..Says the Siemens deal is “fully back”.
…$500m renewable energy, gas deals sealed
Hope rises for the struggling electricity industry on Tuesday in faraway Berlin, Germany, when Nigeria’s Minister of Foreign Affairs, Amb Maitama Tuggar stated that there will be an improvement in electricity supply in the country by the first half of 2024.
The Minister gave this assurance following the reinvigoration of the Siemens deal with the Nigerian government.
According to him: “With the Siemens gas deal between Nigeria and Germany, Nigerians will experience improved electricity supply by the first half of 2024.”
He spoke virtually from Berlin, Germany, on Channels Television’s Politics Today programme on Tuesday.
“In the coming year by the first half of next year (2024), there will be a remarkable improvement in the electricity supply in Nigeria,” he said, adding that the setbacks experienced in the past would be managed by President Bola Tinubu administration.
Former President Muhammadu Buhari had in 2018 promised to expand Nigeria’s electricity capacity which is currently at 4,000 megawatts to 25,000mw by 2025 when he inked a deal with Siemens Energy in Germany under the Presidential Power Initiative but the project has not been actualised.
However, the minister, who is part of the President’s team at the G20 Compact with Africa Economic Conference in Germany, said the Siemens deal is “fully back”.
Tuggar said the gas deal between Nigeria and Germany is a win-win. He said, “The fact that we are exporting gas to Germany or we intend to do that does not mean that we are depriving Nigeria’s domestic gas needs; that will be fulfilled as well but you also need the revenue that would accrue from such exports to invest further in taking electricity and gas to other parts of Nigeria. So, it’s all interconnected and one does not stop the other from happening.”
The minister further said electricity supply would improve with the completion of the ongoing AKK project – the Ajaokuta-Abuja-Kaduna-Kano project.
Meanwhile, in a significant move to strengthen economic ties, Nigerian and German companies sealed two pivotal agreements in Berlin on Tuesday.
The accords valued at $500m, encompass a renewable energy pact and a gas export deal, marking a milestone in bilateral cooperation, the Presidential spokesperson, Ajuri Ngelale said in a statement.
Union Bank of Nigeria and Germany’s DWS Group formalised a Memorandum of Understanding on renewable energy.
This strategic partnership aims to attract $500m in investments dedicated to renewable energy projects, with a primary focus on rural communities across Nigeria.
According to the statement, 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. The initial shipments are scheduled for 2026, the statement confirmed.
An integral aspect of this deal is its contribution to processing approximately 50 million cubic feet per day of natural gas that would otherwise be flared.
This aligns with both nations’ commitment to environmentally conscious practices and sustainable energy solutions.
Nigeria, home to Africa’s largest gas reserves exceeding 200 trillion cubic feet, has grappled with environmental concerns linked to gas flaring.
This deal signifies a crucial step toward addressing this issue and harnessing Nigeria’s abundant gas resources for sustainable energy projects.
President Bola Tinubu, attending the G20 Compact with Africa conference in Berlin, expressed his approval of the agreements.
This positive sentiment aligns with Germany’s commitment, as Chancellor Olaf Scholz announced a 4 billion euro investment in green energy projects in Africa by 2030. The collaborative effort aims to support Germany’s transition to carbon neutrality and meet its goal of net-zero emissions by 2045.
Acknowledging the need for green hydrogen imports, particularly from Africa, Scholz highlighted the pivotal role these investments play in achieving environmental objectives.
The remarks were made during a German-African business forum preceding the G20 Compact with Africa summit, focusing on coordinating development agendas and identifying business opportunities in Africa.
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.
These bold initiatives aim to make Nigeria more appealing to investors and revitalize its economy, addressing challenges such as sluggish growth, record debt, double-digit inflation, and crude oil theft.
