Metro

Nigerian govt to review $2bn Siemens power deal, citing change in conditions

Published

1 year ago

November 1, 2023

The Nigerian government has expressed its determination to review a multi-billion dollar power project deal it entered with German company, Siemens Energy in 2019.

The federal government had, in 2019, signed the power project deal with the German engineering firm to deliver 7,000 megawatts (MW) of electricity to the national grid by 2021, and 11,000 megawatts by 2023, in phases one and two of the initiative, respectively.

The deal, which is under the Presidential Power Initiative (PPI), is a power upgrade and modernisation programme between the Nigerian government and Siemens with the support of the German government. The Nigerian government approved the payment of €15.21 million and another N1.708 billion as counterpart funding for the project.

In December 2021, the Federal Executive Council (FEC) again approved $1.9 million and €62.9 million for phase one of the project which sought to modernise, rehabilitate, and expand the national grid.

The new Minister of Power, Mr Bayo Adelabu has promised that the federal government will revisit and review the Siemens power deal with Nigeria, which was billed to see the incremental rise in supply from the current 4,000mw to 25,000mw by 2025.

Speaking on a television show on Tuesday, Adelabu said the prevailing conditions when the contract was signed had changed and would be requiring a review.

He, however, stated that part of the agreement which required the importation of mobile stations and transformers had been fulfilled, and would raise the capacity of the Transmission Company of Nigeria (TCN) by 1,300mw.

“We went into talks with the German government to support us technically, to improve power infrastructure in Nigeria, to increase energy access to households, businesses and industries. And we agreed that it was going to be a three-phase project,” the minister said.

“Phase one was agreed to improve the country’s transmission capacity from 5,000 to 7,000mw. Phase two was to take it to 11,000mw, while phase three will take it to 25,000mw over a period of seven years.

“But then, we know that the project has suffered a lot of challenges and number one was the COVID-19 pandemic which delayed the project.

“And we also had a political transition during this period. We had lots of regulatory reforms and there have been lots and lots of activities in terms of new investments into the sector in the last five years.

“So, the situation is no longer the same as we had in 2018. So what we are doing is to actually have a holistic review of the entire scope of this project and try to amend it to suit the current situation.

“But I must mention that as part of these three phases of the project, we agreed on the pilot project that was to actually exhibit the impact of the government-to-government cooperation on the Siemens project. The pilot project was to allow Siemens to bring into the country 10 power mobile substations and 10 power transformers to be installed to actually reduce the gap in the transmission capacity.

“I’m happy to tell you that this time, transformers have arrived; the country’s mobile stations have also arrived the country. The process of commissioning has started, and we will soon start installation of these transformers.

“I believe that by the time we’re done with the installation of these 10 transformers and substations, we expect that it will improve our transmission capacity by 1,300mw,” he said.

Related Topics:Contract Featured Nigeria Review Siemens Energy

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Metro

Zambia: Expert warns of food security threat due to climate change

Published

5 hours ago

December 22, 2024

Isaac Dachen

A prominent Zambian climate-smart agriculture expert, Oliver Bulaya, has warned of a collapse of the county’s agricultural sector with a potential threat to food security due to the worsening impact of climate change.

Bulaya, who bared his mind in an interview with Zambia Monitor on Friday, warned that ignoring the crisis could lead to severe disruptions in the country’s food supply and economy.

“Unless concerted efforts are made, the country will continue facing dire consequences from climate change,” the expert noted.

He lamented a growing trend of farmers relocating to regions experiencing above-normal rainfall, such as the northern block, as they struggle with losses caused by climate variability.

Bulaya emphasized that the once-reliable rainfall areas like North-Western Zambia are now experiencing lower precipitation, as seen during the 2023/2024 farming season and cautioned that poor farming practices, which had already strained the Southern region, could lead to similar challenges in other parts of the country if proactive measures were not implemented.

Metro

Outrage over murder of Nigerian beaten to death by South Africans inside estate security office

Published

10 hours ago

December 22, 2024

Isaac Dachen

The Nigerian community, under the auspices of Nigerian Citizens Association in South Africa (NICASA), has raised the alarm over the murder of a 37-year-old Nigerian, Julius Chukwunta, who was beaten to death by four South Africans inside an estate.

According to the association, Chukwunta, a native of Aninri Local Government Area in Enugu State, was reportedly attacked on Saturday, December 7, while driving to his residence in Midrand Protea Estate.

In a statement issued on Saturday by the President-General of NICASA, Dr Frank Onyekwelu, Chukwunta was blocked by the four men while approaching his residence.

Onyekwelu stated that information available to the association noted that after attempting to pass through, Chukwunta was met with resistance by the assailants, prompting him to seek help at the security office of the estate.

“At that moment, the four men allegedly attacked him, leaving him severely injured with a head wound,” the PG said.

“His female companion, who was sitting in the car, rushed to the security office and discovered him bleeding on the ground.

“In spite of attempts to call for help, the security office and residents did not assist in calling the police or an ambulance.

“After an hour, Chukwunta’s partner contacted her father, who, along with other family members, took him to Tembisa General Hospital.

“Chukwunta was placed on life support but later succumbed to his injuries and died at the Tembisa General Hospital on December 10, 2024.”

Onyekwelu also confirmed that the case was reported to the police by Chukwunta’s partner at the Midrand Police Station and was registered under file number 262/12/2024.

The NICASA President said the four suspects, aged 20, 24, 27, and 28, were arrested, and the case was presented in Alexandra Magistrate Court on December 13, 2024, where they were charged with murder.

“The court proceedings on December 18, 2024, saw three of the suspects granted bail of R10,000 each, while the fourth had not yet applied for bail. The case was adjourned to February 3, 2025.”

Onyekwelu however, expressed disappointment at the proceedings, wondering why three of the suspects were released on bail and vowed that the Nigerian community would continue to demand justice for Chukwunta and support his family.

He emphasised that the community would not rest until justice was served and the value of Nigerian lives was upheld in South Africa.