Nigeria and Indonesia are considering new energy sector partnerships that could move their crude oil trade towards direct government-to-government agreements and attract billions of dollars in investment, the Nigerian- Indonesian Chamber of Commerce and Industry has said.
The chamber’s President, Ishmael Balogun, told journalists on Saturday after the 41st Indonesian Trade Expo, which attracted hundreds of Nigerian delegates, that Indonesia currently purchases about $3bn worth of Nigerian crude oil annually but relies on third-party transactions.
He explained that direct government-to-government arrangements could open up opportunities for Indonesian investments in oil exploration and other areas of Nigeria’s energy industry.
“Indonesia has been buying crude from Nigeria, but they are buying it from a third-party kind of relationship. But this time around, we’re looking at a relationship where they can do a G2G, which opens up a lot of opportunities in exploration,” he said.
Balogun said investment in oil exploration would generate broader economic benefits for Nigeria beyond revenue from crude oil sales.
“If you have an idea of the amount of money that is invested to explore for oil, that means jobs will be created for the common man in Nigeria. There will be knowledge transfer; there will be income that will be earned,” he added.
He described the proposed partnership as mutually beneficial, saying it could attract Foreign Direct Investment and strengthen economic ties between both countries.
“Trading is good. Trading is what trading is. You buy, you go. But when it comes to exploration, life changes. And the level of investment we’re talking about is in billions of dollars that affect literally every single body in Nigeria that’s involved,” Balogun said.
He said more than 25 Indonesian government representatives visited Nigeria less than a month before the interview to explore opportunities for closer cooperation in the energy sector.
The delegation included representatives of Indonesian state-owned energy company Pertamina, its renewable energy and exploration divisions, as well as the country’s Vice Minister of Foreign Affairs.
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Balogun said the delegation held meetings with Nigeria’s Minister of Foreign Affairs and officials of the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission.
He expressed optimism that the engagements would lead to concrete investment agreements and stronger cooperation in the energy industry.
Balogun also highlighted the growth in bilateral trade between the two countries, saying its value increased from $2bn in 2020 to $2.7bn in 2021, $2.9bn in 2022 and $4.5bn in 2023.
He said Nigeria had remained Indonesia’s leading trading partner in Africa since overtaking South Africa in 2020.
Established in 1997, the Nigerian-Indonesian Chamber of Commerce and Industry has about 155 corporate members operating in sectors such as oil and gas, agriculture, renewable energy, manufacturing, pharmaceuticals and infrastructure development.
Balogun said the chamber also facilitated transactions worth more than N1bn annually among its members.
He added that Nigerian businesses import pharmaceutical products, palm oil, electronics and fast-moving consumer goods from Indonesia, while Indonesian companies source agricultural commodities from Nigeria.
Meanwhile, the Chief Executive Officer of Prime Logistics, Giorgio Enrico Del Celo, said international trade exhibitions offered Nigerian businesses opportunities to connect with potential partners and expand into new markets.
Del Celo said doing business in Nigeria required patience, market knowledge and credibility despite the country’s commercial opportunities.
He commended the Nigerian-Indonesian Chamber of Commerce and Industry for supporting his company’s expansion and connecting its members with opportunities in international markets.
Punch News
