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

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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.

Metro

Zambian activist highlights ongoing threats to media freedom on World Press Freedom Day

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As the world commemorates World Press Freedom Day on Friday, a youth activist from the Young Women Christian Association (YWCA) sheds light on the continued challenges facing the media landscape in Zambia.

Given Chifunda Moyo, YWCA Provincial Coordinator for the Southern Province, shares her analysis of the media environment in Zambia, emphasizing that the press still faces significant obstacles to operating independently.

Moyo pointed out that journalists and media houses were often targeted and threatened by those in power for publishing articles perceived critical of their policies or actions.

“In my opinion, we still face significant challenges. In the past, we witnessed journalists and media outlets being shut down for airing content that was deemed unfavorable to the government,” Moyo explained in an exclusive interview with the Zambia Monitor.

She highlighted the fear among journalists and citizens alike, noting recent instances where individuals were threatened for expressing their views on social media platforms.

Despite the enactment of media-friendly laws by the current government, Moyo observed that these laws were not always enforced.

“Following the elections, new media laws were introduced.
However, we continue to see individuals being threatened with arrest or cautioned for expressing their opinions or publishing certain articles,” she stated.

Moyo acknowledged the assurances from President Hakainde Hichilema that his administration would not interfere with the media’s operations.

However, she underscored the persistence of external interference that contradicts the president’s stance.

“While we appreciate the president’s commitment to media independence, there are still instances of interference from other quarters,” Moyo concluded .

The activist’s insights highlight the ongoing struggle for media freedom in Zambia, underscoring the need for concerted efforts by all stakeholders to safeguard press freedom and ensure a vibrant media landscape in the country.

This story is sponsored content from Zambia Monitor’s Project Aliyense.

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Nigeria’s economy will witness positive changes after painful sacrifice— VP Shettima

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Nigeria’s Vice President, Senator Kashim Shettima, has told Nigerians to look at the bigger picture as the country’s economy will soon witness positive changes after their painful sacrifices.

Shettima who was the special guest speaker at the second Chronicle Roundtable organized by 21st Century Media Services held in Abuja on Thursday, implored on Nigerians to be patient with the administration of President Bola Tinubu as he is determined to “steer the ship of state through the economic turbulence and storm he met on ground on assumption of office.”

“Soon, Nigeria’s economy will experience significant growth once we’ve overcome these sacrifices,” Shettima said while giving his keynote address.

“Positive changes will soon be evident across all economic indicators – inflation, per capita income, GDP numbers, poverty reduction, food security, and all aspects close to the hearts of our people,” he declared.

The Vice President went on to explain some key policy decisions taken by the Tinubu administration as well as its Economic and Social Agenda, including the removal of subsidy on petroleum products, which he described as the ‘biggest elephant in the room’ before President Tinubu took charge.

“We look forward to the positive impact on the economy that will be brought by some of our new initiatives in the oil and gas sector, creative arts sector, the newly rejigged steel and solid minerals sectors, our housing sector, the blue economy, and the digital sectors, to mention but a few.

“There is no doubt that there’s a time to plant and a time to reap. Between those times, we appeal for patience and seek collective sacrifice from all, especially from us. We wish there were a way to treat this ailment without surgery.

“His Excellency, President Bola Tinubu, chose the option that would save the life of the nation, instead of one that would merely prolong its imminent and predicted economic death. Before we took charge, the biggest elephant in the room was the question of fuel subsidy removal.

“We understood why our predecessor made the decision to remove it and refused to budget for it in their final fiscal year.

‘The year before we took office, Nigeria’s debt service-to-revenue ratio had grown to 111.8%. The anticipated debt crisis may sound like fancy economic jargon to the man on the street. But you and I are in a better position to understand how such miscalculations have played out in other countries. It’s an economic death sentence.

“In plain terms, our debt servicing was such that if you earned, say, N100,000, the entirety of the money wasn’t only paid to your debtor; you were forced to borrow an additional N11,800 to pay the debtor.

“How do you intend to survive this? And how many more loans before you become a pariah?

“We are not even discussing the nation’s budget deficits, diversions of resources from critical sectors of the economy, and corruption masterminded in the subsidy regime.”

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