Updated October 7, 2025- Nigeria’s power sector is undergoing a massive revitalization through the Presidential Power Initiative (PPI) which was formerly known as the Nigeria Electrification Roadmap. This is a three-phase partnership with Siemens AG launched in 2019 to overhaul the country’s electricity grid. The primary goal is to address the inefficient transmission and distribution network which historically delivered a fraction of the nation’s generating capacity. Furthermore, in a bid to address inefficient transmission, Nigeria is currently in talks with China for a $2 billion loan that will be used for the construction of a “super grid“.
Also, the upgrade seeks to ultimately increase the operational grid capacity from an average of about 4,500 MW to a long-term target of 25,000 MW. The initial phase focuses on quick-win measures to boost capacity to 7 GW by addressing critical bottlenecks, a pilot stage that has seen the delivery and installation of key equipment like power transformers and mobile substations, adding over 700 MW to the grid.
Future phases will expand the transmission and distribution infrastructure to reach 11 GW and finally the 25 GW target, with Siemens providing technology, equipment, and training, and financing largely guaranteed by the German government.
Reported on August 9, 2023
Siemens Power, the German firm behind Nigeria’s Presidential Power Initiative (PPI), claims the deal to upgrade Nigeria power grid will be completed in 2030. Oladayo Orolu, Siemens Energy’s head of business development and government relations, said in the interview that the reconstruction and extension of Nigeria power grid, which was supposed to be completed by 2025, will now be completed in 2030. Oladayo Orolu revealed this in an interview with Bloomberg on Monday. They attributed the delays on the Covid-19 epidemic, which they claim impacted supply systems.
He said, “Delays in commencing the first phase hampered the three-phase project. When we conceptualized this project in 2018, our plan was to complete phase one in two years. But then Covid happened, upsetting supply chains, which meant obtaining raw materials took longer than expected.”
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Cost of Phase one of Nigeria power grid upgrade project
In 2022, phase one was projected to cost about €2 billion. The report stated that cost overruns had an impact on the project’s completion. As the estimated power output will increase by an additional 2,000 megawatts when phase one is completed by 2025. With the goal of phase 1 being to quickly rectify projects that will free up 2,000 megawatts.
Oladayo said, “We presently have 5000 and hope to increase it to 7,000, Prices are not at the same level as they used to be. Some raw material component costs have been doubled. While others remain close to where they were previously, while others are only marginally higher.”
Earlier this year, Nairametrics reported that phase one of the Siemens power deal under the Presidential Power Initiative (PPI) was 80% completed, according to the FGN Power Company. The pilot project, dubbed a “quick-win intervention strategy,” intends to solve immediate bottlenecks in Nigeria’s Electricity Supply Industry (NESI).
The Managing Director of the FGN Power Company, Mr. Kenny Anuwe, delivered an update on the status of phase one of the Siemens power contract begun by the Muhammadu Buhari administration. He indicated that the project was 80% complete.
