"Promise Kept": Nigeria Signs $500 Million Energy Swap Deal With Germany
- Germany and Nigeria have signed two energy exchange projects worth about $500 million
- The agreements require Nigeria to supply gas to Germany while the German government provides Nigeria with renewable energy
- The first gas supply from Nigeria to Germany will be done in 2026 as Nigeria seeks to end gas flaring
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The Nigerian government has signed a memorandum of understanding (MoU) with Germany on gas supply and renewable energy projects.
The deals require Nigeria to supply gas to Germany and the other a $500 million worth of renewable energy projects in Nigeria.
Source: Getty Images
Nigeria to export gas to Germany in exchange for renewable energy
According to a statement by Ajuri Ngelale, Special Adviser to the president on media and publicity, President Bola Tinubu saw the signing of the two MoUs in Berlin, Germany, at the sidelines of the 10th German-Nigerian business forum.
The signing of the MoU on gas export collaboration was between Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany.
The order agreement was between the Union Bank of Nigeria and the DWS Group on collaboration and renewable energy.
TheCable reports that Tinubu told German firms that foreign investments in Nigeria are safe due to the country's maturing democracy.
He said that with a strong democracy, Nigeria is ready to attract foreign direct investments.
Tinubu begs for foreign investments
The president stated that since 1999, Nigeria has seen shifts in democratic governance, including smooth handovers of power between political parties.
Tinubu said:
"I appeal to you to forget the past and focus on building a relationship that removes obstacles, fostering progress and prosperity in Nigerian-German relations."
First gas supply to be done in 2026
David Ige, CEO of GasInvest, said the Riverside LNG project aims to supply Germany with energy from Nigeria while ending gas flaring estimated at 50 million cubic feet daily in Nigeria.
Ige said the project will supply energy from Nigeria to Germany at 850,000 tonnes annually, increasing it to 1.2 million annually.
He said the first gas will leave Nigeria for Germany in 2026, and more expansions will extinguish about 50 million cubic feet of flared gas daily.
Also speaking, Farouk Gumel, chairman of Union Bank, said the company is committed to Nigeria's $500 million e-energy projects.
He said it is essential to include rural and more people in the formal economy.
FG Gets Help From American Firm, Seals Multibillion-Dollar Deal
The development comes as the Nigerian government secured a $2.2 billion solar PV deal with Florida-based Sun Africa through the Ministry of Power, Legit.ng reported.
The Minister of Power, Bayo Adelabu, disclosed this on his X page, stating that the deal was signed on Friday, November 17, 2023, when the company committed to delivering 961 megawatts peak (MWp) of solar photovoltaic power generation infrastructure and 455 megawatts of battery storage system
Adebayo revealed that he represented President Bola Tinubu at the commissioning and coordination centre in Cotonou, Benin Republic.
Germany to supply Nigeria, and other African countries cheap electricity from a centre in Cotonou
Legit.ng reported that The German Vice Chancellor, Olaf Scholz, has revealed that his country is collaborating with the Economic Community of West African States (ECOWAS) to supply cheap electricity to member countries.
Vanguard reports that the German Vice Chancellor spoke at a press conference after meeting with the ECOWAS’ President, Omar Alieu Touray, in Abuja on Sunday, October 29, 2023.
Olaf revealed that Germany is also partnering with ECOWAS in other areas, including the region's pandemic prevention, security, and coup prevention.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
