President Bola Tinubu has told the German government and companies that his government is prioritizing the energy and solid minerals sectors, urging them to come and invest.
The President received a delegation led by the German President, Frank-Walter Steinmeier, in the state house on Wednesday.
The President assured that his government has been doing all it could to make these sectors conducive for businesses and investments by removing unnecessary administrative obstacles and improving security.
According to a statement issued by the Presidency, “President Tinubu said activation of the latent potentials in the energy sector remains central to Nigeria’s development.”
The statement added that the President had directed the ministries of Foreign Affairs, Solid Minerals, and Power, as well as the Ministry of Industry, Trade and Investment to work closely with investors to develop the energy sector.
“I am saying again that Nigeria is ready and open for business. As you mentioned, you are ready to support Nigeria in the energy sector, which you have long been doing.
“Also, in alternative energy, we have the sun, and you have the technology. We should continue our partnership in every way that we can.
“I will re-emphasise again and again we must enhance the possibility of becoming highly industrialised by exploring opportunities in our natural resources.” the President was quoted to have said.
The President emphasized the need for Nigeria to develop alternative energies, leveraging the country’s large deposits of solid minerals.
“We are projecting investment in gas and alternative energy. Our transformation involves natural gas. We are leveraging solid minerals, particularly lithium. We have a dynamic, anxious-to-learn, and flexible youth population.
“We have many Nigerian students who were trained in Germany. We want domestic investment that will promote growth in our economy. Equally, we need skill development.”
The Minister of Solid Minerals Development, Dele Alake, noted that Germany has a dedicated one billion Euro fund for diversifying the supply chain in renewable energy, and modifying the conditions could easily accommodate the opportunities in Nigeria’s solid minerals sector.
Alake urged German companies to explore the critical minerals for energy transition – cobalt, nickel, and lithium, which are readily available in Nigeria.
“We are asking that German companies can come in under the Renewed Hope Agenda of the President that has sanitised the environment, enhanced security with a new architecture around solid minerals, created tax incentives and waivers for important equipment, and provided opportunities for joint ventures,” he said.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Industry, Trade and Investment, Dr Jumoke Oduwole; and Minister of Power, Adebayo Adelabu, were also present at the meeting.
What you should know
Nigeria has a high rate of energy poverty, with nearly 71% of the population lacking reliable access to electricity.
- Nigeria still generates around 5,000 megawatts which is inadequate for its over 200 million population.
- Nigeria is underutilizing its renewable energy resources, as renewable energy accounted for less than 21 percent of the total electricity capacity in 2023, according to Statista
The solid minerals sector also faces challenges such as illegal mining, poor infrastructure, ambiguous land laws, inadequate investments, smuggling, and insecurity, among others.