Saudi Arabia Pledges Substantial Forex Deposit and Investment in Nigeria’s Refineries

Nigeria, under the leadership of President Bola Tinubu, has initiated sweeping reforms, including the elimination of the petrol subsidy and the unification of the country’s exchange rates, aimed at enhancing the ease of doing business.

However, liquidity struggles persist in the official currency market, with the naira maintaining a premium on the parallel market.

Information Minister Mohammed Idris announced that the Saudi government has committed to making a substantial forex deposit to bolster Nigeria’s liquidity.

Also, through Saudi Aramco, the Saudi government will invest in the overhaul of Nigeria’s four state refineries, a project slated for completion within two to three years.

Facing challenges like foreign-currency shortages, double-digit inflation, and security concerns, Nigeria seeks increased investments to revitalize its economy.

Tinubu, addressing potential Saudi investors at the Saudi-Africa summit in Riyadh, assured them of the safety of their investments, promising some of the world’s highest returns.

The Nigerian leader also advocated for collaboration between the two countries to address security challenges, including the threat of Islamist insurgents like Boko Haram.

Both nations further solidified their economic ties by signing a memorandum of understanding for cooperation in the oil and gas industry.

Over the next six months, Nigeria and Saudi Arabia plan to develop a comprehensive roadmap to deliver on the pledged investments.