Tinubu Calls On German Firms To Invest In Nigeria’s Energy And Minerals

President Bola Tinubu has extended an invitation to the German government and private enterprises to explore investment opportunities in Nigeria’s energy and solid minerals sectors. During a meeting with German President Frank-Walter Steinmeier and his delegation at the State House on Wednesday, Tinubu emphasized his administration’s commitment to fostering a business-friendly environment.

He assured the delegation that his government has taken significant steps to remove administrative bottlenecks and strengthen security measures, making Nigeria a promising destination for investments in these critical sectors.

A statement from the Presidency quoted Tinubu, saying, “Unlocking the potential of the energy sector is pivotal to Nigeria’s development.” The President directed key ministries, including Solid Minerals, Power, Foreign Affairs, and Industry, Trade, and Investment, to collaborate with investors in advancing these industries.

Highlighting Nigeria’s potential, Tinubu stressed the importance of developing alternative energy sources and utilizing the country’s vast solid mineral deposits. He stated, “We have abundant sunlight for renewable energy and substantial reserves of critical minerals like lithium. Let’s deepen our partnership and drive industrialization through natural resource exploration.”

Tinubu also underscored the value of domestic and foreign investments in fostering economic growth and skill development, particularly among Nigeria’s youth, many of whom have been trained in Germany.

The Minister of Solid Minerals Development, Dele Alake, highlighted Germany’s €1 billion fund aimed at diversifying renewable energy supply chains. He encouraged German companies to explore Nigeria’s resources, including cobalt, nickel, and lithium, essential for energy transitions. Alake also pointed out the government’s Renewed Hope Agenda, which has introduced tax incentives, enhanced security, and streamlined operations within the solid minerals sector.

Key attendees, including Finance Minister Wale Edun, Trade and Investment Minister Dr. Jumoke Oduwole, and Power Minister Adebayo Adelabu, reiterated the government’s commitment to collaboration and growth.

Key Takeaways:

Nigeria’s energy poverty affects 71% of the population, with electricity generation limited to about 5,000 MW for over 200 million people.
Renewable energy remains underutilized, contributing less than 21% to total electricity capacity in 2023.
Challenges in the solid minerals sector include illegal mining, poor infrastructure, unclear land laws, smuggling, and insecurity.