Nigeria, Germany Sign $500 Million Renewable Energy, Gas Export Agreements

Nigeria's president Bola Tinubu has sought to offset the impact of his economic reforms — AFP

Nigerian and German companies signed two important agreements Tuesday to strengthen the economic partnership between both nations. They included a gas supply deal and a $500 million renewable energy pact.

A memorandum of understanding (MoU) was signed between Nigeria's Riverside LNG and Germany's Johannes Schuetze Energy Import AG to supply 850,000 tons of natural gas annually to the German company. This will be eventually expanded to 1.2 million tons per annum.

"The first gas will leave Nigeria for Germany in 2026, and there will be further expansion. This will extinguish about 50 million cubic feet per day of flared gas in Nigeria and open alleyways of new and greater exports of gas to Germany," GasInvest CEO David Ige, who signed the MoU for Riverside LNG, said in a news release.

Frank Otto, chief operating officer of Johannes Schuetze Energy Import AG, dubbed it a "big deal."

Another MoU was agreed between the Union Bank of Nigeria and the DWS Group on renewable energy. The aim is to set up $500 million worth of renewable energy projects across Nigeria.

"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," said Farouk Gumel, chairman of Union Bank.

The MoUs were signed during the 10th German-Nigerian business forum Tuesday. President Bola Tinubu welcomed the new deals and reiterated that Nigeria is safe for investments.

"Since 1999, we have witnessed changes in democratic governance, with peaceful transfers of power within and between parties. Democracy in Nigeria has proven to be flexible and resilient," he said. "Shake off any remnants of the military era syndrome; we have moved beyond that. Despite challenges faced by other African nations, Nigeria stands firm, and we are your partners."

The president added his administration's focus is on implementing reforms.

Tinubu decided to scrap a fuel subsidy after swearing in as the country's president on May 29. Since then, fuel prices skyrocketed as it increased from N195 per liter to N600 per liter.