• Wednesday, June 12, 2024
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Nigeria-Germany seal $500m renewable energy, gas export deals

Olaf Scholz and Bola Tinubu

Nigerian and German companies inked two crucial agreements in Berlin on Tuesday, valued at $500 million. The pact includes a significant renewable energy deal and a gas export partnership, ushering in a milestone in bilateral collaboration, affirmed presidential spokesperson Ajuri Ngelale.

The first agreement between Union Bank of Nigeria and Germany’s DWS Group solidifies a renewable energy Memorandum of Understanding (MoU). This alliance aims to attract $500 million in investments, primarily focused on renewable energy projects, especially in rural Nigerian communities.

The second MoU established a gas export partnership between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG. Nigeria commits to supplying 850,000 metric tonnes of natural gas annually to Germany, with plans for an increase to 1.2 million metric tonnes set to begin shipments in 2026.

Read also:Nigeria’s economic reforms to accommodate foreign investors; Tinubu

This partnership is integral to processing around 50 million cubic feet per day of natural gas that would otherwise be flared, aligning with both countries’ commitment to sustainable energy solutions.

It’s a significant step towards addressing environmental concerns linked to gas flaring and leveraging Nigeria’s vast gas reserves, exceeding 200 trillion cubic feet, for sustainable energy projects.

President Bola Tinubu, attending the G20 Compact with Africa conference in Berlin, expressed his support for the agreements, aligning with Germany’s commitment to investing 4 billion euros in green energy projects in Africa by 2030.

The collaboration aims to assist Germany’s transition to carbon neutrality and net-zero emissions by 2045. Chancellor Olaf Scholz emphasised the importance of green hydrogen imports from Africa to achieve environmental goals during a German-African business forum preceding the G20 Compact with Africa summit.

Under President Tinubu’s leadership, Nigeria has undertaken significant reforms to attract investors and revitalise its economy. The removal of a popular petrol subsidy and easing foreign exchange trading restrictions are among the bold initiatives aimed at addressing economic challenges.