Powering Nigeria’s Future: NNPC’s GIPP Project Sets Stage for Power Generation, Industrialisation
By Abel Madaki
As the sun rose over Gwagwalada, in the Federal Capital Territory (FCT), Abuja, the air was thick with anticipation and hope. A ground-breaking ceremony took place that would mark a historic milestone in Nigeria’s journey towards energy independence and economic growth. The Gwagwalada Independent Power Project (GIPP), a visionary endeavour led by the Nigerian government and the NNPC Limited, was set to revolutionize the nation’s energy sector and transform lives.
The GIPP, an ambitious 1,350MW Combined Cycle Power Plant, will be situated on 54.7 hectares of land in Gwagwalada, within the Federal Capital Territory (FCT), Abuja. Its establishment was necessitated by the pressing need for additional power generation capacity in Nigeria. The project will receive gas supply through the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, currently in advanced stages of construction.
The Group Chief Executive Officer (GCEO) of NNPC Limited, Mele Kyari, shared a detailed overview of the Gwagwalada Independent Power Project and its potential to reshape Nigeria’s energy landscape. “The Gwagwalada Independent Power Project (GIPP) is a 1,350MW Combined Cycle Power Plant with auxiliaries and Balance of Plant to be situated on 54.7 hectares of land already acquired at Gwagwalada,” Kyari explained.
The driving force behind the GIPP was the urgent need to expand power generation capacity in Nigeria. Kyari emphasized that the fuel requirements for the project would be met under a long-term Gas Sales, Purchase, and Aggregation Agreement with Shell Petroleum Development Company Joint Venture (SPDC JV).
“The GIPP project consists of three power train blocks of 450MW each,” Kyari continued, describing the impressive infrastructure that would power the plant. According to Kyari, each block featured General Electric (GE) GT13E2 gas turbine generators, heat recovery steam generators (HRSG), steam turbine electric generators, direct air-cooling condensers, and a black start diesel generator.
The GCEO observed that the projected output was nothing short of remarkable. “On completion, the GIPP Project will generate an average of 10.3 million Megawatt-hours (MWh) of electricity per year, for sale to Nigerian Bulk Electricity Trading Plc (NBET),” Kyari announced. The generated power would be made available through a mix of Power Purchase Agreements (PPA) with NBET and direct sales to major off-takers, providing a stable and sustainable energy supply to homes and businesses.
In his address at the well-attended occasion, President Bola Tinubu expressed the significance of energy in the modern world, stating, “Energy is the most important discovery for humanity in the last 100 years. There is no life without power,” the President reiterated. Emphasizing his campaign commitment, he vowed to prioritize stable electricity distribution, ensuring an increase in power generation capacity and the removal of distribution bottlenecks.
The President highlighted that reliable electricity is the lifeblood of a productive and industrialized economy, vital for eradicating poverty and fostering job opportunities. “We cannot become a productive economy unless we become efficient,” he asserted, underlining the administration’s unwavering dedication to bringing about positive change.
To address the nation’s energy needs comprehensively, President Tinubu underscored the administration’s resolve to pursue a diverse range of low-carbon energy sources, including solar, hydro, thermal, and biofuel. This commitment aims to enhance both on-grade and upgraded power systems and improve the standard of living for citizens in rural communities while unlocking social and economic opportunities.
Without mincing words, the economic impact of the GIPP Project extended far beyond energy generation. From all pointers, the project would attract significant foreign and domestic investments, further driving economic growth and industrialization. In fact, experts in the power sector believe that within the first ten years, around USD 700-800 million (per year) of projected gross revenues is expected.
The ripple effect of this investment would be felt in the improvement of the national transmission system, a crucial aspect of the government’s long-term plan for transmission upgrades. Such progress would undoubtedly create an enabling environment for businesses, spur innovation and attract additional investments, ultimately leading to job creation and a boost in the nation’s standard of living.
It was therefore understandable that the excitement and enthusiasm in almost all the host communities surrounding the GIPP project in Gwagwalada were palpable. Already, the NNPC Ltd has emplaced a robust stakeholder engagement with the host communities at all levels, fostering a collaborative spirit, mutual understanding and a harmonious working relationship among all parties involved.
“The locals have been very supportive and full of excitement and expectation that the GIPP will bring about hundreds of job opportunities (direct and indirect labour) and subsequently, development and industrialization within Gwagwalada and environs,” a brochure explaining the project acknowledged.
One of the critical success factors for the GIPP Project is the quality of the partnership. Beyond just what NNPC Ltd has done, the crucial role of China Machinery Engineering Corporation (CMEC) in constructing the project under a turnkey Engineering, Procurement, and Construction (EPC) contract deserves commendation.
This is probably why on the eve of the historic groundbreaking, an elated Chinese Ambassador to Nigeria Cui Jianchun lauded the trilateral cooperation between China represented by CMEC, the United States represented by GE Vernova, and Nigeria as represented by the NNPC Limited. Emphasizing the positive impact the project would have on the country’s development, Mr. Jianchun said a reliable and sustainable energy systems is necessary, even as he pledged China’s unwavering support to facilitate and resolve any challenges that may arise in the course of executing the project.
Looking at all these experienced partners, there is abundant hope that the GIPP project was indeed set to benefit from the expertise and experience of leading industry players.
As the nation looks to the future, the GIPP represents more than just a power plant. It is a symbol of Nigeria’s determination to harness its vast gas resources for the benefit of its people. By supporting the government’s aspiration of domestic utilization of gas resources and bolstering the gas-to-power infrastructure drive, the GIPP will serve as a catalyst for growth and development.
As President Tinubu eloquently stated, “We can not become a productive economy unless we become efficient.” The GIPP project is Nigeria’s beacon of hope, illuminating the path towards a brighter, more prosperous, and sustainable future for all its citizens.
This transformative project not only reinforces Nigeria’s commitment to bolstering its power generation capacity but also aligns with the government’s aspiration to utilize the country’s abundant gas resources for domestic energy consumption. The GIPP’s fuel requirements will be met through a long-term Gas Sales, Purchase, and Aggregation Agreement with the Shell Petroleum Development Company Joint Venture (SPDC JV), a veteran of the oil and gas business.
For now, the Gwagwalada community eagerly anticipates the manifold benefits which the GIPP project will bring. Local stakeholders have already engaged in robust discussions with NNPC Ltd., expressing excitement and hope for industrialization, development, and job opportunities in the area.
The GIPP’s impact will be felt far beyond the rocky and humid terrains of Gwagwalada. The effect will be felt nationwide, as the project holds the key to energizing Nigeria’s industries, spurring economic growth, and improving the lives of its citizens. The Power Project stands as a testament to the unwavering commitment of NNPC Ltd. and the Nigerian government to provide energy solutions for today and tomorrow.
By focusing on diversifying energy sources and bolstering power generation capacity, the NNPC Ltd takes a decisive stride towards fulfilling its mandate of making energy available and affordable in a sustainable manner. Nigerians can’t wait for the lights to be fully switched on in Gwagwalada and beyond.Top of Form
Abel Madaki, a power sector analyst, wrote in from Lagos.
