Germany’s FDIs to Nigeria hit €183 million
Germany’s Foreign Direct Investment (FDI) to Nigeria exceeded its 2015 target of EUR140 million, reaching over EUR 183 million a year ahead of time. The country’s yearlyFDI rate between 2015 and 2016 exceeded the baseline that was needed to increase its investments in Nigeria.
Both countries established the Nigerian-German Energy Partnership (NGEP) in 2008, and German-Nigerian Bi-national Commission in 2011. The Nigerian-German Energy Partnership is a business-to-business platform launched under the auspices of the German Federal Foreign Office and the Nigerian Federal Ministry of Power. It seeks to foster beneficial ties between German and Nigerian companies in the power sector, and one of its key initiatives is the construction of large-scale solar power plants across the country.
While, the German-Nigerian Bi-national Commission is a forum for discussing the entire spectrum of bilateral topics as well as international issues. Nigeria is ranked as the most populous country on the African continent. More than 80German companies are doing business in Nigeria.
Apart from that, there is another project that was implemented which is known as the Nigerian Energy Support Programme (NESP), fully supported by the Deutsche Gesellschaftfür Internationale Zusammenarbeit (GIZ) GmbH. GIZ offers workable, sustainable and effective solutions in political, economic and social change processes. It aims to enhance the capacities of individuals, organizations, and societies, so that partners can articulate, negotiate and implement their own ideas for reform and development.
Over the years, the European Union and the German government provided a total sum of€25m (N8.1bn) as energy support fund for the first phase of the Nigerian Energy Support Programme.
According to the Federal Ministry of Power, Works and Housing, five states in the country are already benefiting from the NESP project, explaining that the programme was part of the Sustainable Energy for All initiative of the United Nations.Other states that benefits from the NESP is Niger State. Niger State government is oneof the five partner states that is under the Nigerian Energy Support Programme.
Aside from Niger, other states in the partnership include Sokoto, Cross River, Ogun and Plateau.The NESP aims to improve the conditions for investments in renewable energy, energy efficiency, and rural electrification. Policy advice to improve relevant institutional and policy framework conditions is provided on the federal level. Five selected states will also be supported on measures for electrification of rural and peri-urban areas through the usage of renewable energy, particularly small-scale hydropower and solar plants.
The Nigerian-German Energy Partnership, NGEP, installed a 10 megawatt solar plant project at the University of Ibadan in 2016. The project, worth about $17,670 USD approximately N3.52 million naira.
The project of the University of Ibadan is a project which is very promising and serves as a pilot project for universities in the country. The solar plant provides electricity for the university and also serve as a training site for engineering students of the institution and technicians.
German Ambassador in Nigeria, Mr. Bernard Schlagheck, said the project was aimed at empowering universities in the country. He further explained that the next university in line was Ahmadu Bello University, Zaira, after which the project would be taken to Modibo Adama University of Technology, Yola; Bayero State University, Kano; University of Maiduguri and others.