Nigeria and Germany have agreed on a deal for Africa’s largest oil producer to supply more gas to Germany while Berlin will also invest $500 million in renewable energy projects, Nigeria’s presidency has said.

Since he came to office in May, Nigerian President Bola Ahmed Tinubu has been courting foreign investors to Africa’s largest economy pointing to his reforms on fuel subsidies and currency controls as incentives.

Tinubu was in Berlin for the G20 Compact with Africa conference.

The memorandum of understanding (MOU) for the gas deal was signed between Nigeria’s Riverside LNG project, which works in the country’s Niger Delta, and Johannes Schuetze Energy Import.

“The project will supply energy from Nigeria to Germany at 850,000 tons per annum, expanding to 1.2 million tons per annum,” said David Ige, CEO of GasInvest, one of the Nigerian partners that signed the MOU.

The first gas is expected to leave Nigeria in 2026.

The statement said another MOU was signed for a $500 million commitment to e-energy projects in Nigeria, aiming especially at bringing more people into the formal economy.

Germany is also discussing an agreement with Siemens to help with Nigeria’s electric power supply, which is unstable and a major burden for Nigerians and businesses.

Tinubu has also expressed interest in Siemens helping modernise and expand Nigeria’s railway network.

When the Nigerian leader came to office, he abandoned a long-standing fuel subsidy that kept petrol prices artificially low, but had also cost the country billions a year to maintain.

Though a major oil and gas producer, Nigeria still imports most of its fuel needs because of a lack of working refinery capacity.

Source- Daily News.