Germany’s Deputy Head of Mission in Nigeria, Mr. Johannes Lehne, has said the $2.3 billion Siemens power deal lay largely dormant until President Bola Tinubu’s administration revived it.
Speaking at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, Lehne said the deal’s original framework aimed to upgrade Nigeria’s transmission and distribution systems, improve grid stability, and expand power capacity.
The agreement, conceived under former President Muhammadu Buhari, targeted 7,000 MW by 2021, 11,000 MW by 2023, and 25,000 MW by 2025. Progress stalled for undisclosed reasons until the Tinubu administration intervened.
Lehne added that Germany has extended cooperation through an Energy Support Programme, sharing expertise in renewables and energy diversification, while noting that “energy transition” is more accurately a broader mix of energy sources rather than a complete fossil fuel replacement.
He emphasised gas’s ongoing role in industrial feedstock and energy security, noting Germany’s diversified LNG import terminals and pipeline infrastructure as lessons in avoiding overdependence on a single supplier.
Deputy Director of Gas Utilisation at NUPRC, Jennis Anyanwu, said Nigeria’s challenge is converting abundant gas reserves into economic value.
The country holds 210.54 trillion cubic feet (TCF) of proven gas, rising to 650 TCF including contingent resources.
Anyanwu stressed that despite vast reserves, Nigeria produces only about 7.5 billion cubic feet per day, ranking 19th globally and highlighting the need for regulatory and fiscal frameworks to drive gas development.
He noted the Petroleum Industry Act has improved investment conditions by clarifying fiscal terms and reducing royalties, including onshore rates from seven to five per cent and further to 2.5 per cent for domestic use.
Panel speakers also included Dr. Isaac Doku of WAGPC and George Amara of UTM FLNG, discussing strategic approaches to leveraging Nigeria’s gas resources to boost economic growth and energy security.
