NIGERIA’s economy may get an immediate boost of a hefty $15bn if the push by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu for the Indian government to release the amount as upfront payment for crude oil purchase sails through. The minister who is currently in India is working to convince India to shell out $15 billion as upfront payment for crude oil purchase. India has become one of Nigeria’s major customers for crude oil and liquefied natural gas.

If this works out, it would mitigate the damage done to the naira in the international forex market as a result of scarcity of the dollar. Nigeria’s naira has taken consistent battering  from major currencies and to add to the basket, external reserves have been dropping radically in recent months.

A statement signed by the Director, Press, Ministry of Petroleum Resources, Idang Alibi, said the deal would be in consideration for Indian public sector companies collaborating with Nigeria in the refining sector as well as exploration and production activities.

The statement said the collaboration would be on a government-to-government basis by Indian PSU companies, long-term contracts for supply of crude to such firms by Nigeria, and executing city gas distribution.

The minister held talks on the investments possibilities in Nigeria’s oil and gas sector in a bilateral meeting with the Indian Minister of Petroleum and Natural Gas, Shri Dharmendra Pradhan.

The statement said both ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector, while acknowledging that Nigeria is one of the largest trading partners of India in Africa, especially in terms of crude oil and gas.

It said in 2015, India imported nearly 23.7 million metric tonnes of crude (nearly 12 per cent of the country’s overall imports) and over two million metric tonnes of Liquefied Natural Gas from Nigeria.

“Following this negotiation, the two countries have agreed to work on a Memorandum of Understanding to facilitate investments by India in the Nigerian oil and gas sector, and specifically in areas such as term contract, participation of Indian companies in the refining sector, oil and gas marketing, upstream ventures, the development of gas infrastructure and in the training of oil and gas personnel in Nigeria.

“The MoU is expected to be firmed up in December during Petrotech-2016. Both ministers also agreed to strengthen the existing cooperation in oil and gas sector, and in particular to explore investment opportunities for Indian public and private sector companies in Nigeria,” the statement said.

According to the statement, the minister also held one-on-one meetings with top executives of Indian public sector oil and gas companies, and representatives of some private firms.

Kachikwu has been on the forefront of a global rally to help create an atmosphere that would push crude oil prices up. In Nigeria, he has shared the optimism of pacifying the raging militants of the Niger Delta as a recipe to push crude oil production to 2.2 million barrels per day from current levels by end of this year.