Infrastructure: Companies collaborate to modernize Nigeria’s energy sector

Siemens, a global technology company, and PANA Infrastructure, a Nigerian conglomerate with a growing footprint in sub-Saharan Africa, have formally announced a strategic partnership to modernize and enhance Nigeria’s electricity infrastructure by providing grid automation and smart infrastructure solutions across the country.

This cooperation, consolidated by a formal agreement, marks a key step towards addressing Nigeria’s pressing electricity challenges while supporting economic growth and technological progress in the region.

“This collaboration underlines our commitment to supporting sustainable development and technology advancement in Nigeria,” said Sabine Dall’Omo, CEO of Siemens Sub-Saharan Africa.

“By combining Siemens’ expertise in smart grid technologies with PANA Infrastructure’s deep market knowledge, we aim to ensure reliable energy supply and drive economic development in the region,” he said.

According to Mr. Daere Akobo, CEO of PANA Holdings, “This strategic partnership with Siemens is a key opportunity to transform Nigeria’s energy sector.

Our goal is to expand Nigeria’s critical energy infrastructure through the use of advanced low and medium voltage technologies and intelligent grid management.

This collaboration is in line with the Nigerian Government’s Energy Sector Transformation Plan, which aims to significantly improve the country’s energy supply in a way that will translate into economic progress for all Nigerian citizens.”

The agreement signed between Siemens and PANA Infrastructure focuses on increasing the reliability and stability of the network, deepening electrification rates to meet the rapidly growing electricity demand in Nigeria.

At the same time, recognising Nigeria’s potential to significantly invest in industrial modernisation, the partnership will focus on unlocking Nigeria’s potential in the industrial energy sector.

The aim of this initiative is to revolutionise Nigeria’s industrialised landscape by harnessing the potential of advanced technologies and solutions to increase productivity, efficiency and quality.

By developing local capabilities and upgrading the skills and potential of the workforce, Siemens and PANA Infrastructure will pave the way for a new era of industrial excellence in Nigeria.

“Siemens reaffirms its commitment to Nigeria with an emphasis on identifying and developing strategic business opportunities in the region.

By leveraging a go-to-market strategy that includes knowledge platforms, business collaboration strategies, integrated sales and marketing teams, and global support, Siemens aims to deliver significant business value to the Nigerian market,” says Sabine Dall’Omo.

In the meantime, PANA Infrastructure has solidified its position as a key player in understanding and anticipating the needs of industry stakeholders and local communities.

By integrating innovative technologies and creating strategic partnerships, PANA Infrastructure provides sustainable solutions that support Nigeria’s development across multiple industrial sectors.

This strategic collaboration between Siemens and PANA Infrastructure combines proven expertise and practical know-how, ensuring the highest quality in implementing solutions for the industrial energy sector in Nigeria.

The partnership aims to stimulate sustainable growth and development in Nigeria by addressing key issues in Nigeria’s energy and industrial sectors, including electricity losses, rural electrification, capacity building, local manufacturing, technology transfer and quality standards.

Siemens’ commitment to energy development in Nigeria increased in April when transformers and substations for a $2.3 billion power project arrived in the country.

The incident comes months after the federal government renewed a contract with the German government and Siemens for the massive energy project following months of delays.

Energy Minister Adebayo Adelabu has said COVID-19 and the death of former President Muhammadu Buhari’s late Chief of Staff, Abba Kyari, have hampered the implementation of a memorandum of understanding signed between Nigeria and Siemens to transform the country’s power transmission and distribution.

According to Adelabu, Kyari, who died of complications related to COVID-19, was the driving force behind the project which remained at a standstill until President Bola Tinubu took over.

“In 2018, the Nigerian government signed a memorandum of understanding with the German government on presidential initiatives, also known as the Siemens contracts.

The German government has agreed to lend Nigeria $2.3 billion and hire Siemens to transform Nigeria’s transmission and distribution sector.

“However, due to COVID-19, no significant progress has yet been made in implementing these projects. Unfortunately, the late Chief of Staff to the President, Malam Abba Kyari, a key proponent of the project, has passed away.

Then elections were held and a new government took power. There were no significant changes to the agreements between 2018 and 2023.”

According to Adelabu, the project was to be carried out in two phases, but the pilot phase only gained a larger scale after the formation of the Tinubu government.

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