President Buhari sent the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, to China as a follow-up to his April trip.
The trip by Kachikwu has yielded dividends as the Federal Government has just signed Memorandums of Understanding (MoUs) with several Chinese firms for over $80 billion new investments.
The contracts will span for five years in oil and gas industries.
The deals includes building of pipelines, refineries, gas and power, facility refurbishments and upstream financing.
According to Kachikwu “I can confirm that we had a successful outing and finally raised investment commitments and signed MoUs worth $80 billion.
“Out of this, $10 billion approximately was raised on the sides with our steer and push for two Nigerian companies – Delta Tek and Salvic Petroleum.
“The balance of $70 billion includes MoUs signed by investors and financiers for projects with the Nigerian National Petroleum Corporation (NNPC).
“Outside these (MoUs for $80 billion investments), the two largest oil companies in China, Sinopec and CNOOC, signed investment MoUs agreeing to announce after further discussions on major investment increases in the Nigerian oil and gas in the next few months.
“Given the areas of focus of these two companies, we do not expect that investment to be less than $20 billion.
“The net effect of these and other agreements in principle reached with investor interest in China on this roadshow will potentially provide investment funds for Nigerian oil and gas of over $100 billion over the next five years.
“These investments cover every facet of Nigeria’s oil and gas sector – upstream, pipelines, downstream, gas and power, modular refining in the creeks, engineering services, etc.
“It has been a fantastic outing and if we can follow through on all these, it will change the face of Nigeria’s oil and gas forever.
“This will bring hope even to the Niger Delta and is the single biggest amount of MoUs signed on investment in any third world country in a roadshow,” Kachikwu stated.
“We will work round the clock to meet the conditions precedent to draw down and make these investments a reality.
“Of course, the federal government’s approval on certain commitments will be required as these involve sovereign guarantees.
Recall that the Buhari Administration had hoped for a $50 billion dollar deal. Kachikwu just doubled it and more may follow.
The Chinese Government opened up these deals due to President Buhari’s perceived commitment to them.