SIEGY Siemens AG (PK)

By Obafemi Oredei

IBADAN, Nigeria--Germany and Nigeria on Friday signed an agreement to accelerate the implementation of a power project undertaken by Siemens AG and initiated in 2019 between the two governments.

The project, aimed at improving the power sector in Nigeria, was to deliver 7,000 megawatts of reliable power by 2021, rising to 11,000 megawatts by 2023, with the third and final phase to drive both generation and overall grid capacity to 25,000 megawatts. However, the project hasn't moved forward as quickly as expected.

"The agreement signed today will see to the end-to-end modernization and expansion of Nigeria's electric power transmission grid with full supply, delivery and installation of Siemens-manufactured equipment under the timeline of 18 to 24 months," according to a statement from the office of the Nigerian President Bola Tinubu.

The agreement was signed in Dubai on the sidelines of the COP28 climate summit by Kenny Anuwe, managing director and chief executive officer of the Federal Government of Nigeria, or FGN Power Company, and Nadja Haakansson, Siemens Energy's Senior Vice President and Managing Director for Africa.

Anuwe said that since the project began Siemens Energy has delivered equipment worth over 63 million Euros to Nigeria. The project will focus on identified load demand centers with a particular emphasis on economic and industrial hubs.

Nigeria, with a population of over 200 million, can supply an average 4,000 megawatts of power, leaving residents, homeowners and businesses without an adequate supply of power on daily basis, forcing them to rely on electric generators.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

December 01, 2023 18:28 ET (23:28 GMT)

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