Nigeria secures $500m gas supply, renewable energy deals with investors in Germany

The Nigerian government has struck a deal with German investors for $500 million worth of gas export and renewable energy projects, enhancing the economic ties between the two nations.

This was revealed by Ajuri Ngelale, the President’s Special Adviser on Media and Publicity, in a statement on Tuesday.

President Bola Tinubu, who spoke at the 10th German-Nigerian Business Forum in Berlin, Germany, said that Nigeria’s robust democracy makes it an attractive destination for foreign direct investments.

Tinubu also witnessed the signing of two Memoranda of Understanding (MoU): one for the supply of gas from Nigeria to Germany and another for the development of renewable energy projects in Nigeria worth $500 million.

The gas export partnership was signed between Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany, while the renewable energy cooperation was signed between Union Bank of Nigeria and DWS Group.

David Ige, the CEO of GasInvest, who signed the MoU on gas supply, said the Riverside LNG project aims to provide energy from Nigeria to Germany, eliminating about 50 million cubic feet per day of flared gas in Nigeria.

“The project will provide energy from Nigeria to Germany at 850,000 metric tonnes per year, expanding to 1.2 million metric tonnes per year.

“The first gas will leave Nigeria for Germany in 2026, and further expansion will occur. This will eliminate about 50 million cubic feet per day of flared gas in Nigeria and create new and bigger opportunities for gas exports to Germany,” he said.

The German partners expressed their confidence in investing in Nigeria’s gas sector.

Frank Otto, the Chief Operating Officer of Johannes Schuetze Energy Import AG, described the partnership as a “big deal” for the German market.

Farouk Gumel, the Chairman of Union Bank, disclosed the commitment of $500 million for e-energy projects in Nigeria, stressing the importance of rural inclusion and bringing more people into the formal economy.

“We believe this would bring rural inclusion and capture more people into the formal economy. Without inclusion, there is no growth. Thank you, Mr. President,” Gumel said.

Tinubu welcomed the new deals and assured German businesses that Nigeria’s stable political landscape guarantees the security of their investments in the country.

“Since 1999, we have witnessed changes in democratic governance, with peaceful transfers of power within and between parties. The democracy in Nigeria has proven to be flexible and resilient. Shake off any remnants of the military-era syndrome; we have moved beyond that. Despite challenges other African nations face, Nigeria stands firm, and we are your partners,” the president declared.

Tinubu emphasised his commitment to sustaining the reforms and building stronger Nigerian-German relations by outlining some of his administration’s achievements, including his globally acclaimed economic reforms.