President Tinubu’s Visit to Germany: A Story for Nigeria’s Investment Drive

Bola Tinubu, Nigeria’s president, this week wrapped up a five-day trip to Germany, where he attended the G20 Compact with Africa (CwA) conference on November 20th. The CwA was launched in 2017, under the German G20 Presidency, to promote private investment in Africa.

The summit, hosted by Olaf Scholz, the German chancellor, brought together leaders from CwA countries, bilateral partners, and international organisations. They discussed how to boost economic and business ties, and agreed on concrete steps to attract more investment in key sectors such as energy, trade, infrastructure, and new technologies. 

Mr Tinubu seized the opportunity to pitch Nigeria as an attractive destination for foreign capital. He told investors that Nigeria’s greatest asset was not its natural resources, but its people, who are Nigerians. He urged more German firms to explore the opportunities in Nigeria’s diverse economy, ranging from transportation to mining to energy. Tinubu said Nigeria is open for business. “We are providing the best environment for you to invest,” President Tinubu told international investors in Berlin. “Today, you can move your money in and out as you wish.”

Nigeria's president is betting on his reforms, which includes the removal of fuel subsidies and the unification of the naira’s exchange rate, to revive the country's flagging foreign direct investment (FDI). FDI has fallen sharply in recent years, as Nigeria grapples with security, corruption and infrastructure challenges. 

The visit also served as gesture of diplomatic courtesy. Tinubu returned the favour after the German chancellor, Olaf Scholz, visited Abuja and Lagos, Nigeria's capital and commercial hub, respectively, in late October. 

But beyond diplomatic courtesy, Tinubu built on the previous meetings with German business leaders, who accompanied Scholz on his trip, to secure two major deals and partnerships that will boost Nigeria’s economy and create jobs.

In one of the deals, Nigeria and Germany signed a Memorandum of Understanding (MOU) for the supply of liquified natural gas (LNG) from Nigeria to Germany. The MOU was signed by Nigeria’s Riverside LNG project and Germany’s Johannes Schuetze Energy Import. The agreement stipulates that Nigeria will export 850,000 tonnes of LNG per year to Germany, expandable to 1.2 million tonnes in the future. The first deliveries are expected to leave Nigeria in 2026.

In the other deal, Germany committed to investing $500 million in renewable energy and technology projects, which aim to bring more people into the formal economy.

Nigeria is seeking to boost investment rather than rely on debt to revive its economy, weighed down by sluggish growth, record debt, double-digit inflation, foreign currency shortages, and thefts of crude oil, its main export.

Tinubu’s visit to Germany is a positive step towards achieving Nigeria’s investment goals and improving its business environment.