1. The $2.5b deal Nigeria π³π¬ has with #Siemens is mainly focused on bridging the electricity transmission & distribution gap. It isnβt focusing on power generation. See the thread ππΎ
2. So π³π¬ currently has a power generation capacity of about 13,000MW. However, due to the obsolescence of transmission and distribution capacity, less than 4,000MW gets to the population served by the national grid.
3. The Siemens deal, signed by the @MBuhari-led FG in 2020 shortly before global COVID lockdown, is to improve the transmission and distribution capacities of the grid.
4. Timeline: by 2023, the grid capacity should have increased to 7,000MW. Thatβs why we currently see major transformers arriving at Lagos and being delivered to major power stations in Osogbo, Enugu and others. This set of transformers is worth β¬63m.
5. Phases 2 & 3 are expected to increase the grid capacity to 11,000MW and 25,000MW by 2024 & 2025 respectively. This means by 2024, 85% of the current generation capacity will be transmitted & distributed. By 2025, transmission capacity would have exceeded generation capacity.
6. Good news is that the Buhari administration is also working to improve power generation capacity. The Zungeru hydro plant, to be commissioned this year, will add 700MW. By 2030, Mambilla will add 3,050MW. The FG has done much to resolve legal issues hindering the project.
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