Bureau of Public Procurement Saves $115,000 on Siemens Power Deal
The Bureau of Public Procurement (BPP) has secured a $115,000 saving on the Presidential Power Initiative, known as the Siemens Project, marking an early milestone in its renewed efforts to safeguard Nigeria’s public funds.
Speaking in Abuja on Monday, the BPP’s Director-General, Adebowale Adedokun, emphasised the Bureau’s role in ensuring value for money on government contracts through rigorous scrutiny and negotiation.
“One of the things we have done is to look at the Siemens project. We went through negotiation and scrutinised the request. The government has saved about $115,000 through this process,” Adedokun told State House correspondents.
He added, “In just two weeks, we conducted a deep review and negotiation, and they saw the benefit. That money would naturally have gone into the contract without anyone raising questions. But we are working in the interest of Nigeria. We told them, ‘You must come down from your initial price based on our price intelligence.’”
Adedokun further underscored the BPP’s role as “the fulcrum that defends the government” by ensuring thorough due diligence on contract pricing and execution.
The Siemens project, officially dubbed the Presidential Power Initiative, is a collaboration between Nigeria and Germany aimed at transforming Nigeria’s energy sector. Approved by the Federal Executive Council at a cost of ₦262.75bn (€161.33m) for Phase One, the project involves engineering, procurement, and construction of critical power infrastructure. Substations in Onitsha, Offa, Abeokuta, Ayede, and Sokoto are earmarked for development under this phase.
The Minister of Power, Adebayo Adelabu, revealed that the approval follows the 80 per cent completion of the project’s pilot phase.
The Siemens project dates back to 2018 during the administration of former President Muhammadu Buhari but gained fresh momentum on December 1, 2023, when Nigeria and Germany reaffirmed their commitment through a bilateral agreement. Signed during the United Nations Climate Change Summit, COP28, in Dubai, the agreement aims to inject 12,000 megawatts of electricity into Nigeria’s national grid.
Presided over by President Bola Tinubu and German Chancellor Olaf Scholz, the agreement was signed by the Managing Director of the Federal Government of Nigeria Power Company, Kenny Anuwe, and Siemens AG’s Africa Managing Director, Nadja Haakansson.
Adedokun, who assumed office as BPP’s substantive head on November 14, pledged to achieve “100 per cent budget implementation” by aligning procurement processes with project complexities and promoting local content participation.
The savings, though modest in the scope of a multibillion-dollar initiative, highlight the BPP’s renewed commitment to due diligence—a critical safeguard as Nigeria embarks on ambitious infrastructure projects.
With the Siemens Project heralded as a cornerstone of Nigeria’s energy transformation, expectations remain high for tangible improvements in the country’s perennial power woes. For now, the BPP’s intervention provides a reassuring indication that scrutiny and fiscal discipline are, at last, taking centre stage.
