Nigeria’s power deal with Siemens to deliver 7,000MW BY December 2022

Nigeria is working towards increasing its power supply to 7,000 megawatts by the end of 2022 through a partnership with Siemens Energy. The deal, captured under the Presidential Power Initiative, aims to address transmission and distribution challenges in the country. Oti Ikomi, Vice Chairman at Proton Energy, shed light on the progress of the project, highlighting the milestones and key players involved. With a focus on infrastructure development, the Nigerian government is pushing towards aligning policy and regulation to enhance electricity delivery. Despite challenges faced by distribution companies and issues with liquidity, improvements have been noted in collections and overall system efficiency. Technical enhancements, meter installations, and renewable energy initiatives are also part of the strategy to boost the power sector in Nigeria. The partnership between the Nigerian government and Siemens Energy is part of the Presidential Power Initiative, which aims to enhance the country's power transmission and distribution capacity. The target is to reach 7,000 megawatts by the end of 2022, with subsequent phases aiming for 11,000 and 25,000 megawatts. The project, which has been in the works for over three years, involves a total investment of 2.3 billion euros, with 85% of the funding coming from German export finance banks. The project is overseen by the FGN Power Company, a joint venture between Kenya and Norway, with key support from various government officials. The initiative faces challenges such as aligning policy and regulation, improving liquidity in the system, and reducing technical losses. Despite these hurdles, progress is being made in terms of collections from customers and overall system efficiency. Efforts to install more meters, enhance equipment, and promote renewable energy sources are part of the broader strategy to revamp Nigeria's power sector. The government is also focusing on concluding gas-to-power agreements to leverage gas resources for electricity generation before the political season shifts priorities. The current focus on infrastructure development and energy sector reforms indicates a dedication to enhancing power supply in Nigeria. With a comprehensive plan in place and key stakeholders working together, the country is on track to achieve its electricity generation targets and address long-standing challenges in the sector. Ongoing efforts to streamline regulations, improve financial stability, and adopt modern technologies bode well for the future of Nigeria's power sector.