Siemens Overhaul of Nigerian Power Grid Draws Investors
By Tope Alake and Anthony Osae-Brown
August 12, 2020,
Updated on August 13, 2020

Company is rebuilding Nigeria’s power transmission system


Siemens AG’s overhaul of Nigeria’s electricity grid is attracting interest from private companies seeking to invest in power production, the head of the German company’s local unit said.


Siemens signed a contract with the government last year to rehabilitate and expand the West African nation’s electricity system, with the first phase costing about 2 billion Euros, according to Onyeche Tifase, chief executive officer of Siemens Nigeria Ltd.. The company is using as a model its experience in Egypt, where it increased generation capacity by more than 40% in less than three years.

The revamp in Nigeria will include upgrading dozens of power substations and building new ones, as well as installing new transformers and distribution lines, she said. The upgrades are persuading skeptical investors to see opportunity in the country, Tifase added.

“Our ability to deliver all the automation of distribution, transmission and generation has boosted investors’ confidence, and oil and gas companies that had stepped back because of a lack of benefits are reconsidering,” the CEO said in an interview in Lagos, the commercial capital. “We see further investments being unlocked.”

Nigeria has more than 13,000 megawatts of installed electricity generation capacity but only 7,500 megawatts of that is available and less than 4,000 megawatts is dispatched to the grid each day. The partnership with Siemens will modernize the existing network before enlarging it until the country can produce and distribute 25,000 megawatts.

Incessant Outages
The World Bank, which estimates that Nigeria loses about $28 billion or 2% of gross domestic product a year to power cuts, approved a $750 million loan in June to create a sustainable metering and commercial framework for running the grid.

The deal agreed to last year requires Siemens to boost transmission capacity, to 25,000 megawatts by 2025, from 4,500 megawatts. That will help end incessant outages and ensure the inclusion of about a third of the population of more than 200 million people now excluded from the grid.

Siemens plans to implement the project in phases, starting with the initial phase of resolving current inefficiencies in distribution and transmission while upgrading capacity to 7,000 megawatts. The second phase will target 11,000 megawatts.

The project has attracted low-cost financing backed by the German government and credit-risk guarantees by Euler Hermes Group SAS, according to Tifase. Lenders including Commerzbank AG and Deutsche Bank AG have indicated an interest in extending credit, she said. German lenders are expected to finance the supply of all equipment, products and systems for the project.



— With assistance by Ruth Olurounbi

https://www.bloomberg.com/news/articles/2020-08-12/siemens-overhaul-of-nigerian-power-grid-draws-private-investors

Good one. Hope there wont be setback or issues to cause delays or reason for Siemens to pull out.

I hope this is true.

From my place in Onitsha,we don't get up to 5 hours light daily,but for now it has increase to 21 hours daily.

I hope it is not just a hype and really true

I hope this is true. If they can bring constant power suppy into play, particularly in the urban and commercial areas, the economy will get a good rebound; and there's a good chance our FDI might skyrocket back to the huge percentage we boasted in the 70s.

If this goes as planned ,it will revolutionize and kick.start the industrialization of Nigeria.
After this let face security issues and bring Ajaokuta back to life. At least with this present politicians will have put down a Nation to the next generation

pharmagba:
If this goes as planned ,it will revolutionize and kick.start the industrialization of Nigeria.
After this let face security issues and bring Ajaokuta back to life. At least with this present politicians will have put down a Nation to the next generation

Coupled with the rail and Agricultural revolution, things are taking shape. Smart people are tapping into the progress and positioning themselves for growth.

Security will determine whether they come or not security at the moment is none existence don't fool us.

My area has no visible improvement, just from 14hrs to 16hrs daily. While my parents side enjoy significant improvement, from 12hrs weekly with light shedding, to about 18hrs daily.
My in-laws enjoys 24hrs for more than a week from August 1st to 8th(as at the last time we discussed it, so I don't know if it exceeds that)

OlujobaSamuel:
My area has no visible improvement, just from 14hrs to 16hrs daily. While my parents side enjoy significant improvement, from 12hrs weekly with light shedding, to about 18hrs daily.
My in-laws enjoys 24hrs for more than a week from August 1st to 8th(as at the last time we discussed it, so I don't know if it exceeds that)

Waoh. That is impressive and things are about to get better with the FG-Siemens power deal

The coming 5G disaster is the only motivation for this , why couldn't Siemens do this 10 years ago ?

Buhari is working...

They still dey talk about national grid instead of disintegrating the structure so that power can be generated independently.

byinks:
The coming 5G disaster is the only motivation for this , why couldn't Siemens do this 10 years ago ?

Because the last government didn’t want them to, or didn’t think of it and didn’t sign a contract with them, what kind of foolish question is this.

lastempero:
They still dey talk about national grid instead of disintegrating the structure so that power can be generated independently.

Do you really think that will help

Abohboy:


Because the last government didn’t want them to, or didn’t think of it and didn’t sign a contract with them, what kind of foolish question is this.

Abeg stop this APC PDP crap...

byinks:


Abeg stop this APC PDP crap...

Did I mention APC or PDO I just told you that a contract wasn’t signed then and no common ground was made between Siemens and ten government there, no where did I mention a political party or anything to dispute.

Abohboy:


Did I mention APC or PDO I just told you that a contract wasn’t signed then and no common ground was made between Siemens and ten government there, no where did I mention a political party or anything to dispute.

So you're not another BMC stooge...
Go in peace and God bless.

Abohboy:


Do you really think that will help

Very very well. We should embrace captive way of generating and distributing power rather than having a national grid that collapses at will. There ia enough gas to go round for southern states and the north can stick to their hydro power source.

byinks:


Abeg stop this APC PDP crap...

If this govt is failing your father will be shouting APC up n down but now that it seem to be succeeding you do not want anyone to shout APC.

tribalmall:


If this govt is failing my father will be shouting APC up n down but now that it seem to be succeeding you do not want anyone to shout APC.

What has your father got to do with this.. ??

Way to go.. we need the technological transfer too