The Ministry of Power has said there is no plan to transfer the nation’s electricity distribution to Siemens, a German company.
The ministry, in a statement by the Special Adviser on Media and Communications, Mr Aaron Artimas, said it had become necessary to put the records straight on the minister’s briefing after the Federal Executive Council meeting on Wednesday.
“Contrary to what is being reported, the minister did not say the Federal Government has submitted a proposal to the council seeking to hand over electricity distribution to Siemens as this is not part of the agreement signed between the German company and the Federal Government of Nigeria,” it said.
The Minister of Power, Mr Saleh Mamman, was quoted as saying that a proposal including handing over electricity distribution to Siemens had been submitted to the government on the problem of distribution and it was left to them to decide what to do.
“The other thing I can tell you is that the government only signed a memorandum of understanding with the German company, Siemens, on how to leverage generation with transmission and distribution,” he added.
The minister explained that the government was concerned about the disproportion of the value chain and how to align this chain for optimum distribution of power.
He expressed regret that even when the distribution companies received 3,000 megawatts, they short-changed the system by paying for only 1,000MW, adding that the Federal Government could no longer continue to subsidise their inefficiency.
On July 22, 2019, the Federal Government and Siemens signed a Letter of Agreement on the Nigeria Electrification Roadmap, which resulted from the meeting between the President, Major General Muhammadu Buhari (retd.), and the German Chancellor, Angela Merkel, on August 31, 2018 in Abuja.