BERLIN witnessed a pivotal moment in Nigerian-German relations as both nations inked two significant agreements, signalling a $500 million commitment to renewable energy initiatives and a landmark gas export deal.
Presidential spokesperson Ajuri Ngelale announced the agreements, highlighting their potential to bolster the economic partnership between Nigeria and Germany. The first accord, a memorandum of understanding (MoU) between Union Bank of Nigeria and Germany’s DWS Group, aims to channel $500 million into renewable energy projects, particularly targeting rural communities across Nigeria.
Ngelale emphasised, ‘This investment seeks to drive sustainable development through renewable energy solutions in areas that traditionally lack access to such resources.’
The second MoU, focused on a gas export partnership, was formalised between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG. This agreement entails the annual supply of 850,000 tons of natural gas from Nigeria to Germany, with projections to increase to 1.2 million tons. Commencing in 2026, this venture aims to utilise about 50 million cubic feet per day of natural gas, previously flared due to inadequate processing facilities in Nigeria.
‘With this partnership, we aim to curtail gas flaring significantly and harness our abundant natural resources for sustainable energy production,’ Ngelale added.
Nigeria boasts the largest gas reserves in Africa, exceeding 200 trillion cubic feet. However, inefficient processing facilities have led to the daily flaring of approximately 300 million cubic feet of gas, a critical issue the country seeks to address through such collaborations.
President Bola Tinubu, present at the G20 Compact with Africa conference in Berlin, expressed his satisfaction with the agreements, affirming Nigeria’s commitment to fostering progressive economic ties with Germany.
Earlier discussions at the German-African business forum, attended by German Chancellor Olaf Scholz, underscored Germany’s intention to invest 4 billion euros in African green energy projects by 2030. Scholz emphasised the importance of collaborations in green hydrogen production to achieve Germany’s carbon neutrality goals by 2045.
The G20 Compact with Africa summit aims to facilitate investments in the continent by aligning reform-minded nations’ development agendas and identifying lucrative business prospects.
Under President Tinubu’s leadership, Nigeria has undertaken significant reforms, including the removal of petrol subsidies and easing foreign exchange trading restrictions, aiming to attract investors and revive the nation’s economy amid challenges like high debt, inflation, and oil theft.