By Emem Ekanem
German Chancellor, Olaf Scholz held talks with Nigerian President, Bola Tinubu as part of his West Africa tour to explore trade and investment prospects, which reflects Germany’s aim to broaden its trade network and forge stronger economic ties in the energy-rich region.
During his third recent visit to Africa since assuming office in 2021, and his second this year, Chancellor Scholz advocated for enhancing Nigeria’s ability to address domestic demands, while also aiming to strengthen trade ties with its second-largest trading associate in sub-Saharan Africa. The annual trade volume between Germany and Nigeria is roughly valued at three billion euros (€3 billion).
It can be recalled that in recent weeks, the German Ambassador to Nigeria, Annett Gunther announced that the trade value between Germany and Nigeria reached three billion euros in 2022. Speaking to reporters in Abuja, Ambassador Gunther revealed that Nigeria holds the position of being Germany’s second-largest trade partner in Sub-Saharan Africa. She stated that Germany primarily exports machinery (28 percent), food products (20 percent), and chemical products (19 percent). In return, Nigeria’s main exports to Germany consist of crude oil (83 percent), food products (12 percent), and various other raw materials (4 percent). Gunther further mentioned that there has been a bilateral energy partnership between the two countries since 2008, focusing on boosting renewable energy efficiency in the fields of energy and climate. Additionally, she emphasized Nigeria’s significance as a crucial political, economic, and cultural ally for Germany.
Key elements of the nations’ collaboration involve assisting Nigeria in addressing regional and worldwide concerns like migration, security, and political instability in West and Central Africa, Scholz informed Tinubu during their meeting in Abuja.
Chancellor Scholz highlighted numerous opportunities beyond oil and gas, emphasizing the potential for maximizing the country’s capacities and making forward-looking investments, particularly in hydrogen. Specialists have identified Africa as a potential exporter of hydrogen energy in response to the global push for an energy transition.
Under intense domestic scrutiny regarding migration concerns, the German Chancellor proposed a collaborative approach that would serve the interests of both nations most effectively.
A plan is in progress with the European Union to enhance migration policies, aiming to ensure that individuals without the legal right to remain in his country, can and should go back, which is viewed as a mutually beneficial arrangement for both nations, stated Scholz.
Prior to his meeting with President Tinubu, Chancellor Scholz stated in an interview with Lagos-based Punch newspaper that Germany is in need of a significant amount of natural gas. He emphasized the importance of reaching specific agreements between Nigerian gas producers and producers and German gas traders regarding the supply amounts.
Nigeria possesses the largest confirmed gas reserves in Africa, amounting to an estimated two hundred and two (202) trillion cubic feet. Given Russia’s significant reduction in natural exports to Europe following its war with Ukraine, Nigeria has expressed interest in contributing to Europe’s gas requirements. Meanwhile, Germany has taken steps to broaden its sources of gas beyond reliance on Russia since the war.
The Nigerian President stated that he had an in-depth conversation about gas investment with the German Chancellor and requested Germany’s assistance in tackling the nation’s security and economic issues.
Tinubu expressed that Nigeria is currently making slow progress, but there is a strong resolve to shift this narrative and establish a government that brings significant change. In his words, “Nigeria is still crawling, but we are determined to change the narrative and bring about a transformative government in the country.” He further emphasized the continued need for support in this endeavor, adding that to ensure the endurance of the rule of law and freedom for the citizens, there is a necessity to stand up for democratic values. He stated, “We still need very much support in that area. And for us to be able to sustain democracy, the rule of law, and freedom for our people, we need to fight for democracy.”
Additionally, Scholz had a meeting with Omar Alieu Touray, the president of the Economic Community of West African States (ECOWAS) commission, the regional body of West Africa, to discuss strategies for dealing with recent political upheavals in certain parts of Africa. On Monday, he also inaugurated a German-Nigerian business forum in Lagos, a major economic center, before concluding his tour in Ghana on Tuesday.
