India-Nigeria relations: Current dynamics and possibilities

Prime Minister Narendra Modi will be in Nigeria from November 16-17, first of such state visit by an Indian PM to the African nation in 17 years. PM Modi will hold talks with his Nigerian counterpart to review the diplomatic and strategic partnership between New Delhi and Abuja and to strengthen bilateral ties between the […]

Prime Minister Narendra Modi will be in Nigeria from November 16-17, first of such state visit by an Indian PM to the African nation in 17 years.

PM Modi will hold talks with his Nigerian counterpart to review the diplomatic and strategic partnership between New Delhi and Abuja and to strengthen bilateral ties between the two countries.

Although, India-Nigeria relations can be traced to ancient times, and Nigeria is host to a long-established Indian diaspora, a new set of dynamics has been emerging that is rapidly expanding relations.

The Indian diaspora in Nigeria is quite significant and has a long history. There are approximately 800,000 people of Indian origin living in Nigeria, making them the largest racial minority in the country. Most of the Indian community in Nigeria is primarily concentrated in cities like Lagos, Abuja, Port Harcourt, Onitsha, Ogbomosho, and Ibadan.

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The Indian diaspora has made substantial contributions to Nigeria’s economy, particularly in sectors such as textiles, pharmaceuticals, fishing, and engineering.

The Indian High Commissioner to Nigeria, Mr Shri G. Balasubramanian, who spoke to Weekend Trust about the relationship between the two countries, said many Indian businesses have set up operations in Nigeria, creating jobs and opportunities for Nigerians.

He said the presence of the Indian diaspora in Nigeria is a testament to the strong bilateral ties between the two countries and their shared history as part of the British Empire.

“India and Nigeria have very strong relations, which date back to two years before your independence in 1958 when we had established our diplomatic office. Since then, we have had a wonderful relationship, and the political leadership on both sides have invested so much in developing this relationship as much as possible. This has been possible only because of the importance India attaches to Nigeria,” Mr Balasubramanian said.

India is a major trading partner for Nigeria, with Indian products accounting for over 70 per cent of the pharmaceutical market in Nigeria. Bilateral trade reached $7.89 billion in 2023-24, despite fluctuations in recent years.

Nigeria is the 2nd largest trading partner of India in the African region, with a bilateral trade worth $11.8 billion in 2022-23. In the year 2023-24, the bilateral trade stood at $7.89 billion.

“Over 200 Indian companies are currently operating in Nigeria, with investments totalling around $27 billion across various sectors, including pharmaceuticals, power, and construction. Indian companies are among the largest employers in Nigeria, second only to the federal government. With a keen interest in diversifying investments, potential sectors for further collaboration include power, transportation, infrastructure, maritime, agro-processing, mining, and textiles,” he said.

Recent government reforms in Nigeria, including the removal of petrol subsidy and the floating of the currency exchange rates, signal the country’s commitment to economic reform. The Economic Recovery and Growth Plan aims to diversify the economy beyond its oil dependency.

During the 2nd Session of the India-Nigeria Joint Trade Committee (JTC) held in Abuja on 29th and 30th April 2024, both countries drew plans to finalise a local currency settlement system agreement soon, with an aim to further strengthen bilateral economic ties.

Both sides held a comprehensive dialogue to review the recent developments in bilateral trade and investment ties while acknowledging the vast untapped potential for further expansion.  

Several areas of focus have been identified for enhancing bilateral trade and investments, which include the resolution of market access issues on both sides and cooperation in sectors like crude oil, natural gas, power, Pharmaceuticals, Unified Payments Interface (UPI), renewable energy, agriculture, food processing, education, transport, railway, aviation and MSMEs.

Also, India and Nigeria have cooperated in the defence sector, with India providing training and support to Nigerian forces. Both countries have strengthened their naval cooperation, particularly in the Gulf of Guinea, a region critical for maintaining international trade routes.

The Indian Navy Ship (INS) Sumedha made a port call in Lagos, Nigeria, in October 2023, to enhance maritime security and combat piracy. During the visit, representatives from both maritime agencies engaged in training activities, professional interactions, and planning conferences to improve interoperability.

The collaboration includes joint exercises, information sharing, and maritime partnership exercises aimed at ensuring the safety of maritime trade routes in the region. This partnership underscores the shared commitment of India and Nigeria to enhancing maritime security and supporting each other’s naval capabilities.

There are also ongoing military training exchanges and collaborative initiatives under the Indian Technical and Economic Cooperation (ITEC) programme, which offers 150 slots annually for Nigerian defence personnel.

Amidst rising interest in military hardware, Nigeria is exploring the procurement of helicopters and fighter jets from Indian manufacturers like Hindustan Aeronautics Limited (HAL). These developments align with the broader strategic partnership between the two nations, which has seen Nigeria acquiring defence supplies from India in recent years.

In addition to defence, India and Nigeria are collaborating in the fields of space and cybersecurity. An MoU on space cooperation is set to enhance bilateral ties, with specialised training programmes for Nigeria’s National Space Agency scheduled for January 2025.

Collaborative efforts will focus on remote sensing, mapping, and satellite development.

Furthermore, a recently signed MoU between the Indian Computer Emergency Response Team (CERT-IN) and Nigeria’s CERT-NG aims to strengthen cybersecurity cooperation.

India’s pharmaceutical sector holds a dominant position in Nigeria, with Indian products accounting for over 70 per cent of the market. Nigeria views India as the “Pharmacy of the World” and is keen to deepen cooperation in this area.

Discussions are ongoing regarding collaboration in active pharmaceutical ingredients (APIs) and clinical trials, alongside efforts to provide quality generic medicines through the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP). The Nigerian government is also interested in emulating India’s healthcare schemes, such as the COWIN platform and the Ayushman Bharat scheme, with Indian support.

Nigeria and India are exploring collaborations in the agricultural sector as well. Agriculture is a cornerstone of Nigeria’s economy, employing roughly 70 per cent of the population and contributing 25.18 per cent to GDP in 2023. Despite having over 70 million hectares of arable land, only about 44 per cent is currently cultivated.

Discussions are underway for a Memorandum of Understanding (MoU) focused on agricultural collaboration, which will include food processing, farm machinery, and irrigation techniques to mitigate post-harvest losses.

A foreign affairs analyst, Innocent Odoh, said the visit of the Indian Prime Minister was timely especially now that Nigeria is trying to diversify its sources of income.

He said discussion should be centred  on ICT development, adding that “India is a very Itec country and Nigeria also has the next potential in the development of ICT.

“The two countries can collaborate to expand that particular sector in Nigeria to add more value to the Nigerian economy especially now that the Bola Ahmed Tinubu is working on economic diversification.

“The ICT is one area they can use to capture the teaming youths of the country and make them to help add value to the Nigerian economy.”

He said the two leaders should also discuss small-scale businesses, adding that “it should centre on how Nigerians can leverage the large Indian market to export Nigerian goods into the Indian market.

“Nigeria is home to very important products needed in the Indian market, like sorghum, as it is the second largest producer of the product in the world.

“How do we ensure that Nigerians have access to export agro products as we are not processing as much as we should for now? These products also include cashew nuts, sesame seeds and millet.”

Also speaking on PM Modi’s visit, Ambassador Bode Adekeye, a former Nigerian ambassador to Kenya, said the Indian leader’s visit would benefit Nigeria and the Asian giant.

According to him, Nigeria and India enjoy good relations, adding that both countries stand to strengthen their economic cooperation with the visit.

“Now that the federal government is trying to attract Foreign Direct Investment to the country, PM Modi’s visit will solidify the partnership between the countries economically, politically and in defence,” he said.

Ambassador Adekeye called on President Bola Ahmed Tinubu and PM Modi to focus their discussions on ways to improve the economic cooperation between the two countries.

“I want them to centre their discussion most on economic cooperation in terms of technology and Direct Foreign Investment,” he said.