Market News

By Ruth Olurounbi

(Bloomberg) -- Nigeria is seeking a $5 billion trade facility from Saudi Arabia to shore up capital for its economic reform program. 

The West African nation wants a deal with the Saudi government on the facility, Nigeria’s presidency said in a statement Tuesday after President Bola Tinubu met Crown Prince Mohammed bin Salman in Riyadh on the sidelines of the joint Arab-Islamic Summit. No further details were given.

The crown prince assured Nigeria of its support for its economic reform programs, the presidency said. “The two leaders explored potential areas for cooperation, particularly oil and gas, agriculture, infrastructure and the constitution of the Saudi-Nigeria Business Council.”  

Nigeria first flagged the proposed investment a year ago, when the two nations formed a Nigeria-Saudi Arabia Business Council. Nigerian Budget and Economic Planning Minister Abubakar Atiku Bagudu said at the time that he expected to see “significant investment” flows from Saudi Arabia.

Since becoming president of Africa’s biggest oil producer in May 2023, Tinubu has implemented a series of economic reforms aimed at attracting foreign capital to help accelerate growth. Nigeria is the continent’s most-populous nation, with almost 225 million people — 40% of whom live below the national poverty line.

Tinubu said last month that the reforms have attracted more than $30 billion in foreign direct investment in the West African nation.

In May, Nigeria and Saudi Arabia agreed to strengthen bilateral ties and to explore potential investment opportunities in Nigerian agriculture and trade, according to Nigeria’s information ministry. In November 2023, the two nations also discussed opportunities in technology, telecommunications, oil and gas, and mining.

--With assistance from Anthony Osae-Brown and Alister Bull.