FEC Okays N8.6bn To Begin Siemens Power Project
The Federal Executive Council (FEC) has endorsed the President’s approval to release €15.21 million (N6.94 billion) offshore and N1.71bn onshore, totaling N8.65bn as counterpart funding to kickoff phase 1 of the Siemens Presidential Power Initiative.
The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, briefed State House reporters yesterday after the 10th Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari.
Hajiya Ahmed said a memo seeking the ratification was jointly presented by the Minister of Power, Engr. Sale Mamman for approval at FEC to modernize and expand Nigeria’s power grid.
In December 2019, the Federal Government allocated N61bn for the Nigeria Electrification Road map to be developed in partnership with Siemens AG.
The Nigerian government and Siemens signed a pact on the roadmap after Buhari and the German Chancellor, Angela Merkel, met on August 31, 2018, in Abuja.
Nigeria is expected to spend about €3.11bn or N1.15tn across on the project in three phases to attain 25,000 megawatts (MW) of electricity by 2025.
Ahmed said 23 transmission initiatives and 175 separate transformative projects will be done in the phase 1. “So, it’s a convertible loan facility to power Distribution Companies (DisCos) and we will be working with DisCos to restructure an appropriate loan agreement as soon as we are able to close out on this initial phase of the process. And council approved and ratified Mr. President’s approval.”