President Bola Ahmed Tinubu, on Tuesday, witnessed the signing of two Memoranda of Understanding: one on the supply of gas from Nigeria to Germany and another for $500m worth of renewable energy projects in Nigeria.
Tinubu, while speaking in Berlin, Germany, at the 10th German-Nigerian Business Forum, said that with a resilient democracy, Nigeria is primed to attract foreign direct investments.
“The signing of MoUs was between Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany on the gas export partnership, while the other signed pact brought together Union Bank of Nigeria and DWS Group on cooperation in renewable energy,” Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, revealed in a statement signed Tuesday.
The statement is titled ‘Nigeria-Germany partnership expands as President Tinubu witnesses signing of $500m renewable energy pact and gas export agreement’.
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 flared gas in Nigeria at about 50 million cubic feet per day.
“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 further expansion will occur.
“This will extinguish about 50 million cubic feet per day of flared gas in Nigeria and open alleyways of new and greater gas exports to Germany,” Ige said.
On their part, the German partners expressed confidence in investing in Nigeria’s gas sector.
Chief Operating Officer of Johannes Schuetze Energy Import AG, Mr. Frank Otto, described the partnership as a “big deal” for the German market.
Chairman of Union Bank, Mr Farouk Gumel, disclosed the commitment of $500m for e-energy projects in Nigeria, emphasising the importance of rural inclusion and bringing more people into the formal economy.
Mr Gumel said, “‘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.”
Welcoming the new deals, Tinubu assured German businesses that with Nigeria’s stable political landscape, foreign investments into the country are secure.
He remarked, “Since 1999, we have witnessed changes in democratic governance, with peaceful power transfers 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 other African nations face, Nigeria stands firm, and we are your partners.”
He also outlined some of his administration’s achievements, including his globally acclaimed economic reforms and emphasised his commitment to sustaining the reforms and building stronger Nigerian-German relations.
“For those who feared various obstacles, look at me—I come from the private sector, trained by Deloitte. I served as the treasurer of Exxon Mobil.
“Define corporate governance in any way, and I am in it. I governed Lagos for eight consecutive years.
“Today, I can proudly beat my chest that Lagos state is on the horizon and the fifth-largest economy in Africa, rising from ground zero. This is the track record that led me to the presidency,” he affirmed.
Still, on the assurance train, President Tinubu appealed to investors to forget Nigeria’s “past and focus on building a relationship that removes obstacles, fostering progress and prosperity in Nigerian-German relations.”
“You can rely on us; we can rely on you; both of us can chorus Hallelujah simultaneously,” the President concluded.
He affirmed that his nearly six months in office have been spent delivering the much-needed reforms Nigerians want.
“I removed the fuel subsidy that is a significant burden to Nigerians from the moment I stepped into office.
“The arbitrage regime is gone forever. Now, you can bring your money in and out as you wish.
“If you encounter any problems, rest assured that I have built one of the most reliable teams Nigeria has seen to address them,” he vowed.
The Informant247 on Monday reported that President Bola Ahmed Tinubu, in the crux of discussions between the Nigerian leader and German Chancellor, Olaf Scholz, on the sidelines of the G20 ‘Compact with Africa’ Economic Conference,’ reaffirmed Nigeria’s determined pursuit of German investment in targeted sectors of its home economy, saying his administration is focused on critical growth-enabling industries in energy, transportation and electric power production, transmission and distribution.
Tinubu, in a statement signed by his spokesperson, Ajuri Ngelale, titled ‘President Tinubu meets German Chancellor Scholz; advances negotiation on German investment in power and rail transportation sectors,’ noted the success of Siemens AG in positively transforming the quantity and quality of Egyptian electric power supply, while pledging that under his watch, the staggered and unsteady implementation of the Siemens-supported Presidential Power Initiative would take on new urgency with a more deliberate process of project execution.
The president said, “For me, I am very much committed to pursuing all aspects of the Siemens Power project and the skill development opportunities that will emerge from that project for our talented youths who can participate in sustaining the industry.”
Referring to the new 2,000km ultra-high-speed rail network which Siemens is presently constructing across 60 cities in Egypt at the speed of 230km/hour, Tinubu expressed his keen interest in the role Siemens can play in modernising and expanding Nigeria’s rail network with the provision of ultra-modern trains and railways.
These would more than double the speed of existing 100km/hour standard-gauge systems presently operating in Nigeria, he noted.
On his part, the German Chancellor expressed readiness but acknowledged the need to resolve administrative and financial hurdles brought about by governance problems emanating from prior administrations in the sector.
Scholz said, “I know that there is a lot of work that has been done. There is already a big electricity production in Nigeria, but it is not getting to the population.
“Of course, this has to do with the need to provide stations and infrastructure on the grid. Siemens has developed the plan and is ready to deepen implementation, but it is now up to your new government to take the follow-up action that you are now committed to taking.
“On the railway plans, Siemens will be very happy to do this when more progress is made on the power project, which has been started already.”
Tinubu drew the attention of the German leader to the need for his business community to focus their attention on value-additive processing in Nigerian solid minerals, agricultural goods, automobile production, and other job-creating sub-sectors of the economy.
He stated, “Everything the world requires in terms of business environment reforms are underway in Nigeria.
“Perhaps our foreign investors are still a bit paranoid that those old Nigerian issues are intractable.
“But my track record speaks for itself. I have transformed an entity before now. I am here to do it again, and I will.”
Nodding affirmatively, the German Chancellor said, “There is nothing too unique about the growth of China.
“It came down to a lot of investment from overseas that leveraged on cheap and skilled labour with adequate internal infrastructure and shipping infrastructure for imports and exports to flow easily.
“These things are possible in Nigeria. You even have abundant natural resources. Step by step, it is achievable, Mr. President.”
The two men who lead the largest economies in Africa and Europe, respectively, agreed to deepen collaboration on the utilisation of advanced biometric systems and border control technology to check irregular migration.
They also agreed that investments in labour-intensive industries will go a long way toward resolving the root causes of the problem.
Tinubu later exchanged views with the German Head of State and Federal President, Frank-Walter Steinmeier, before attending the Compact with Africa Summit of Heads of State and Government.