Renewed Focus on Energy Cooperation Signals a New Chapter for Nigerian Power Sector…
In a significant shift for Nigeria’s power sector, Germany’s Deputy Head of Mission, Johannes Lehne, revealed that the $2.3 billion Siemens power deal between Nigeria and Germany, which had been dormant for years, was reignited under President Bola Tinubu’s leadership.
Lehne made these remarks during the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos on Wednesday, underscoring the vital role of this renewed bilateral partnership in addressing Nigeria’s chronic energy challenges.
A Fresh Start: Power Sector Revival Under Tinubu
Lehne highlighted that the partnership, initially launched as part of the Presidential Power Initiative (PPI) during the tenure of President Muhammadu Buhari, had stalled until the new administration breathed life into it. “The strange thing was that this partnership was dormant until the beginning of President Tinubu’s time, where we revived this,” he said, referring to the project’s renewed momentum.
The PPI aims to modernize and overhaul Nigeria’s transmission system, significantly boosting the national electricity grid’s capacity. Germany’s involvement, especially through Siemens, is crucial for achieving the ambitious targets set under the initiative.
“Germany is in the power sector with a specific commitment to Nigeria through the PPI,” Lehne added, pointing out that beyond the PPI, Germany’s involvement in Nigeria’s energy sector has deepened with an expanded energy support programme. This initiative draws on Germany’s vast experience in energy transition, offering Nigeria a model to diversify its energy mix.
Germany’s Push for Renewable Energy and Energy Diversification
Lehne went on to explain how Germany is intensifying its investments in renewable energy sources, such as solar, wind, and geothermal, in line with efforts to cut its dependence on fossil fuels. Between 2021 and 2024, Germany is increasing its focus on green energy, seeking to transition away from hydrocarbons and reduce carbon emissions.
However, Lehne noted that many countries’ efforts to transition to cleaner energy sources should be viewed as “energy addition” rather than a full-scale “energy transition.” The aim is to diversify energy sources, not necessarily replace one for the other entirely. “There is no real energy transition; there is energy addition and a different mix of energy sources, which every country should consider in order to have the right energy policy,” he said.
While Germany focuses on renewables, Lehne acknowledged that gas will remain a central pillar of Germany’s energy strategy for decades. “Gas is still key for our energy stability and will be a feedstock for industry for the next 20 to 30 years,” he explained, citing how the Russia-Ukraine crisis underscored the dangers of relying too heavily on a single energy supplier.
Diversification: A Lesson Learned from the Russia-Ukraine Crisis
The diplomatic tension between Russia and Ukraine highlighted vulnerabilities in Germany’s energy supply chain, forcing the country to rethink its energy strategy. Lehne said that Germany has since acted quickly to diversify its sources of natural gas, developing four new liquefied natural gas (LNG) terminals. Each terminal is capable of processing 80 to 84 gigawatt-hours (GWh) of gas daily, adding flexibility to Germany’s energy imports.
“In Germany, we always believed in diversification. It is not wise to put all your eggs in one basket,” Lehne remarked. He further emphasized that Germany is ready to import gas from Nigeria if it becomes available, highlighting the potential for further collaboration between the two countries in the energy space.
Siemens Deal: Progress, but More to Be Done
The Siemens power deal was originally signed in 2019 under the PPI, with ambitious goals to add 7,000 megawatts (MW) of electricity to Nigeria’s national grid by 2021, followed by an additional 11,000 MW by 2023. While the deal has garnered substantial backing from the German government, its progress has faced challenges.
Despite these setbacks, President Bola Tinubu recently acknowledged the noticeable progress in the Siemens power project but noted that the results so far have not met expectations. “The progress of the Siemens power project is notable, but it still falls short of the anticipated level,” Tinubu remarked in November 2025.
The Road Ahead: Challenges and Opportunities
While the revival of the Siemens power deal represents a significant step forward for Nigeria’s energy future, the country faces many challenges in its pursuit of stable, reliable electricity for its citizens. As Lehne pointed out, the energy transition is a complex, multifaceted process that requires a careful mix of renewable and non-renewable sources.
In this regard, Nigeria’s collaboration with Germany in the energy sector, under the umbrella of the PPI, could play a critical role in shaping the future of the country’s energy landscape. With continued investment, strategic diversification, and international partnerships, Nigeria is poised to make substantial strides in addressing its long-standing power deficit.
Key Points:
- $2.3 Billion Siemens Deal: Germany’s renewed commitment to Nigeria’s energy sector under President Tinubu’s administration has revived the dormant $2.3 billion Siemens power deal.
- Energy Cooperation: Germany is enhancing its energy support programme in Nigeria, focusing on energy diversification and renewable sources.
- Gas Central to Germany’s Strategy: Despite the push for renewables, natural gas will remain a core component of Germany’s energy policy for the next few decades.
- Diversification Post-Russia-Ukraine Crisis: Germany has rapidly diversified its gas supplies, including the development of LNG terminals, and is open to sourcing gas from Nigeria.
