Nigeria signs MoU with Saudi Arabia, India

Nigeria signs MoU with Saudi Arabia, India

The Nigerian government has signed a memorandum of understanding (MoU) with the Kingdom of Saudi Arabia and India for the construction of two fertilizer plants.

This  is regarded as a bold step to diversify the Nigerian economy and reverse the trend of dependence on the export of hydrocarbon resources.

Benefits of the gas

Under the MOU, fertilizer projects from the three countries would provide employment opportunities and had an overall development of the nation’s economy.

Nigeria's President, Goodluck Jonathan said that apart from massive job creation, the gas pipelines from the south to the north would ensure adequate supply of natural gas to the textile and allied industries which had shut down as a result of high cost of fuel oil, the petrochemical and fertilizer plants would signal the end of gas flaring in Nigeria .

 He was quoted as saying that “The fertilizer plants and their customized blending plants will result in a radical transformation of our nation’s agricultural productivity from subsistence farming to full scale industrial farming.  The concept of customized blending plants as introduced by this project will ensure that the fertilizer is formulated to suit the type of soil in the zone, resulting in enhanced productivity." 

"Increased productivity will lead to the establishment of many agro processing industries to cope with the production growth that will emerge,” he explained.

Nigeria has a  proven gas reserves put at 187 trillion cubic feet.

The Group Managing Director, Nigerian National Petroleum Corporation, (NNPC), Mr. Austen Oniwon, signed on behalf of the Nigerian government while representatives of Xenel (Saudi Arabia), Mr. Khalid Zagzoog and Mr. Kanumuri Raju, who represented Nagarjuna Fertilizers and Chemical Ltd. (India); Mr. Giro Pagano and Mr. Wale Tinubu signed for the Agip/Oando Consortium.

NP/Margaret/ Qasim