President Bola Ahmed Tinubu returned to Nigeria on Wednesday after participating at the G20 Compact with Africa Economic Conference in Berlin, Germany.
The burgeoning economic partnership between Nigeria and Germany witnessed further expansion and strengthening as two important agreements were signed between both nations’ businesses on Tuesday.
Tinubu witnessed the signing of two Memoranda of Understanding (MoU), one on the supply of gas from Nigeria to Germany.
The other MoU which was signed was for $500 million worth of renewable energy projects in Nigeria.
The signing of MoUs was between Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany on the gas export partnership.
The other signed pact brought together the Union Bank of Nigeria and DWS Group on cooperation in renewable energy.
If and when implemented, Nigeria stands to benefit, at least, on three major fronts .
The first one is the restructuring of the Siemens Power Deal to ensure a faster implementation. The deal includes the rehabilitation, upgrade and expansion of transmission and distribution networks in Nigeria.
Following Tinubu’s meetings with German political and business leaders, the Minister of Power, Chief Adebayo Adelabu, took a tour of Siemens Energy’s Switchgear, Electrolyzer, and Gas Turbine Production factory in Berlin, Germany on Wednesday alongside the Siemens Nigeria CEO, Seun Suleiman and members of their management team.
Another gain is the gas supply deal signed between Nigeria and Germany with the first delivery set for 2026.
The chief executive officer (CEO) of GasInvest, Mr David Ige, who signed the MoU on gas supply, said the Riverside LNG project aims to supply energy from Nigeria to Germany, extinguishing about 50 million cubic feet per day of flared gas in Nigeria.
“The project will supply energy from Nigeria to Germany at 850,000 tonnes per annum, expanding to 1.2 million tonnes per annum,” Ige said.
“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 third gain is the $500m Green Energy Project agreement that will see to the implementation of several renewable energy projects across Nigeria.
The chairman of Union Bank, Mr. Farouk Gumel disclosed the commitment of $500 million for e-energy projects in Nigeria.
He also emphasised the importance of rural inclusion and bringing more people into the formal economy in the country.
”We believe this would bring rural inclusion and capture more people into the formal economy. Without inclusion, there is no growth,” Gumel said.
Welcoming the new deals, Tinubu assured German businesses that with Nigeria’s stable political landscape, foreign investments into the country are secure.
Source: The Guardian
