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Nigeria – Germany Siemens Power Supply Deal, PPI (Key Details)

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Nigeria and Siemens AG signed a major deal in 2019 to boost power supply in Nigeria. The key details of the power supply deal, which is described as an end to end grid modernization and expansion program is highlighted below. The president and a few government handles provided some insights about the deal now known as the Presidential Power Initiative (PPI) while announcing it.

Since the approval of the 15% counterpart funding of €15.21 million (₦1,708,013,441) by the Nigerian President on July 29 2020, marking a kickoff of project implementation more facts have emerged about the project. In this article we will be providing details of this Nigeria-Siemens power supply deal. This will be based largely on the information the Nigerian President and other government officials provided through their twitter handles. We will add more details as we learn more.

Details of Nigeria – Germany Siemens Power Supply Deal (Presidential Power Initiative)

  • Discussions on the deal started in August 2018 during German Chancellor Merkel’s visit to Nigeria. Siemens AG was a part of the delegation that came with Merkel
  • The Deal was first called the Nigeria Electrification Roadmap, but is now called the Presidential Power Initiative (PPI)
  • According to the Nigerian President the goal is “to deliver more electricity to Nigerian businesses and homes”
  • The President has set a target of 7000 MW (7GW) of reliable electricity by 2021 for the phase 1 of the project (Delayed due to COVID, now by June, 2023)
  • The phase 2 of the project is expected to deliver at least 11,000 megawatts (11GW) of reliable electricity by 2023 (now delayed)
  • The final phase (phase 3) of the project will boost overall grid capacity to 25,000 MW (25GW) by 2025 (now delayed)
  • The $2.3 billion Deal is aimed at upgrading Nigeria’s Electricity transmission and distribution infrastructure
  • 105 Substations will be upgraded
  • 70 New Substations will be built
  • 35 Power Transformers to be manufactured and installed
  • 3,765 Distribution Transformers to be installed
  • 5,109KM of Distribution lines will be built
  • The Nigerian President approved 15% counterpart funding of €15.21 million euros (₦1.708 billion) for the first phase of the deal on July 29, 2020
  • The contract for Pre-Engineering phase was signed in February, 2021
  • The Bilateral Counterpart Funding Covers Pre Engineering Cost
  • The Deal was done at a governmental level without middlemen. This government to government model is aimed at saving cost and best value to taxpayers
  • The Deal is an agreement between the Nigerian Government, German Government, and Siemens AG of Germany
  • All components to be used in the project will be manufactured to the highest German and European standards
  • The CEO of Siemens AG, Joe Kaeser was present for the signing ceremony which took place on July 22, 2019
  • AFC Appointed as Transaction Advisor with other 3rd Party Consultants to handle Legal, Audit, etc appointed in Federal Executive Council meeting December, 2021.
  • Award of Contract to Siemens for the deployment of 10 Mobile Substations and 10 Transformers in December, 2021.
  • The Federal Government of Nigeria approved $1.9 million and €62.9 million for the first phase of the project in December, 2021.

We will add more details about the deal when we know more. Bookmark this page and check-back for more details.

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Paschal Okafor
Paschal Okafor
Paschal Okafor is the founder of NaijaTechGuide. A Graduate of Electrical and Electronics Engineering, Paschal is passionate about Technology and since 2006 has written over 4000 articles covering Mobile Devices, Consumer Electronics, Digital Marketing, Mobile Apps, and Online Services. Over the past 16 years, he has managed to turn a blog that started life on a Google Blogger subdomain into the Largest Technology Blog in Nigeria and quite possibly the largest in Africa. Paschal has been Building, Analyzing, and Maintaining Websites for over 17 years and also shares his wealth of knowledge and experience about building and managing websites on NaijaTechGuide.

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