•Eight power transformers lay idle at Apapa port

•Clearing, not our duty—SIEMENS ENERGY

•Power ministry, FGN Power keep mute

•We can’t track transaction without details – Apapa Port

•We’re disappointed —ANALYST

•Poor power supply biting economy —CPPE

By Udeme Akpan, Energy Editor

BUREAUCRACY, lack of cooperation and other factors have been identified as reasons militating against the release or clearing of eight power transformers meant for Nigeria’s Presidential Power Initiative, PPI, at Apapa port in Lagos.

This is even as Nigeria’s average power generation dropped month-on-month, MoM, by 7 per cent to 4,208.6 megawatts, MW, in April 2023, from 4,528.5MW in the preceding month of March 2023, according to the computation of data obtained by Vanguard from the Nigeria Electricity System Operator, a semi-autonomous unit under the Transmission Company of Nigeria, TCN.

The eight power transformers are part of the ten, which arrived at the port in September 2022 for clearing and installation in different parts of the nation by Siemens Energy, a German company, currently executing the PPI, under the direct supervision of FGN Power Company, a Special Purpose Vehicle, SPV, established by the government in 2018 to deliver the project in partnership with Siemens.

Checks by Vanguard showed that while two power transformers were cleared and installed in Lagos and Abuja, the eight are still lying idle at the port, thus hindering the success of the project.

Under the project timeline, the Federal Government was supposed to deliver an additional 2,000MW, thus increasing power supply to 7,000MW, under phase one by 2021.

It was expected to increase supply to 11,000MW by 2023, while further increase to 25,000MW was to be accomplished by 2025.

However, Vangurad gathered that the inability of stakeholders – Ministry of Power, Ministry of Finance, FGN Power Limited, Siemens Energy and Nigerian Ports Authority, NPA – to prioritise and clear the transformers for installation was mainly because of bureaucracy and lack of cooperation among them.

Clearing, not our duty —SIEMENS ENERGY

In its short response to Vanguard’s request, Siemens Energy, the PPI contractor, yesterday, absolved itself of any blame.

“Siemens Energy cannot comment on this. This is a matter for FGN. Siemens Energy fulfilled its commitments for this part of the project after loading the equipment for delivery,” the company said.

Ministry of Power, FGN Power keep mute

The Abubakar Aliyu-led Ministry of Power that gives policy direction in the sector and the Managing Director/CEO of FGN Power Limited, Kenny Aniwu, representing the government in the PPI, did not provide an explanation for the present development.

We can’t track transaction without details—APAPA PORT

Checks by Vanguard showed that if an importer cannot clear his or her goods after a long time, it, therefore, means that there must be issues requiring resolution.

In a telephone interview with Vanguard, the Public Relations Officer, Apapa Customs, Abubakar Usman, said: “We cannot track this transaction without the details. We need to have the Control number or other details to track and ascertain where we are in the clearing process.”

“I cannot give you specific information because we have many persons and organisations that import power transformers and other items through the port.”

The Federal Government and its agencies have a consistent record of power equipment abandonment at the port.

“For instance, in 2018, the former Managing Director, Transition Company of Nigeria, TCN; told Vanguard that he recovered more than 693 containers of power equipment abandoned at ports for about 15 years due to tariffs.

He had said: “We were able to recover 693 containers as of last week, out of a total of 800 containers that have been in the ports. Some of these containers have been there for 15 years. Others have been auctioned and we had to trace the auctioneers to get the containers.”

We are disappointed — ANALYST

Reacting to the development yesterday, some experts and analysts said they were disappointed that the federal government and Germany as well as their agencies and organisations could raise so much hope for PPI and failed to meet targets years after the coronavirus pandemic ended.

President, Nigeria Consumer Protection Network, Kunle Olubiyo, in his reaction said: “Siemens Equipment Supply Project is like putting the horse before the cart.

”Without addressing the basics and fundamental challenges of market settlement crises, market illiquidity, evidently weak regulatory ecosystem,  market equity structure,  governance structure, the entire gamut of the Siemens Power Project’s voyage may turned out to be  wishful thinking and an exercise in futility or at best a mirage.

“The incoming administration should bring back the original ideals of the Presidential Advisory Council on Power Sector/Presidential Task Force on Power aimed at bringing together all the critical stakeholders in the electricity sector to form a kind of one stop shop to allow for regularly brainstorming in the energy sector, Customs, regulatory institutions, market players and end users (residential and bulk users of electricity).

”This will make it possible for all the key players and market participants to be on the same page.”

Poor power supply harming economy—CPPE

Meanwhile, poor and unstable power supply continues to impact individuals, households and businesses in many negative ways.

Founder/CEO of the Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, who noted the negative impact of poor power supply on individuals, households and businesses, said: “Evidently, the implementation of the Presidential Power Initiative has not been executed with the desired sense of urgency.    Deficit in power supply remains one of the major constraints to investment, economic growth and job creation. 

“It is also impacting negatively on the welfare of the people because of lack of access to electricity. It is curious that major equipment that should be deployed to mitigate this problem has been stuck at the port for over six months. Nigerians deserve an explanation for this seeming negligence.”