Nigeria, Germany Sign $500m Renewable and Gas Export Deal

  • This partnership, including a gas export deal, aims to attract $500m in investments dedicated to renewable energy projects, primarily focusing on rural communities across Nigeria.
  • Nigeria commits to supplying 850,000 tons of natural gas annually to Germany, with projections indicating an increase to 1.2 million tons.

Nigerian and German companies have signed two pivotal agreements in Berlin. In a statement on Tuesday by the Presidential spokesperson, Ajuri Ngelale, the agreements valued at $500 million cover a renewable energy pact and a gas export deal. This is a significant move to strengthen economic ties, marking a milestone in bilateral cooperation. Union Bank of Nigeria and Germany’s DWS Group formalised a Memorandum of Understanding on renewable energy.

This strategic partnership aims to attract $500m in investments dedicated to renewable energy projects, primarily focusing on rural communities across Nigeria. According to the statement, the second MoU solidified a gas export partnership between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG. Nigeria commits to supplying 850,000 tons of natural gas annually to Germany, with projections indicating an increase to 1.2 million tons. The statement confirmed the initial shipments scheduled for 2026.

An integral aspect of this deal is its contribution to processing approximately 50 million cubic feet daily of natural gas that would otherwise be flared. Under President Tinubu’s leadership, Nigeria has undertaken significant reforms, including removing a popular petrol subsidy and relaxing foreign exchange trading restrictions. These bold initiatives aim to make Nigeria more appealing to investors and revitalise its economy, addressing challenges such as sluggish growth, record debt, double-digit inflation, and crude oil theft.

Leave a Reply

Your email address will not be published. Required fields are marked *