In a significant move to bolster economic ties, Nigerian and German companies have inked two pivotal agreements in Berlin, sealing a renewable energy pact and a gas export deal valued at $500 million. The accords mark a groundbreaking milestone in bilateral cooperation, as announced by the Presidential spokesperson, Ajuri Ngelale.
The first agreement involves a Memorandum of Understanding (MoU) on renewable energy between Union Bank of Nigeria and Germany’s DWS Group. This strategic partnership aims to attract $500 million in investments dedicated to renewable energy projects, with a primary focus on empowering rural communities across Nigeria.
The second MoU solidifies a gas export partnership between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG. Under this agreement, Nigeria commits to supplying 850,000 tons of natural gas annually to Germany, with projections indicating an increase to 1.2 million tons. Initial shipments are scheduled for 2026, contributing to the processing of approximately 50 million cubic feet per day of natural gas that would otherwise be flared.
This gas export deal is not only a significant economic boost but also a crucial step toward addressing environmental concerns linked to gas flaring in Nigeria. With Africa’s largest gas reserves exceeding 200 trillion cubic feet, the agreement harnesses Nigeria’s abundant gas resources for sustainable energy projects, aligning with both nations’ commitment to environmentally conscious practices.
President Bola Tinubu, attending the G20 Compact with Africa conference in Berlin, expressed approval of the agreements. Germany’s commitment to a 4 billion euro investment in green energy projects in Africa by 2030, as announced by Chancellor Olaf Scholz, further underscores the collaborative effort to support Germany’s transition to carbon neutrality and achieve its goal of net-zero emissions by 2045.
Scholz highlighted the pivotal role of green hydrogen imports, particularly from Africa, in achieving environmental objectives. These sentiments were expressed during a German-African business forum preceding the G20 Compact with Africa summit, emphasizing the coordination of development agendas and identification of business opportunities in Africa.
Under President Tinubu’s leadership, Nigeria has undertaken significant reforms to attract investors and revitalize its economy. Bold initiatives, including the removal of a popular petrol subsidy and the relaxation of foreign exchange trading restrictions, aim to address challenges such as sluggish growth, record debt, double-digit inflation, and crude oil theft. The recent revelation of over N4.3 trillion worth of crude oil stolen in pipeline vandalism cases underscores the urgency to address this emergency, posing a serious threat to oil exploration and exploitation with substantial negative consequences on economic growth and business prospects.