- German President Frank-Walter Steinmeier visited Nigeria to strengthen energy ties, with discussions focused on boosting investment and accelerating existing agreements.
- Nigeria’s Energy Minister confirmed talks on enhancing energy cooperation, including a $500 million renewable energy investment and natural gas supply to Germany.
German President Frank-Walter Steinmeier visited Nigeria on Wednesday, December 13, 2024, for a two-day diplomatic mission to strengthen energy ties between Berlin and Abuja. Nigeria, Germany’s second-largest trading partner in sub-Saharan Africa, has become a key focus for German investments, particularly in the energy sector.
Steinmeier’s visit, accompanied by a delegation of high-ranking German business leaders from various sectors, including energy, finance, distribution, and technology, reflects Germany’s growing interest in Nigeria’s energy market.
During his visit, Steinmeier held talks with Nigerian President Bola Ahmed Tinubu, who has implemented sweeping economic reforms since assuming office in May 2023. These reforms include ending fuel subsidies and unfreezing the country’s currency, crucial steps to revitalise the economy and attract foreign investment.
While these changes are aimed at long-term growth, they have had immediate adverse effects, including a steep rise in inflation, which hit a nearly 30-year high of more than 33% in October 2024, contributing to a worsening economic crisis in the country.
Despite the short-term economic hardships, Steinmeier acknowledged the positive changes under Tinubu’s administration. “German companies are seeing an improvement in investment relations,” Steinmeier noted, signalling confidence in the Nigerian market despite the current challenges. His remarks underscored the belief that the ongoing reforms will lay the foundation for more excellent economic stability and growth in the future.
While no new agreements were signed during the discussions, Nigeria’s Energy Minister, Adebayo Adelabu, emphasised that both parties discussed ways to speed up the implementation of existing agreements. One such agreement, made in November 2023, saw the Union Bank of Nigeria and the German DWS Group pledge $500 million (€477 million) in investments in renewable energy. This is part of a broader effort to increase sustainable energy projects in Nigeria, where the government seeks to diversify its energy sources and reduce dependence on oil and gas.
Furthermore, Nigerian company Riverside LNG committed to delivering 850,000 tons of natural gas to Germany’s Johannes Schuetze Energy Import AG, further solidifying energy cooperation between the two nations. This collaboration comes when Germany seeks to secure alternative energy supplies, particularly natural gas, amid the ongoing energy crisis in Europe.
Steinmeier’s visit highlights the growing economic and energy cooperation between Germany and Nigeria, which is crucial for both nations in addressing energy security, economic diversification, and investment opportunities.