The growing economic collaboration between Nigeria and Germany saw significant expansion and reinforcement yesterday, marked by the signing of two crucial agreements between businesses from both nations.
Addressing the 10th German-Nigerian Business Forum in Berlin, Germany, President Bola Tinubu emphasized that Nigeria’s robust democracy positioned it favorably to attract foreign direct investments.
During the forum, the President witnessed the execution of two Memoranda of Understanding (MoUs): one focusing on the supply of gas from Nigeria to Germany and another involving $500 million worth of renewable energy projects in Nigeria.
The signing of these MoUs involved Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany, establishing a partnership for gas export. Additionally, Union Bank of Nigeria and DWS Group signed an agreement for collaboration in the field of renewable energy.
The Chief Executive Officer (CEO) of GasInvest, Mr. David Ige, signed the Memorandum of Understanding (MoU) for gas supply. He stated that the Riverside LNG project’s objective is to provide energy from Nigeria to Germany, effectively eliminating approximately 50 million cubic feet of flared gas per day in Nigeria.
A statement issued by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, quoted Ige as saying: ‘’The project will supply energy from Nigeria to Germany at 850,000 tonnes per annum, expanding to 1.2 million tonnes 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.”
The German collaborators conveyed their confidence in investing in Nigeria’s gas sector.
Mr. Frank Otto, the Chief Operating Officer of Johannes Schuetze Energy Import AG, characterized the partnership as a significant development for the German market.
Mr. Farouk Gumel, Chairman of Union Bank, revealed a commitment of $500 million for e-energy projects in Nigeria. He underscored the significance of rural inclusion and the integration of more individuals 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,’’ Mr. Gumel said.
Welcoming the new deals, President Bola Tinubu assured German businesses that with Nigeria’s stable political landscape, foreign investments into the country were secure.
‘’Since 1999, we have witnessed changes in democratic governance, with peaceful transfer of power within and between parties. 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 faced by other African nations, Nigeria stands firm, and we are your partners,’’ the President declared.