India and Nigeria have recently made a firm commitment to expand their cooperation in a variety of domains, aiming to fortify their economic ties further. During a recent visit to Nigeria by a seven-member delegation from India, both nations explored various sectors to bolster their bilateral relations.
Led by Amardeep Singh Bhatia, the Additional Secretary of the Department of Commerce, the Indian delegation comprised of officials from key financial and payments institutions such as the Reserve Bank of India (RBI), the Export-Import Bank of India (EXIM Bank), and the National Payments Corporation of India (NPCI). Discussions held in Nigeria put forth the mutual aim to enhance trade and encourage investments that would be advantageous to both countries.
The Indian commerce ministry has expressed that both parties have a keen interest in resolving market access issues while also focusing on cooperation across significant sectors. These sectors include the burgeoning fields of crude oil and natural gas, as well as the rapidly evolving pharmaceutical industry. Additionally, they underscored the importance of integrating innovative financial mechanisms like the Unified Payments Interface (UPI) and the local currency settlement system.
Attention was also directed to the power sector, renewable energy resources, agriculture and food processing, education, and various modes of transportation including railways and aviation. The micro, small and medium enterprises (MSMEs) were noted as a crucial sector for collaboration.
An early conclusion of the Local Currency Settlement System Agreement was agreed upon to further reinforce the financial and economic links between the two dynamic economies. This agreement is expected to simplify the trade process, reduce transaction costs, and hedge against currency risk, thus providing a fillip to bilateral commerce and investment.
India’s relationship with Nigeria, its second-largest trading partner within the African continent, holds considerable economic significance. The trade figures, however, showed a decrease from $11.8 billion in the fiscal year 2022-23 to $7.89 billion in the fiscal year 2023-24. Despite this downturn, about 135 Indian companies with a collective investment of $27 billion, have established their presence in Nigeria. These companies are involved in various sectors, touching upon infrastructure, manufacturing, consumer goods, and services, thus signifying a deep-rooted and widespread Indian business footprint in Nigeria.
The collaboration in the identified sectors promises not only to elevate the volume of trade between India and Nigeria but also stands as a testament to the shared vision of advancing economic development and growth. Both nations have shown a readiness to tap into the wealth of opportunities that their partnership presents, aiming to build a resilient pathway towards a prosperous economic future.
The increased cooperation between India and Nigeria is poised to manifest in tangible growth and stability for both economies. With a strategic approach to market issues and investment in key sectors, India and Nigeria are setting the stage for a robust economic relationship that is expected to benefit both countries significantly.
The targeted sectors for cooperation underscore both countries’ willingness to engage in a broad range of dialogues that span crucial aspects of economic activity, from energy resources to digital payment platforms. The enhanced economic ties are especially timely, given the recent fluctuations in global trade dynamics and the increasing importance of fostering diversified partnerships.
As both nations aspire to unlock their full economic potential, investments and technological exchanges in these sectors could serve as catalysts for development, fostering innovation, and driving economic prosperity. This burgeoning partnership is a beacon of international cooperation, heralding a new era of economic diplomacy and intercontinental synergy.
