LAGOS, Nigeria (VOICE OF NAIJA)-Minister of Power, Adebayo Adelabu, revealed on Sunday that the electricity transformers and substations allocated for the $2.3 billion Siemens power project have arrived in the country, signaling progress for the initiative.
The arrival of the transformers and substations occurred several months after the Federal Government renewed the contract for the mega power project with the German government and Siemens, overcoming delays.
Minister Adelabu attributed the setbacks in implementing the Memorandum of Understanding between Nigeria and Siemens to challenges posed by the COVID-19 pandemic and the passing of the late Chief of Staff to former President Muhammadu Buhari, Abba Kyari.
Adelabu also stated that Kyari, who succumbed to COVID complications, spearheaded the project, noting that progress was stagnant until President Bola Tinubu assumed office.
In 2018, the Nigerian government entered a memorandum of understanding with the German government for the presidential power initiatives, commonly referred to as the Siemens contracts.
Under this agreement, the German government committed to loaning Nigeria $2.3 billion and engaging Siemens to revamp the country’s transmission and distribution sector.
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“However, due to COVID-19, significant progress has yet to be made in implementing these projects.
“Unfortunately, the late Chief of Staff to the President, Malam Abba Kyari, the foremost champion of the project, passed away.
“After that, an election occurred, and a new government took over.
“Between 2018 and 2023, there were no significant developments concerning the agreements,”a statement made available to journalists on Sunday by Adelabu’s media aide, Bolaji Tunji, quoted him as having said at a briefing on Friday.
Adelabu mentioned that the project was initially planned to advance in two phases, but substantial progress in the pilot phase was achieved only after the inauguration of the Tinubu administration.
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“In November 2023, during the visit of the German Chancellor to Nigeria, one of the issues discussed was the need to continue with the project.
“Recently, there was an African Business Summit in Germany, which was attended by the President, and I was privileged to accompany him to the summit.
“During the summit, we had extensive conversations with our German counterparts regarding a project, and we were both convinced that it would benefit both countries to proceed with an MOU.
“We agreed to sign an acceleration agreement to kick-start the project again.
“In December 2023, at COP 28 in Dubai, an affiliation agreement was signed between the federal government, the German government, Siemens Energy, and FGN Power Company Limited.
“Following this, we commenced the project analysis, and I am pleased to inform you that we are almost through with the project’s pilot phase.”
The pilot phase entailed the offshore importation of ten power transformers and ten mobile substations to serve as a Proof of Concept for the projects.
The Minister confirmed that all these items have been successfully delivered to the country. Additionally, he noted that five out of the ten transformers have been installed at different sites nationwide.
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“We have also installed three out of 10 mobile substations, with seven more to go. Once we finish installing them, we will commission and energise them.
At that point, Nigerians will begin to see the impact of this project,” he explained.
Adelabu highlighted the upcoming phases of the project, which focused on enhancing the transmission segment or network.
This would entail expanding the transmission capacity and reinforcing the infrastructure to mitigate the current fragility that contribute to frequent grid collapses.
He elaborated that this phase would involve upgrading approximately 14 existing power transmission substations and establishing 22 new transmission substations.