German Siemen postpones completion of Nigeria’s power project till 2030 increased costs of materials

The German engineering company to make completion on revamping of Nigeria’s power infrastructure by Siemens which was expected to be completed in 2025, has been extended till 2030.

The said project which is part of the Presidential Power Initiative (PPI), is a power upgrade and modernisation programme between the Nigerian government and Siemens with the support of the German government, freshreporters media reports.

It could be noted that Nigerian government had signed a power project deal in July 2019 with Siemens AG to deliver 7,000 megawatts (MW) of electricity to the national grid by 2021, and 11,000 megawatts by 2023, in phases one and two of the initiative, respectively.

Oladayo Orolu, who’s the head of business development and government relations at Siemens Energy, sat for an interview with Bloomberg on Monday, 7th of August, 2023, said the deal to rehabilitate and expand the country’s electricity grid by 2025, will now be concluded in 2030.

Oladayo said;

“The three-phase project was set back by delays in starting the first phase.

“When we conceptualised this project in 2018, our plan was within two years we should be done with phase one, but then COVID happened, disrupting supply chains, which meant getting raw materials took longer than before.

“Cost overruns also affected the project’s completion, as we expected electricity output to increase by an additional 2,000 megawatts at the completion of phase one by 2025.

“We currently have 5000, we are looking at taking that to 7,000. Prices are not at the same level they used to be. In 2020, phase one was projected to cost about €2 billion.

“Some raw material components costs have been doubled, some are still close to where they used to be, some are just marginally higher.” [CONTINUE READING HERE]>>>>>