In order to execute the recent electricity deal signed by the Federal Government of Nigeria and German-based company, Siemen, Nigeria may spend about €3.11 billion or N1.15 trillion across four major states.
According to the Technical and Commercial Proposal obtained, the Nigerian electrification project which has three phases and is aimed at achieving 25,000 megawatts of electricity in the country by 2025 will require more than N1.15 trillion to execute.
According to the information contained in the technical proposal, the budgetary price for the transmission assets upgrade, which includes 11 containerised substations and 10 mobile substations is €330 million or N113.42 billion.
Similarly, the cost of the distribution assets upgrade was estimated at €250 million (N85.92 billion). The upgrade would include products and systems for 14 stations and upgrade of 26 substations.
The cost of system development studies for 25,000 MW transmission, sub-transmission and distribution grid capacity was put at €1 million.
President Muhammadu Buhari signed the Nigerian Electrification Roadmap which was presented by Siemens in November 2018. The deal was facilitated by the German Chancellor, Angela Merkel last year, in August. The deal was signed in Abuja with the Global Chief Executive Officer of Siemens, Joe Kaeser.