The federal government on Monday revealed it chose Germany’s Siemens AG for the country’s power sector revamp and upgrade of its grid capacity to 25,000 megawatts (mw) on the strength of the firm’s global reputation and track record in the business.
“First and foremost, let me state that Siemens was chosen because they are the best in the business and have already undertaken similar initiatives elsewhere in Egypt and Iraq.
“Furthermore, they have experience operating in the local environment, which means we will have no issues in the implementation process,” Power Minister, Sale Mamman said in a series of tweets on his official Twitter handle, @PowerMinNigeria.
Nigeria’s all-time peak generation 5,420mw on 19th August but crumbled to 3,356mw 48 hours after.
Mr Mamman noted that the Siemens deal, which would transform the country’s largely dilapidated power infrastructure, was monumental for the sector by virtue of its potential of enhancing the grid’s operational capacity.
“It will open up corridors for evacuation that will greatly reduce the burden of delivered capacity, which is costing the sector so much.
“Investors will be more confident to participate in the sector as the grid achieves more functional operational capacity. This will also reduce financing cost in the evacuation process.”
The project, which the minister said had kicked off, is expected to be completed in five years, with implementation taking place in three phases.