The first set of morbid power transformers in the €63 million deal between the federal government and Siemens have started arriving Nigeria.
The Siemens deal, which is expected to significantly improve the country's electricity distribution capacity, was approved by the federal executive council in December 2021.
Based on the pact, an order was placed for the purchase of the 10 morbid power transformers and 10 mobile substations.
Speaking at the 5th National Council on Power (NACOP) in Abuja, minister of Power, Abubakar Aliyu, said: "the 10 morbid power transformers to be situated across the country have started arriving."
Aliyu said government-to-government collaboration between Nigeria and Germany, resulted in a loan agreement which provided on concessionary terms through Siemens Company to rehabilitate the Nigeria Electricity Supply Industry (NESI) and the value chain in the industry.
The minister noted the federal government has also developed the National Renewable Energy and Energy Efficiency Policy with the accompanying Vision 30:30:30, which aims at achieving 30,000MW of electricity by the year 2030 with renewable energy contributing 30 per cent of the energy mix
Speaking on the $1.3 billion Zungeru Power Project, the minister said it was currently 97 per cent complete.
The project is expected to provide 700 megawatts of electricity to the national grid while Kashimbila Hydroelectric Power project will provide 40 megawatts to the national grid. Dadin-kowa Dam will provide 40 megawatts.
Engr. Aliyu said that in addition to that, the government has developed the National Renewable Energy and Energy Efficiency Policy with the accompanying vision 30:30:30 which aims at achieving 30,000MW of electricity by the Year 2030 with renewable energy contributing 30 per cent of the energy mix.
"Renewable energy is taking the centrestage of the ongoing reforms in the power sector in Nigeria as it is visible from the ongoing and completed projects like Zungeru Hydroelectricity Power Project which is at 97 per cent completion and it's expected to provide 700 megawatts of electricity to the national grid," he said.
The minister also disclosed that the 10 morbid power transformers and 10 mobile substations purchased with Siemens loans had arrived Nigeria.
The transformers which are expected to rehabilitate the Nigeria Electricity Supply Industry (NESI) are part of the loan agreement with the German Government through its electricity firm, Siemens.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
In the agreement, Nigeria would provide a signature bonus account of about €15.2 million and N1.7 billion as its 15 per cent counterpart funding for the concessionary loan.
Minister of Federal Capital Territory (FCT), Malam Mohammad Musa Bello, in his remarks, urged investors in the power sector to set up shops for the assemblage of solar panels, inverters and other components in the electricity supply value chain.
According to him, electricity is important in the productive sector and to this realisation, FCT has engaged investors in the provision of off-grid solutions to meet household and institutional needs.
"The innovations, reforms and investments in the sector by the administration of President Muhammadu Buhari has not only ensured unprecedented growth in the generation, transmission and distribution sections of the energy sector but has also set the stage for even more progression and result-oriented reforms" he noted.
