Abuja, Nigeria – Nigeria is pursuing a $5 billion trade facility from Saudi Arabia as part of its economic reform agenda, following discussions between President Bola Tinubu and Saudi Crown Prince Mohammed bin Salman in Riyadh during the joint Arab-Islamic Summit.
The Presidency announced this potential deal, though specific terms and allocations are still under negotiation.
Nigeria and Saudi Arabia maintain a longstanding trade relationship, with Nigeria exporting $661 million to Saudi Arabia in 2022, primarily crude oil, while Saudi Arabia’s $673 million exports to Nigeria largely consisted of refined petroleum and polymers.
As both countries seek to deepen this partnership, the Saudi crown prince has reportedly assured Nigeria of support for its economic reform initiatives, according to the Nigerian presidency.
“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 presidency disclosed in a statement.
This proposed trade facility builds on ongoing diplomatic efforts, dating back over a year, when Nigeria’s Budget and Economic Planning Minister, Abubakar Atiku Bagudu, highlighted the potential for “significant investment” from Saudi Arabia.
The formation of the Nigeria-Saudi Arabia Business Council also signalled both countries’ interest in increasing trade and investment ties.
President Tinubu’s administration has made attracting foreign investment a central pillar of its economic strategy, recently announcing over $30 billion in secured foreign direct investment.
Nigeria, the most populous African nation with around 225 million people, continues to face economic challenges, including a poverty rate that impacts approximately 40% of its population.
The Saudi trade facility could provide a crucial boost as Nigeria seeks to implement policies aimed at reducing its dependence on oil revenue and addressing poverty through diversified economic growth.