Economic relations between Nigeria and India have taken on a new dimension with the recent announcement that trade between these two countries will now be carried out in local currencies. This decision, which should soon be formalized by a bilateral agreement, demonstrates the desire of the two nations to strengthen their economic cooperation in several key areas.
At the second session of the India-Nigeria Joint Trade Committee (JTC) held in the Nigerian capital Abuja, discussions focused on various sectors of mutual interest including energy, pharmaceuticals and transportation . Official Indian representatives, notably from the Reserve Bank of India (RBI), the EXIM Bank of India and the National Payments Corporation of India (NPCI), participated in these talks aimed at consolidating economic ties between the two country.
India’s Ministry of Commerce and Industry has stressed the importance of quickly finalizing an agreement on debt settlement in local currency to further strengthen bilateral economic exchanges. This initiative is part of a broader strategy to identify and promote priority areas of mutually beneficial economic cooperation and investments.
Among the sectors identified as priorities for strengthening bilateral trade include crude oil and natural gas, pharmaceuticals, payment technologies, the electricity and renewable energy sector, agri-food, education, transport, railways, aviation and micro, small and medium enterprises (MSMEs).
Nigeria occupies an important place in India’s trade in Africa, positioning itself as its second largest trading partner on the continent. However, recent figures show a downward trend in bilateral trade from $11.8 billion in 2022-23 to $7.89 billion in 2023-24.
Despite this decrease, the engagement of Indian companies in the Nigerian market remains significant, with around 135 companies actively operating and a total investment of $27 billion. These investments span a wide range of sectors, including infrastructure, manufacturing, consumer goods and services, demonstrating the diversity and depth of economic cooperation between India and Nigeria.
