As Nigeria continues to grapple with poor economic prospects, the Senate on Tuesday summoned the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, to come and explain alleged multibillion dollar oil and gas deals with Chinese and India firms.
The Senate summoned the minister to appear before its committees on petroleum, gas and foreign affairs to shed more light on the deals and their implications for the economy.
The Senate’s resolution followed a motion by Clifford Ordi.
The minister had in June in an interview said the federal government had signed Memorandums of Understanding with several Chinese firms during a road show in the Asian country on “$80 billion new investments, spanning five years, in the oil and gas industry covering pipelines, refineries, gas and power, facility refurbishments and upstream financing.”
Also, Kachikwu through a statement by the Director of Press in the Petroleum Ministry, said Nigeria was set to sign with India an investment deal which would see the Indian make an upfront payment of $15 billion to Nigeria for crude purchases.
The statement explained that the $15 billion would be repaid on the basis of firm term crude contracts over some years and in consideration for Indian public sector (PSU) companies collaborating in the refining sector as well as exploration and production activities on a government-to-government basis by Indian PSU companies, long term contracts for supply of crude to Indian PSU companies from Nigeria, and also possibilities of executing CGD and LPG infrastructure projects by Indian PSU companies in Nigeria.