FG Backs Saudi’s Efforts to Maintain Oil Market Stability, Says Negotiation on 12 MoUs Ongoing

Emmanuel Addeh in Abuja

The federal government has expressed support for the Kingdom of Saudi Arabia in its efforts to, in collaboration with the Organisation of Petroleum Exporting Countries (OPEC), stabilise the global oil and gas market.

Nigeria’s ambassador to Saudi Arabia, Yahaya Lawal, in an interview with Saudi-based newspaper, Asharq Al-Awsat, also stated that there were ongoing negotiations between the two countries on more than 12 agreements and Memoranda of Understanding (MoUs) to boost strategic ties and joint work.

The ambassador said Abuja and Riyadh as OPEC members maintain solid cooperation in favour of the global oil market, explaining that they work under the OPEC+ framework to maintain the stability of the market and to achieve a fair price.
Saudi Arabia recently confirmed that it would maintain a production cut of 1 million barrels of oil a day through the end of the year, with the announcement expected to further prop up oil prices.

Saudi Arabia and Nigeria are important in terms of balancing the oil market and share a strong partnership in preserving the oil market’s stability which is crucial to the global economy, he added. OPEC data showed that Nigeria produced 1.18 million barrels per day in August.
Lawal remarked that both countries were holding talks over 12 agreements and MoUs as part of the Nigeria-Saudi Joint commission, noting that an agreement was previously signed between the chambers of commerce and industry in Saudi Arabia and Nigeria. This, he said, would reinforce trade, economic, and investment cooperation.

Lawal, stressed that the current talks were part of endeavours to boost cooperation in many fields, including energy, oil, gas, investment protection, avoiding dual taxation and in transport.
Other areas of cooperation, he said, included anti-corruption, money laundering and financial crimes, education, human trafficking, security and defence cooperation, among others.

According to the Nigerian ambassador, the Saudi-Nigerian ties have elevated remarkably in various fields in which some Saudi investors have launched investments in Nigeria, especially in real estate development and agriculture where the trade level is undergoing an upward trend.
Saudi Arabia’s exports to Nigeria were $696.28 million in 2021, he noted, adding that the exports include petrochemical products and other finished goods. But for its part, he said that Nigeria exports agricultural products, coal, and some household goods to the kingdom.

According to the ambassador, the bilateral trade was expected to be boosted in the coming days, highlighting that the positive change was obvious, given that trade between both countries was low in the past years and was mainly focused on unofficial trade, especially during the Hajj season.

It quoted Lawal as saying that Saudi Arabia and Nigeria share a long history of ties that go back centuries before the foundation of both countries, recalling that Nigerians usually head to the Kingdom to perform Hajj and for commercial purposes.

He stated that he was looking forward to the business community in both countries unlocking the available opportunities in investment and commerce in Nigeria.

Besides, the ambassador pointed out that there were abundant joint features on which both countries were working, amid new initiatives of mutual interest.

He further highlighted that Nigeria has a population of more than 220 million, which he said represents a huge production force, concluding that the country enjoys huge potential as well as investment-friendly laws.