Germany ready to finance Nigeria’s rail sector

Germany has expressed its readiness to invest in Nigeria’s rail infrastructure, potentially increasing German investments in the country. German Chancellor Olaf Scholz conveyed this commitment to Nigeria’s President Bola Ahmed Tinubu during the G20 Compact with Africa Economic Conference held on Monday.

Chancellor Scholz indicated that Siemens is interested in replicating its ultra high-speed rail network project in Nigeria. Siemens has reportedly advanced plans for rail infrastructure in Africa and is prepared to implement similar projects in Nigeria. However, Chancellor Scholz emphasised that it is now up to the Nigerian government to take the necessary follow-up actions to demonstrate full commitment to these initiatives.

Acknowledging the challenges posed by administrative and financial hurdles in the sector, Chancellor Scholz expressed awareness of the progress made and the need for the new government to take follow-up actions. He highlighted Siemens’ readiness to deepen the implementation of plans for the power project and the ultra-high-speed rail network, contingent on the progress made in the power project.

In response, President Tinubu affirmed his commitment to attracting German investments in critical sectors of the Nigerian economy, focusing on areas such as energy, transportation, and electric power production, transmission, and distribution. He expressed determination in pursuing Siemens’ involvement in these sectors and noted the urgency of a deliberate process for project execution.

President Tinubu also highlighted the success of Siemens AG in transforming the quantity and quality of electric power supply in Egypt. He expressed keen interest in leveraging Siemens’ expertise to modernise and expand Nigeria’s rail network, emphasising the potential for ultra-modern trains and railways to significantly increase speed.

The leaders discussed the importance of the business community focusing on value-addition processing in Nigerian solid minerals, agricultural goods, automobile production, and other job-creating sub-sectors of the economy. President Tinubu reassured that reforms are underway in Nigeria to create a conducive business environment, urging foreign investors to consider the country’s transformative potential.

Both leaders agreed to deepen collaboration on utilising advanced biometric systems and border control technology to address irregular migration. They also agreed that investments in labor-intensive industries could contribute to resolving the root causes of migration issues.

President Tinubu later exchanged views with the German Federal President, Frank-Walter Steinmeier, further reinforcing the commitment to collaboration and investment between the two countries.