German Chancellor Olaf Scholz paid a visit to the State House on October 29, meeting with President Bola Ahmed Tinubu.
The discussions primarily revolved around investments and collaboration, with a particular focus on Nigeria’s abundant natural gas resources.
Scholz expressed a keen interest in these resources and suggested that it would be beneficial for more Nigerian states with natural gas to target the export market.
This visit gained significant anticipation due to the critical disruption in gas supply caused by the Russian invasion of Ukraine, which affected gas supplies through Germany and its pipelines.
As a result, there is a pressing need for Germany and other European economies to find alternatives to Russian gas.
This urgency led to Chancellor Scholz’s visit to explore potential solutions, with Nigeria emerging as a key option due to its reliable liquefied natural gas (LNG) exports to European markets.
The Nigeria Liquefied Natural Gas (NLNG) Limited plays a crucial role as the fourth-largest natural gas supplier to the EU, making it a pivotal player in the quest for alternative gas sources.
However, Nigeria faces challenges in its domestic gas supply, including pipeline vandalism, crude oil theft, and a lack of investments in upstream projects.
These factors have resulted in a shortage of domestic gas supply.
To address these issues, Nigeria needs more investment in upstream projects to meet both export and domestic demand.
In this context, Germany’s interest in Nigeria’s gas resources presents an opportunity to boost domestic gas demand and align with Nigeria’s goals for net-zero emissions.
Nigeria should consider taking up the German deal, as it can help increase foreign exchange earnings and support the development of its untapped gas resources, aligning with its energy transition plans.
