Adelabu clarifies statement on Siemens project

The Minister of Power, Adebayo Adelabu has further clarified his statement on the Presidential Power Initiative (PPI) emphasizing that the President Tinubu administration intervention has helped to further galvanise the project.

According to a statement highlighting the major milestones of the Present Bola Tinubu administration on the PPI also known as Siemens deal, Special Adviser, Strategic Communications and Media Relations to the Minister, Bolaji Tunji, said the inauguration of the Tinubu administration in 2023 brought added fillip to the Siemens Power Project as an accelerated contract was signed to ensure visible progress in the project.

“There is no way the minister’s statement that no significant progress on the project was made until the present administration was inaugurated, can be faulted when the major milestones between 2023 till date are considered. No doubt, there have been significant improvement in the PPI since the inauguration of the present administration on May 29, 2023. The Presidential Power Initiative was conceived in August 2018, born from the strong bilateral relationship between Nigeria and Germany, with the goal of transforming Nigeria’s power sector by increasing generation, transmission, and distribution capacity.

“This administration, under the leadership of President Tinubu, has demonstrated an unwavering commitment to the PPI, recognizing its critical importance to opening up the economy and galvanising national development. To ensure the expeditious delivery of improved power supply to industrial clusters, households, and businesses, President Tinubu mandated the signing of an Acceleration Agreement. This commitment has translated into tangible results. Under the present administration , leadership, strengthened programme governance has expedited contract and financing approvals, leading to faster project implementation.”

While acknowledging efforts of past administrations on the PPI, Adelabu said some of the key milestones under the present administration apart from the execution of an Acceleration Agreement with Siemens Energy to fast-track the implementation of the PPI, include the approval of a new technical direction for the PPI, ensuring Siemens Energy focuses solely on upgrading and modernizing the transmission subsector through a Turnkey approach while the President also approved that the distribution scope be delivered by other reputable Engineering Procurement and Construction (EPC) Companies with the requisite technical, financial, and financing capacity.

The statement also added that the strategic decisions aim to increase grid capacity by an additional 4,000MW by the end of 2026, with an aspirational target of an additional 2,000MW, as directed by the Economic Management Team in 2024 while touching on the fact that the implementation of the PPI commenced with the installation and commissioning of ten (10) Power Transformers and ten (10) Mobile Substations across the country under the Pilot Phase of the PPI, which was manufactured and delivered in October 2023. In 2024, there was a focus on the implementation of the Pilot Project and the project initiation activities of the main phase of the PPI.

Also under the administration, FGN Power Company implemented several transmission projects across the country, which have collectively increased the transmission wheeling capacity by over 700MW for industrial clusters, businesses, universities, and homes.

The statement further highlighted some major take away from the ministerial briefing which include: market and regulatory reforms such as the implementation of cost-reflective tariffs for Band A customers which raised market revenue by ₦700 billion in 2024; a 70 percent increment from the previous year, improving financial viability and further push for the sector to achieve sustainability and full commercialization.

“The establishment of National Independent System Operator (NISO), marking the functional unbundling of the Transmission Company of Nigeria will strengthen governance and enhance performance of the Nigeria power grid and increase investor confidence in the sector.

“Also, regulatory oversight was successfully transferred to 11 states in total; Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, Plateau States with Plateau and Niger States happening within the last 100 days. In area of generation, peak available generation rose to an all-time peak of 6,003 MW on March 4, 2025. A new generation evacuation peak of 5,801.44MW and maximum daily energy record of 128,370.75 MWh was achieved on the same day.

“NDPHC restored 345 MW of idle capacity and improved 14 transmission lines. Restoration of 345MW power turbine back on the grid – 120 MW in Omotosho NIPP, 112.5 MW in Benin NIPP, and 112.5MW in Calabar NIPP. Off-grid and interconnected solar mini-grid projects were commissioned across several states in the country. Specifically, 550KWp at Bakin Siyawa and Kwande communities in Plateau, 440kWp Mini-Grid in Cross River State, 990kW Mini-grid to Power 3,900 Households in Niger State, and 510KwP solar hybrid mini-grid in communities in Osun State.”

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