By Mohammed Dahiru
A statement issued by the spokesperson for the Minister of Power, Adebayo Adelabu that was widely published in the media claims that electricity transformers and substations meant for the $2.3bn Siemens power project have arrived in the country as the project gains traction under the Bola Tinubu administration.
According to the statement, the development came a few months after the Federal Government “renewed” the mega power project contract with the German government and Siemens, following “several months of delays.”
According to the minister, the project was stalled following the death of the “arrowhead of the project,” former President Muhammadu Buhari’s chief of staff, Abba Kyari, who died of COVID-19 complications.
“In 2018, the Nigerian government signed a memorandum of understanding with the German government for the presidential power initiatives, also known as the Siemens contracts. The German government agreed to lend Nigeria $2.3bn and employ Siemens to transform Nigeria’s transmission and distribution sector.
“However, due to COVID-19, significant progress has yet to be made in implementing these projects. Unfortunately, the late Chief of Staff to the President, Malam Abba Kyari, the foremost champion of the project, passed away. After that, an election occurred, and a new government took over. Between 2018 and 2023, there were no significant developments concerning the agreements,” stated Mr Adelabu’s media aide, at a briefing on Friday.
DAILY NIGERIAN recalls that in July 2019, the federal government signed the power project deal with Siemens AG to increase Nigeria’s electricity generation to 25,000 megawatts in six years.
A year after the deal was signed, Mr Buhari approved the payment of €15.21 million and N1.708 billion as counterpart funding for the PPI.
While the claims about the project being stalled under the Muhammadu Buhari administration until it was reactivated by President Tinubu’s leadership remains far reaching, DAILY NIGERIAN investigated the facts of the issue.
A Google search engine investigation using relevant keywords revealed that the project was never stalled as claimed in the press release.
For example, in March 2022, Daily Trust reported that the then minister of power, Abubakar Aliyu, led a delegation of key officials in the power sector to the Siemens Energy headquarters in Berlin, Germany, to discuss progress of the ongoing Siemens Presidential Power Initiative, PPI.
The minister was received by the president and chief executive officer of Siemens Energy, Christian Bruch.
According to the report, while the meeting reviewed progress of the PPI, the minister’s visit was also aimed at working with Siemens to fast-track the delivery of the mobile substations and transformers ordered by the Nigerian government to improve and stabilise electricity across the country.
In April of the same year, the Cable and other news platforms reported that the then minister had tasked Siemens to fast-track the delivery of transformers and mobile power substations ordered by the Nigerian government.
In September of the same year, the Ministry of power updated the general public that the mega transformers were set to arrive in Nigeria.
A statement by the then minister’s spokesman, Isa Sanusi, said the transformers had successfully undergone factory acceptance test at Siemens’ transformers factory in Trento, Italy.
The statement said the managing director of Federal Government of Nigeria Power Company (FGN-Power), Kenny Anuwe, who led a delegation that included engineers from Transmission Company of Nigeria, TCN, witnessed the factory acceptance test conducted on 28 July 2022.
In a May 2023 Fact Sheet highlighting President Buhari’s achievements, the report pointed out that the contract for the pre-engineering phase of the PPI was signed in February 2021, following the 2020 approval for the payment of FGN’s counterpart funding, while the first set of equipment contract awards were made in December 2021, comprising 10 Mobitra Mega Transformers and 10 Substations. In all the PPI comprised as many as 127 individual Transmission and Distribution projects (Brownfield and Greenfield).
It was gathered that all 10 Mobitra Transformers were ready, with Factory Acceptance Tests concluded for the last batch, in Q1 2023. The first set arrived in Nigeria from the Siemens factory in Trento, Italy, in September 2022.
Further findings reveal that as at January 2023, six of the 10 Mega Power Transformers had already arrived the shores of Nigeria and installation of the ones delivered was ongoing in various locations — while the remaining 4 were onshore. As at that time the first transformer was being installed in Ajah Lagos while the second one was also being installed at Apo Abuja. Infact, the mega transformer installed in Apo was energized on 15 May 2023. At the time, mobile substations were delivered and cleared from the ports in Lagos.
By May 2023, the Federal Government had received about 80% of the equipment for the pilot project and deployed to strategic sites such as Apo, Ajah, Okene, Nike Lake, Kwanar Dangora, Maryland, Omouaran, Ojo, Amukpe, Ihovbor, Potiskum, Birnin Kebbi, among others, with the goal of enhancing power transmission capacity.
DAILY NIGERIAN findings show that the Siemens-Nigeria multi million dollar power project dubbed the Presidential Power Initiative, PPI, never stalled under the Buhari administration following the death of Mr Kyari who was touted as the arrowhead of the project.
This newspaper finds evidence of inter-governmental and inter partnership engagement, approval of funds, arrival and installation of transformers in locations across the country and other activities between 2020 and 2023.
DAILY NIGERIAN therefore concludes that the claims made by Mr Adelabu and widely published in the media claiming that electricity transformers and substations meant for the $2.3bn Siemens power project have just arrived in the country after it was stalled under the Buhari administration is MISLEADING.
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