- President Tinubu urges German companies to invest in Nigeria’s energy and solid minerals sectors, highlighting opportunities in renewable energy and critical minerals like lithium.
- Despite challenges like energy poverty and illegal mining, Nigeria seeks to enhance its energy capacity and attract foreign investments to drive economic growth.
President Bola Tinubu has invited German companies to invest in Nigeria’s energy and solid minerals sectors, highlighting these areas as priorities for his administration. During a Wednesday, December 11th, 2024 meeting at the State House, President Tinubu assured the German delegation, led by German President Frank-Walter Steinmeier, that his government is working to create a business-friendly environment by removing bureaucratic barriers and enhancing security.
In a statement from the Presidency, Tinubu stressed the importance of unlocking the full potential of Nigeria’s energy sector for the nation’s development. He called for continued collaboration between Nigeria and Germany, particularly in renewable energy, pointing out that Germany’s expertise could be crucial in harnessing Nigeria’s abundant solar resources.
“We are ready and open for business,” President Tinubu said. He reiterated his government’s commitment to developing the country’s energy sector, particularly through natural gas and alternative energy sources like solar, while emphasizing Nigeria’s vast reserves of solid minerals, including lithium. He also acknowledged the growing number of Nigerian students trained in Germany, who could contribute to the country’s industrialization and skill development.
Tinubu directed several ministries, including Foreign Affairs, Solid Minerals, Power and Industry, Trade and Investment, to work closely with investors to enhance the energy sector’s growth. He highlighted the potential for growth in industries such as gas, lithium, and other minerals critical to energy transitions.
Minister of Solid Minerals Development Dele Alake informed the delegation that Germany has a one billion Euro fund dedicated to renewable energy. Nigeria’s solid minerals sector could benefit from this initiative. He encouraged German companies to explore Nigeria’s rich deposits of critical minerals like cobalt, nickel, and lithium, essential for global energy transitions. Alake also pointed to the country’s renewed focus on improving security, offering tax incentives, and creating opportunities for joint ventures under the administration’s Renewed Hope Agenda.
Despite the country’s energy potential, Nigeria faces challenges such as energy poverty, with nearly 71% of the population lacking reliable electricity access. The nation currently generates around 5,000 megawatts, insufficient for its over 200 million citizens. Furthermore, renewable energy accounted for less than 21% of the total electricity capacity in 2023, reflecting the underutilization of resources.
The solid minerals sector also struggles with illegal mining, inadequate infrastructure, unclear land laws, smuggling, and security issues, which hinder its development. Nonetheless, President Tinubu remains optimistic that with improved conditions and international partnerships, Nigeria can unlock the full potential of both its energy and solid minerals sectors to foster economic growth and industrialization.