Market News

By Arinze Nwafor

Nigeria and India have reaffirmed their commitment to strengthening bilateral relations through increased trade, investment, and cooperation in key economic sectors, including energy, agriculture and pharmaceutical manufacturing.

This was highlighted at a business seminar hosted by the Lagos Chamber of Commerce and Industry on Thursday, where stakeholders from both nations outlined strategies to deepen the partnership.

Speaking at the event, Acting Indian High Commissioner to Nigeria, Vertika Rawat, emphasised his country’s dedication to Africa’s development, stating that Indian Prime Minister Narendra Modi has made Africa a top priority in India’s foreign and economic policy.

Rawat noted that India’s engagement with Africa is driven by African priorities, ensuring that “it will be on terms that will liberate African potential and not constrain African future.”

She reiterated India’s reliability as a partner and its commitment to supporting Nigeria’s socio-economic growth. Acknowledging Nigeria’s preference for investment-driven partnerships over debt-financed projects. “Your priorities are our guiding principles for economic cooperation,” she said.

Meanwhile, Rawat urged Nigerian businesses to explore opportunities in India’s strengths in fintech, artificial intelligence, and health, particularly vaccine manufacturing and digital growth. She stressed that Nigerian companies should actively participate in Indian trade exhibitions to foster collaboration.

The acting Indian High Commissioner hailed her country’s collaboration with Nigeria in agricultural research. She revealed that the International Crops Research Institute for the Semi-Arid Tropics, headquartered in India, already operates a Kano State Centre for researching crops such as millet.

Rawat encouraged Indian investors to explore large-scale agricultural production in Nigeria, which would create employment, generate income, and boost agro-processing.

India and Nigeria are also seeking stronger cooperation in the healthcare sector. According to Rawat, Indian hospitals such as Primus and EyeQ are growing in Nigeria. She also commended the memorandum of understanding between India’s Serum Institute and BioVaccine Nigeria as a crucial step towards local vaccine manufacturing.

“Closer cooperation in healthcare, including providing quality medical treatment in Nigeria and specialised procedures in India, should be encouraged,” she remarked.

Further, Rawat called for Nigeria’s participation in the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure, two global initiatives spearheaded by her country. She revealed that India has allocated $2bn in concessional credit for off-grid solar projects in Africa, urging Nigeria to capitalise on this opportunity to expand its electricity generation capacity.

The acting Indian High Commissioner pointed out that India’s central bank has introduced a system allowing bilateral trade settlements in Indian Rupees. She proposed that both countries explore a currency swap agreement to reduce dependence on foreign exchange.

However, as Rawat praised the Nigerian business climate, she acknowledged concerns raised by Indian investors, including power supply issues, security, foreign exchange repatriation, and the cost of expatriate permits. She expressed confidence that Nigeria’s business-friendly policies would continue to improve to address these challenges.

In his address, LCCI President Gabriel Idahosa highlighted the growing trade relationship between the two countries, noting that in the fourth quarter of 2024, Nigeria’s total merchandise trade stood at N36.6tn, a 68.32 per cent increase from the previous year.

India ranked as Nigeria’s fourth-largest export destination, valued at N1.60tn, while imports from India stood at N1.90tn.

“The energy sector remains a cornerstone of Nigeria-India trade relations, with crude oil exports playing a dominant role. However, we must explore new opportunities beyond oil, including technology, agriculture, and pharmaceuticals,” Idahosa said.

Idahosa emphasised the need for deeper collaboration, investment, and knowledge sharing between Nigeria and India. “By leveraging our strengths and addressing challenges, we can unlock new opportunities for sustainable growth and development,” he said.