Federal Gorvernment Begins Siemens Power Project Phase 2, Targets 12,000MW
The Federal Government has officially commenced Phase Two of the Siemens Power Project, a flagship initiative under the Presidential Power Initiative (PPI) that seeks to overhaul Nigeria’s electricity transmission system and deliver up to 12,000 megawatts of power to the national grid.
The project stems from the landmark agreement signed on December 1, 2023, between the Governments of Nigeria and Germany, laying the foundation for a strategic energy partnership aimed at addressing decades of instability in Nigeria’s power sector.
Confirming the development, Bolaji Tunji, Media Adviser to the Minister of Power, told PUNCH that Phase Two had officially begun following the finalisation of financing arrangements with Siemens Energy.
“Phase 2 of the Siemens project is now underway, following the successful conclusion of financing. This phase will deliver seven upgraded existing power lines and ten new ones, covering 544 kilometres and capable of carrying 7,140 megawatts of power,” Tunji said.
From Pilot to Expansion: Building on Early Success
The Federal Government explained that Phase Two builds on the progress of the pilot stage, which delivered critical infrastructure to strengthen the transmission network.
Tunji highlighted that the FGN Power Company, the special purpose vehicle for the PPI, had successfully received 10 power transformers and 10 mobile substations from Siemens Energy under the pilot stage. These assets boosted Nigeria’s transmission capacity by over 1,300MW.
Installation of the equipment reached more than 80 per cent completion, paving the way for Phase Two.
The transformers and substations were strategically deployed across key locations such as Okene, Amukpe, Potiskum, Apo, Ihovbor, Birnin Kebbi, Ajah, Nike Lake, Kwanar Dangora, Maryland, Omouaran, Ojo, Saapade, University of Ibadan, Federal University of Technology Owerri, and Eleyele in Ibadan.
“These critical assets have been strategically deployed to strengthen weak points in the grid and reduce the frequency of nationwide system collapses,” Tunji added.
Financing and Accountability
Tunji further disclosed that Nigeria would provide counterpart funding alongside the international facility secured with Siemens. While he did not give exact figures, he emphasised that financing was structured to ensure sustainability and accountability.
The Bureau of Public Procurement (BPP) also played a role in safeguarding Nigeria’s interest. Its Director-General, Adebowale Adedokun, revealed that the bureau had saved the government about $115,000 during negotiations with Siemens through due diligence and price intelligence.
“We scrutinised the requests and secured concessions that saved the country money. That fund would have been lost without proper negotiation. This shows our commitment to defending the government’s financial interest,” Adedokun explained.
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Long-Term Vision and Milestones
The Siemens Power Project, first initiated under former President Muhammadu Buhari in 2018, was formally renewed under President Bola Ahmed Tinubu and German Chancellor Olaf Scholz during COP28 in Dubai. The long-term target remains to scale up transmission capacity to 12,000MW, ensuring reliable electricity access for millions of Nigerians.
Phase I of the project, earlier approved by the Federal Executive Council (FEC) at a cost of ₦262.75bn (€161.33m), covered transmission upgrades and expansion. It included 14 brownfield substation upgrades and 21 greenfield substations across Nigeria. Among the first batch of substations under Phase I are:
- Onitsha 330/133 KV (Enugu electricity distribution company),
- Offa 132/33 KV (Ibadan electricity distribution company),
- Abeokuta 330/132 KV,
- Ayede 330/132 KV, and
- Sokoto 132/33 KV.
Minister of Power, Adebayo Adelabu, explained that these projects are already reshaping the transmission segment of Nigeria’s power sector.
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Why It Matters for Nigerians
The Siemens Power Project is not merely an infrastructure project but a transformational step for Nigeria’s economy and households. By upgrading transmission capacity, the project is expected to:
- Improve electricity supply reliability,
- Reduce power outages and grid collapses,
- Strengthen industrial productivity,
- Support small and medium enterprises, and
- Enhance living standards across urban and rural areas.
As Phase Two takes off, the Federal Government has reiterated its commitment to delivering a stable, modern, and sustainable electricity network, ensuring that Nigerians finally benefit from decades of reform efforts in the power sector.
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