The deal will see Siemens generating 7,000 megawatts by 2021 and 11,000 megawatts by 2023 in a country faced with erratic power supply.
President Muhammadu Buhari while making remarks after meeting with the Global CEO of the Siemens, Joe Kaeser on Monday, said the government's priority is to stabilise the power generation and gas supply sector in the country.
The government says the deal will involve Payment Assurance Facility, which led to a peak power supply of 5,222 MW.
“Nonetheless, the constraints remained at the transmission and distribution systems.”
What you need to know about the Nigeria Electrification Roadmap (NER) agreement with Siemens
The Nigeria Electrification Roadmap (NER) is in three phases.
The first phase is for Siemens to add 7,000 megawatts by 2021 to the national grid and by 2023, doubled it to 11,000 megawatts.
The third and final phase has a target of 25,000mw.
“My challenge to Siemens, our partner investors in the Distribution Companies, the Transmission Company of Nigeria and the Electricity Regulator is to work hard to achieve 7,000 megawatts of reliable power supply by 2021 and 11,000 megawatts by 2023 – in phases 1 and 2 respectively.
“After these transmission and distribution system bottlenecks have been fixed, we will seek – in the third and final phase – to drive generation capacity and overall grid capacity to 25,000 megawatts,” President Buhari said.
Nigeria follows Egypt's electricity generation model
After successful implementation of Egypt's power generation project in 2017, Nigeria has keyed into Siemens' power models.
The Siemens' project in Egypt saw a boost of 14.4 gigawatts of electricity to the Egyptian national grid.
The German company uses power generation technology such as Combined Cycle Power Plants, Wind turbines, Sustainable Wind farms, Gas Insulated Switchgear substations to expand the power infrastructure.