past Gensets: Advancing the power transition in Lagos State” revealed by Sustainable Vitality for All (SEforALL).
True to his marketing campaign promise to construct on the achievements of his predecessor throughout all sectors and enhance on governance efficiency in areas the place it’s required, President Tinubu, in demonstration of his unshaken imagine in continuity of governance, took on the FG-Siemens Energy Challenge as a part of his precedence initiatives within the power sector.
It’s essential to state that this all-important energy venture had suffered undue delays since July, 29, 2020 when the Federal Government Council permitted the cost of €15.21m and N1.708bn as a part of Nigeria’s counterpart funding for the offshore and onshore elements of the venture.
Managing Director, Siemens Vitality Nigeria, Seun Suleiman, was quoted as saying then that, “Siemens Vitality is dedicated to working with the Federal Authorities of Nigeria by way of the FGNPowerCo to see a profitable implementation of the presidential energy initiative. We now have efficiently carried out an analogous venture in Egypt.
“This venture will rework the power panorama of the nation, and we’re grateful the federal government has entrusted us with this notable initiative. We’re succesful, and we’ll ship glorious outcomes.”
In 2021, FGN Energy Firm, the Particular Function Car established by the Federal Authorities of Nigeria for the implementation of the PPI, introduced the graduation of the grid community research and energy simulation coaching for technical specialists within the Discos, TCN, NAPTIN and NERC, together with provision of specialized energy simulation softwares for TCN, NERC and all Discos. By December 2024, greater than 100 specialists throughout the sector have been educated on energy methods simulation and community planning with expertise to raised handle the grid operations at numerous ranges.
In the identical yr 2021, the Federal Government Council permitted the contract for the provision of 10 cell substations and 10 energy transformers by Siemens Vitality for fast reinforcement of the grid as a part of the pilot Part of the venture. Reviews by FGN Energy Firm point out that every one the gear have since been equipped and put in throughout the nation.
Nevertheless, the general tempo of the venture supply when it comes to assembly timelines has not been spectacular. On assumption of workplace, President Tinubu noticed the necessity to proceed with the venture and the way well timed supply can rework the facility sector for a rustic that desperately wants a dependable energy provide for industrialisation and develop its financial system. The standing of the venture got here up at a bilateral assembly between President Tinubu and German Chancellor, Olaf Scholz, in the course of the latter’s working go to to Nigeria in August 2024 in Abuja.
At a follow-up engagement in Dubai in December 2024 throughout COP28, the Nigerian Authorities and Siemens Vitality AG signed an accelerated efficiency settlement aimed toward expediting the implementation of the Presidential Energy Initiative (PPI) to enhance electrical energy provide in Nigeria. The settlement that was signed by Kenny Anuwe, Managing Director/CEO of FGN Energy Firm and Ms. Nadja Haakansson, Siemens Vitality’s Senior Vice President and Managing Director for Africa, was witnessed by President Tinubu and Chancellor Scholz.
Beneath the accelerated efficiency settlement, Siemens Vitality will see to the end-to-end modernisation and growth of Nigeria’s electrical energy transmission grid with the total provide, supply, and set up of Siemens-manufactured gear.
Moreover, the settlement will guarantee venture sustainability and upkeep with full expertise switch and coaching for Nigerian engineers on the Transmission Firm of Nigeria (TCN).
In a significant demonstration of President Tinubu’s dedication to the facility venture and a constructive shift in direction of execution, the President led the Federal Government Council on December 16, 2024 to approve €161.3 million Euros for the execution of the contracts within the first batch of the Part one of many initiatives throughout the nation following earlier approval of the transaction by the Bureau of Public Procurement.
Addressing journalists after the FEC approval, an enthusiastic Minister of Energy, Adebayo Adelabu, with the renewed vigour to ship on the venture mentioned, “on the Federal Government Council assembly, there have been mainly two approvals for the Federal Ministry of Energy, as I offered.
The primary was truly an approval for the award of contract for engineering, procurement, building and financing for the implementation of the 331 32 KV And 132 33 KV substations improve below Part One of many Presidential Initiative, popularly often called the Siemens venture consequent upon completion of the pilot section of this venture.
“So, the Federal Government Council thought of it essential for us to maneuver ahead as promised by the President of the Federal Republic of Nigeria at a gathering he held with the President of the Republic of Germany.”
The most recent FEC permitted scope of labor contains improve of TCN substations in 5 places of Abeokuta (330/132/33kV), Ayede (330/132/33kV), Offa (132/33kV), Onitsha (330/132/33kV) and Sokoto (132/33kV). These substations have been rigorously chosen as Batch 1 of the brownfield scope of the Part 1 initiatives to extend the wheeling capability of the transmission community grid.
In the identical vein, FGN Energy Firm will implement belongings improve and enhancement within the distribution networks, in collaboration with the Distribution Firms (Discos) to make sure last-mile supply of the evacuated energy to industrial prospects and residential shoppers.
These places are load centres which are at present underserved and require swift enhancements. The execution of the venture will probably be quick tracked and accomplished below the President Bola Ahmed Tinubu administration.
It’s essential to state that the FGN Energy Firm has began engaged on different precedence brownfield and Greenfield initiatives in goal load centres throughout the nation. Particular consideration can be being paid to the execution of methods and merchandise to reinforce grid resilience and stability to cut back the frequent occurrences of grid disturbances.
In December 2024, Minister of Energy Adelabu commissioned the cell substation in Saapade, a suburb of Shagamu in Ogun State. This has enhanced energy evacuation and supply to industrial prospects throughout the Shagamu hub. Equally, one other cell substation was commissioned on the Ajibode space of the College of Ibadan to reinforce energy supply to the college neighborhood and adjoining areas. Earlier than then, cell substations and energy transformers have been commissioned and energised in Ajah Lagos, Mando Kano, Jebba Kwara State, Okene Kogi, Amukpe Delta, Potiskum Yobe, Apo Abuja and Ihovbor Edo.
Whereas the implementation of the Presidential Energy Initiative is occurring, President Tinubu has equally inaugurated the Presidential Metering Initiative, which goals to extend the speed of sensible metering of all prospects in a commercially sustainable method. The roll out of the metering options has began. It’s anticipated that the mixed affect of belongings improve by way of Presidential Energy Initiative (PPI) and metering by way of the Presidential Metering Initiative (PMI), coupled with efforts of subnational electrical energy markets will carry lasting options to the challenges of electrical energy provide in Nigeria.
With President Tinubu’s dedicated management, the parlous state of the facility sector will probably be reversed, and Nigerians and the financial system will expertise a brand new lease of life with dependable electrical energy provide that can geometrically improve productive actions. Certainly, the president’s strategic method to resolving the multifaceted challenges within the energy sector is yielding seen outcomes. The restructuring of the tariff regime, intervention within the business imbroglio on gasoline provide, extra investments in infrastructure by way of PPI, enactment of the brand new Electrical energy Act which supplies authorized framework for additional decentralisation of the sector and devolution of extra duties to the subnational governments, are all a part of the renewed hope agenda for the facility sector to carry sustainable options. Ajayi is Senior Particular Assistant to President Tinubu on Media and Publicity.
