Nigeria and Saudi Arabia are advancing plans to strengthen their economic partnership, focusing on enhancing export credit, insurance frameworks, and market access.
This development follows a series of high-level meetings held in Riyadh, Saudi Arabia, as outlined in a statement issued by the Federal Ministry of Finance on Tuesday.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, led a delegation to the Kingdom on behalf of President Bola Tinubu and the Presidential Economic Coordination Council.
The visit aimed to consolidate bilateral economic cooperation and explore new opportunities for collaboration between the two nations.
During the visit, the delegation engaged in high-level discussions with Saudi EXIM Bank, focusing on developing export credit and insurance frameworks, and expanding market access between the two nations.
According to the statement, the Saudi EXIM Bank expressed interest in deepening relationships with Nigerian institutions and participating in future transactions involving Saudi government entities.
“Additionally, the delegation held strategic talks with the Saudi Development Fund to explore potential areas of collaboration aimed at boosting infrastructure and economic development in Nigeria. The delegation also met with the Saudi Agricultural and Livestock Investment Company (SALIC) to advance ongoing conversations about their investments in Nigeria,” the statement noted.
SALIC reaffirmed its commitment to exploring further opportunities, emphasizing responsible investment practices that prioritize food security, output growth, and job creation in Nigeria.
In a series of high-level meetings, the Nigerian delegation engaged with key Saudi ministers, including those responsible for Finance, Energy, and Economy and Planning, further cementing bilateral cooperation across vital sectors.
Backstory
The Federal Government has sought a $5 billion trade loan from Saudi Arabia to support its economic reform program. This request followed a meeting between President Bola Tinubu and Saudi Crown Prince Mohammed bin Salman during the Joint Arab-Islamic Summit held in Riyadh in November.
- Earlier in May, both nations had agreed to strengthen bilateral relations and explore investment opportunities in agriculture and trade, as confirmed by the Ministry of Information.
- By November 2023, the scope of their discussions had broadened to include technology, telecommunications, oil and gas, and mining, signaling a deepening partnership.
Nigeria and Saudi Arabia have long enjoyed robust diplomatic relations, bolstered by their mutual membership in organizations like the Organization of Petroleum Exporting Countries (OPEC) and the Organization of Islamic Cooperation (OIC). Recent engagements suggest a strategic pivot towards leveraging these ties to drive economic growth and development.
What you should know
The Tinubu administration has intensified efforts to strengthen Nigeria’s bilateral relationship with Saudi Arabia, marked by President Bola Tinubu’s three visits to the Kingdom since assuming office.
Last year, the federal government reestablished the Saudi-Nigeria Business Council, an initiative previously discontinued under the administration of President Muhammadu Buhari. This development aims to foster closer economic collaboration and mutual investment opportunities between the two nations.
The Nigerian delegation to Saudi Arabia includes Senator Abubakar Atiku Bagudu, Minister of Budget and National Planning; Mr. Wale Tinubu, a member of the Presidential Economic Coordination Council; Ms. Sanyade Okoli, Special Adviser to the President on Finance and the Economy; and Mr. Muhammad Sani Abdullahi, Deputy Governor (Economic Policy) of the Central Bank of Nigeria.
