Tuesday, December 5, 2023

FEC approves N8.64bn for Siemens electricity deal

The 10th virtual Federal Executive Council (FEC)meeting presided over by President Muhammadu Buhari, has ratified the President’s anticipatory approval for the release of €15.21 million (N6,940,081,465.20) offshore and N1.708 billion onshore, a total of N8,648,081,465.2 towards the counterpart funding for the power deal with Siemens AG signed by the Nigerian and German governments last year. 

Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, told State House Correspondents, that the memo seeking the rectification was jointly presented with her Power ministry counterpart, Saleh Mamma.

The Federal Government had in December 2019, allocated N61 billion for the Nigeria Electrification Road map which will be developed in partnership with Siemens AG.

In July 2019, the government and Siemens signed a Letter of Agreement on the Nigeria Electrification Road map after President Buhari and the German Chancellor, Angela Merkel met on August 31, 2018, in Abuja.

Nigeria is expected to spend about €3.11 billion or N1.15 trillion across four major states. The Nigerian electrification project has three phases and it aims at achieving 25,000 megawatts of electricity in the country by 2025.

Power projects in the budget include the 3,050-megawatts Mambilla hydropower plant in Taraba State, for which the N2 billion counterpart-fund was set aside. Others are 2x60MVA 132/33kV substation at Gwaram in Jigawa State (N717 million); 215MW power station in Kaduna (N190m); and Kashambilla transmission in Taraba (N506 million).

Ahmed said the amount was for the first phase of the three phases project designed to include 23 transmission initiatives as well as 175 separate transformative projects.

“The project will also support the regulator, Nigerian Electricity Regulatory Commission (NERC), to transition towards a programme of improving metering in the electricity industry in the country.

Council also approved the ratification of Air transport agreement between Nigeria and the United States of America, USA.

The air transport bilateral agreement is to strengthen economic, social, and cultural ties between the two countries.

Minister of Industry, Trade and Investment, Niyi Adebayo, said  Council also ratified the president’s approval of the Investment Promotion and Protection Agreement, signed in 2016 between Nigeria and Singapore on the one hand, and Nigeria and the Kingdom of Morocco on the other hand.

Minister of Environment, Mohammed Mahmoud said the council approved a new National Forest Policy, a revised policy.

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