HomePowerNigeria - Germany Siemens Power Supply Deal, PPI (Key Details)

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

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.

Related Topics

Paschal Okafor is NaijaTechGuide Team Lead. The article Nigeria – Germany Siemens Power Supply Deal, PPI (Key Details) was written by Paschal Okafor. The article was last modified: February 4th, 2022
Jumia Brand Festival is now Live
NaijaTechGuide may receive financial compensation for products/services purchased through affiliate links on this site. See full Affiliate Disclosure Here
Paschal Okafor
Paschal Okafor
Paschal Okafor is the founder of NaijaTechGuide. Over the past 15 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 can offer you his wealth of experience to help you get the best results for your blog or website.

Recommended Read on NaijaTechGuide

Best Content Marketing Tools for 2023

As a content marketer, you have a lot of tasks to accomplish. You need...

Best VPN Services Providers for 2023

The internet is one of the greatest achievements of humanity, but it is also...

Best Laptops for Students 2023: 11 Top Picks to Choose From

So, you are a student who is looking to get the best laptop they...

Cheap Android Phones 2023 – Price, Specs, and Best Deals

Android phones are the most popular smartphone category. The popularity of Android phones are...

Best Android Phones 2023 – Price, Specs, and Best Deals

New Android Phones are launched into the market every week. This means that if...

Best Web Hosting Services for Building Websites in 2023

A good and reliable web hosting service will make a big difference for your...
All the Best Deals on Jum

More like this

Sun King Solar Inverter: a Permanent Solution to Power Problem in Nigeria

Sun King, an international company that designs, distributes, installs, and finances solar energy solutions,...

Integration of Blockchain with Advance Smart Grids

Blockchain technology changes how companies interact with their partners, suppliers, and customers. For example,...

6 Features To Look For In A Portable Power Station

Portable power stations are becoming increasingly popular as they offer a convenient way to...