Nigeria and Indonesia are exploring direct government-to-government oil and gas partnerships that could attract billions of dollars in investment, create jobs and facilitate technology transfer, the President of the Nigerian-Indonesian Chamber of Commerce and Industry, Ishmael Balogun, said.
Balogun told reporters on Saturday after the Indonesian 41st Trade Expo, where hundreds of Nigerian delegates were present.
Highlighting efforts to deepen bilateral trade and investment, Balogun said Indonesia currently buys about $3bn worth of Nigerian crude oil annually, adding that shifting from third-party transactions to direct government-to-government arrangements could unlock investment opportunities in oil exploration and other sectors.
“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.
According to Balogun, direct investment in exploration would generate wider economic benefits for Nigeria beyond the revenue derived from conventional trade.
“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 a mutually beneficial arrangement capable of attracting Foreign Direct Investment and strengthening economic relations between the two 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 disclosed that more than 25 Indonesian government representatives had 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.
Balogun said the delegation met 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 translate into concrete investment agreements and stronger cooperation in the energy industry, adding that both countries had recorded significant growth in bilateral trade over the years, with the value increasing from $2bn in 2020 to $2.7bn in 2021, $2.9bn in 2022 and $4.5bn in 2023.
He said Nigeria had maintained its position as 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 approximately 155 corporate members operating in sectors including oil and gas, agriculture, renewable energy, manufacturing, pharmaceuticals and infrastructure development.
Balogun said the chamber also facilitated transactions among its members, valued at more than N1bn annually.
According to him, 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 Minister Logistics, Giorgio Enrico Del Celo, said international trade exhibitions provided opportunities for Nigerian businesses to establish connections 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 considerable commercial opportunities.
He praised the Nigerian-Indonesian Chamber of Commerce and Industry for supporting his business expansion and connecting members with opportunities in international markets.
