Siemens Energy, the German engineering firm, has announced a further extension of the timeline for the overhaul of Nigeria’s power infrastructure.
The completion date has been pushed back by an additional five years, attributed to the disruptions caused by the COVID-19 pandemic.
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In a joint effort with Nigerian President Muhammadu Buhari back in 2019, Siemens had initially outlined a comprehensive strategy to address challenges in the country’s power sector.
This three-phase project aimed to augment grid capacity by 2GW, reduce losses, enhance stability, and improve overall reliability.
The pandemic’s global impact and supply chain disruptions have led to unforeseen delays, affecting both material costs and progress.
Oladayo Orolu, Head of Business Development and Government Relations at Siemens Energy, acknowledged the challenges in an interview, expressing optimism about the project’s eventual outcome.
The first phase of the project, originally slated for completion by 2023, aims to increase electricity output by 2,000 megawatts, boosting the existing capacity of 5,000 to 7,000 megawatts. The delay, however, poses a setback to President Bola Tinubu’s proposed reforms.
Tinubu’s early tenure witnessed the signing of a new Electricity Bill, enabling states, businesses, and individuals to generate, transmit, and distribute electricity.
This legislation superseded the Electric Power Sector Reform Act from 2005.
Siemens noted challenges arising from the project’s initiation, including the federal government’s control over the transmission grid and private operators managing electricity distribution, with partial government ownership.
The company emphasized the importance of a robust National Grid to support Nigeria’s aspirations for industrial growth and economic development, given the current grid network’s limitations.
With approximately 14GW of installed generation capacity, only half of which the grid can accommodate, Nigeria’s vision of becoming an industrialized nation necessitates a more robust energy infrastructure.