Germany Mulls Energy Development Expansion Programme, Trading With Nigeria

The Government of Germany is seeking to boost relations with Nigeria and other African countries, which is being facilitated by the German Foreign Minister Johann Wadephul.

The Minister, in a trip across the Continent is promoting cooperation on energy, infrastructure and the economy. He also criticized US treatment of South Africa.

In a tent in Lagos, three  fashionable influencers sat on cushioned stools across from Germany’s Minister and for half an hour, the senior politician met youth from Africa’s creative scene.

These young people are among the stars of Nigeria’s creative industry in a country with a population of around 240 million and a median age of just under 18. 

Wadephul wanted to understand what moves the younger generation. What issues are on their minds? How do they view Germany? And what do they expect from a collaboration?

After a brief hesitation, they replied: Germany and Europe listen to their music, view their art, and want to collaborate with them. But anyone who wants to travel to the German capital for Fashion Week or the Berlinale film festival can hardly get a visa, said a young man in the audience.

A conversation gets underway; everyone enjoys the exchange and subsequently uploads upbeat videos to social media platforms — to the influencers’ channels as well as those of the Federal Foreign Office. This is how German diplomacy is pursuing a direct line of communication with Africa’s younger generation.

There is good reason for the Foreign Minister to be promoting Germany in Nigeria. “The country is an economic powerhouse and, as Africa’s largest domestic market, also a key destination for German exports,” he says. Nigeria is sub-Saharan Africa’s second-largest economy and already imports machinery, chemicals, and food products “Made in Germany.”

However, Nigeria’s raw materials account for the largest share of the trade balance. They have become even more important since the blockade of the Strait of Hormuz. “In June, 25 per cent of jet fuel shipments to Europe came from Nigeria. But we can do significantly more,” emphasized Wadephul.

Wadephul was accompanied by a business delegation on his third trip to Africa. The group includes major corporations like Siemens as well as small and medium-sized enterprises. One of these is VIDA, a Munich-based AI company that is finalizing a multi-million-euro contract with the Nigerian government. The focus is on AI-driven infrastructure planning.

“Our solutions help identify and evaluate new locations. AI allows us to determine much more quickly the economic potential of a site, as well as the local conditions regarding security, climate trends, and other key factors,” explained VIDA founder Tobias Engelmeier. His company is already implementing projects in 20 African countries.

German support for infrastructure development is in demand in many places. 

Since the European Union launched a €290 million ($330 mio) package as part of its Global Gateway strategy, hopes have been rising  both in Africa and among European companies for faster progress in expanding transport, energy, and utility networks. The Nigerian government is also actively lobbying for German investment to modernize its power supply.

Yet Germany has long underestimated Nigeria’s economic and political importance. Given the potential of what is Germany’s second-most important trading partner in sub-Saharan Africa, the presence of around 100 German companies is comparatively small. Siemens is involved in expanding the power grid, while Bayer is planning pharmaceutical production facilities together with regional partners. Small and medium-sized enterprises (SMEs) are also increasingly entering the market, though many complain about a lack of transparency in market and decision-making structures.

“It is a challenging market with high operating costs. That is why local partners who understand the diverse structures across the 36 states are essential,” says Sabine Dal’Omo, Managing Director of Siemens Sub-Saharan Africa and Chairwoman of the German-African Business Association.

Renewable energy provider Enertrag is among the companies taking a wait-and-see approach. “For us, Nigeria holds great potential — there is strong domestic demand and favorable conditions for exporting green energy. However, the overall framework remains too uncertain for us to commit to a long-term investment,” said board member Anne Bendzulla.

Instead, Enertrag has been successfully investing in South Africa for several years. There, the company states it is prepared to invest around €850 million in wind energy.

The security situation in Nigeria is a matter of concern for German business. Consequently, the federal government has made additional funds available for cooperation with Nigeria’s police authorities.

Wadephul urges the German business community not to hesitate too long. “Anyone not present in Africa today risks missing out on crucial opportunities,” he told reporters. The country, with its young population, possesses immense potential and abundant resources, he added. “It would be grossly negligent of us to overlook that.”

On the final day of his third trip to Africa this year, Wadephul visited South Africa, Germany’s most important economic partner on the continent.
At a press conference in the capital Pretoria, South African Minister for International Relations Ronald Lamola praised the fact that “some 600 German companies operate in our country [South Africa] and employ approximately 100,000 people.”

In April 2026, the two countries had elevated their relationship to a Strategic Partnership and adopted a Joint Action Plan, which focuses on strengthening cooperation in the areas of trade and investment, security and energy transition. Today, about 80% of South Africa’s electricity is still generated from coal.

While in the South African capital, Wadephul criticized US President Donald Trump for not inviting South Africa, which he described as “an indispensable member of the G20,” to the group’s next summit.

“To exclude South Africa means sidelining an important African voice and a regional economic and political powerhouse,” the German foreign minister said. “This can be in no one’s interest. As — particularly at a time of growing global economic uncertainty — we need more cooperation, not less!”

He added that he was confident that “South Africa will be able to participate again as a full member of the G20 next year.”

He also agreed that African states were underrepresented in the United Nations. “There can be no representative United Nations without permanent African representation on the Security Council,” he said.

Wadephul’s four-day diplomatic offensive in Africa is evidence of Germany’s desire to engage more with democracies and middle powers around the world amid a crisis of multilateralism. As Chinese and Russian influence on the continent increase, Germany with Europe wants to offer an alternative to the Global South