New $2.5bn energy deal signed in Nigeria

25 June 2009

New pipelines, refineries and power stations are set to be built in Nigeria after a $2.5 billion (£1.53 billion) deal has been signed.

The state-operated NNPC has come to an agreement with Russia's energy company Gazprom to begin a new joint venture under the name Nigaz.

A spokesperson from Russia's state-run civil nuclear energy agency Rosatom, Sergei Novikov, said the deal will lay the foundations for nuclear power reactors to be built in Nigeria.

Yaroslav Lissovolik, head economist with Deutsche Bank in Moscow, told the BBC that Russia has a number of goals in Africa.

"One of which would be to take part in a growing competition for resources and markets on the continent - mainly with China," he said.

The agreement comes during a four-day tour by Russian president Dmitry Medvedev of Africa.

It is his first official visit to the continent and nuclear power, as well as energy resources, is believed to be high on his agenda.

Category: Energy