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Tuesday, 6 January 2026

Nigeria's Siemens deal or PPI Initiative.





Nigeria's Presidential Power Initiative (PPI)

It is a major project with German support to modernize its electricity grid in phases, aiming for 25GW capacity by improving generation, transmission, and distribution. 


Goal: Revitalize Nigeria's power sector by upgrading the national grid to 25GW, addressing infrastructure gaps.

Key Partners: FGN Power Company (Nigerian Gov't SPV) and Siemens AG, with German government backing.
Phases:

Phase 1: "Quick wins" to boost grid capacity to 7GW.

Phase 2: Expand transmission/distribution to evacuate 11GW.

Phase 3: Reach 25GW, including generation expansion.

Initiative Workstreams

The implementation of the PPI is classified into 5 work streams which are Transmission, Distribution, Meter Data Management System (MDMS), Power Technologies International (PTI) and Training.

PPI will upgrade, modernize, and invest in the existing Transmission Company of Nigeria’s sites as well as embark on new projects in the Nigeria Electricity Supply Industry.

Distribution Systems: PPI will facilitate construction of feeders, injection substations, distribution substations, and auto reclosers for 11 existing Distribution Companies (Discos).

National Metering Systems: PPI will integrate all the DisCos to the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS) for prepayment transactions..

Power Simulation: PPI will facilitate the Power System Simulation for Nigeria (PSS4N) and System Development Studies which are the Power Technologies International (PTI) workstreams.

Training: PPI will conduct equipment and product training for Transmission Company of Nigeria and DisCos’ employees on all equipment and products installed.

Minister of Power, Chief Adebayo Adelabu, assured Nigerians that 2026 will be dedicated to consolidating gains made in the power sector in 2025 and delivering more reliable, accessible, and sustainable electricity nationwide.

The minister gave this assurance in his New Year message to Nigerians, noting that despite the challenges encountered last year, significant milestones were achieved, particularly in stabilising the national grid and recording of sectoral ‘historic landmarks’ in power generation and distribution.

According to him, sustained efforts under the Presidential Power Initiative (PPI), popularly known as the Siemens Deal, have played a critical role in strengthening the grid and reducing the frequency of grid collapses experienced in previous years. He expressed confidence that the ongoing Phase One

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