Nigeria’s resolve to seek German investment in the power and rail sectors, among other areas, was discussed by President Bola Tinubu during his meeting with German Federal Chancellor Olaf Scholz.
At the G20 Compact with Africa Economic Conference on Monday, the President had a meeting with Scholz off-site.
In order to reform Nigeria’s power sector, he stated that his administration is keen to collaborate with German businesses like Siemens AG.
You may remember that the Presidential Power Initiative (PPI), supported by Siemens, was founded by former President Buhari in 2018 in an effort to address remaining issues in the power industry and increase capacity for future power requirements.
It was anticipated that Siemens Energy would arrange project financing through the German Export Credit Agency (Euler Hermes AG), additional Export Credit Agencies, and other financing agencies.
President Tinubu did point out that in order to guarantee the prompt completion of specific projects in the power industry, an initiative review is necessary.
Observing that Siemens AG had improved Egypt’s supply of electricity both in terms of quantity and quality, the President announced that under his direction, the PPI would now be implemented with greater urgency and a more methodical approach to project execution.
“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.
Acknowledging the governance issues handed over from the previous administration, Olaf Scholz, the Federal Chancellor of Germany, indicated his willingness to tackle the sector’s financial and administrative challenges.
“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 about the investment in the rail industry, Scholz noted that Nigeria shared similar opportunities and conditions with China, implying that the country can duplicate China’s success.
“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.
Olaf Scholz, the Chancellor of Germany, visited Nigeria earlier in October, demonstrating the country’s strong desire to receive investment.
Scholz observed Nigeria’s enormous potential for producing LNG (liquefied natural gas) while he was there. In addition, he committed to funding the county’s rail industry and mineral resources.
With the ongoing crisis sparked by Russia’s war in Ukraine and the Israel-Hamas conflict, Western European nations are starting to look more and more to Africa for their energy needs. Nigeria possesses some of the world’s largest oil reserves, which presents a chance for both nations to strengthen their investment relations.
Ref: AFP
