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Nigeria, Germany forge $500 million economic nexus with renewable energy and gas export pacts

Bilateral Agreements Aligned with Sustainable Practices and Economic Revitalization Unveiled in Berlin

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In a landmark development to fortify economic ties, Nigerian and German companies inked two pivotal agreements in Berlin on Tuesday, valued at $500 million. The accords, a testament to strengthened bilateral cooperation, delve into a renewable energy pact and a gas export deal, according to a statement by presidential spokesperson Ajuri Ngelale.

The Union Bank of Nigeria and Germany’s DWS Group formalized a Memorandum of Understanding (MoU) focusing on renewable energy. This strategic partnership aims to attract $500 million in investments dedicated to renewable energy projects, with a primary focus on rural communities across Nigeria.

The second MoU solidified a gas export partnership between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG. Nigeria commits to supplying 850,000 tons of natural gas annually to Germany, with projections indicating an increase to 1.2 million tons starting in 2026.

Integral to this deal is the commitment to process approximately 50 million cubic feet per day of natural gas, addressing environmental concerns linked to gas flaring—an essential step in harnessing Nigeria’s abundant gas resources for sustainable energy projects.

President Bola Tinubu, attending the G20 Compact with Africa conference in Berlin, expressed approval of the agreements, aligning with Germany’s commitment to invest 4 billion euros in green energy projects in Africa by 2030.

This collaborative effort aims to support Germany’s transition to carbon neutrality and meet its goal of net-zero emissions by 2045. Chancellor Olaf Scholz highlighted the pivotal role of green hydrogen imports, particularly from Africa, in achieving environmental objectives during the German-African business forum preceding the G20 Compact with Africa summit.

Under President Tinubu’s leadership, Nigeria has undertaken significant reforms, including the removal of a popular petrol subsidy and the relaxation of foreign exchange trading restrictions, aiming to attract investors and revitalize the economy.

However, challenges persist, as recent revelations by the Federal Government disclosed over N4.3 trillion worth of crude oil stolen in 7,143 pipeline vandalism cases within five years. This emergency poses a serious threat to oil exploration and exploitation, prompting the need for sustainable economic solutions amidst sluggish growth, record debt, double-digit inflation, and crude oil theft.

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