Nigeria-Indonesia Oil Trade Hits $3.8bn in 2023

The value of Nigeria’s crude oil and gas exports to Indonesia rose to $3.8 billion in 2023, according to the Indonesian Ambassador to Nigeria, Dr. Usra Harahap.

This substantial trade figure underscores the robust economic ties between the two nations, particularly in the energy sector.

During a courtesy visit to the Permanent Secretary of the Federal Ministry of Petroleum Resources, Nicholas Ella, in Abuja, Ambassador Harahap expressed Indonesia’s keen interest in further deepening its collaboration with Nigeria.

This visit marked an effort to build on nearly six decades of diplomatic and economic relations between the two countries.

“We are looking for ways to maintain and improve the beneficial cooperation and relationship that we have held for the past 59 years,” said Harahap.

He highlighted that the oil and gas sector remains a focal point of mutual interest and emphasized the need for enhanced collaboration.

According to a statement issued by Oluwakemi Ogunmakinwa, the Deputy Director of Press and Public Relations at the petroleum ministry, the Indonesian ambassador called for a resumption of discussions on a Memorandum of Understanding (MoU) in the oil and gas sector.

These discussions had been suspended since 2017. The ambassador also cited an offer from Enugu State to build a 500-megawatt gas power plant as a potential area for collaboration.

In response, Permanent Secretary Ella reaffirmed Nigeria’s commitment to strengthening its relationship with Indonesia. He acknowledged Indonesia’s role as a significant partner in Nigeria’s oil and gas sector and expressed optimism about exploring further avenues for cooperation.

“Indonesia has been a good friend to Nigeria,” Ella stated. “This visit will help improve the relationship between our countries in promoting Nigeria’s oil and gas for mutual benefits.”

Nigeria’s oil and gas exports are crucial for its economy, providing the bulk of its foreign exchange earnings. In 2023, the country generated a record N29 trillion from crude oil exports, marking a 37 percent increase from the previous year.

This surge is attributed to a combination of higher oil production and the devaluation of the Nigerian currency, which made oil exports more profitable.

While the oil and gas sector continues to be a cornerstone of Nigeria’s economy, officials recognize the importance of diversifying the economy to ensure long-term stability.

The ongoing discussions with Indonesia are part of broader efforts to enhance international partnerships and leverage Nigeria’s energy resources for sustainable economic growth.