Recession: Nigeria Seeks $15bn Upfront Oil Payment From India - Recession: Nigeria Seeks $15bn Upfront Oil Payment From India -
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    Recession: Nigeria Seeks $15bn Upfront Oil Payment From India

    NIGERIA has commenced negotiations with the Indian government for the release of $15bn as upfront payment for crude oil purchase.

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, disclosed this on Monday.

    The minister was quoted to have said in a statement signed by the Director, Press, Ministry of Petroleum Resources, Idang Alibi, that the deal would be in consideration for Indian public sector companies collaborating with Nigeria in the refining sector as well as exploration and production activities.

    He explained that the collaboration would be on a government-to-government basis by Indian PSU companies, long-term contracts for supply of crude to such firms by Nigeria, and executing city gas distribution.

    Kachikwu, who is currently on a three-day visit to India, was said to have concluded talks on the investments in Nigeria’s oil and gas sector in a bilateral meeting with the Indian Minister of Petroleum and Natural Gas, Shri Dharmendra Pradhan.

    The statement said both ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector, while acknowledging that Nigeria is one of the largest trading partners of India in Africa, especially in terms of crude oil and gas.

    It said in 2015, India imported nearly 23.7 million metric tonnes of crude (nearly 12 per cent of the country’s overall imports) and over two million metric tonnes of Liquefied Natural Gas from Nigeria.

    Kachikwu told reporters, “Nigeria has a bit of a cash flow problem right now. Our reserves are not as strong as we want them. The impact of that is the value of the naira is coming down.

    “So, what we are trying is to leverage the assets we have to receive immediate cash.”
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