Nigeria and Germany have sealed a deal set to boost gas and renewable energy sector. The two countries have agreed on a US $500M investment in renewable energy and technology projects in Nigeria. The investments in renewable energy align with global efforts to transition to more sustainable and environmentally friendly energy sources.
Germany is also in discussions with Siemens to assist with Nigeria’s electric power supply, which has been characterized as unstable and burdensome for the country’s residents and businesses. The potential collaboration with Siemens could involve modernizing and expanding Nigeria’s railway network.
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LNG deliveries
On the gas deal, a Memorandum of Understanding (MOU involves Nigeria’s Riverside LNG project in the Niger Delta and Germany’s Johannes Schuetze Energy Import. Nigeria will export 850,000 tons of liquefied natural gas (LNG) annually to Germany initially, with plans to increase it to 1.2 million tons in the future. The first LNG deliveries, accounting for 2% of Germany’s total LNG imports, are expected to commence in 2026. The deal marks a significant diversification of German gas imports.
Nigerian President Bola Ahmed Tinubu, who assumed office in May, has been actively working to attract foreign investors to Nigeria. Reforms on fuel subsidies and currency controls are highlighted as incentives for foreign investors. President Tinubu has expressed interest in Siemens’ involvement in modernizing and expanding Nigeria’s railway network.