Despite grappling with economic challenges and a record-high inflation rate, President Bola Tinubu’s administration sealed significant economic deals and investments in 2023, signaling potential economic growth in the coming months. As the year concludes, Nairametrics examines five major deals signed with both international and domestic investors and their potential impacts on the 2024 economic outlook.
5. Saudi FX And Refinery Rehabilitation Pledges
President Tinubu’s investment endeavors in 2023 bore fruit in Saudi Arabia, where the Gulf State pledged assistance to Nigeria in fulfilling its FX obligations and investing in the country’s refinery rehabilitation process. As Nigeria aims to reactivate its refineries in 2024, the influx of Saudi investment may boost FX liquidity and contribute to infrastructural development.
4. TotalEnergies Deal With NNPCL
A significant deal involved the French energy company, TotalEnergies, partnering with NNPCL to conduct methane detection and measurement campaigns using advanced drone-based AUSEA technology on oil and gas facilities in Nigeria. With a commitment to invest $6 billion in offshore oil projects and gas production, this deal is poised to revolutionize Nigeria’s oil and gas sector, providing liquidity and creating employment opportunities.
3. I-Dice Deal With France
The digital economy took center stage in 2023 with the I-Dice deal signed with the French government, securing $116 million to boost the digital and entrepreneurship sector in Nigeria. This investment aims to harness the talents of the country’s youth population, estimated at 60%, creating jobs and expanding the tax net bracket in the digital and creative industry in 2024.
2. Siemens Energy Deal to Increase Grid Capacity to 12,000 Megawatts
At the COP28 Summit in Dubai, the federal government signed the Presidential Power Initiative agreement with German company Siemens Energy, targeting an injection of 12,000 Megawatts into the national grid. Financed under a government export credit facility from German banks, this deal aims to attract more foreign direct investment, particularly in the energy sector, in 2024. The comprehensive agreement includes infrastructural projects with up to $60 million in funding.
1. Germany’s $500m Renewable Energy Deal with Nigeria
The most substantial investment deal of 2023 was the $500 million renewable energy agreement with Germany. Union Bank of Nigeria and Germany’s DWS Group signed an MoU on renewable energy, aiming to invest $500 million in renewable energy projects across Nigeria, mainly in rural communities. Additionally, Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG agreed on a gas export partnership, with Nigeria supplying 850,000 tons of natural gas annually, rising to 1.2 million. This deal is expected to process about 50 million cubic feet per day of natural gas, reducing flaring and contributing to sustainable energy practices.
