Abuja, Nigeria – Nigeria is pursuing a $5 billion commerce facility from Saudi Arabia as a part of its financial reform agenda, following discussions between President Bola Tinubu and Saudi Crown Prince Mohammed bin Salman in Riyadh throughout the joint Arab-Islamic Summit.
The Presidency introduced this potential deal, although particular phrases and allocations are nonetheless below negotiation.
Nigeria and Saudi Arabia keep a longstanding commerce relationship, with Nigeria exporting $661 million to Saudi Arabia in 2022, primarily crude oil, whereas Saudi Arabia’s $673 million exports to Nigeria largely consisted of refined petroleum and polymers.
As each nations search to deepen this partnership, the Saudi crown prince has reportedly assured Nigeria of assist for its financial reform initiatives, in keeping with the Nigerian presidency.
“The 2 leaders explored potential areas for cooperation, notably in oil and gasoline, agriculture, infrastructure, and the institution of the Saudi-Nigeria Enterprise Council,” the presidency disclosed in a press release.
This proposed commerce facility builds on ongoing diplomatic efforts, courting again over a yr, when Nigeria’s Funds and Financial Planning Minister, Abubakar Atiku Bagudu, highlighted the potential for “important funding” from Saudi Arabia.
The formation of the Nigeria-Saudi Arabia Enterprise Council additionally signalled each nations’ curiosity in rising commerce and funding ties.
President Tinubu’s administration has made attracting overseas funding a central pillar of its financial technique, just lately saying over $30 billion in secured overseas direct funding.
Nigeria, essentially the most populous African nation with round 225 million individuals, continues to face financial challenges, together with a poverty charge that impacts roughly 40% of its inhabitants.
The Saudi commerce facility may present a vital increase as Nigeria seeks to implement insurance policies geared toward decreasing its dependence on oil income and addressing poverty by means of diversified financial development.
