Theresa May’s Visit: Is Nigeria’s Oil In The Deal?

British Prime Minister, Theresa May’s Wednesday visit to Nigeria has dominated news coverage in the country in the last hours, especially as it relates to what the bilateral agreement signed by the British and Nigerian governments holds for the latter.

At a closed-door meeting that held at the New Banquet Hall at the State House yesterday, May and President Muhammadu Buhari signed a bilateral agreement on UK’s readiness to help Nigeria improve its defence, security and economic development.

Present to join President Buhari in welcoming the British PM at the Aso Rock Presidential Villa was the Group General Manager of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru.

It was learnt that Dr. Baru was also present at the bilateral trade meeting that held between representatives of both countries.

There were also reports that May’s visit to the country was part of her efforts to bolster UK’s ties with countries around the world ahead of the expected exit of Britain from the European Union.

Although the exact details of May and her trade delegation’s meeting with the Nigerian business community have not been made public, many expect that the Federal Government of Nigeria and its trading partners would push for increased purchase of the country’s crude oil by the UK in order to bridge the gap in the government’s budget financing.

In the last three years, the Nigerian Government has been borrowing to fund the country’s budget due to the short fall in crude oil production and fluctuating oil price.

Meanwhile, Nigeria and the UK have a history of business relationship as the country remains Britain’s second largest trading partner in the whole of Africa.

According to trade figures released in 2017 by the Office for National Statistics of the UK Trade Statistics, the top export to the UK from Nigeria in that year was crude oil. The organization also revealed that Nigeria’s largest import from the European country was refined oil.