Siemens Extends Completion Of Nigeria’s Power Project To 2030
Written by Broadstreet Admin on August 8, 2023
Siemens, the German engineering company, has announced an extension of the anticipated completion date for the comprehensive revitalization of Nigeria’s power infrastructure. Originally projected for completion in 2025, this transformative initiative will now be extended to the year 2030.
The project which is part of the Presidential Power Initiative (PPI), is a power upgrade and modernisation programme between the Nigerian government and Siemens with the support of the German government.
In July 2019, the Nigerian government entered into a significant power project agreement with Siemens AG. The aim of this collaboration was to enhance the nation’s electricity infrastructure, with a commitment to provide 7,000 megawatts (MW) of power to the national grid by 2021 in the first phase, followed by a substantial increase to 11,000 megawatts by 2023 in the second phase.
Oladayo Orolu, head of business development and government relations at Siemens Energy, who sat for an interview with Bloomberg on Monday, August 7, said the deal to rehabilitate and expand the country’s electricity grid by 2025, will now be concluded in 2030.
Oladayo said;
“The three-phase project was set back by delays in starting the first phase.
“When we conceptualised this project in 2018, our plan was within two years we should be done with phase one, but then COVID happened, disrupting supply chains, which meant getting raw materials took longer than before.
“Cost overruns also affected the project’s completion, as we expected electricity output to increase by an additional 2,000 megawatts at the completion of phase one by 2025.
“We currently have 5000, we are looking at taking that to 7,000. Prices are not at the same level they used to be. In 2020, phase one was projected to cost about €2 billion.
“Some raw material components costs have been doubled, some are still close to where they used to be, some are just marginally higher.”
