Nigerian President Bola Tinubu is making strides to bring foreign investment into the country, welcoming two new trade agreements with Germany, including a deal for the West African nation to export liquid natural gas (LNG).
The agreements, signed on Tuesday, are just the latest in a string of investment deals secured by the Tinubu-led administration in recent months, and come less than two weeks after Nigeria and Saudi Arabia reached a deal to revive the country’s nonfunctional refineries.
The President is working hard to make Nigeria attractive to investors in order to help revive an economy that has been struggling with slow growth, rising inflation and heavy debt.
The first deal will see Nigeria’s Riverside LNG supply 850,000 tonnes of LNG to Germany each year, in partnership with German firm Johannes Schuetze Energy Import AG. The first delivery of gas is set to arrive by 2026, with the potential for increased exports in the future.
The agreement will also benefit the environment, as it will enable Nigeria to make use of natural gas that would otherwise have been burned off. Nigeria holds Africa’s largest gas reserves, with more than 5 trillion cubic meters, but due to a lack of processing infrastructure, much of it has been going to waste.
The second deal is a $500 million renewable energy agreement between Nigeria and German company DWS Group. This agreement will provide funding for renewable energy projects in Nigeria, particularly those located in rural areas.
Speaking to Lagos-based Channels television, President Tinubu’s spokesperson, Ajuri Ngelale, discussed the President’s efforts to make the country an attractive option for foreign investors.
Ngelale stated, “He is personally conducting an open-door policy to investors from around the world, including here in Germany, to ensure that they have direct access to all of the regulators and government officials that will further enhance the environment in which foreign direct investments will be coming into the country.”
President Tinubu also attended the G20 Compact with Africa Summit in Berlin, which is aimed at helping African countries to expand their economies through investment and trade.
Economist Emeka Okengwu commented on the agreements, calling it “a big deal” and one that should be celebrated. He believes that the deal will generate jobs, as the base of productivity in Nigeria is energy.
Okengwu also warned that, “It is one thing to sign paper, and it is another thing to get the deal off the ground.”
It is clear that President Tinubu is determined to bring foreign investment into the country, as he has also made deals to improve electricity and rail transport. It remains to be seen whether these deals will have the desired effect, but it is a positive step for Nigeria’s economic growth.
