SIE Siemens AG

By Obafemi Oredein

Special to Dow Jones Newswires

IBADAN, Nigeria--The Nigerian government and Siemens AG (SIE.XE) have signed a contract for the pre-engineering phase of the Presidential Power Initiative, a power upgrade and modernization program, a state official said Tuesday.

Tolu Ogunlesi, a presidential spokesman, on his official twitter account said the pre-engineering phase includes engineering design, finalizing project specifications, commissioning work for transmission and distribution systems, network development studies, power simulation, training and support service.

Mr. Ogunlesi said the Nigerian government has set up the Federal Government of Nigeria Power Company to work with Siemens on the implementation of the initiative.

Talks on the program, formerly known as the Nigeria Electrification Roadmap, began between Nigerian President Muhammadu Buhari and Siemans Chief Executive Joe Kaeser in July 2019. Generation capacity targets were set for Nigeria of 7,000 and 11,000 megawatts, respectively, for the first and second phases of the initiative.

Generation capacity and overall grid capacity will be increased to 25,000 megawatts in phase three or the long term. This includes upgrades and expansion in both generation, transmission and distribution, according to the Nigerian government. The goal of the roadmap is "to resolve existing challenges in the power sector and expand the capacity for the future needs of the country (Nigeria)."

Mr. Buhari said at the meeting with Mr. Kaeser that despite more than 13,000 megawatts of power generation capacity in Nigeria, only an average of 4,000 megawatts reliably reaches consumers.

The inadequate power supply has stunted development and results in regular blackouts in homes and offices, while industries depend largely on power generators for production.

Write to Barcelona editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

February 23, 2021 14:02 ET (19:02 GMT)

Siemens (TG:SIE)
Historical Stock Chart
From Mar 2024 to Apr 2024

Siemens (TG:SIE)
Historical Stock Chart
From Apr 2023 to Apr 2024