INDIA – NIGERIA

Prime Minister Narendra Modi is set to visit Nigeria, Africa’s most populous nation and its second-largest economy.

 

Historical Background of India-Nigeria Bilateral Relations

Decades of Partnership
India and Nigeria have shared a robust bilateral relationship for over 60 years, rooted in common values such as democracy, pluralism, and economic cooperation. Diplomatic ties were officially established in 1960, marking the beginning of a dynamic partnership.

Early Interactions
The historical connections between India and Nigeria date back to around 1500 AD with the arrival of Baba Ghor, a gem trader from Kano, who settled in Gujarat. This signifies the long-standing trade links between the regions.

Strategic Ties
A strategic partnership was formally established in 2007, emphasizing cooperation in economic development, energy, and defense. Since then, both countries have engaged in consistent dialogues to deepen their collaboration.

Cultural Connections
India’s presence in Nigeria extends beyond economic relations, particularly through education and healthcare. Many Nigerians pursue higher education in India or seek medical care there. Additionally, Indian films and cultural products are highly popular in Nigeria.

India’s Soft Power Influence in Nigeria

Cultural Diplomacy
India’s soft power manifests through initiatives like educational scholarships, cultural exchanges, and training programs, fostering goodwill and strengthening interpersonal ties.

Healthcare Partnerships
India has established itself as a hub for affordable and quality medical care, attracting Nigerians to its hospitals for various treatments.

Capacity Building
Programs like the Indian Technical and Economic Cooperation (ITEC) provide professional training for Nigerians, boosting human capital development and building long-term partnerships.

Shared Challenges and Goals
Both countries face similar governance and socio-economic challenges, offering opportunities for mutual learning and cooperative solutions.

Why Nigeria is Important for India

Key Trading Partner
Nigeria ranks as India’s second-largest trading partner in Africa, with trade valued at approximately $7.89 billion in 2023-24. Key sectors include crude oil, natural gas, pharmaceuticals, and renewable energy.

Investment Potential
Indian companies have invested an estimated $27 billion in Nigeria across sectors like manufacturing, infrastructure, and consumer goods, showcasing the country’s economic promise.

Indian Diaspora
The Indian community in Nigeria, numbering around 50,000, plays a vital role in strengthening bilateral ties through contributions to trade, healthcare, and education.

Educational Ties
India continues to be a preferred destination for Nigerian students. Programs like ITEC offer scholarships and training, fostering academic collaboration.

 

Steps to Enhance Economic Collaboration

Enhanced Trade Agreements
Concluding a comprehensive economic partnership agreement will ensure smoother trade operations and resolve market access barriers.

Local Currency Mechanisms
Introducing a Local Currency Settlement System can minimize exchange rate risks and streamline bilateral trade.

Sector-Specific Collaboration
Focusing on sectors like hydrocarbons, renewable energy, pharmaceuticals, agriculture, and infrastructure can diversify economic ties and drive mutual growth.

Infrastructure Investment
India’s expertise in infrastructure can support Nigeria’s development goals, addressing gaps in physical and social infrastructure.

Leveraging Diaspora Networks
The Indian diaspora in Nigeria can act as a catalyst for business opportunities, boosting trade and investment between the two nations.

 

Way Forward

1. Expand Economic and Trade Partnerships
   Finalize a comprehensive economic partnership agreement and implement local currency settlements to mitigate risks and explore new sectors for collaboration.
2. Strengthen Soft Power Initiatives
   Enhance cultural diplomacy, education, and skill development programs while engaging the Indian diaspora to foster deeper ties and mutual trust.