Nigeria sign $1 billion dollar investment deal

Trade and Investment Minister, Olusegun Aganga signing the agreement with the Chairman of Indonesia's Bakri Group, Indra Bakri

Nigeria signs $1 billion-dollar investment deal
Hauwa Noroh Ali ,Abuja

The Nigerian Government has signed a Memorandum of Understanding with the Barkrie Group of Indonesia to invest 1 billion in mining , rubber and oil plantations in Ogun and Akwa Ibom states within the next five years.

The Minister of Trade and Investment, Mr.Olusegun Aganga, confirmed the development during the signing of a Memorandum of Understanding with the leader of Bakrie Group of Indonesia, Mr. Indra Bakrie in Abuja
Currently, Indonesia has overtaken Malaysia as world’s largest palm oil producer.

Also, the country (Indonesia) is the second largest producer of natural rubber in the world with total production of 2.9mn tons in 2010. Average annual growth of rubber plantations in Indonesia currently stands at three per cent, which is higher than global annual growth of two per cent.

But Barkrie Group’s proposed investment , which will be managed by the its investment vehicle in Nigeria ( Bakrie Delano AfricaNigeria Limited), will focus on maximizing benefits from the country’s mining sector, exploring the untapped investment potentials in the agriculture and agri-business with prospects of expanding investment in six states of the federation within the next five years.

Speaking during the MOU signing ceremony in Abuja, the Minister of Trade and Investment, Mr.Olusegun Aganga, said the deal was a product of the collaboration and high level consultations between the Bakrie Group, the Ministries of Trade and Investment; Agriculture and Rural Development and Mining and Steel Development and some state governors in Nigeria.

Job creation

He noted that the deal had the potential to create jobs and generate wealth for Nigeria adding that the Nigerian Government was committed to creating a conducive environment for attracting Foreign Direct Investments into the country.

He said, “This deal is a product of several meetings and consultations with the the Bakrie Group, the Ministries of Trade and Investment; Agriculture and Rural Development and Mining and Steel Development and some state governors in Nigeria. The Group will be investing $1bn in mining, rubber and oil palm plantation in Ogun and Akwa Ibom states within the next five years but with prospect of expanding their investments in six other states in Nigeria”.

“The Bakrie Group is well known globally, especially in the areas of coal mining (they are the largest coal mining corporation in Indonesia ) and rubber plantation. They are not only in Indonesia, they also have investments in other countries of the world , including Africa. We see this MOU signing ceremony as an indication of a partnership that will be there for a long time.

“We are very delighted with this partnership because the Group is investing in the areas where Nigeria has competitive and comparative advantage. This, in essence, will yield good dividends for our country in terms job creation and wealth generation .

Speaking during the event, the leader of the Barkrie Group, Mr. Indra Bakrie, said the Group chose to invest in Nigeria because of the abundant investment opportunities as well as potentials for high returns on investment.

He said, “Nigeria is an emerging market country. Based on World Bank’s report, the country is categorized as a middle income status supported by its abundant supply of natural resources, well-developed financial and legal system, communications, transport sectors and stock exchange, which is the second largest in Africa.

“ In the last 12months, this is the second time we are announcing the Bakrie Group’s International expansion aimed at expanding our position. As true entrepreneurs, we feel this venture is more promising and fulfilling from the broad new potentials that we foresee in Nigeria."

Ugo