President Bola Tinubu has successfully secured the return of Petrobras, Brazil’s state-owned oil company, to Nigeria after a five-year absence. The development was announced during President Tinubu’s state visit to Brazil, where he met with Brazilian President Lula. Petrobras had previously halted its joint venture operations in Nigeria.
According to a statement by Special Adviser to the President Bayo Onanuga, President Tinubu welcomed the news, stating that Petrobras’ return would reignite economic cooperation in the energy sector between the two countries. The president emphasized Nigeria’s large gas repository and encouraged Petrobras to partner with the country as soon as possible.
During a joint press conference in Brasília, President Tinubu and President Lula discussed the potential for cooperation in various sectors, including energy, agriculture, and manufacturing. The two leaders also signed five Memoranda of Understanding (MoUs) to strengthen trade, diplomacy, science, aviation, and finance cooperation between Nigeria and Brazil.
One of the agreements signed was a Bilateral Air Service Agreement (BASA), which aims to deepen economic, cultural, and diplomatic ties between the two countries. The agreement will facilitate direct flights between Nigeria and Brazil, with Nigeria’s largest airline company, Air Peace, set to operate flights between Lagos and São Paulo.
Other agreements signed include an MoU on cooperation in biotechnology, bioeconomy, and innovation, as well as an agreement on diplomatic training cooperation. The two countries also agreed to cooperate on trade and investment promotion, with a focus on expanding agricultural financing and joint projects.
Nigeria and Brazil have a significant trade relationship, with trade totaling nearly $2.1 billion in 2024. Brazil is Nigeria’s 49th largest export destination, with the country exporting primarily sugar and jams, and importing mostly fertilizers.
The return of Petrobras to Nigeria is expected to have a positive impact on the country’s economy, with President Tinubu assuring investors that Nigeria’s economic reforms are yielding results. The president also emphasized the need for investment and knowledge exchange on healthcare and pharmaceuticals, highlighting the potential for cooperation in these areas.
The visit marks a significant step forward in the relationship between Nigeria and Brazil, with both countries reaffirming their commitment to free trade and productive integration. As President Lula noted, there are many possibilities for synergy between the two countries, particularly in areas such as agriculture, oil and gas, and manufacturing.
