Nigeria and Germany signed a $500 mln renewable energy and gas deal. German and Nigerian businesses inked a $500 million renewable energy agreement and a gas export agreement on Tuesday in Berlin, further solidifying their economic relations, according to a presidential spokesperson.
The DWS Group of Germany signed a memorandum of understanding (MoU) on renewable energy with the Union Bank of Nigeria. According to spokesman Ajuri Ngelale, the deal aims to leverage $500 million in funding for renewable energy projects throughout Nigeria, mostly in rural areas.
Between Germany’s Johannes Schuetze Energy Import AG and Nigeria’s Riverside LNG, a second Memorandum of Understanding on a gas export partnership was reached. As per the agreement, Nigeria would provide Germany with 850,000 tons of natural gas each year, projected to increase to 1.2 million tons. According to Ngelale, the first delivery will occur in 2026.
Through the agreement, around 50 million cubic feet of natural gas per day that would have flared up otherwise will be processed.
Nigeria has the most significant gas reserves in Africa—more than 200 trillion cubic feet—but due to poor processing infrastructure, over 300 million cubic feet of that gas flares off daily.
Ngelale stated that President Bola Tinubu, who is in Berlin for the G20 Compact with Africa conference, praised the agreements.
Chancellor Olaf Scholz of Germany announced on Monday that until 2030, his country will invest 4 billion euros in renewable energy projects in Africa. He added that these initiatives may eventually assist the biggest economy in Europe in becoming carbon neutral.
Speaking at a German-African business summit in Berlin, he stated that if Germany is to reach its net zero emissions target by 2045, it will need to import considerable amounts of green hydrogen in the future, especially from Africa.
The workshop came before the G20 Compact with Africa summit, which attempts to coordinate the development objectives of reform-minded nations and find economic possibilities in order to attract investment in the world’s poorest but fastest-growing continent.
Nigeria has implemented the most radical reforms in decades under Tinubu, eliminating limitations on foreign exchange trading and doing away with a well-liked gasoline subsidy.
Tinubu is attempting to attract investors to Nigeria to revive the economy, suffering from slow growth, record debt, double-digit inflation, and theft of the country’s main export, crude oil.
