… Signs $500 million energy deal with Germany
President Bola Tinubu met with German Federal Chancellor, Olaf Scholz, where he discussed Nigeria’s determination to pursue German investment in the power and rail sector, among others.
The President met with Scholz on the sidelines of the G20 Compact with Africa Economic Conference on Monday.
Eventually, Nigeria signed a $500 million worth of gas export deal with Germany.
This is according to a statement released via Twitter by Dr Doris Uzoka-Anite, the Minister for Industry, Trade and Investment on Tuesday, November 21.
The Nigeria president noted that his administration is eager to partner with German companies, such as Siemens AG, in reforming the power sector of Nigeria.
During a meeting at the G20 Compact with Africa Investment Summit in Berlin, Germany, President Bola Tinubu and German Federal Chancellor Olaf Scholz came together to discuss Nigeria’s aspirations for German investment. Specifically, Tinubu expressed a strong interest in collaborating with German companies like Siemens AG to revamp Nigeria’s power and rail sectors.
Tinubu emphasized to Scholz that his administration was enthusiastic about forging partnerships with German firms, especially Siemens AG, to bring about significant changes in Nigeria’s power sector. In response, Scholz acknowledged the existing challenges both administrative and financial within Nigeria’s power sector that urgently need attention. “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,” the President told Scholz.
On his part, the Federal Chancellor of Germany, Olaf Scholz, signalled a willingness to address administrative and financial challenges in the sector, recognizing the governance issues inherited from the previous administration.
“I know that there is a lot of work that has been done. There is already a big production of electricity in Nigeria, but it is not getting to the population. Of course, this has to do with the need for a provision of 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,” he said.
Speaking on the investment in the rail sector, Scholz said Nigeria can replicate the success of China, noting that the country shared similar opportunities and conditions with the Asia country.
“There is nothing too unique about the growth of China. It came down to a lot of investment from overseas that leveraged 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,” he added.