Nigeria and Germany Sign Renewable Energy Deal Worth $500 Million

It’s reported that Nigerian and German companies signed a contract worth $500 million in Berlin on Tuesday. The presidential spokesperson, Ajuri Ngelale, said that this deal included a significant renewable energy deal and a gas export partnership that will in turn foster bilateral collaboration between the two countries.

The first agreement was between the Union Bank of Nigeria and Germany’s DWS Group and aims at solidifying a renewable energy Memorandum of Understanding (MoU). The collaboration aims to generate over $500 million in investments, primarily focused on renewable energy projects, especially in rural Nigerian communities.

The second MoU is to establish a connection between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG. Annually, Nigeria supplies over 850,000 metric tonnes of natural gas to Germany, to increase it to 1.2 million metric tonnes in 2026.

This partnership is integral to processing around 50 million cubic feet per day of natural gas that would otherwise be flared, aligning with both countries’ commitment to sustainable energy solutions, according to a BusinessDay report.

The signing of the contract was in line with addressing environmental concerns linked to gas flaring and leveraging Nigeria’s vast gas reserves, which have exceeded 200 trillion cubic feet, for sustainable energy projects.

President Bola Tinubu, attending the G20 Compact with Africa Conference in Berlin, expressed his profound gratitude for the agreements, which he said aligned with Germany’s commitment to investing 4 billion euros in green energy projects in Africa by 2030.

The collaboration is also said to help Germany’s transition to carbon neutrality and net-zero emissions by 2045. German Chancellor, Olaf Scholz, stressed the importance of green hydrogen imports from Africa to attain environmental goals during a German-African business forum preceding the G20 Compact with Africa summit.