In Berlin on Tuesday, Nigerian and German companies sealed two groundbreaking agreements, marking a pivotal moment in their economic collaboration, as confirmed by a spokesperson for the president.
A renewable energy pact of $500 million was inked between Union Bank of Nigeria and Germany’s DWS Group. This memorandum of understanding (MoU) aims to channel the investment into renewable energy projects across Nigeria, particularly in rural areas, unlocking vast potential for sustainable development, according to spokesperson Ajuri Ngelale.
Simultaneously, Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG finalized a second MoU, establishing a gas export partnership. Under this accord, Nigeria is set to annually supply 850,000 tons of natural gas to Germany, with projections to increase to 1.2 million tons. Commencing deliveries in 2026, this agreement is poised to process approximately 50 million cubic feet per day of natural gas that would otherwise be flared.
Africa’s largest holder of gas reserves, Nigeria, currently flares about 300 million cubic feet daily due to insufficient processing facilities. President Bola Tinubu, participating in the G20 Compact with Africa conference in Berlin, expressed his satisfaction with these significant agreements, as relayed by Ngelale.
Notably, German Chancellor Olaf Scholz pledged on Monday to invest 4 billion euros in green energy projects in Africa by 2030, recognizing the potential of these projects to contribute to Germany’s carbon neutrality objectives.
The urgency for green energy investments aligns with Germany’s ambitious goal to achieve net-zero emissions by 2045. Scholz emphasized the need for substantial imports of green hydrogen, including from Africa, to facilitate this transition, as highlighted at a German-African business forum preceding the G20 Compact with Africa summit.
This summit seeks to mobilize investments in the world’s fastest-growing continent by aligning the development agendas of reform-oriented nations and identifying lucrative business prospects.
Under President Tinubu’s leadership, Nigeria is undergoing significant reforms, including the elimination of a popular petrol subsidy and the removal of restrictions on foreign exchange trading. Tinubu’s strategic initiatives aim to make Nigeria an attractive destination for investors, fostering economic revitalization amidst challenges such as sluggish growth, mounting debt, double-digit inflation, and oil theft, the nation’s primary export concern.