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FG Seals N155bn Investment Deal with Indonesian Consortium


090811Tolusegun-aganga.jpg - 090811Tolusegun-aganga.jpg
Minister of Trade and Investment, Olusegun Aganga
The Federal Government has signed a Memorandum of Understanding (MoU) with the Barkie  Group of Indonesia  for an investment worth  N155 billion in  mining, rubber and oil plantations in Ogun and Akwa Ibom States within the next five years.

Minister of Trade and Investment, Mr. Olusegun Aganga, who disclosed this during the signing of the MoU in Abuja, yesterday, said currently, Indonesia had overtaken Malaysia as world’s largest palm oil producer.
“Also, the country (Indonesia) is  the second largest producer of natural rubber in the world with total production of 2.9mn tons in 2010. Average annual growth of rubber plantations in Indonesia currently stands at three per cent, which is higher than global annual growth of two per cent,” he said.
Aganga, who signed on behalf of the Federal Government, while the leader of Bakrie Group of Indonesia, Mr.  Indra Bakrie, signed on behalf of the group, also said the deal was a product of the collaboration and high level consultations between the Bakrie Group, the Ministries of Trade and Investment;   Agriculture and Rural Development and Mining and Steel Development  and some state governors  in Nigeria.
“But Barkie Group’s  proposed investment,  which will be managed by the its investment vehicle in Nigeria (Bakrie Delano Africa Nigeria Limited), will   focus on maximising benefits from the   country’s  mining sector, exploring the untapped investment potentials in the agriculture and agri-business with prospects of expanding investment in six  states  of the federation within the next five years,” he said.
He noted that the deal had the potential to create  jobs and generate wealth for Nigeria, adding that the Federal Government was committed to creating a conducive environment for attracting  Foreign Direct Investments into the country.
He said: “This deal is a product of several meetings and consultations with the the Bakrie Group,  the Ministries  of Trade and Investment;   Agriculture and Rural Development and Mining and Steel Development  and some state governors  in Nigeria. The Group will be investing $1billion in mining, rubber and oil palm plantation in Ogun and Akwa Ibom states within the next five years but with prospect of expanding their investments in six other states in Nigeria.
“The Bakrie Group is well known globally, especially in the areas of coal mining (they are the  largest coal mining corporation in Indonesia ) and rubber plantation. They are not only in Indonesia, they also have investments in other countries of the world , including Africa. We see this MOU signing ceremony as an indication of a partnership that will be there for a long time.
“We are very delighted with this partnership because the Group  is investing in  the areas where  Nigeria has competitive and comparative advantage. This, in essence, will yield good dividends for our country in terms job creation and wealth generation.”
Speaking during the event, the leader of the Barkie Group, Mr. Indra Bakrie, said the Group chose to invest in Nigeria because of the abundant investment opportunities as well as potentials for high returns on investment.
He said: “Nigeria is an emerging market country. Based on World Bank’s report, the country is categorised as a middle income status supported by its abundant supply of natural resources, well-developed financial and legal system, communications, transport sectors and stock exchange, which is the  second largest   in Africa.
“In the last 12months, this is the second time we are announcing the Bakrie Group’s International expansion aimed at expanding our position. As true entrepreneurs, we feel this venture is more promising and fulfilling from the broad new potentials that we foresee in Nigeria,” he said.

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