Why Tinubu Signs Electricity Deal With Germany, Targets $261 Million From Climate Funds For Sustainable Infrastructure

By Elizabeth Chukwuma

In spite of the initial impression created by President Bola Ahmed Tinubu, who incidentally was a former governor of Lagos state that he will continue from where erstwhile President Muhammadu Buhari had stopped to run the country, the Nigerian President appears to be singing a different song of ameliorating the sufferings of Nigerians by improving the nation’s economy through uninterrupted electricity supply an ensuring that Nigeria benefit from the $261 Climate Investment Funds, CIF.

The statement may have exposed attacks from several quarters. Sule Lamido, a Chieftain of the Opposition People’s Democratic Party, PDP and former governor of Jigawa state, who could not hide his feelings may have given the killer punch when he declared   that the Lago state born Nigerian President will throw’’ the country into severe poverty, hunger, insecurity, despondency, frustration, pain and agony’’, noting that’’ the destination the present Tinubu’s Administration has for Nigerians is the grave’’.

Lamido, the former Jigawa state governor and one time minister of Foreign Affairs under former President Olusegun Obasanjo who has no apology to Tinubu would want the Nigerian President to have a rethink   on continuing from where the Katsina state   born former Nigerian President who had said that he would have relocated to Republic both for the border closure had stopped.  He was emphatic that Buhari did nothing to develop Nigeria for his eight years in office.

Many believe that he may have made the statement have made the thought- provoking statement during the electioneering Campaign to gain the support of the former President to win the February 25, 2023, Presidential election.

 Unknown to many , he may have  had at the back of his mind  to continue the Buhari’s Administration power programme  aimed at  changing Nigerian epileptic power supply which was said to have led to the collapse of some industries and forced Michelin, Dunlop, which are tyre producing companies and some other blue chip Multinational firms operating in the country  to relocate to South Africa  and other African countries to set up their factories, while Nigeria remains their major market because of the population.

This may have informed why the Nigerian President, who has never missed any gathering of world Leaders for major events as he has used it as an opportunity woo foreign investors to see Nigeria as an ‘’investment friendly nation ’’which has the market as the most populous African country.

 As a prelude to achieving an uninterrupted power supply for the country between now and 2027, the Nigerian President had intensified efforts in doing so. This is evident with signing of the power deal with, Chancellor Olaf Scholz,at the Arab country of Qatar, aimed at  expediting  the implementation  of the nation’s Presidential Power Initiative ,  PPI, of the previous Administration  bear

Chancellor Olaf Scholz of Germany

The contacts he was said to have made in the Asian country of India, UAE, Germany, Qatar and United Arab Emirate speaks, UAE and even the United Nations General Assembly meetings in the North American country of the United States, US, give an insight to what he has in stock for the country for the next four years.

The recent signing of a performance   agreement between the Nigerian President and his German Counterpart eloquent testimony to commitment to improving the country’s epileptic power supply.

 Keny Anuwe, Managing Director of   the FGN, Power company was said to have signed the power agreement on behalf of the Nigerian government while Nadja Haakanson, Siemen’s Senior Vice President and Chief Executive Officer, CEO for Africa, was said to have signed for the German government.  

Going by the initial power agreement between the Nigeria government and Siemens of German, Buhari, the immediate past Nigerian President had expected the German power company to work alongside the Transmission company of Nigeria to achieve, 7,000 megawatts and 11,000 megawatts of reliable power supply by 2021 and 2023, respectively before the contract elapses but that was how far he could go.

Discussions about the potential costs of the six-year -old power contract which was said to have been signed with the German in 2019, it was kept a closely guided secret by the Buhari’s Administration. Anuwe ,CEO, of Nigerian power company  may have shocked Nigerians when he disclosed  that the Germany firm  had so far delivered  equipment  worth over  63 million Euros to the  country  since the project commenced .

Ajuri Ngelale, Special Adviser to the President on Media and Publicity   had revealed that the equipment that had been supplied to Nigeria by the German firm includes 10 units of 132/33KV mobile substations, three units of  75/100MVA transformers, and seven units  of 60/66 MVA  transformers  that is currently  being installed  by the  FGN, Power company  at various sites  across the country.

The project, according to the Presidential spokesperson was said to have focused on identified load demand metres with particular emphasis on the economic and industrial hubs of the country, execution of new 330KV and 132 /33KV substations in target load centres with economic priority.

This is in addition   to thousands of Kilometres of overhead transmission lines to connect new substations with the existing ones across the country. The Presidential spokesperson had said that the new agreement between the parties will see to the end modernization and expansion of the country’s electric power transmission grid with the full supply, delivery and installation   of Siemens manufactured equipment within a timeline of 18 to 24 months.

He has told those that cares to listen that the new agreement between the Nigerian government and the German government   will ensure the project sustainability and maintenance with full technology transfer and training of Nigerian Engineers at the Transmission Company of Nigeria.

This was said to have been contained in the initial signing of the power contract between the Nigerian government and Siemens but was never followed up to its logical conclusion. This because the German firm appeared not to have carried the Transmission company of Nigerian Engineer along.

Given that President Tinubu is determined to conquer electricity problem in Nigeria, and   poor   oil and gas countries, whose climate and environment have been impacted by fossil fuel exploration by the international oil Companies, IOC, appears to be targeting to benefit   from the $261 billion Climate fund.  At the recent Climate Summit in the Arab country of the United Arab Emirate, UAE, there donations to beef up the funds.

The UAE, which was the p28 host country was said to have donated $100 million to the fund, Germany, $100million, Britain, $51 million, United States, US, $1.5 million and the Asian country of Japan, $10 million.  

Until UAE, Germany , Britain and other developed econo mies began to  make  donations into the Funds in Dubai, Capital of UAE, where the Conference and attended by world Leaders including King Charles, III, of Britain and Head of the Commonwealth, the Fund had only $11 billion in its kitty.

The Climate Funds which is expected to work with world Bank and other Multilateral Financial Institutions including the African Development Bank, AfDB, to accelerate   investment in developing economies including Nigeria and other African countries currently has one Tariye Gbadegesin, a Nigerian-US, national, who has over 20 years’ experience in investing in developing economie s.Until her appointment, she was the CEO, of RM Harith Infrastructure Fund in the US.  

Many believe that she may have been appointed to head the Climate Fund   because developing countries are the forefront of the climate crisis and the Nigerian perfectly fitted the position at this decisive moment to produce a road map to work together with other Institutions to scale the climate finance in the developing economies where its needed most.

For years, the CIF, had been involved in financing the retirement of coal-fired power plants in South Africa, Indonesia and other middle-income nations through energy Transition Partnerships, collecting, US, $1 billion in climate finance and sustainable infrastructure.

The Nigerian President may have taken advantage of the   P28 Summit, Wednesday, December, November 29, 2023 2023, at Dubai, Capital of UAE, to meet with King Charles, III, of Britain, on Saturday, December 2, 2023, ahead of the P28  meeting   and held one-on-one talks with the British Monarch, who incidentally is the head of the Common wealth before the Conference.

Electric buses Rolled Out By President Tinubu to reduce Environmental pollution

 He was said to have also held high- level discussions with stakeholders and investors in the Nigerian carbon market   and Electric Buses Programme on Saturday, December 2, 2023, in the UAE, Capital, Dubai, on government plans to deploy a fleet of 100 electric buses and directing the country towards becoming an investment -friendly country destination for Carbon market

This may have informed why he is very happy over the’’ Landmark’’ appointment of Gbadegesin as the CEO, of the CIF, describing it as ‘’proud moment for Nigeria’’. The Nigerian President is optimistic that going by her wealth of experience in climate finance and sustainable infrastructure, she will leave an ‘’indelible landmark in the global effort to combat climate change as Nigeria move towards a greener, more sustainable future’’.        

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