President Muhammadu Buhari, GCFR

Nigeria, Siemens activate power sector renovation deal

Isola Moses | ConsumerConnect

Determined to improve the lot of the nation’s all-important but ailing energy industry, Nigeria’s President Muhammadu Buhari has commenced the next phase of an agreement with Siemens AG towards upgrading the dilapidated power infrastructure in the country.

President Buhari, in a statement on the Presidency’s verified Twitter page  Wednesday,  May 27 directed his Ministers for Power and Finance, Budget and National Planning to “commence the pre-engineering and concessionary financing aspects” of the project with Siemens.

Report indicates the Federal Government of Africa’s largest economy and the German engineering firm signed an agreement in July 2019 to rehabilitate and expand the country’s electricity grid.

It was gathered that only about 60% of Nigerian consumers have access to power, and even those who do are distressed by regular blackouts.

Nigeria has more than 13,000 megawatts of installed electricity generation capacity, but only 7,500 megawatts are available and less than 4,000 megawatts dispatched to the grid each day, according to Bloomberg.

Siemens, in the partnership with government, will modernise the existing network before enlarging it until the country can produce and distribute 25,000 megawatts, stated the report.

The statement disclosed he project will be financed by concessionary loans covered by Euler Hermes Group SAS, a large provider of credit insurance.

It further said that the government will “on-lend” the funding to the shareholders of Nigeria’s power distribution companies and Siemens will have sole responsibility for selecting its contractors in the process.

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