Nigeria Seeks $5B Trade Facility from Saudi Arabia to Boost Reforms

AFRICAN BUSINESS AND ECONOMYNovember 13, 2024 at 1:35 PM UTC

TLDR

Nigeria negotiates $5 billion trade facility with Saudi Arabia for economic reform agenda, focusing on key sectors like oil, gas, agriculture, and infrastructure.
President Bola Tinubu engages with Crown Prince Mohammed bin Salman to strengthen bilateral ties and explore long-term investment potential.
Nigeria-Saudi Arabia Business Council established, indicating anticipation of significant Saudi investment flows to support Nigeria's economic restructuring efforts.

Nigeria is negotiating a $5 billion trade facility with Saudi Arabia to support its economic reform agenda.

President Bola Tinubu discussed the proposal with Crown Prince Mohammed bin Salman during the joint Arab-Islamic Summit in Riyadh, signaling a commitment to enhancing bilateral ties. Although the details of the deal remain scarce, the two leaders explored cooperation in key sectors, including oil, gas, agriculture, and infrastructure.

This comes a year after Nigeria and Saudi Arabia established the Nigeria-Saudi Arabia Business Council, signaling long-term investment potential. Minister of Budget and Economic Planning Abubakar Atiku Bagudu had previously anticipated significant Saudi investment flows, particularly to aid Nigeria's ongoing economic restructuring.

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Key Takeaways

Under Tinubu’s leadership, Nigeria has attracted over $30 billion in foreign direct investment as part of his drive to modernize Africa’s largest economy. This aligns with efforts to combat poverty, as almost 40% of Nigeria’s population lives below the national poverty line. The collaboration with Saudi Arabia, which has already targeted opportunities in agriculture, trade, technology, and mining, is seen as a crucial step toward realizing Nigeria’s economic growth potential.

Nigeria

Economy

Saudi Arabia

President Bola Tinubu

Economic Reforms