In a significant development, Nigeria and Germany have inked two pivotal agreements in Berlin, signaling a deepening economic collaboration between the two nations. The deals include a substantial $500 million renewable energy pact and a gas export agreement.
Under the terms of the agreement, Nigeria commits to exporting significant volumes of liquefied natural gas (LNG) to Germany, starting at 850,000 tons annually and potentially escalating to 1.2 million tons. Simultaneously, Germany pledges a substantial $500 million investment in Nigerian renewable energy projects, with a focus on integrating more individuals into the formal economy.
President Bola Tinubu, presently attending the G20 Compact with Africa conference in Berlin, expressed his enthusiastic welcome to these groundbreaking deals. He assured German businesses that Nigeria’s stable political landscape makes it a secure destination for foreign investments.
The agreements, signed on Tuesday in Berlin, include Memoranda of Understanding (MoU) between Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany for the gas export partnership. Another MoU was signed between Union Bank of Nigeria and DWS Group, fostering cooperation in renewable energy.
CEO of GasInvest, David Ige, who signed the MoU on gas supply, highlighted the Riverside LNG project’s aim to supply energy from Nigeria to Germany, significantly reducing flared gas in Nigeria by about 50 million cubic feet per day.
“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, with further expansion plans. This initiative will extinguish about 50 million cubic feet per day of flared gas in Nigeria and open new avenues for greater gas exports to Germany,” said David Ige.
The German partners expressed confidence in investing in Nigeria’s gas sector, emphasizing the strategic significance of this partnership for the German market. Chairman of Union Bank, Farouk Gumel, disclosed a commitment of $500 million for e-energy projects in Nigeria. He underscored the importance of rural inclusion and the formal economy’s expansion, stating, “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.”
President Bola Tinubu, witnessing the signing ceremonies, reassured German businesses of Nigeria’s stability and commitment to economic reforms. He outlined his administration’s achievements and underscored his dedication to building robust Nigerian-German relations, encouraging a focus on mutual progress and prosperity.
In closing, President Tinubu affirmed, “You can rely on us; we can rely on you; both of us can chorus Hallelujah at the same time.”