Nigeria and Germany Sign $500 Million Green Energy Deal

On Tuesday in Berlin, Nigerian and German firms formalised two agreements, solidifying their economic collaboration, as reported by a presidential spokesperson. The signed accords include a $500 million renewable energy pact and a gas export deal, further strengthening the economic ties between the two nations.

The Union Bank of Nigeria and Germany’s DWS Group inked a memorandum of understanding (MoU) specifically addressing renewable energy. According to spokesperson Ajuri Ngelale, the agreement aims to attract a $500 million investment for renewable energy projects in Nigeria, with a primary focus on rural communities.

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Simultaneously, a second MoU on a gas export partnership was established between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG. Under this accord, Nigeria commits to supplying Germany with 850,000 tons of natural gas annually, with expectations for this figure to rise to 1.2 million tons. Ngelale noted that the initial deliveries are scheduled for 2026. This deal is poised to play a crucial role in processing approximately 50 million cubic feet of natural gas per day that would have otherwise been flared.

Despite holding Africa’s largest gas reserves, exceeding 200 trillion cubic feet, Nigeria currently experiences significant daily gas flaring—about 300 million cubic feet—due to insufficient processing facilities.

President Bola Tinubu, attending the G20 Compact with Africa conference in Berlin, expressed his endorsement of these agreements, underscoring their positive impact on bilateral economic relations.

Earlier on Monday, German Chancellor Olaf Scholz announced a substantial commitment of 4 billion euros for green energy projects in Africa until 2030. He emphasised that such investments could aid Germany in achieving its goal of carbon neutrality and acknowledged the importance of importing significant quantities of green hydrogen, including from Africa, to meet this objective. Scholz made these remarks during a German-African business forum in Berlin preceding the G20 Compact with Africa summit.

Under President Tinubu, Nigeria has embarked on ambitious reforms, including the elimination of a popular petrol subsidy and the removal of restrictions on foreign exchange trading. These measures are part of Tinubu’s broader efforts to attract investors and rejuvenate Nigeria’s economy, burdened by sluggish growth, high debt, double-digit inflation and the theft of crude oil, its primary export.

Source
https://www.reuters.com/sustainability/climate-energy/nigeria-germany-sign-500-mln-renewable-energy-gas-deal-2023-11-21/