The Indonesian authorities has written to Nigerian government seeking direct crude oil sales in a move to eliminate middlemen and politicians who are frustrating trade between the two countries.
Nigeria’s Envoy to Indonesia, Hakeem Toyin Balogun disclosed this and noted that approval from the Nigerian government is being awaited on the proposal which is expected to boost trade between the two countries.
Middlemen and politicians were fingered for the country’s poor balance of trade records with Indonesia despite the Federal Government’s trade facilitation efforts.
The Envoy called on the government and business community to leverage opportunities that abound in the Asian country to sell more of its crude oil and improve on the packaged goods being exported to the country to improve its balance of trade.
Indonesia, though prone to natural disaster is a huge country with about 13,000 islands and two refineries servicing its 260 million population.
The country, Balogun said may join China and India as leading crude buyers of Nigerian crude after the Barrack Obama and Donald Trump administrations cut their purchases to less than 11 per cent of Nigeria’s total sales
The Nigerian envoy who spoke at a briefing to round off the 2018 Annual Meetings of the World Bank Group and the International Monetary Fund, in Bali, the Indonesian capital on Sunday, said the two countries’ balance of trade stand at less than 20 percent over the past few years and in favour of his host nation.
According to him, Nigerian government currently sells its crude to Indonesia through third party marketers whom industry analysts believe are politicians and commission agents who buy crude from the Nigerian National Petroleum Corporation(NNPC) for re-
sale to Indonesian customers at a premium.
Balogun said the involvement of third party dealers in Nigeria’s crude oil deals with Indonesia has constrained the volume of what can be bought at any given time, thereby denying it the opportunity to earn more from the Asian country with over 260 million inhabitants.
He acknowledged that over 14 Indonesian companies are currently operating in Nigeria, including Indorama Eleme Petrochemical and Dufil Nigeria Limited, manufacturers of Indomie noodles but no entrepreneur from Nigeria is willing to set up businesses in Indonesia.
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