Siemens Energy, a prominent German engineering company, has announced that the timeline for the completion of Nigeria’s ambitious power infrastructure revamp will be extended by an additional five years due to unforeseen delays caused by the COVID-19 pandemic.
Oladayo Orolu, the head of business development and government relations at Siemens Energy, shared this update in an interview with Bloomberg. The power project deal, signed between the Nigerian federal government and Siemens AG in July 2019, aimed to deliver a significant boost to the nation’s electricity capacity. Initially, the plan was to add 7,000 megawatts (MW) of electricity to the national grid by 2021, followed by an additional 11,000 megawatts by 2023 in phases one and two of the initiative.
This ambitious endeavor, known as the presidential power initiative (PPI), sought to modernize and upgrade Nigeria’s power infrastructure with the support of the German government. However, the pandemic-induced disruptions and delays have necessitated a revised timeline.
In December 2021, the federal executive council (FEC) approved funding for the project, signaling a strong commitment to its success. Abubakar Aliyu, the former minister of power, previously highlighted the project’s goal to expand Nigeria’s electricity capacity to 25,000MW upon completion.
Providing insights into the project’s progress, Orolu explained that the initial delay was attributed to challenges in commencing the first phase. The disruptions caused by the pandemic affected supply chains and led to extended timelines for procuring raw materials. As a result, the anticipated completion date for the rehabilitation and expansion of Nigeria’s electricity grid has shifted from 2025 to 2030.
Orolu also acknowledged cost overruns as a contributing factor to the delay, noting that the project was originally projected to increase electricity output by an additional 2,000 megawatts by 2025. However, current estimates indicate that the electricity output will be increased from 5,000 to 7,000 megawatts.
The complexities introduced by the pandemic and the subsequent impact on global supply chains have posed challenges to the implementation of this vital infrastructure project. While the extended timeline may come as a disappointment, the commitment of both Siemens Energy and the Nigerian government remains strong in their endeavor to enhance the nation’s power infrastructure.
In a related development, former President Muhammadu Buhari recently announced plans for the delivery and installation of 20 power transformers and mobile stations from Germany, further underscoring the nation’s determination to improve its electricity capabilities by May 2023.
