Nigeria aims at $800 million in revenue as Tinubu launches the initial stage of NNPCL’s 1,350MWs in Abuja

The President of Nigeria, President Bola Tinubu has officially initiated the first phase of the Nigerian National Petroleum Company Limited (NNPCL) 1350 Megawatt (MW) Gwagwalada Independent Power Plant (GIPP) project in Abuja.

The project’s first phase, with a capacity of 350MW, was inaugurated by the president on Friday. It is anticipated to generate an annual revenue ranging from $700 million to $800 million during its initial 10 years of operation. Tinubu expressed that the project will eliminate distribution challenges and contribute to transforming the country into an industrialized economy. Moreover, the power plant will enhance electricity supply to households and businesses, generating job opportunities for local communities and young professionals.

Tinubu emphasized the government’s commitment to eliminating distribution challenges, acknowledging that for Nigeria to become a productive and industrialized economy, a reliable electricity generation, transmission, and distribution system is essential. He stated that the project’s early commencement reflects the administration’s dedication to bringing positive change to the nation, and it signifies their determination to accelerate economic growth by ensuring energy sufficiency. The Gwagwalada Independent Power Plant (GIPP) project is a 1,350MW combined cycle power plant, situated on a 54.7-hectare land in Gwagwalada.

The project is a collaboration between NNPC and China Machinery and Engineering Corporation (CMEC) for the engineering, procurement, and construction (EPC) aspect, while General Electric (GE) is responsible for the long-term service agreement. The power plant will be fueled by gas from the Ajaokuta-Kaduna-Kano (AKK) pipeline, which is presently being constructed, as per a statement from the presidency.

Upon completion, the Gwagwalada Independent Power Plant (GIPP) is projected to generate an annual revenue of $800 million. Tinubu urged NNPC to ensure the project’s timely completion within the scheduled three-year period. The need for additional power generation capacity in Nigeria prompted the establishment of the plant, which will receive gas supply from the ongoing Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project. The fuel requirements for the power plant will be met through a long-term Gas Sales, Purchase, and Aggregation Agreement with Shell Petroleum Development Company Joint Venture (SPDC JV).

The GIPP comprises three powertrain blocks, each with a capacity of 450MW. Each block will include two General Electric GT13E2 gas turbine generators, two heat recovery steam generators, one steam turbine electric generator, one direct air-cooling condenser, balance of plant equipment, and a black start diesel generator.

Once completed, the project is projected to generate an annual average of 10.3 million Megawatt hours of electricity, which will be sold to the Nigerian Bulk Electricity Trading Plc (NBET). The sale of the generated power will occur through a Power Purchase Agreement with NBET, involving long-term contracts with distribution companies and direct sales to major off-takers.

China Machinery Engineering Corporation will be responsible for constructing the project under a comprehensive turnkey Engineering, Procurement, and Construction contract.

The groundbreaking event witnessed the presence of distinguished individuals from both the private and public sectors, including the Group Chief Executive Officer of NNPC Limited, Mele Kyari, the Permanent Secretary of the Ministry of Petroleum Resources, Gabriel Aduda, and the counterpart in the FCT, Olusade Adesola, among others.