ABUJA: Dubai and Nigeria have signed a preliminary agreement worth $16 billion to develop oil and gas infrastructure in Africa’s top crude producer.

The deal will see Dubai World Corporation (DWC) wholly-owned by the emirate, investing in projects in the restive Niger Delta, which accounts for nearly all of Nigeria’s around two million barrels of crude per day.

Nigeria’s Justice Minister Michael Aondoakaa and Dubai’s Sultan Ahmad bin Sulayem signed the agreement on behalf of their governments in Abuja.

“Nigeria is a land of opportunities … This agreement covers infrastructure projects with the main emphasis in oil and gas,” Bin Sulayem said.

The agreement also covers investment in the real sector, agriculture and power.

“This (agreement) will further complement government’s budgetary efforts in bringing development to the … Niger Delta,” Aondoakaa said.

DWC, which was set up by the government of Dubai in 2006, manages and supervises a diversified conglomerate of businesses, investments and projects spanning over 100 different cities around the world, with over 50,000 employees.

President Umaru Yar’Adua, who took office nearly two years ago, has been keen to bring stability to the Niger Delta. He created a new ministry for the region in September to fast-track the development of the long neglected area.

One of China’s top engineering firms, China Harbour Engineering, had earlier in July signed a $1bn deal to build a road around Port Harcourt.