Nigeria, Germany Forge Deeper Economic Ties Amid Renewable Energy and Youth Development Talks

President Bola Tinubu, on Wednesday, reaffirmed Nigeria’s commitment to fostering a robust investment environment during German President Frank-Walter Steinmeier’s state visit. The leaders pledged to strengthen bilateral ties, with a particular focus on renewable energy, youth skill development, and industrial growth.

Addressing a joint press conference in Abuja, Tinubu outlined reforms aimed at attracting foreign investment, including streamlined business registration, import duty waivers for machinery, decentralisation of power generation, and foreign exchange market reforms.

“We have an open-door policy: ease of entry, ease of exit,” Tinubu declared. “Our tax reforms are private-sector friendly, and we’re eliminating bureaucracy to make it easier for businesses to establish themselves in Nigeria.”

Harnessing Energy and Technology

Tinubu emphasised Nigeria’s vast potential in energy, noting the country’s position as a major gas producer alongside its abundant solar resources. He underscored the importance of German technology in tapping these renewable energy opportunities, particularly for rural electrification.

“Germany has the technology, and we have the resources,” Tinubu said. “We’re working to decentralise power distribution and generation, enabling states and subnational entities to generate and distribute their own power. This is critical for modernising our energy infrastructure, much of which is over half a century old.”

However, Tinubu tempered expectations regarding the Siemens-Nigeria power partnership, highlighting the challenges posed by outdated transmission infrastructure. His comments came against the backdrop of yet another national grid collapse—the 12th in 2024.

Youth and Industrial Growth

Tinubu also spotlighted Nigeria’s youthful population as a key driver of economic growth, advocating for stronger collaboration on skill development and industrialisation.

“Our youth are energetic, market-friendly, and eager to learn,” he noted. “We discussed expanding youth training programmes and industrial partnerships to harness their potential. Germany’s reputation for vocational training aligns perfectly with our development agenda.”

He added that Nigeria’s solid minerals sector presents significant opportunities for German investors, alongside plans to establish assembly plants and bolster industrial capacity.

Germany’s Perspective

President Steinmeier hailed Nigeria as Germany’s second-largest trading partner in sub-Saharan Africa but stressed the untapped potential in bilateral relations.

“German businesses view Nigeria’s recent reforms as a positive signal,” Steinmeier remarked. “We are committed to strengthening political, cultural, and economic ties, while fostering people-to-people relationships between our countries.”

Steinmeier also highlighted the contributions of Nigerians who study in Germany and return home, describing them as “bridge-builders” who facilitate understanding and cooperation between the two nations.

Encouraging Nigerian youth to explore opportunities in Germany, he said such exchanges would bolster cultural and economic connections while fostering a new generation of intermediaries for German companies operating in Nigeria.

A Renewed Partnership

The visit marks a pivotal moment in Nigeria-Germany relations, as both nations seek to align their strengths in energy, industrialisation, and human capital development. With assurances of continued collaboration and reforms, the stage is set for deeper economic and cultural ties in the years ahead.