Siemens $2.3bn Power Deal Stalled Under Buhari, Revived Under Tinubu – Germany Confirms

Germany's Deputy Head of Mission in Nigeria, Johannes Lehne, has revealed that the $2.3 billion Siemens power agreement, originally signed during former President Muhammadu Buhari's administration, remained largely inactive for years before being reactivated under President Bola Tinubu.Speaking at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, Lehne described the bilateral partnership in the power sector as having stalled prior to gaining fresh momentum under the current government. The deal, known as the Presidential Power Initiative (PPI), is a government-to-government collaboration between Nigeria and Germany aimed at overhauling the country's transmission and distribution infrastructure, enhancing grid stability, and gradually boosting available power capacity."The strange thing was that this partnership was dormant until the beginning of President Tinubu's time, where actually we revived this," Lehne stated. He highlighted ongoing efforts under a Presidential Power Initiative with Tinubu focused on reactivating Nigeria's transmission system to ensure reliable electricity access for all.Conceived under Buhari, the Siemens project set ambitious phased targets: increasing operational capacity to 7,000 megawatts (MW) by 2021, 11,000 MW by 2023, and ultimately 25,000 MW by 2025. However, implementation faced significant delays, with reports noting limited progress and uncertainties toward the end of Buhari's tenure.Since Tinubu took office, the initiative has seen renewed commitment. Recent developments include the arrival of electricity transformers and substations, finalization of funding arrangements, and approvals for engineering, procurement, and construction (EPC) contracts for key phases. President Tinubu has met with Siemens Energy representatives, pledging full support to accelerate the project, including plans to add significant transmission capacity and expand substations.The revival is expected to transform Nigeria's power sector by addressing chronic grid constraints, reducing losses, and positioning the country as a regional energy hub. While progress has been described as notable, officials acknowledge it is not yet at the desired pace, with ongoing efforts to fast-track delivery and unlock economic benefits across industries, education, healthcare, and households.

Read More