A Road show in China lands Nigeria $8.5 billion deal

Nigerian economy officially slides into recession

President Muhammadu Buhari has sent the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, to China for a Road Show.

The road is geared at luring investors into Nigerian oil sector to the tune of $50 billion. The funds, if generated, will kick start massive infrastructural facelift within the oil sector.

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Kachikwu went with top NNPC management and key stakeholders. The roadshow is a follow up to President Buhari’s visit to China in April.

So far, the roadshow has sealed a potential deal of $8.5 billion dollars with a Chinese corporation, North Huajin Chemical Industries Group.

According to Kachikwu, “We just came out of signing a global $8.5 billion potential investment by one of the companies, NORINCO, in the upstream business in Nigeria.

“We are beginning the major road show this afternoon (Monday). We are looking to raise about $40 to $50 billion which covers the infrastructure gap that we see in Nigeria. So the interest is enormous.

“As much as we do agree that the price of oil has slid, obviously, and creates a lot of challenge for investors.

“But the reality is that for countries like Nigeria and indeed for most OPEC countries, you still find that price per cost barrel of oil, it still provides enough incentives.

“And what we need to do is continue to drive down our cost, create policies that are encouraging, focus government attention on the long and short term gains and encourage investors.

“This country is an important place to put money in, in the oil sector at least. We have managed to have begun to lead conversation with the militants.

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“A lot of engagement (with Militants) is taking place on the authorization of His Excellency, President Muhammadu Buhari.

“We have been able to get production up back to about 1.8 million to 1.9 million barrels per day as of two days ago. We are continuing those conversations.”

The road show is expected to bring in more investors, particularly since the CBN floated the naira.