Nigeria-Germany Partnership Grows with $500M Renewable Energy Pact and Gas Export Agreement

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Nigeria and Germany marked a milestone as President Bola Tinubu witnessed the signing of two pivotal agreements at the 10th German-Nigerian Business Forum in Berlin on Tuesday. This is a significant leap forward in bilateral economic ties.

President Tinubu, addressing the gathering, highlighted Nigeria’s resilient democracy as a key factor attracting foreign direct investments. The ceremony marked the signing of two Memoranda of Understanding (MoUs) – one focusing on gas supply from Nigeria to Germany and the other involving a substantial $500 million investment in renewable energy projects within Nigeria.

The gas export partnership was formalized between Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany. David Ige, CEO of GasInvest, expressed the project’s intent to supply energy from Nigeria to Germany, significantly reducing flared gas in Nigeria by about 50 million cubic feet per day. The ambitious project targets an initial supply of 850,000 tonnes per annum, expanding to 1.2 million tonnes per annum, with the first shipment expected in 2026.

Frank Otto, Chief Operating Officer of Johannes Schuetze Energy Import AG, emphasized the strategic importance of this partnership for the German market, terming it a “big deal.”

In another significant agreement, Union Bank of Nigeria and DWS Group sealed a pact for a $500 million investment in renewable energy projects. Farouk Gumel, Chairman of Union Bank, stressed the importance of rural inclusion, stating, ”We believe this would bring rural inclusion and capture more people into the formal economy. Without inclusion, there is no growth.”

President Tinubu reassured German businesses of the security of foreign investments in Nigeria, emphasizing the stability of Nigeria’s political landscape. Addressing concerns, he highlighted his administration’s commitment to economic reforms and building stronger Nigerian-German relations.

”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.”

President Tinubu underscored his commitment to reforms, noting the removal of the fuel subsidy and the establishment of a more transparent economic regime. He urged both nations to focus on building a relationship that fosters progress and prosperity, assuring German investors of a conducive business environment.

In a final note, President Tinubu expressed mutual reliance between the two nations, ending on a positive note, ”You can rely on us; we can rely on you; both of us can chorus Hallelujah at the same time.”

The signing of these agreements marks a significant step forward in the economic partnership between Nigeria and Germany, offering prospects of cleaner energy solutions and reinforcing the growing collaboration between the two nations.

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