NOW THAT RENEWED HOPE BEGETS RENEWED AGREEMENT – What stakeholders are saying.

When President Bola Ahmed Tinubu (PBAT) signed the “Acceleration Agreement” with the Federal Republic of Germany this weekend in Dubai, it signaled the intention of Siemens Energy to work with Nigerian Stakeholders to accelerate the implementation of projects conceived under the Presidential Power Initiative (PPI).

As expected, stakeholders who are genuinely interested in the outworkings of the Nigerian Power Sector have commented, largely positively, about the move.

Hear some of them:

1. Excellent that the Germans are happy to follow through with the deal, especially since it was initiated by previous governments. Looks like a good initiative, subject to:

– clear links to generation and consumption/utilisation. “Is it sustainable for the long term?” If a masterplan has been established, makes sense to improve the grid before ramping up generating capacity.

– robust due diligence of the deal (initiation to post-deal/operations) “how to maximise benefits and minimise “leaks”. Future generations should not be saddled with debts that do not maximise benefits to them. More generally, the pace of deployment needs to be accelerated. Since signing the deal in 2019, only $60m (out of $2.3bn) of equipment has been deployed – that is not a lot – Deji King, Power Systems UK

2. I think this is the best approach as State Governments can get involved considering the law allows them to play in the sector. This will fast track the whole process (ie if all regions will benefit from the project at the same time).. Engr. Dr. Obio Etete, Power Systems UK

3. What is the difference between this agreement and the one signed during the Angela Merkel era? If I am at a loss, then you can imagine the confusion out there… Engr. Dr. W. Alli Abuja.

4. The only thing going through my mind is “empty agreement” that yields no benefits to Nigerians. Our electricity is not improving. Dr. Omoniyi, Ibadan.

5. Good move. However, I feel it is time for the FGN to franchise all aspects of electricity power development, else we will continue to have stunted growth. Engr. Dami, Ajaokuta

6. A welcome development indeed. Ammar Suleiman, Kano

7. A couple of points sir, indicating PBAT’s focus and direction for the PPI. First, it seems PPI implementation is being ‘accelerated’ but the nature of the acceleration ‘agreement’ appears to be non-binding. Second, PPI implementation is to be ‘end to end’. This was the initial intention but Siemens changed it. It seems this ‘agreement’ is limited to transmission workstream leaving distribution, lines and MDMS. Third, the Minister’s remark suggests a change in the financing structure. Fourth, the project ‘phasing’ has been changed to ‘short, medium and long term goals’. Dr. Bello, Kaduna

8. Great news! God bless Nigeria. I wish every household is connected with grid power. Engr. Ashok, India

9. Does this not amount to a duplication of the original initiative, road map and efforts? Were the technical stakeholders allowed to make the needed contributions as this leaves out the end-to-end nature of the initial programme. Mr. Achuigo C, Lagos

10. The devil is in the details but even with the Fichtner report, it is an achievable target. All hands must therefore be on deck to make it happen! Mr. Rasheed A., Kwara

11. Wow! This is a good development. Kudos to the FGNPC team. Modibbo M. Kano

12. Praise God, Hallelujah 💃💃💃💃💃Mrs. Akinola, Ogba, Lagos

13. Nothing is new. It is just revisiting the existing contract. Compared to the initial plan, there is no talk about Phase 3. Phase 1 which is ongoing will now achieve 8GW and phase 2 will achieve additional 6GW and delivered on or before 2024. Oredola Adeola, MD, EnergyDay Nigeria Limited.

14. Very good news. This phase involves Substations and Lines construction and rehabilitation right? Sam Orji, Abuja

15. The truth is it won’t add any value for Nigerians. Presently we can generate more than 6GW of electricity but we are hovering between 3.5 to 4.5 GW and even at this, DisCos cannot off take the energy they sign up to off take. Secondly, majority of the retail customers cannot afford the electricity tariff due the economic hardship. Month in month out DisCos are owing the value chain and are bankrupt. In essence even if you increase the generation to 12GW if no one to off take it it will add no value unless we export it thru WAPP. Hamisu J., Jos.

16. Why are they doing multiple signings for the same initiative? Michael Peter, Lagos

17. What is the framework that underpins this? Is this going to be integrated into the Transmission infrastructure? Have we a master plan and has a simulation of this master plan been carried out? Where will this lead if no actual master plan exists. What should be the focus to get the kind of attention we need? Engr. K. Achife, Ibadan.

18. More work for FGN Power Company of Nigeria (The reward for hardwork) kudos. Mr. Wiston Esin, Abuja.

19. This is essentially renewing the contract and the confidence the FGN (President BAT’s Administration) has in SIEMENS. SIEMENS itself is pushing to dominate in the Nigeria market for such services. Pastor Seni, USA.

20. The thoughts on my mind is that if the current administration is no longer in power…… Will Nigeria be able to achieve the long term goals and another administration coming in won’t change all the arrangements put in place for long term goals…..???? Mr. Jonathan Okesola

21. Nice one. End-to-End Implementation! Engr. A. Ademola, Ibadan

22. But Buhari too sign with them. Mr. O. Abodunrin, Lagos

23. I think this signing of the MoU is to strengthen the current initiative. Mr. Afolabi, Scotland, UK

24. Need of Grid Regulator for National Grid planning to create national grid . Manoj, India

25. TCN will benefit from this and it will increase the capacity. Good! However, for this project to be implemented successfully, the other stakeholders in the NESI need to be carried along as well. Noone should be left behind, else we will always go back to the drawing board. I can’t see the issue of “End to End” as previously discussed in this. The first one is the Agreement. This one is the Accelerated Agreement. Mr. J. Alabi, Benin.

26. This below paragraph struck me the most . “There is a need to target the industrial economic hubs in Nigeria to increase productivity. If the $1 Trillion GDP target in 2030 is going to manifest, then power supply to this areas are critical for economic growth. We need to unbundle TCN and allow other private players to build mini grids too around these regions. The grid has to be resilient enough to withstand frequent collapse. Also Nigerian bulk electricity/ Distribution companies have to ensure they have metered the customers /end users. This approach will ensure revenue from electricity supply are fully accounted for along the value chain. We are in for a huge Industrial Revolution as a nation. “The project will also focus on identified load demand centres with a particular emphasis on economic and industrial hubs nationwide; execution of new 330kV and 132/33kV substations in target load centres with economic priority, in addition to thousands of kilometres of overhead transmission lines to connect new substations with existing ones”. David E, Abuja

27. Even with reading just the caption, my mind says FGNPC is working … Nigeria is moving! Sessi Balogun, Lagos

28. Were the technical experts carried along? Engr. R. Chidi, Port-Harcourt, Nigeria

29. It’s a step in the right direction. This administration will deliver on power. Sincerity and political will! May Allah give your team the power to execute this assignment. Mr. Tanko, Kaduna.

30. Good Times ahead. Ay, Lagos

31. The project’s face will receive an uplift. Bisola, Kaduna

32. Difficult to make definite comment as no details were provided. What new things or procedures are we expecting? That is what can inform one’s opinion. Engr. S. Onuorah, Ikeja, Lagos.

33. That’s great sir. Let’s hope the implementation takes off swiftly, not to encounter delays as earlier experienced. Mr. Rufai, Abuja

34. President Tinubu tried to show he is in charge of very critical projects in Nigeria and trying to eliminate Nigerian factor (the endemic corruption of the high and mighty) in our political landscape. Engr. F. Oyesiku, Ogun State Nigeria.

35. When would this project come to past. Engr. Olalere, Ikeja, Lagos.

36. I believe in what your team can do. In fact, I was in a zoom meeting you had at Lagos Branch lecture during COVID 19. In fact I am looking for that presentation. Mr. Isaac A., Abuja

37. Nice one. Congrats to you and the team 👏 🙌. S. Momoh, Lagos

38. Yeah, it’s coming through. Mrs. Remi K, Ilupeju, Lagos

39. Positive KPIs: Load demand centre, Overhead Transmission lines, Mobile Substation is a fantastic idea. I believe Maintenance Management Strategy & System ( Spares & Technical support system) are included. ” It is a loadable initiative and commendable moves””👍👍👍👍👍Engr. Salau, Benin.

40. Waooo this is great 👍. Engr. Emeruwa, Jos

41. Congratulations to you Dr and the entire Mgt. of FGNPower Co. This is good news. PPI is still alive and has a full buy in of the present govt. Engr. Ekanem, Abuja.

42. The questions include would Siemens now be involved in more than just supply. Mr. Joshua, Abuja

43. Will the power supply situation really improve? Agnes, Anambra

44. My immediate thought is how soon will I benefit from this project. Mrs. Falua, Lagos

45. Sir, very good development. Good to know that this Govt believes in continuity. I believe with Engrs like you, we will achieve and success. Engr. Sufyan, Kano

46. PPI is indeed proving the doubters wrong. It shows that all we need in the power sector is competent like minded engineers with financial support for the sector to prosper. You always say you are proud of us. But tbh sir, yesterday I was extremely proud of you when I saw the news. May Allah help you and your team deliver this project. Ammar Misbahu, UK

47. I’m glad that the current administration is serious about improving the power sector, this is an excellent way to bridge some of the infrastructure gap in the power sector but at the same time we need to think critically how these partnerships can create more jobs for our people. In addition sir, this validates the work currently done by FGN Power Co., the successes recorded so far with the PPI has increased the confidence of the president thus, giving FGNPC more responsibility. But most importantly, this is a time where Nigeria critically needs forex to stabilize its markets and economy, this partnership/ deal is significantly important to achieving this. Engr. Mubarak, Abuja

48. First thing I thought was too much publicity is given to signing events and non to commissions events that should be the major milestones for these types of projects. Engr. Shehu Umar, Lekki, Lagos

49. What is the difference between the Agreement signed by Buhari and this one? Or is it the usual case of Nigerians celebrating contract awards and signing of MOUs as if these acts constitute results. So, you sign one agreement, then sign another second agreement to accelerate the first agreement, and then may be sign a third agreement to conclude the second agreement so that the first agreement can be implemented with the impetus of the second agreement. Well done. Engr. J. Ogunyemi. Ilaro, Ogun State.

50. FGNPC /PPI & Oskajo Congratulations. Engr. Patrick, Amukpe.

51. Power to energize turbo metro trains, electric cars, electric cable vehicles and other electrically propelled production equipment. Mr. K. Sorunke, Lagos

52. No mention of Russian/Ukraine war which has stalled a lot of power projects in Europe by disrupting the supply chain…..Anonymous, Abuja

53. Excellent, I hope this time around we will be able to deliver. Engr. Inuwa, Kano

54. If what they planned is for genuine implementation, it’s ok. God help them. All what Nigerians want is change!!! We want better Nigeria. Starting with fixing the Power sector. God bless you dear. Mrs. F.B. Ogunseye, Igando – Lasu Road, Lagos.

55. Let’s start deploying power transfers & Transmission lines to the industrial hubs in the country. Engr. Ovie, Lagos.

56. It’s a welcomed adventure by the Federal government of Nigeria.

57. The intention and intervention by Siemens of Germany is a culminated purpose to achieve improve capacity and upgrade Nigeria electricity to better the lots of the people and Industrial development. Truly, I am happy for the signing of agreement which comes with extended time-line ( more project completions ahead). Having read through the Siemens project plans and with the executed projects so far in transmission Grid. I would like to ask these basic questions:

– When will Siemens begins improvement of power generations to boost the capacity?

– When will the intervention get down to Discos?

– Will Siemens participate in the construction of transmission lines and distribution networks?

– How will FGN power company cope with employment of right and dedicated staff to complement this huge tasks?

To tackle delay project execution, has Federal government and Siemens concluded arrangement on how to remove bottleneck due to policy in the area funding, procurement and seaport clearing or other related issues?
Congratulations!, Congratulations!!, Congratulations!!! FGN Power Company of Nigeria Ltd. And Nigeria. Engr. Fapohunda, Abuja.

58. On paper, great efforts. I will rather wait until the timeline set and see if the implementation goes as planned before providing thoughts. However, I expect that they play and implement by the book. Mr. Ochimana.

59. Good thinking, Good product. May almighty God give you the strength to take Nigeria power to a sustainable and steady supply for Nigerians. Aamin. Well done Boss. Ibrahim Bello, Lagos.

60. That’s a great development. Mrs. R. Idowu

61 When are we expecting projects to kick off on the Distribution side? Thank you. Suleiman Y. Kano

62. Good steps !!! Engr. Abdul B. Jos

63. Power is the master key to the economy. Without investing in the distribution system, the renewal agenda of Mr President will be difficult to achieve sir. Engr. Bashir, Kogi

64. PBAT is a great achiever. Taking such bold steps require courage, continuity on what his predecessors have established n d trade by barter system will av a great impact n will improve Nigeria power sectors in a couples of years. Mr. Okesola S. Abuja

65. A heartwarming and hope renewal development. Does this new agreement replace or reinforce the previous one signed under the former German Chancellor, Merkel? How does the recent Chinese bid to expand the distribution network relate with this initiative long conceived? Engr. Stanley, Abuja

66. Insightful as always. PPI objectives can be achieved with the support of all stakeholders. Thank you sir. Mr. M. Bello, Kano

67. Good, better way forward for Nigeria. Mr. Ashiru N, Lagos

68. A step in the right direction my Engineer. Mr. Igberase, Abuja

69. There is hope for Nigeria. Thank you Engr for sharing. Mrs. Onovo, Abuja

70. Brings questions to my mind. How do we as a nation plan to pay back? Is the project only covering the transmission network? How is this going to change the narrative? I Joined the power sector 16year ago we still at the same spot, generating between 3000MW to 4000MW daily. Engr. Lydia, Abuja

71. Hope to the power sector finally. Keep the good work up. Engr. Mabinuori, Lagos

72. Great works FGN POWER. Congratulations to the MD, CTO and the entire FGN Power Team. Engr. Obidi, Abuja

73. Happy to see all these initiatives the President is taking on international level to cope with present power problems and future demand. What is the plan of the govt for generation point of view? What are the ideas to shift day time power demand to solar and wind energy as they are the proven climate friendly energy source? For power generation, what steps is the govt working on to provide power as per demand? Mr. Sovan, India

74. The project is laudable and achievable. The phasing is a good approach. It allows the already concluded phase to be studied and appreciated and see how it will fit and work well with the next phase. The duration for each phase is, also, a great method that ensures making use of the experience gathered in the previous phase to be used in the next phase. Each phase has a target to be met and also compliment each other. Source of finance for the project is commendable having gotten the country’s export credit facilities being provided by German Banks. I wish the country well in this project. Engr. Sulaiman Abioye

What about you? Kindly share your thoughts in the comments section.

Idowu Oyebanjo, PhD