Saudi Investment in Nigeria

Saudi Investment in Nigeria

Saudi Arabia’s Commitment to Nigeria

The Government of Saudi Arabia has announced its plans to invest in the rehabilitation of Nigerian refineries. Additionally, Saudi Arabia has expressed its readiness to support Nigeria’s foreign exchange reforms by making a substantial deposit to enhance the country’s forex liquidity.

Bilateral Meeting between Saudi Crown Prince and President Bola Tinubu

Saudi Crown Prince, Mohammed bin Salman Al Saud, and President Bola Tinubu actively made these commitments during a bilateral meeting at the Saudi-Africa Summit in Riyadh. Nigeria’s Minister of Information and National Orientation, Mohammed Idris, confirmed this in a statement.

Potential Sectors for Investment

Crown Prince bin Salman praised President Tinubu’s economic reforms and pledged Saudi Arabia’s support in helping Nigeria become Africa’s leading economy. He also identified Agriculture and Renewable Energy as potential sectors for investment, which would contribute to Nigeria’s food and energy security.

Saudi Aramco’s Role in Refinery Investment

Saudi Aramco, the kingdom’s state-owned oil entity, will lead the refinery investment efforts. The project aims to boost Nigeria’s refinery capabilities and is expected to be completed within two to three years.

Enhancing Security Cooperation

President Tinubu and Crown Prince bin Salman discussed the critical need to enhance security cooperation. They focused on combating terrorism, curbing illegal migration, and addressing other security challenges in West Africa and the Sahel region.

Expanding Economic and Socio-Cultural Ties

The bilateral talks between Nigeria and Saudi Arabia also served as an opportunity to explore the expansion of economic and socio-cultural ties. Both leaders expressed their commitment to exploring new horizons in Nigeria-Saudi bilateral relations.

Efforts to Rehabilitate Nigerian Refineries

The Nigerian Government aims to have all four oil refineries operational by the end of 2024, with the Port Harcourt plant becoming operable by December 2023. Despite previous investments of $25 billion in renovating the refineries, they still operate at less than 30% of their potential output.

Tinubu’s Vision for Nigerian Oil Refining

Forensic Audit and Recommendations

A report by the 9th National Assembly called for a forensic audit of the renovation efforts and recommended rehabilitating the Warri and Port Harcourt refineries. The Senate also constituted an ad-hoc committee to investigate the Nigerian National Petroleum Company Limited (NNPCL) over the funds spent on the turnaround maintenance of the refineries.

Responsibility for Renovation

The Minister of State for Petroleum Resources, Heineken Lokpobiri, announced that the responsibility for the timely renovation of the refineries falls on the Nigerian National Petroleum Company Limited. The overhauling of the refineries is expected to help curtail fuel scarcity.

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