National News

Buhari releases fund for PPI kick off

By Amidu Arije

President Muhammadu Buhari has reiterated his administration commitment to stable power supply in the country as he announced the release of fund for the kick off of Presidnetial Power Initiative (PPI).

The PPI as an initiative is in three phases and meant to provide the nation with steady power supply that will move the current 5GW to 25 GW at the end of the phases.

This was disclosed by the presdincy in a series of tweets on Wednesday.

President @MBuhari has approved the release of funding for the first part of Phase 1 of the PPI, to kick-off the pre-engineering and concession financing workstreams.

To ensure fairness and transparency of the intervention, the President has also directed that @NigeriaGov engage the International Finance Corporation (‘IFC’) to assist in developing the commercial structure of the intervention under this Presidential Power Initiative (PPI), as well as in undertaking an independent company valuation of the DisCos.

The President has also directed that to ensure value for money and preserve the integrity & transparency of the procurement process under the Govt-to-Govt framework, Siemens AG shall be solely responsible for nominating its EPC partners to perform all onshore works; NO middlemen.

“Our goal is simply to deliver electricity to Nigerian businesses and homes… Our intention is to ensure that our cooperation is structured under a Govt-to-Govt framework. No middlemen will be involved, so that we can achieve value for money for Nigerians.” — President

The PPI journey started on August 31, 2018, when Chancellor Angela Merkel visited Nigeria and met with President Buhari.
Chancellor brought along with her a business delegation that included the Global CEO of Siemens. Nigeria and Germany agreed to explore cooperation in a number of areas, including Power.

The Presidential Power Initiative (PPI):

a. Will deliver improved power supply nationwide, with attendant results in job creation, investor confidence, cost and ease of doing business and economic growth. #NigeriaPPI
b. Will provide training & capacity building for thousands of young Nigerians (non-graduates, students & graduates)

c. Will create economic opportunities for Nigerian engineering companies that will serve as local vendors for the provision of manpower and equipment.

d. Will stimulate/encourage inflow of additional investment into the power sector.

The ultimate goal of the #NigeriaPPI is to modernize and increase the Nigerian electricity grid capacity from about 5 GW currently to 25 GW, over three phases.

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