India Nigeria Relations, Area of Cooperation and Challenges

India And Nigeria Relations

• Bilateral Trade: Currently stands at $7.9 billion, down from a peak of $11.8 billion in 2022-23. India is Nigeria’s second-largest trading partner in Africa.
• Indian Investments: Over 150 Indian companies have investments in Nigeria worth approximately $27 billion.
• Indian Diaspora: Nearly 50,000 Indians reside in Nigeria, contributing positively to the local economy and regarded for their professionalism.

Challenges to Bilateral Engagement

• India’s bilateral trade with Nigeria is currently at half its peak from a decade ago.
• There has been a lack of regular high-level diplomatic engagements.
  • g., Modi’s visit comes after 17 years, and the joint commission meeting in 2024 was the first in 13 years.
• India’s aid to Nigeria is currently channelled through the African Union, which may limit the direct impact of development assistance on bilateral relations.

Economic and Political Context in Nigeria

• Nigeria faces economic and security challenges, with President Bola Tinubu taking bold reform measures since 2023.
• Tinubu has withdrawn petroleum subsidies costing $10 billion annually, led to the Naira (Nigerian Currency) to depreciate, and dismissed several top officials, leading to economic turbulence and inflation.
• These reforms aim to rejuvenate the Nigerian economy, although they have sparked public dissatisfaction.

Strategic Areas of Cooperation

• Historical Context: The two countries share a legacy dating back over half a millennium. A notable historical figure is Baba Ghor, a gem merchant from Kano who settled in Gujarat around 1500 AD.
• Defence and Security: Nigeria seeks to upgrade its defence capabilities to combat terrorism and economic instability, particularly issues like Boko Haram and Gulf of Guinea piracy.
  • India has experience in similar challenges and can provide a comprehensive package of defence supplies and training.
  • 7 Nigerian Presidents have been trained as defence officers in India.
• Economic Stabilisation: Nigeria is facing a foreign exchange shortage and seeks India’s assistance for economic stabilisation.
  • Potential areas for cooperation include:
    • Partnerships for upstream hydrocarbons.
    • Infrastructure development.
    • A bilateral comprehensive economic partnership agreement.
    • Financial facilitation through lines of credit and barter arrangements.
• Trade Opportunities: India could benefit from importing Nigerian goods such as palm oil, hides, ginger, and Gum Arabic to reduce its declining exports, which fell 29.7% year-on-year in 2023-24 to $3.6 billion.
  • India’s services sector, including IT, banking, health care, and education, also has growth potential in Nigeria.

Sharing is caring!