Why Buhari Is Embarking On Massive Power Project

473 views | Akanimo Sampson | August 29, 2020

President Muhammadu Buhari is aiming to give Nigeria a reliable power supply as a basis for enhanced economic growth.

To this end, his administration is upgrading and expanding electricity transmission and distribution network in the country.

The Buhari administration is embarking on a massive power project under the Presidential Power Initiative (PPI), formerly the Nigeria Electrification Roadmap which was formed between the government of Nigeria and that of Germany in 2018.

On August 31, 2018, in Abuja, the PPI was formed between Nigeria and Germany during a visit by the German Chancellor, Angela Merkel and her business delegation which included the CEO OF Siemens AG, Joe Kaeser.

The two countries agreed to explore cooperation in several areas. One such area of cooperation aims to resolve the challenges in the power sector and to expand the capacity for future power needs.

Siemens is helping to facilitate financing for the project through the German Export Credit Agency (Euler Hermes AG), other ECA’s, and other financing agencies.

With a presence in Nigeria for 50 years and a solid portfolio across the entire energy value chain, Siemens is committed to supporting the country in enhancing its power infrastructure to positively impact Nigerians and to facilitate economic growth.

Nigeria is setting the course towards economic development and access to power is the foundation for growth.

In Nigeria, the imbalance between power generation, evacuation, dispatch and consumption is a major challenge for the population of 200 million. While over 13 GW of grid power generation capacity is installed, only approximately 3.4 GW reaches consumers on average.

It is hoped that Siemens partnership with the government on the execution of the Presidential Power Initiative will deliver reliable power supply to the whole country.

The Journey So Far

Siemens was brought on board to assess the situation in Nigeria’s power sector, and alongside other stakeholders – from the Federal Ministry of Power, Bureau of Public Enterprise (BPE), Nigeria Electricity Regulatory Commission (NERC), Transmission Company of Nigeria (TCN) and Electricity Distribution Companies (DisCos) – decided the immediate priority is to close gaps in the system by enhancing the transmission and distribution segment of the power sector.

Nigeria has since entered into a deal with Siemens and commits an initial $22 million investment.

The power project involves the upgrading of 105 power substations, construction of 70 new ones, distribution of up to 35 new transformers as well as installation of distribution lines.

The PPI project is being undertaken in three phases. The first phase is focused on “quick-win” measures to increase the end-to-end operational capacity of the country’s electricity grid to 7 GW between 2020 and 2021.

It entails upgrade of existing substations, construction of containerized GIS Substations, as well as the development of 132/33 kV Mobile Substations and installation of 132/33 kV (60 MVA) Transformers and transmission lines.

Phase two targets to achieve 11gw between 2021-2023, with full use of existing generation and last-mile distribution capacity while phase three would see the achievement of the planned 25gw between 2023-2025 with appropriate upgrades and expansion in the generation, transmission, and distribution.

Siemens is working hand in hand with TCN and DisCos in the country throughout the entire project which will see the installation of 3,765 distribution transformers and 5,109 km distribution lines with a potential transmission capacity of over 13,000 MW as opposed to the current 4,500mw.

The transmission and distribution network upgrade and expansion project are meant to address the imbalance between power generation, evacuation, dispatch, and consumption, which has been a major challenge for the population of Nigeria.

Over 13 GW of grid power generation capacity is installed in the country but sadly on average, only about 3.4 GW reaches consumers.

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