Nigeria, Germany Sign $500 Million Renewable Energy, Gas Deals

Nigeria and Germany have recently formalized substantial agreements with a combined value of $500 million, focusing on developing and collaborating within the renewable energy and gas sectors.

The growing economic collaboration between Nigeria and Germany experienced further expansion and consolidation yesterday through the signing of two significant agreements involving businesses from both nations.

Addressing the 10th German-Nigerian Business Forum in Berlin, Germany, President Bola Tinubu emphasised that Nigeria’s resilient democracy positioned the country attractively for foreign direct investments.

During the forum, the President presided over the signing of two Memoranda of Understanding (MoUs): one focused on the supply of gas from Nigeria to Germany and the other on $500 million worth of renewable energy projects in Nigeria.

The first MoU, pertaining to the gas export partnership, was inked between Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany. Simultaneously, the second agreement brought together Union Bank of Nigeria and DWS Group, marking a collaborative effort in the field of renewable energy.

David Ige, the CEO of GasInvest, signed the MoU related to gas supply, revealing that the Riverside LNG project aimed to deliver energy from Nigeria to Germany, effectively addressing the challenge of approximately 50 million cubic feet per day of flared gas in Nigeria.

A statement issued by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, quoted Ige as saying: “The project will supply energy from Nigeria to Germany at 850,000 tonnes per annum, expanding to 1.2 million tonnes per annum.  

“The first gas will leave Nigeria for Germany in 2026, and there will be further expansion. This will extinguish about 50 million cubic feet per day of flared gas in Nigeria and open alleyways of new and greater exports of gas to Germany.”

The German counterparts conveyed their confidence in investing in Nigeria’s gas sector. 

Frank Otto, the Chief Operating Officer of Johannes Schuetze Energy Import AG, characterised the partnership as a significant development for the German market.

Chairman of Union Bank, Farouk Gumel, revealed a substantial commitment of $500 million for e-energy projects in Nigeria. He underscored the importance of rural inclusion and the integration of more individuals into the formal economy.

“We believe this would bring rural inclusion and capture more people into the formal economy. Without inclusion, there is no growth. Thank you, Mr. President,” Gumel said.

President Bola Tinubu warmly welcomed the new agreements, assuring German businesses that with Nigeria’s stable political landscape, foreign investments in the country were well-protected and secure.

“Since 1999, we have witnessed changes in democratic governance, with peaceful transfer of power within and between parties. Democracy in Nigeria has proven to be flexible and resilient. 

“Shake off any remnants of the military era syndrome, and we have moved beyond that. Despite challenges faced by other African nations, Nigeria stands firm, and we are your partners,” the President declared.

The President emphasised his commitment to sustaining the reforms and building stronger Nigerian-German relations by outlining some of his administration’s achievements, including his globally acclaimed economic reforms.

“For those who feared various obstacles, look at me; I come from the private sector, trained by Deloitte. I served as the treasurer in Exxon Mobil. 

“Define corporate governance in any way, and I am in it. I governed Lagos for eight consecutive years. Today, I can proudly beat my chest that Lagos State is on the horizon and the fifth-largest economy in Africa, rising from ground zero. This is the track record that led me to the presidency. 

“Nigerians voted for me for reforms, and from day one of my inauguration, I implemented the reforms. My inaugural speech did not disclose what I would do. I removed the fuel subsidy that is a great burden to Nigerians from the moment I stepped into office. 

“The arbitrage regime is gone forever. Now, you can bring your money in and out as you wish. If you encounter any problems, rest assured that I have built one of the most reliable teams Nigeria has seen to address them. 

“I appeal to you to forget the past and focus on building a relationship that removes obstacles, fostering progress and prosperity in Nigerian-German relations.

“You can rely on us; we can rely on you; both of us can chorus Hallelujah at the same time,” the President said.