Siemens, a global technology leader, and PANA Infrastructure, a Nigerian conglomerate, have announced a partnership aimed at transforming Nigeria’s electric power infrastructure.
The collaboration focuses on grid automation and smart infrastructure solutions to address the country’s critical electricity challenges, enhance power stability, and create job opportunities.
Sabine Dall’Omo, CEO of Siemens Sub-Saharan Africa, said, “By combining Siemens’ expertise in smart grid technologies with PANA Infrastructure’s deep market insights, we aim to ensure a reliable power supply and drive economic progress in the region.”
Daere Akobo, chairman of PANA Holdings, echoed this sentiment, highlighting the collaboration’s alignment with Nigeria’s transformation agenda in the power sector. He stressed the commitment to utilizing advanced low and medium voltage, as well as smart grid management technologies, to significantly improve power supply across the nation.
The agreement between Siemens and PANA Infrastructure is crucial for enhancing grid reliability and stability in Nigeria. The partnership also aims to meet the rapidly growing demand for electricity by increasing electrification rates.
“Siemens reaffirms its commitment to Nigeria, with a focus on identifying and developing strategic business opportunities within the region,” added Dall’Omo. The company plans to leverage a comprehensive go-to-market strategy, including knowledge platforms, collaborative business strategies, integrated sales and marketing teams, and global support to bring significant business value to the Nigerian market.
Background
Nigeria recently completed the pilot phase of a power agreement with Siemens to boost its power distribution capacity. Despite having the infrastructure to generate about 13,000 megawatts of power, Nigeria’s grid can only distribute a third of it, leading to widespread reliance on costly fuel generators.
In 2019, Nigeria signed an agreement with Siemens to finance and rehabilitate electricity transmission lines and power distribution substations. However, the project faced delays due to financing, regulatory hurdles, and logistical constraints. A renewed agreement was signed five months ago in Germany between Nigerian President Tinubu and German Chancellor Olaf Scholz to accelerate the program.
Between March and May, six projects were commissioned to help the grid distribute an additional 335 megawatts capacity. “The integration of these projects marks a significant milestone in Nigeria’s quest to enhance its energy infrastructure,” said Adedayo Olowoniyi, an aide to Nigeria’s Minister of Power.
With the success of the pilot phase, the government is proceeding with the first phase of rehabilitating about 15 brownfield power substations and building 22 greenfield substations. Financing is expected to come from German banks as a loan to the Nigerian government, to be recovered from higher tariffs charged to homes and businesses.
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