During President Tinubu’s meeting with German President Frank-Walter Steinmeier and a German delegation at the State House on Wednesday, Tinubu emphasized his commitment to enhancing multilateral business collaborations between Germany and Nigeria.
He pledged to eliminate administrative barriers hindering German business operations, particularly in the energy and solid minerals sectors. This pledge is a welcome development to German companies in Nigeria and others seeking to invest in the country.
Here are the top German businesses currently operating in Nigeria.
Top German Businesses in Nigeria
Siemens
The German energy and power company has a strong presence in Nigeria particularly in the area of energy solutions, industrial automation, and medical technology.
The company actively collaborates with the Federal Government on power projects and infrastructure development. In May this year, the company signed an MoU with Geregu Power to upgrade the Geregu 1 Power Plant from its current capacity of 435MW to 500MW.
The Mou also includes the creation of the Geregu 3 by producing an extra 500 megawatts.
The company also handles the presidential power initiative deal signed between the Nigerian government and the German government where the German government agreed to lend Nigeria $2.3billion. The deal is aimed at optimizing the national power grid to produce 25,000 MW of electricity by 2025.
The company was initially a major player in the country’s telecommunication sector but has divested over the years to focus more on its interests in the energy and power sector.
Siemens which has been operational in Nigeria since the 1950s is currently not listed on the Nigerian stock exchange, it only trades on the Xetra Stock Exchange – an electronic German stock exchange located in Frankfurt.
Julius Berger Nigeria Plc
The company with roots in Germany is a major player in Nigeria’s construction and engineering sector. The company has handled large-scale infrastructure projects like bridges, highways, and buildings in Nigeria.
Julius Berger began operations in Nigeria in 1965 with its first contract being the construction of the Eko Bridge in Lagos, the first civil engineering project in Nigeria to be built with pre-stressed concrete.
The company was incorporated on the Nigerian Stock Exchange as Julius Berger Nigeria Ltd in February 1970 and listed on the Nigerian Stock Exchange in 1991. Julius Berger shares were worth N155.25 per share at the close of Wednesday’s trading on the Nigerian stock exchange.
Some of the high-profile projects handled by Julius Berger in Nigeria include The Third Mainland bridge in Lagos, the Abuja-Kaduna Railway project, the Abuja International Airport upgrade, the MKO Abiola Stadium in Abuja, the Dualization of Lagos-Badagry expressway, The 24 Lekki-Ikoyi (Admiralty-Alexander) Link Bridge, The National Assembly, The Central Bank of Nigeria Branch Office, NNPC Towers, Renovation of Transcorp Hilton hotel in Abuja, participation in the construction of Dangote refinery amongst others.
Lufthansa Group
The Lufthansa group, Germany’s largest airline currently operates flights connecting Lagos and Abuja to international destinations through Germany, as well as facilitating trade and travel between Nigeria and Germany through International flights and cargo services.
The airline began its Nigerian operations in Lagos in 1962 and is the only airline to service three Nigerian airports: Lagos, Abuja, and Port Harcourt. The company is however not currently listed on the Nigerian Stock Exchange.
The airline currently operates five flights from Lagos to Frankfurt weekly in addition to flights from Lagos to Malabo, Equatorial Guinea using the Airbus A330 and Airbus A340 aircraft.
BASF
BASF operates in Nigeria by providing chemical solutions for agriculture, construction, and industrial manufacturing. The company has been operating a regional hub in the Lagos Free Trade Zone (LFZ) and a construction chemicals production facility in Lagos since 2020.
The company has a state-of-the-art laboratory in Nigeria that offers formulation support and is currently working on initiatives to convert plastic waste into oil.
The company has its headquarters in Ludwigshafen, Germany, and is listed on the Frankfurt, London, New York, and Zurich exchanges but is currently not listed on the Nigerian Stock Exchange.
Henkel
Henkel is a German consumer goods company that produces a range of laundry and home care products, including well-known brands like WAW and Nittol detergents.
The company was founded in 1876 by Fritz Henkel and two partners and came to Nigeria in 2016 before rising to become one of the most loved laundry care brands in the country.
The company has a flagship program “Researchers’ World (Forscherwelt) Initiative” which seeks to promote a love for science and education among Nigeria’s younger generation.
The company’s shares are traded on the Frankfurt Stock Exchange, predominantly on the Xetra electronic trading platform and the London Stock Exchange. The company is however currently not listed on the Nigerian Stock Exchange.
Allianz Nigeria Insurance
Allianz Nigeria Insurance provides insurance products and services in Nigeria, catering to both corporate and individual clients. The company delivers a range of retail products like Motor, Life, Home Insurance, and corporate products to more than 30,000 customers.
Allianz Insurance is known for its efficiency and customer satisfaction in terms of speed in expediting claims, transparent procedures, and 24/7 customer support for inquiries and emergencies.
The company is currently not traded on the Nigerian Stock Exchange but only on the Frankfurt Stock Exchange where it is traded on the Xetra Platform.
Deutsche Bank
Deutsche Bank while not operating retail branches in Nigeria, has a presence in investment banking and advisory services. The bank currently has a representative office in Lagos.
The bank’s representative office supports correspondent banking activities with many Nigerian banks as well as providing Financial advisory and restructuring projects in Nigeria.
The bank has also helped Nigerian clients like multinational corporations, financial institutions, and large local enterprises operating in sectors such as oil and gas, telecommunications, and infrastructure access international capital markets, which is crucial for businesses seeking to expand their business operations.
The bank is listed on the Frankfurt stock exchange but is not listed in Nigeria due to its predominantly advisory role in the country.
Voith
Voith is a German manufacturer of machines for the pulp and paper industry, technical equipment for hydropower plants, and drive and braking systems.
Voith Nigeria was officially launched on 3 July 2008 and it serves as a consulting organization specializing in Mechanical Engineering and procurement. The company’s activities include the provision of generators, turbines, pumps, automation systems, spare parts, maintenance and training services, and digital solutions.
The company supports the Nigerian economy through its delivery of energy projects that enhance efficiency and sustainability and is listed exclusively on the Indian Stock Exchange.
SAP Technology
SAP Technology is a German company that supports Nigerian businesses by providing enterprise software solutions, including ERP and data management systems to help businesses streamline operations, increase productivity, and gain a competitive edge.
Some notable Nigerian companies that have adopted technology produced by SAP in their operations include the Dangote Group, Arnergy and a host of other companies in Nigeria’s telecommunications, finance, and manufacturing sectors.
The company came into Nigeria as part of its broader West African expansion to support businesses in their digital transformation journeys over two decades ago. Despite its long stay it is currently not listed on the Nigerian Stock Exchange but only on the Frankfurt Stock Exchange, the New York Stock Exchange, and other German regional stock exchanges.
Merck KGaA
Merck KGaA is a German multinational pharmaceutical, life sciences, and chemical company, operating in Nigeria, primarily through its healthcare and life science divisions.
The company’s products include Drugs for treating Cancer, Drugs for managing neurological conditions and immune disorders, Drugs for managing Diabetes 2, Hypertension drugs, and nutritional supplements among others. The company’s foundation also supports healthcare infrastructure, and training through initiatives like Merck More than a Mother, aimed at empowering women and addressing infertility stigma.
The company is currently not listed in Nigeria but on the Frankfurt and London stock Exchanges.
Volkswagen Group
German car manufacturers, the Volkswagen Group engage in in automobile sales and assembly through partnerships in Nigeria. Volkswagen’s assembly line in Nigeria is operated by Stallion Motors who also operate a showroom for Volkswagen products. There has however been no new Volkswagen model in the Nigerian market for a while now as its assembly line has been inactive for a long while.
The company has delivered 6.52 million vehicles worldwide in the first three quarters of 2024 alone, with the figure expected to hit 9 million before the end of 2024. Of these figures, Electric Vehicles accounted for 506,500 with the predominant markets being China and the US.
The car manufacturer was once the biggest car brand in Nigeria with its beetle cars holding sway back in the day but the company has been overshadowed by other car brands since the turn of the century. However, with the emphasis of the German-Nigerian trade relations being on renewable energy, its positioning in the EV market is set to bring back the company into limelight.
The company is currently not listed on the Nigerian stock Exchange but only on the Frankfurt and London Stock Exchanges.
BMW Group
German car manufacturer, the BMW group which originated in the German state of Bavaria and originally produced engines for various applications currently engages in automobile distribution in Nigeria through partners.
The company’s exclusive distributor in Nigeria is Coscharis Motors having signed a partnership agreement in December 2013. in 2017, the BMW 5 series was launched worldwide at the Banana Island Cultural Festival while in 2019, the company launched the BMW X7 at the same festival.
In 2023, the company sold over 2.55 million passenger vehicles and more than 209.000 motorcycles globally led by sales in The US, China and Germany mostly driven by the sales of Electronic Vehicles.
There is however no specific figures for its sales in Nigeria and in order to stimulate sales in Nigeria, the company also offers flexible financing options for the leasing and purchase of BMW cars.
Moving Forward
Moving forward, the strengthened economic relations between Germany and Nigeria, as pledged by President Tinubu, are expected to bolster the operations of German businesses in the country.
This partnership is anticipated to attract more German investors, particularly in renewable energy and sustainable development.
