Nigeria Signs $2.3B Power Deal With Siemens Energy, CMEC, ElSewedy Electric, and Power China
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Nigeria has signed an agreement with Siemens Energy to deliver the first phase of the Presidential Power Initiative (PPI), a $2.3 billion infrastructure project expected to add 7,000 megawatts of operational capacity to the national grid.
Phase One follows the earlier "Phase Zero," which stabilised the grid and added around 700MW of transmission capacity. Contracts have also been signed with CMEC, ElSewedy Electric, and Power China, with financing arrangements underway. The initiative aims to modernise transmission infrastructure, boost generation, and improve electricity reliability.
Recent interventions have increased Nigeria's average generation capacity to 5,300MW in 2024, up from 4,200MW in 2023, aided by the 700MW Zungeru hydropower plant and rehabilitated National Integrated Power Projects (NIPP) plants. Tariff reforms have raised industry revenues by 70 percent to N1.7 trillion in 2024, with projections exceeding N2 trillion in 2025.
The Transmission Company of Nigeria (TCN) is being restructured into two entities--the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP)--to improve efficiency and attract private investment.
Efforts to close the metering gap include N700 billion from the Federation Account Allocation Committee (FAAC) to deploy 1.1 million meters by the end of 2025. Investments in renewable energy and local manufacturing are underway, including agreements for 4GW per annum of solar panel production, with some exports already reaching Ghana. Over $2 billion in development finance has been mobilised for off-grid and renewable projects, supported by the World Bank, NSIA, and JICA.
The PPI represents a significant step toward modernising Nigeria's power sector and improving the reliability of electricity supply.
Source: businessday.ng
