Saudi Arabia commits $5bn trade facility to boost Nigeria’s economic reform agenda

Onome Amuge

President Bola Ahmed Tinubu and Saudi Crown Prince Mohammed bin Salman have recommitted to a $5 billion bilateral trade facility between the two nations, which would facilitate increased cooperation in a range of vital sectors, such as energy, agriculture, and infrastructure.

The proposed trade facility, which could significantly enhance the economic ties between Nigeria and Saudi Arabia, was among the main agenda items discussed during their historic meeting on the sidelines of the Joint Arab-Islamic Summit in Riyadh.

A statement by Bayo Onanuga, special adviser to the president on Information and Strategy, disclosed that Mohammed bin Salman, in a meeting with President Tinubu, expressed his admiration for Nigeria’s ongoing economic reforms, likening them to the extensive restructuring and stabilisation efforts he has overseen in Saudi Arabia since ascending to the role of prime minister.

The discussions between both leaders placed particular emphasis on the future prospects of the Saudi Agricultural and Livestock Investment Company (SALIC), which had already made significant strides in Nigerian agriculture through its $1.24 billion investment in Olam in 2022.

This move had given SALIC a 35.43 percent stake in the agricultural giant, and the two leaders discussed the possibility of further investments.

Amongst other discussions, he two leaders explored potential areas for cooperation, particularly oil and gas, agriculture, infrastructure and the constitution of the Saudi-Nigeria Business Council.

“Nigeria wants an agreement with the Saudi government over a proposed $5 billion bilateral trade facility between the two countries.

“The Saudi Agricultural and Livestock Investment Company (SALIC) invested $1.24 billion in 2022 to acquire a 35.43% stake in Olam Agri, one of Nigeria’s leading agricultural firms.

“Talks are being held so that SALIC can have more stake in the company.

“The Saudis hoped the investment would make Olam one of the biggest agro-allied businesses in the world,” Onanuga stated.

The Joint Arab-Islamic Summit saw Nigeria’s mandate on the ministerial committee tasked with engaging with global leaders to resolve the ongoing conflict in Gaza and Lebanon renewed.

Led by Saudi Arabia, the committee consists of foreign ministers from Nigeria, Egypt, Qatar, Turkey, Indonesia, Palestine, and Jordan, with each member nation bringing unique perspectives and capabilities to the effort to bring about peace and stability in the region.