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Nigeria's President Bola Tinubu and German Chancellor Olaf Scholz oversaw the signing of the Presidential Power Initiative (PPI) agreement between their nations in Dubai during the United Nations Climate Conference (COP28). The agreement aims to add 12,000 megawatts of electricity to Nigeria's national grid. The Managing Director of the Federal Government of Nigeria Power Company, Kenny Anue, and the Managing Director (Africa) Siemens AG, Nadja Haakansson, signed the agreement. Anue highlighted President Tinubu's commitment to power infrastructure development, emphasizing that electricity and financing are central to the economic reform agenda. The PPI seeks to address both elements with support from partners Siemens Energy and German-backed financiers.

Anue stated that achievements under the Federal Government include establishing the FGN Power Company as the special purpose vehicle for project implementation. The German government has nominated mandated lead arrangers and financiers, and Siemens Energy has delivered 10 units of power transformers and 10 units of mobile substations. Chairman of Siemens Energy Supervisory Board, Joe Kaeser, expressed delight at the progress, tracing the agreement's history to the Muhammadu Buhari administration in 2018. Minister of Power Adebayo Adelabu shared the PPI's target of adding 12,000 megawatts to the national grid. With the signing, the process will proceed, ensuring a consistent power supply for Nigerians.

Adelabu highlighted the significant achievements of the PPI despite delays since 2018, including the impact of COVID-19 in 2020. The agreement focuses on end-to-end improvements in grid stabilization for Nigeria's power sector, aiming to enhance regularity, functionality, and affordability in the future. Adelabu revealed the project would be financed through a Government export credit facility provided by several German banks. The original agreement was for $2.3 billion, with current costs totaling around $60 million for the importation and installation of transformers and mobile substations delivered by Siemens. Key Nigerian officials attended the ceremony, including Attorney-General of the Federation Lateef Fagbemi, Minister of Aviation Festus Keyamo, Minister of Environment Balarabe Lawal, Minister of Transportation Said Alkali, Minister of Industry, Trade and Investment Dr. Dorris Anite, and Minister of Agriculture Abubakar Kyari.

Recently, President Bola Tinubu intervened to halt the proposed increase in electricity tariffs and emphasized the importance of maintaining power subsidies, according to the Minister of Power, Adebayo Adelabu. He disclosed this at a press briefing in Abuja, where he further revealed that the government would scrutinize the legality of the five-year license extension granted to privatized power distribution and generation companies, as their licenses would have normally expired on October 31, 2023.

Minister Adelabu also expressed his commitment to taking action against underperforming chief executives within the power ministry and its agencies, especially if their poor performance jeopardizes his position as the minister. In his statement, he emphasized that the power sector's sensitivity to leadership changes requires a balanced and well-thought-out approach.

Addressing the issue of cost-reflective tariffs, which could result in higher power charges for consumers, Adelabu explained the government's ongoing subsidy of power costs. Although tariff adjustments should have been implemented previously, President Tinubu refrained from raising the tariffs until consistent and incremental power supply is achieved. The substantial gap between cost-reflective tariffs and the approved tariffs is still being bridged by the government through subsidies.

Adelabu stressed that tariff adjustments would occur when the timing is appropriate and would follow extensive public communication and awareness campaigns, in addition to ensuring sustained and regular power supply.

The minister also highlighted the unsatisfactory level of power generation in Nigeria, which currently stands at around 4,000 megawatts. Efforts are being made to enhance this figure, but the current status is considered unacceptable and an issue of national concern.

Furthermore, Adelabu emphasized that only those who perform efficiently in their positions will remain, as the President has conveyed the necessity for ministers to deliver on their mandates. He emphasized the importance of the power sector's role in national development and urged all stakeholders to support his vision.

The minister also questioned the decision to privatize the power sector in 2013, suggesting that a better approach might have been commercialization. He hinted that the government might reassume control of the power distribution companies (Discos), especially those handling excessively large territories below expected standards. Adelabu also confirmed that he has initiated an investigation into the recent five-year license extensions for these privatized power companies to determine their legal and contractual validity.

Lastly, Adelabu discussed power supply to Niger Republic, stating that Nigeria has not yet resumed power supply to the neighboring country and that the situation is being closely monitored by the government.

In terms of electricity statistics, the National Bureau of Statistics reported that the total number of electricity customers increased slightly between Q1 and Q2 of 2022. However, on a year-on-year basis, customer numbers saw a decline. The number of metered customers increased on a quarter-on-quarter basis. Electricity supply decreased in comparison to previous years. Revenue generated by the Discos also declined on a quarter-on-quarter basis but showed an increase on a year-on-year basis.

This information provides a comprehensive overview of the current state of Nigeria's power sector, highlighting key government decisions and challenges. The government's commitment to both providing adequate power and supporting consumers remains a top priority.