In a landmark move at COP28 in Dubai, Nigeria and Germany have formalized the ambitious Presidential Power Initiative agreement to inject a monumental 12,000 Megawatts of electricity into Nigeria’s national grid.
The signing ceremony, presided over by Nigerian President Bola Tinubu and German Chancellor Olaf Scholz, marked a significant step toward revolutionizing Nigeria’s power infrastructure.
The Honourable Minister of Agriculture & Food Security, Sen. Abubakar Kyari (CON), was present during the historic event.
Representing their respective nations, Kenny Anuwe and Nadja Haakansson signed the agreement on behalf of Nigeria and Siemens AG, cementing a strategic partnership crucial for Nigeria’s energy transformation.
Experts say the German government demonstrated a solid commitment to the initiative through its nomination of lead arrangers and financiers and Siemens Energy’s provision of 10 transformers and mobile substations.
Nigeria’s minister of power, Adebayo Adelabu, revealed that the project’s financing would be facilitated through a government export credit facility from German banks.
He said that although the original agreement was valued at $2.3 billion, current costs have been reduced significantly to approximately $60 million, primarily attributed to imported transformers and substations.
”The signing ceremony not only signifies a monumental investment but also underscores a dedicated effort to bolster Nigeria’s power sector performance,” Adelabu said.
Earlier deliberations at the G20 Compact With Africa Conference laid the groundwork on critical issues surrounding power and rail infrastructure, emphasizing resolving governance challenges.
On his part, Chancellor Scholz acknowledged the importance of overcoming administrative and financial hurdles for the initiative’s successful implementation.