The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says Nigeria expects as much as four billion dollars in loan facilities for infrastructure development in the oil and gas sector.
Dr. Kachikwu gave the hint on Wednesday ahead of a 40-member Chinese investment team’s visit to Nigeria at the end of October.
He told journalists after the Federal Executive Council meeting on Wednesday that the loan facility was independent of the $75.6 billion oil sector investment Memorandum of Understanding signed at Nigerian National Petroleum Corporation’s China Road Show in July.
The Minister said $40 billion was the original target, being the total cost of Nigeria’s oil infrastructural gap.
He further told reporters that despite an expected gestation period of one year for the hatching of business incentives and terms of investment arising from different agreements the nation had entered into, the country would take advantage of some readily available facility lines.
Nigeria’s oil sector had witnessed lesser activities, since the price of crude oil dropped, dipping the nation’s revenue.
Nigeria largely depends on crude oil sales for its revenue, but the government has reiterated the need for a shift from crude oil to other sectors to raise money and reflate the economy in recession.
Dr. Kachikwu had at the roadshow described Nigeria as a reservoir of natural resources waiting to be tapped.
The Minister urged the Chinese investors to join their counterparts who have invested in Nigeria and were doing well in various sectors of the economy.
Liberal Policies
Dr Kachikwu stated that Nigeria was a preferred investor’s destination because of its liberal policies and quick returns on investments.
The Minister also signed an agreement worth $30 million.
A top official of the Nigerian National Petroleum Corporation (NNPC), Anibor Kragha, who presented the areas of investments to the businessmen, described Nigeria’s oil company as the biggest investment in the African continent looking for partners that will be part of Nigeria’s oil and gas revolution.
Kragba assured the businessmen of a friendly environment and quick returns on investments in Nigeria’s oil industry.
Also at the roadshow, an indigenous investor in the industry, Dr Bryant Orjiakor, lent his voice to the attraction in the nation’s oil and gas industry.
According to Orjiakor, Nigeria’s oil and gas industry was a major platform on which the country aim to expand its economy.
He identified Nigeria’s population as an advantage for quick yields on investments.
Nigeria is targeting about $15 billion foreign investments from China and the Gulf States to replace and expand its ageing infrastructure in the oil industry.
The NNPC also targets $50 million investment from its roadshows and its major target of investors are in China, India and the Gulf Countries.