The Nigerian National Petroleum Corporation (NNPC) has revealed its interest to renew its crude sales contract with Indonesia after a few months of expiration. Mele Kyari, the new Managing Director of NNPC revealed that the state oil firm was still interested in working with Pertamina, Indonesia’s national oil company. A trade relationship that will be beneficial to both parties.
Last year, Indonesia imported crude oil worth about $2.5 billion from Nigeria; but that contract ended in December 2018. The implication of a balanced trade relationship between both countries will most likely go beyond oil. Indonesia is no doubt a qualified partner towards driving economic growth for Nigeria based on the existing and potential economic activities between the countries.
The country already has industrial companies operating in Nigeria, majority of which not only provide jobs to a significant number of Nigerians but have become dominant players in the Nigerian market. These companies deal in food and beverages, textiles, jewellery, and even pharmaceutical products. The Indomie brand, for instance, has become a household name in the Fast Moving Consumers Goods (FMCG) space.
Indonesia’s economy in the last few years has recorded growth, and also said to be efficient, open, competitive and business-friendly with massive progress made in infrastructure development. Moreover, being the world’s largest producer of palm oil, the second-largest producer of cassava, and third-largest rice producer, Indonesia is somewhat a “role model” for Nigeria in the agricultural sector.
As the Nigerian government looks to diversify the economy, and depend less on oil for revenue, economic deals that go beyond crude oil exports (to include agriculture) with the Asian country would be a step in the right direction.