The Bureau of Public Procurement (BPP) has secured a $115,000 savings for Nigeria on the Presidential Power Initiative, popularly known as the Siemens Project. The bureau’s Director-General, Adebowale Adedokun, announced this on Monday, emphasizing the BPP’s critical role in safeguarding government interests through thorough oversight.
Speaking in Abuja, Adedokun said, “We reviewed and negotiated the Siemens project request, saving the government $115,000. Without due diligence, this amount would have been lost. We insisted that the contractor lower their price based on our price intelligence.”
The Siemens project, valued at €161.33 million (N262.75 billion) for its first phase, involves engineering, procurement, construction, and financing for power substations in Onitsha, Offa, Abeokuta, Ayede, and Sokoto.
The Federal Executive Council approved the project’s first phase following the successful 80% completion of its pilot stage. Launched in 2018 under former President Muhammadu Buhari, the initiative aims to add 12,000 megawatts of electricity to Nigeria’s national grid.
On December 1, 2023, the Nigerian and German governments signed the agreement to push the initiative forward. President Bola Tinubu and German Chancellor Olaf Scholz presided over the signing during the COP28 Climate Change Summit in Dubai. Kenny Anuwe, Managing Director of the Federal Government of Nigeria Power Company, and Siemens Africa Managing Director Nadja Haakansson finalized the deal.
Adedokun, appointed BPP Director-General on November 14, reaffirmed the bureau’s focus on streamlining procurement processes for optimal project execution. “Our goal is 100% budget implementation. We are tailoring procurement to project complexities and prioritizing local participation,” he said.
The Siemens initiative exemplifies Nigeria’s commitment to modernizing its power infrastructure while ensuring fiscal responsibility, a critical step toward boosting energy access for MSMEs and households across the nation.
