Economic boom expected in Nigeria as a result of investment deals

Bola Tinubu, the president of Nigeria, is applauding Germany’s new trade deals, one of which requires the West African country to export liquid natural gas.

The latest in a string of investment agreements sealed by the Tinubu-led administration in recent months was the signing on Tuesday of two memoranda of understanding between Nigerian businesses and their German counterparts.

Less than two weeks have passed since Saudi Arabia and Nigeria reached an agreement to restart the nation’s abandoned refineries.

In an effort to boost the economy, which is suffering from low growth, growing inflation, and massive debt, Tinubu is trying to recruit foreign investors to the nation.

Working with German company Johannes Schuetze Energy Import AG, Riverside LNG of Nigeria would provide 850,000 tonnes of liquefied natural gas to Germany annually under one agreement. The president’s office stated that gas exports would rise in the coming years, with the first delivery of gas anticipated in 2026.

According to the authorities, natural gas that would have otherwise been flared into the environment will be used in this transaction. Nigeria has the greatest gas reserves in Africa (about 5 trillion cubic metres), yet the nation uses most of it every day because of inadequate infrastructure for processing.

READ ALSO: Nigerian top general claims that Finland is providing shelter to Simon Ekpa

Nigeria also signed a $500 million contract with a German business for renewable energy. According to the agreement, Germany’s DWS Group would finance renewable energy initiatives in Nigeria, particularly in the country’s rural areas.

Ajuri Ngelale, the president’s spokesperson, did not answer calls seeking comment, but he did discuss the president’s push for foreign investments with Lagos-based Channels television.

“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,” Ngelale stated.

Attending this week’s G20 Compact with Africa Summit in Berlin, Tinubu, according to experts, provided a platform for African nations to grow economically through trade and investment.

Economic analyst Emeka Okengwu stated that the investments are significant.

$500 million cannot be wished away in any manner. It’s worth celebrating as it’s a major deal, Okengwu added. It will undoubtedly result in the creation of jobs. Energy is the foundation of our productivity. Energy will enable more industries to function, allowing individuals to generate more and find employment.

“It is one thing to sign paper, and it is another thing to get the deal off the ground,” he said.

Additionally, authorities from Nigeria are looking to invest in the rail transport and electrical industries.