- Nigeria is promoting gas-to-power investments to address power shortages and enhance industrial growth.
- A new trade pact between Nigeria and the UAE aims to strengthen investment protection and expand manufacturing cooperation.
Nigeria is intensifying diplomatic and economic engagement with the United Arab Emirates to advance Nigeria’s gas-to-power investment and expand bilateral trade. President Bola Tinubu is scheduled to meet Sheikh Mohammed bin Zayed Al Nahyan on the margins of Abu Dhabi Sustainability Week. The talks aim to unlock new capital inflows, strengthen trade relations and deepen cooperation on energy and climate priorities.
Accordingly, Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, confirmed that both leaders expect to finalise a Comprehensive Economic Partnership Agreement during the meeting. The agreement aims to enhance legal certainty for investors while facilitating increased trade flows between the two economies. Importantly, the framework responds to long-standing demands from businesses operating across both markets.
UAE investors have increased exposure to Nigeria’s energy, manufacturing and logistics sectors. Meanwhile, Nigerian firms continue to expand their operations in Dubai. Therefore, the agreement is expected to protect assets, reduce risks and improve investor confidence. Tuggar explained that the framework provides clarity for factories, trading companies and service providers on both sides.
Meanwhile, energy cooperation will dominate discussions, with Nigeria prioritising gas-to-power development. Tuggar said Nigeria is accelerating efforts to convert natural gas into electricity. This strategy targets chronic power shortages that continue to limit industrial output and economic expansion. Several gas pipeline projects are already under construction across the country.
In addition, the government has launched a new licensing round for exploration acreage. This move seeks to attract domestic and international investors. Tuggar emphasised that decades of underinvestment had weakened the gas processing and transmission infrastructure. Consequently, power outages persist despite Nigeria’s vast gas reserves.
Nigeria holds one of Africa’s largest natural gas reserves. As a result, policymakers now promote gas as a transition fuel. This approach supports industrialisation while reducing reliance on more carbon-intensive sources. Hence, Nigeria’s gas-to-power investment remains central to the country’s energy strategy.
Beyond energy, the talks will also address trade expansion and manufacturing growth. Nigeria and the UAE already exchange agricultural produce and industrial goods. However, both governments see opportunities in agro-processing, light manufacturing and logistics services. Therefore, deeper cooperation could diversify exports and strengthen value chains.
Tuggar also confirmed the resolution of airline operators’ trapped funds. Previously, the issue strained aviation and business relations. Its resolution has restored confidence and eased cross-border travel and financial transactions.
During Abu Dhabi Sustainability Week, President Tinubu will also present Nigeria’s climate agenda. He will outline the country’s nationally determined contributions under the Paris Agreement. However, he will emphasise that climate projects must remain commercially viable to attract funding. Thus, Nigeria continues to align sustainability goals with economic realities.