The federal government is seeking a $5 billion trade loan from Saudi Arabia to boost capital for its economic reform programme.
The presidency announced this in a statement on Tuesday, following President Bola Tinubu’s meeting with Crown Prince Mohammed bin Salman in Riyadh during the joint Arab-Islamic Summit.
According to Bloomberg, no further details about the facility were disclosed.
The presidency confirmed that the crown prince assured the federal government of Saudi Arabia’s support for its economic reforms.
“The two leaders explored potential areas for cooperation, particularly in oil and gas, agriculture, infrastructure, and the establishment of the Saudi-Nigeria Business Council,” the statement added.
Backstory
The federal government initially proposed the investment a year ago when Saudi Arabia and Nigeria formed the Saudi-Nigeria Business Council.
At the time, Budget and Economic Planning Minister Abubakar Atiku Bagudu expressed optimism about “significant investment” inflows from Saudi Arabia.
The Memorandum of Understanding (MoU) includes funding in agriculture, oil and gas, energy, telecommunications, and technologies.
“We expect to see significant investment flow worth billions of dollars immediately,” Bagudu told reporters in Riyadh.
The council had been discontinued during the administration of former President Muhammadu Buhari.
In May, the federal government and Saudi Arabia agreed to enhance bilateral relations and explore investment opportunities in agriculture and trade, according to the Ministry of Information. By November 2023, discussions between the two nations expanded to include opportunities in technology, telecommunications, oil and gas, and mining.
What you should know
The federal government has renewed efforts to strengthen its bilateral relationship with Saudi Arabia. This includes visits by Nigeria’s President, Bola Tinubu, to the Gulf nation, during which he strongly condemned the humanitarian crisis in Palestine and the ongoing Israeli war.
- President Tinubu called for an end to the war in Gaza, emphasizing that “the conflict in Palestine has persisted for far too long, inflicting immeasurable suffering.”
- He also reiterated Nigeria’s call for an immediate ceasefire in Gaza and reaffirmed the country’s support for a two-state solution, advocating for peaceful coexistence between Israelis and Palestinians in security and dignity.
Last year, the government reestablished the Saudi-Nigeria Business Council, which had been previously discontinued under President Muhammadu Buhari.
