Nigeria is seeking a $5 billion trade facility from Saudi Arabia to boost its economic reform program.
This development comes after President Bola Tinubu met with Crown Prince Mohammed bin Salman in Riyadh, on the sidelines of the joint Arab-Islamic Summit, Bloomberg reports.
The Nigerian presidency announced the potential deal, but details remain scarce.
Nigeria and Saudi Arabia have an existing trade relationship, with Nigeria exporting $661 million to Saudi Arabia in 2022, primarily crude petroleum. Saudi Arabia, in turn, exported $673 million to Nigeria, mainly refined petroleum and polymers.
According to the presidency, the crown prince assured Nigeria of its support for its economic reform programs.
“The two leaders explored potential areas for cooperation, particularly oil and gas, agriculture, infrastructure and the constitution of the Saudi-Nigeria Business Council,” it said.
Nigeria’s proposed investment deal with Saudi Arabia has been in the works for over a year, dating back to the formation of the Nigeria-Saudi Arabia Business Council.
At the time, Nigerian Budget and Economic Planning Minister Abubakar Atiku Bagudu expressed optimism about the potential for “significant investment” flows from Saudi Arabia.
With nearly 225 million people, Nigeria is the continent’s most populous country, but approximately 40% of its population lives below the national poverty line.
President Bola Tinubu announced last month that the country had secured over $30 billion in foreign direct investment.
