FG Plans to Expand Power Deal with Siemens to Increase Capacity by 25,000MW

Engr. Abubakar Aliyu, Minister of Power

…Implementation of all planned projects will increase electricity availability and quality.

The Minister of Power, Engineer, Abubakar Aliyu disclosed that the partnership between the country and Siemens in the power sector would expand Nigeria’s electricity capacity from the current 4,500MW to 25,000MW.

Aliyu made it known that the country was at the dawn of a new era in the power sector and government plans to ensure that all players focus on the big picture with proper alignment to achieve the desired growth.

The Minister spoke at a power workshop with the theme: ‘Moving the Power Sector Beyond the Transition Electricity Market’, that the primary purpose of government is to develop policies and laws and to properly orientate the players.

According to him, “One of my cardinal goals, on assumption of office, is to reduce or totally eliminate the human factor issues limiting the growth of the sector. It is important to note, as I have observed that the viability of the sector is not in doubt.

“We just need to boldly deal with some challenges militating against the desired growth, some of which are transmission and distribution bottlenecks, funding difficulties, transmission wheeling inadequacy, old and dilapidated distribution infrastructure.”

He added that there is need to have confidence in the electricity market, energy losses, on-payment of electricity bills and lack of transparency within the sector.

“Government is doing a lot in providing the needed infrastructure and is also being supported by multilateral partners like World Bank, AFDB, AFB and others. These support structures, plus the intervention fund from CBN, will go along way in addressing some of these infrastructure gaps.

“A proper implementation of all planned and ongoing projects will increase the electricity availability and quality.

“To achieve the desired quick wins, Government launched the Power Sector Reform Plan (PSRP) to strengthen the Regulatory Agency, NERC, among other things, a properly monitored Performance Improvement Plans (PIP) to track progress of the Distribution Companies and a Transmission Rehabilitation and Expansion Program (TREP) to strengthen the wheeling capacity of TCN.”

Aliyu pointed out that these efforts are geared towards ensuring that they earnings and desires of Nigerians are met as regards steady and reliable power supply.

He said reform processes all over the world are cumbersome and take time. The government has initiated some transformational changes that will on the long run improve the quality of electricity in Nigeria and improve access. “I can confidently tell you that with the efforts we have put in, and still putting in, we are at the dawn of a new era in the power sector in Nigeria.”

The Minister said one significant effort the Muhammadu Buhari’s administration has put in place is the Siemens Nigeria and the Federal Government’s deal and this partnership seeks to expand Nigeria’s electricity capacity from the current 4,500MW to 25,000MW.

The Presidential Power Initiative (PPI) which began in 2021 is in three phases and is estimated to be completed in 2025. The phases cover the upgrading and expanding the TN and Discos networks, improvement of access to affordable, efficient and reliable electricity and, providing support of industrial and economic growth in the country.

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