The Labour Party presidential candidate, Peter Obi has said that he will immediately complete the Siemens power deal if he becomes president in Nigeria’s forthcoming general elections.
Obi made the statement during his presentation at the United Kingdom-based policy institute, Chatham House on Monday, January 16.
According to Obi, the Siemens power project which is an ongoing deal between the Muhammadu Buhari administration and Siemens to transform Nigeria’s power sector will be completed if he becomes president.
Backstory: In 2019, Buhari signed the Presidential Power Initiative (PPI) agreement with German-based Siemens with the aim of modernizing Nigeria’s national grid, and achieving 7,000 megawatts by 2021, 11,000 megawatts by 2023, and 25,000 megawatts by 2025.
However, the project has been delayed by several factors including the Covid-19 pandemic which led to a lockdown in 2020.
Revamping the power sector from 2023: At Chatham House on Monday, Peter Obi promised to finish the project as the Buhari administration is winding down. He said:
“Our solution to the perennial power problem in Nigeria is a comprehensive one that covers transmission, distribution, generation, and financing as detailed in our Manifesto.
“However, we will immediately complete the $2.3 billion Nigeria-Siemens network improvement deal to achieve 7,000 MW stable capacity by the end of this year (2023), 11,000 megawatts by 2024, and 25,000 megawatts by 2025.
“We will also support local manufacturing capacity of power technologies and encourage and expand local Research and Development (R&D) in universities, training centers, and workshops through which many jobs will be created.”
The manifesto promises: In his campaign manifesto, Obi has promised to reset Nigeria’s generation, transmission, and distribution systems infrastructure.
He has also said his administration will focus on resolving current challenges using natural gas and renewable energy.
Another important thing to note is Obi’s resolve to return Gbarain, Ihovbor, Olorunsogo, Alaoji, Calabar, Sapele, Omoku, Alaoji, Omotosho II, Olorunsogo II, and Geregu II power plants to optimal status in terms of capacity and performance.
Important to note that these power plants have been slated for sale this year.
For the record: Nigeria’s Ministry of Power had earlier announced that as part of the early orders under the Presidential Power Initiative (PPI), 10 mobile substations and 10 mega transformers are being delivered to Nigeria by Siemens.
In December 2022, the ministry said that one of the ten Siemens mobile substations which have been manufactured and tested by Siemens at its France factory is ready for shipping to Nigeria. It will arrive in Nigeria in January 2023.
