India's Strategic Focus on West Africa

Table of Contents

About the PM Narendra Modi Visit

The Prime Minister was also conferred the Grand Commander of the Order of the Niger, Nigeria’s second-highest national honor, making him the second foreign dignitary to receive it since 1969.

India-Nigeria Ties

Historical Partnership: India and Nigeria have a partnership of over six decades.
- Nigeria is the largest democracy and economy in Africa, playing a crucial role at the African Union and in regional diplomacy.
Developmental Assistance: India offers concessional loans (over $100 million) and capacity-building programs in Nigeria, emphasizing the “India Way” of development partnerships.
Trade and Investment: Trade declined from $14.95 billion in 2021-22 to $7.89 billion in 2023-24 due to India’s increasing oil imports from Russia.
- India imports crude oil and natural gas from Nigeria, while exporting pharmaceuticals, IT services, and machinery.
Defense Cooperation: India is emerging as a defense supplier for Nigeria, offering arms and expertise in counter-terrorism operations.

Significance of Nigeria for India

Energy Security: Nigeria is a major oil exporter and key to India’s diversification of energy sources.
Trade Gateway: As West Africa’s largest economy, Nigeria serves as a gateway for Indian businesses in the region.
Counterterrorism: Collaborating with Nigeria on security enhances regional stability and counters terrorism in Africa, which has global implications.
Global South Leadership: As leading nations in the Global South, stronger India-Nigeria ties contribute to shared developmental goals and amplify voices in global governance.

West African Significance For India

Natural Resources: West Africa is rich in natural resources, including oil, natural gas, gold, and bauxite, essential for India’s energy security and industrial growth.
- Nigeria, the largest oil producer in Africa, is a key supplier of crude oil to India.
Trade Opportunities: India is one of the largest trading partners of West African countries.
- Major imports include energy resources and agricultural products like cocoa (from Ghana and Côte d’Ivoire).
Market for Indian Goods and Services: West Africa offers a significant market for Indian pharmaceuticals, IT services, automobiles, and agricultural machinery.
- Indian generic drugs are in high demand due to their affordability and quality.
Maritime Security: The Gulf of Guinea, part of West Africa’s maritime zone, is critical for global trade and energy supplies.
- India has a strategic interest in ensuring freedom of navigation and combating piracy in this region.

India's Strategic Focus on West Africa_4.1

Counterbalancing China’s Influence: China has a significant presence in West Africa through investments and infrastructure projects.
- Strengthening ties with West African countries helps India maintain its influence and diversify partnerships.
Energy Security: West Africa is a crucial supplier of energy resources:
- Nigeria, Ghana, and Senegal are emerging exporters of LNG (Liquefied Natural Gas), meeting India’s rising energy demands.
Indian Investments in Infrastructure: India supports infrastructure development in West Africa through Lines of Credit (LoCs) via the Export-Import Bank of India.
- Projects include roads, railways, power generation, and agriculture.
Capacity Building and Technical Assistance: Programs under the India-Africa Forum Summit (IAFS) focus on skill development, IT training, and healthcare initiatives.
- The Pan African e-Network project connects Indian educational and medical institutions with West African nations.
Indian Diaspora: West Africa is home to a vibrant Indian community involved in business, especially in Nigeria and Ghana.
- Diaspora engagement enhances cultural ties and promotes India’s soft power.
Cultural Affinity: Shared colonial history and participation in the Non-Aligned Movement have fostered goodwill.
- Bollywood movies and Indian cuisine enjoy popularity in the region.
UN and Other International Forums: West African countries often align with India on global issues, such as climate change and sustainable development.
- Their support is crucial for India’s bid for a permanent seat in the UN Security Council.
South-South Cooperation: India promotes development partnerships with West Africa under South-South Cooperation frameworks, strengthening solidarity among developing nations.
Food Security and Agriculture: Collaboration in agriculture can help tackle food security challenges in West Africa while providing India with opportunities to export agricultural technology.
Health Cooperation: India has supplied affordable vaccines and generic medicines to West African nations, playing a vital role during the COVID-19 pandemic.
Digital and Fintech Growth: West Africa is witnessing rapid growth in digital services and fintech, offering opportunities for Indian IT companies.
Renewable Energy Cooperation: The International Solar Alliance (ISA), led by India, provides a platform to collaborate with sun-rich West African nations on renewable energy projects.

Nigeria-China Ties and Concerns for India

Chinese Presence: Nigeria hosts over 200 Chinese companies, making it China’s largest export market and second-largest trading partner in Africa.
- China has funded 22 major infrastructure projects worth $47 billion, including the Lekki Deep Sea Port and the Abuja Light Rail.
Debt Diplomacy: Chinese loans account for 28% of Nigeria’s external debt, raising concerns about dependency.
Technology and Mining: Huawei has a significant presence in Nigeria, building mobile infrastructure and training local workforce.
- China dominates the mining sector, including lithium processing for EV batteries.
Strategic Edge: China’s investments in critical infrastructure and natural resources could limit India’s influence and opportunities in Nigeria.

Way Forward for India

Expand Economic Ties: Diversify trade with Nigeria beyond oil, focusing on technology, agriculture, and renewable energy.
- Increase Indian investments in Nigerian infrastructure and industrial sectors.
Strategic Engagement: Strengthen defense and counterterrorism cooperation with Nigeria to balance China’s growing influence.
- Promote joint ventures in security, focusing on piracy and drug trafficking in the Gulf of Guinea.
Development Assistance: Expand capacity-building initiatives and concessional loans for social infrastructure.
- Leverage India’s expertise in IT, healthcare, and education to address Nigeria’s developmental needs.
People-to-People Ties: Foster cultural and academic exchanges to strengthen grassroots connections.
- Engage the Indian diaspora in Nigeria to enhance bilateral relations.