Siemens, headquartered in Munich, agreed in 2019 to help raise Nigeria’s electricity output to 7,000 megawatts in the first phase targeting a total generation and output capacity of 25,000 mw come 2025.
The project will now be due by 2025, with Siemens Energy citing logistics setbacks in the form of delayed receipt of raw materials as the ground for delivering the project late. The country’s 4,000 mw daily generation is barely adequate to serve Lagos, its commercial capital of over 20 million people, according to the Nigerian Association for Energy Economics.
President Bola Tinubu’s decision to draw the blinds on popular but costly petrol subsidies has seen the pump price of fuel balloon more than threefold within six weeks of taking office, tightening the noose on many businesses. Measures like subsidising the costs of converting petrol-powered generators and vehicles to CNG for businesses for the next four years could provide substantial succour for businesses, many of which are already teetering on the brinks.