Nigeria signs over $80bn MoU with Chinese companies

Titilayo Ipinjolu

Nigeria and some Chinese Companies have signed a memorandum of understanding (MOU’s) worth over $80 billion.

The Minister of State and Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr Ibe Kachikwu who is currently visiting China as a Special Envoy of the Nigerian President revealed this at the ongoing NNPC China Investors’ Road show.

According to him, the money is to be spent on investments in oil and gas infrastructure, pipelines, refineries, power, facility refurbishments and upstream.

Dr. Kachikwu, while speaking during the plenary of a special Investors’ Roundtable which had in attendance over 200 Chinese investors with key focus on the Oil and Gas Sector restated that the road show was organised as a follow up to the working visit of His Excellency, President Muhammadu Buhari to China in April, 2016.

He commended the efforts and resolve of President Buhari in ensuring that there is a marked transformation of the oil and gas industry through the institutionalizing of focus, accountability, commitment and transparency at the industry.

Dr. Kachikwu expressed his gratitude to the Chinese Government and investors for the show of support which reflects the growing international confidence in Nigeria’s oil and gas sector.

Dr. Kachikwu also stated that the China Road show is the first of many investor road shows intended for the raising of funds to support the Oil & Gas Infrastructure road map as Road shows have been slated for India and the Gulf States.

Meanwhile, the International Cooperation Commission (ICC) of the National Development and Reform Commission (NDRC), in charge of implementing cooperation between Chinese governments, Foreign Governments and organisations have committed to develop an overarching master plan for the Nigerian oil and gas.

This will include a detailed feasibility study of current status of existing infrastructure in the industry.

They will develop bankable projects that would attract Chinese investors on this Government-to-Government platform and the initiative is expected to move the Nigerian gas and oil industry to a much more profitable and efficient state.

Also the master plan would form the basis of massive inflow of further investment from Chinese companies into the sector

Some of the companies involved include NORINCO, CINDA, CNOOC, SINOPEC/ADDAX, ICC-NDRC amongst others.

The Road Show was organised by the Corporation to attract investors in China and the Asian sub region to invest in the Nigerian Oil and Gas sector.