Jump to navigation

Nigeria

Scholz dashes for gas

The Chancellor explores a deal with Abuja to diversify Germany's energy suppliers as Moscow's war on Ukraine forces gas importers to widen their horizons

The prospect of Germany opening negotiations for a longer-term gas supply agreement with Nigeria could be a turning point for the government's search for investment in its energy sector.

With the biggest reserves of gas in Africa and ninth biggest in the world, Nigeria's attempts to develop its export industry has been held back by complex and contradictory regulatory regimes together with corporate and political corruption.

Instead of investing in Nigeria which established a liquefied natural gas export industry three decades ago – which has become one of the most reliable revenue sources for its state and corporate shareholders – international energy companies have favoured newer territories such as Mozambique, Tanzania, Namibia and Senegal where they find their dealings with officialdom less arduous.

Should Nigeria strike a deal with Germany, it would be a huge win for Abuja's new economic team. In Abuja, Chancellor Olaf Scholz is suggesting that Nigeria could be part of Berlin's diversified gas supply following Russia's war in Ukraine.

Scholz met with President Bola Tinubu on Sunday, with officials in Berlin briefing that trade and investment and migration would be the main agenda items.

Germany has a 'considerable demand for natural gas', Scholz told the Lagos-based Punch newspaper adding that 'concrete amounts' of supplies should be agreed on in negotiations between Nigerian gas producers and German gas traders.

'There are a lot of chances not just from gas and oil… but for better using the capacities of your country, but also for going into investments for the future, which is about hydrogen,' said Scholz. Nigerian officials have indicated that an agreement with Berlin could be conditioned on the restitution of colonial-era Nigerian artefacts.

Though energy has been one of Germany's main priorities in terms of Africa policy, particularly the transition to clean energy – and the negotiation of Just Energy Transitions with African states – Russia's invasion of Ukraine in February 2022 has forced it to reevaluate its own supply of fossil fuels.

Last year, following meetings with Senegal's President Macky Sall, Scholz said that Germany, which is still exploring alternatives to the cancelled NordStream II gas pipeline with Russia, was looking at investing in a gas project near Senegal's border with Mauritania (AC Dispatches, 9/5/23, Chancellor Scholz seeks cooperation with Africa on tech and green energy).



Related Articles

Russian steal

At least five major Western banks were involved in the transfer, in 1996 and 1997, of 973 million Deutschemark (US$512 mn.) of Nigerian state funds to accounts linked...


Big oil and small print

The differences seem to be narrowing between the presidency and the critical stakeholders: indigenous and international oil companies, the Nigerian National Petroleum Corporation (NNPC) and the Federal Inland...


The Tinubu-Shell trade-off behind a $7.5 billion investment

UN experts warn that international oil companies’ opaque sales to local consortia flout environmental and human rights laws

The tortuous bargaining between international oil companies – Shell, TotalEnergies and ExxonMobil – and President Bola Ahmed Tinubu’s government over new investments has hit a succession of legal...


Net widens in oil trial

After Britain's National Crime Agency investigated her for 11 years, Diezani Alison-Madueke, Nigeria's former Minister of Petroleum Resources in 2010-15, finally appeared at Westminster Magistrate's court on 2...