India- Nigeria Bilateral Relations – The Challenges and Broader Significance

Indo- Nigerian Partnerships Briefly

India and Nigeria have had excellent friendly and diplomatic relations since 1958. Both nations have been cooperating in various fields, including trade, defence, education, and energy. India and Nigeria are rapidly growing economies with young populations, and enormous growth opportunities exist for trade and investment between them.

Both nations are emerging economic powers, and, as projected by PWC (PricewaterhouseCoopers, UK), India will secure second place in the global GDP ranking, and Nigeria will secure the 14th position in the next two decades. This is PWC’s research-based inputs and economic outlook for the global economy by 2050. Thus, the growing economic ties between India and Nigeria represent a golden opportunity for both countries and could have significant geopolitical implications for the African continent. (Source PWC UK)

India – Nigeria Relationship: Past, Present and Future

India’s relations with Nigeria were established based on historical and trading considerations, but later it emerged based purely on economic priority, political and government-to-government connections. From the early 20th century, India’s trading community had set up their shops to cater to the expatriate community and been doing brisk business.

While we have had an interesting historical perspective and connection, India–Nigeria relations must be reshaped in the current regional geopolitical context. The entire textile industry, the biggest employer in those days, was primarily owned by the Indian community and a significant contributor to the Nigerian economy almost for a century. It remains critical for India’s ability to invest for the future in the region and West Africa’s ability to absorb significant foreign investments. It may not be a simple garden path, as several hurdles and obstacles exist.

Let us now dive down to the micro details of our economic relationship and the future roadmap ahead.

India Nigeria Bilateral Trade, Economic and Investment Highlights – Current Scenario

Nigeria is India’s top trading partner in Africa. Our bilateral trade during 2021-22 amounted to USD 14.95 billion, as against USD 8.81 billion during 2020-21. Indian exports to Nigeria from 2021-22 registered USD 4.66 billion, as against USD 3.13 billion in 2020-21. India’s imports in 2021-22 recorded USD 10.29 billion, against the USD 5.67 billion in 2020-21.

Image Courtesy – Indian High Commission Nigeria

India is the largest importer of Nigerian petroleum products. Of India’s imports of USD 10.29 billion from Nigeria, crude oil accounted for USD 10.03 billion. In recent years, Nigeria has been one of the leading suppliers of crude oil for energy-hungry India. (Report High Commission Of India, Abuja, Nigeria)

Our economic relations gained the appropriate pace with the state visit of former President Olusegun Obasanjo to India in January 2000. State visit of our former Prime Minister, Dr Manmohan Singh, in 2007 and the signing of the Abuja Declaration on Strategic Partnership changed the dynamics of our bilateral trade and economic relationship.

Image Courtesy – Indian High Commission Nigeria

Both the leaders signed MOUs in defence, agriculture, power generation, civil aviation, trade and technical services. The MOUs also touched on a range of issues: the imbalances in international areas like trading systems, the deleterious effects of debt, the need for sharing experiences on areas of sustainable development, poverty alleviation and giving agriculture an industry status to tackle hunger and ensure food security. Thus, the Abuja Declaration laid the roadmap for future cooperation.

Given the wide-ranging opportunities, recent initiatives like Make in India, Ease of Doing Business, Start-up India and a liberal FDI regime, there is an enormous potential for investment between the two countries. FDI inflows from Nigeria to India from April 2000 to June 2019 were valued at around USD 14.50 million in construction, textiles, hotel & tourism, and drugs & pharmaceuticals.

Prominent PIO ( people of India Origin) business houses currently operating in Nigeria are the Chanrai family (agribusiness and automobiles), Dana (pharma, steel, electronics, consumer goods, domestic airline), Chellarams (consumer goods, foodstuff, financial services, art), Keshwanis (retailing and construction) and Mehtani’s Churchgate Group (construction), DUFIL Prime Food Ltd., Indorama (Headquarters in Indonesia), Olam Nigeria Ltd (promoted by Indians business enterprise with Singapore Government participation ). (Report High Commission Of India, Abuja , Nigeria)

 India-Nigeria Cooperation – The Core Areas

Crude Oil and Gas Imports

As the 5th largest global economy with rapid growth, India constantly searches for reliable crude suppliers. With its vast natural reserves of oil, Gas and hydrocarbons, Nigeria fits the bill. Nigerian crude oil and Gas have been an important energy source for India’s developing economy and infrastructure. India’s Imports of Crude Oil were US$8.19 Billion in 2021 ( Refer United Nations COMTRADE database on international trade). India Imports from Nigeria of Crude Oil – data, historical chart, and statistics – was last updated in May 2023. (Source Trading Economics) But when it comes to LNG, Nigeria contributes almost 6% of the total supply of Gas. (Statista.com)

India’s top oil companies that, include Indian Oil Corporation (IOC), ONGC Mittal Energy Ltd (OMEL) – a joint venture between ONGC and Mittal Steel Ltd – and the Gas Authority of India Ltd (GAIL) have been operating in Nigeria, helping in the oil exploration, and setting up infrastructure.

2016 both nations signed an oil and gas investment deal of US $ 15. The deal would help the Nigerian Oil Ministry to boost the production capacity significantly and pave the way for greater participation of Indian public sector companies in oil exploration, production and infrastructural development. (Source The Guardian)

lately, The Nigerian National Petroleum Company Limited (NNPCL) has partnered with Indian Oil Company to achieve a 194 per cent increase in Liquefied Petroleum Gas (cooking gas). In 2021, the country’s supply was 1.7mmt, but with the partnership, supply is projected to increase to 5 million metric tons. (Source Nigerian Tribune)

In the context of global south-south cooperation, the oil sector diplomacy would serve India to reduce its dependence on Middle Eastern oils and the Nigerian economy, with its heavy reliance on the export of crude oil, is also expected to rely on its largest trading partner, India, for future economic progress.

Energy Cooperation

Nigeria is also India’s energy partner and energy powerhouse from the continent. Both nations have worked jointly in the renewable energy sector, are signatories to the International solar alliance (ISA) and are committed to sustainable development. Major power sector companies from India operate in Nigeria, sharing their expertise and building the infrastructure.

“Nigeria Economic Sustainability Plan” is one of the initiatives by the national Government that has an ambitious target to install Solar Home Systems in 5 million Nigerian households. It gives enough opportunities for Indian companies to tap the vast market potential with solar energy solutions and set up an upstream value chain catering to the demand. (Source Statehouse.gov.ng and isolaralliance.org and MP-IDSA)

India Nigeria Cooperation in Steel Sector

India and Nigeria have been cooperating in steel production for several years. India has been active in the Nigerian steel sector for forty years. Indian Navaratna company HMT helped to set up Nigerian Machine Tool in 1982 with equity participation. GHIL – Global Infrastructural Holding Ltd (part of Mittal group) was appointed to manage Ajaokuta Steel Company in 2004. Indian Joint venture MECON has trained steel sector workforces from the Delta Steel Complex in Nigeria and supervised the completion of the design bureau, and started the operation of the complex

In 2005 both nations signed an MoU to cooperate in developing Nigeria’s steel industry and promote investment and technological cooperation. India’s leading steel giant SAIL played a significant role in this area.

In 2018, cooperation in the steel sector was escalated further during a meeting between Indian Prime Minister Narendra Modi and Nigerian President Muhammadu Buhari. Both leaders discussed the possibility of expanding the cooperation in steel production.

India Nigerian Cooperation in Defence and Security

India and Nigeria’s defence cooperation dates back to the ’60s. India was instrumental in setting up the Nigerian Defence Academy (NDA) at Kaduna, the Naval College at Port Harcourt and Command and Staff College in Abuja. India has been extending training to Nigerian defence services officers in the past, including former Nigerian President Olusegun Obasanjo, Ibrahim Babangida and the present President Muhammudu Buhari. President Buhari is an alumnus of the Defence Services Staff College (DSSC), Wellington in, India.

Both nations also cooperate in fighting international terrorism and drug trafficking and reiterate their commitment to terrorism in all its forms and manifestations. In AFINDEX-19, a field training exercise of 17 African nations, A Nigerian army contingent participated under Indian armed forces supervision. On March 21, an NSA-level dialogue occurred on counter-terrorism, radicalization and armed extremism. (Source Business World, MP-IDSA and Ministry of External Affairs – Media Center )

Education and Skill Development Training

Right after the Independence, the Government of Nigeria focused on the education sector and invited teachers /lecturers worldwide to come to Nigeria and enhance the curriculum and teaching standards. Between the 60s and 70s, there was a significant migration of qualified Indian teachers to the country in domains like mathematics, physics, chemistry and English. Indian Government also extended scholarships for talented students and opened many centres across Nigeria to train Nigerians working in various sectors under the Commonwealth African Assistance Plan (SCAAP).

Training is one of the areas in India that has been playing a critical role, and reputed Indian training companies (the likes of NIIT, Aptech, and SSI have extensive business operations in the country, offering training in areas of IT, accountancy, Oil and Gas sector employees, healthcare and education. The Indian Government also extends training in India for Nigerians through the ITEC (Indian Technical and Economic Cooperation) scheme.

Health Care

India and Nigeria have been actively engaged in healthcare cooperation, with India assisting Nigeria in ramping up its healthcare systems. The collaboration between the two countries encompasses various aspects, including capacity building, medical training, pharmaceuticals, and technology transfer. The following highlights some of the critical areas of India-Nigeria healthcare cooperation:

Capacity Building and Training:

India has provided training and capacity-building opportunities for Nigerian healthcare professionals. Indian medical experts and specialists have conducted workshops, training programs, and knowledge-sharing sessions in Nigeria. They aim to enhance the skills and knowledge of Nigerian doctors, nurses, and other healthcare personnel, thereby strengthening the healthcare workforce in the country.

Medical Infrastructure Development:

 India has supported Nigeria in developing medical infrastructure by providing hospital planning, design, and management expertise. Indian companies have been developing healthcare facilities in Nigeria, including hospitals and specialized medical centres. These collaborations improve access to quality healthcare services for the Nigerian population.

Pharmaceutical Cooperation:

India is a major global supplier of generic medicines and pharmaceuticals. In India-Nigeria healthcare cooperation, Indian pharmaceutical companies have been actively exporting affordable drugs to Nigeria, helping to address the country’s healthcare needs. India has also supplied a large quantity of COVAX to Nigeria during the COVID-19 crisis. These partnerships contribute to reducing the cost of medications and increasing the availability of essential drugs in Nigeria. (Source PIB Govt of India)

Telemedicine and Technology Transfer:

India has been at the forefront of leveraging technology in healthcare, mainly through telemedicine. Indian telemedicine companies have collaborated with Nigerian healthcare institutions to establish telemedicine networks, enabling remote consultations, diagnostic services, and medical education. This technology transfer helps improve access to specialized healthcare services, especially in underserved areas of Nigeria.

Disease Control and Prevention:

  India and Nigeria have collaborated on disease control and prevention initiatives. One significant example is the partnership in the fight against polio. India’s successful polio eradication campaign has provided valuable lessons and expertise shared with Nigeria in its efforts to eliminate polio. Additionally, joint efforts have been made to address malaria and tuberculosis.

Research and Development:

India and Nigeria have fostered research collaborations in healthcare. This includes joint research projects, scientific exchanges, and sharing of research findings. Such partnerships facilitate knowledge sharing, innovation, and the development of solutions tailored to the healthcare challenges faced by both countries.

The India-Nigeria healthcare cooperation mentioned in the provided article highlights the ongoing efforts to strengthen healthcare systems in Nigeria with India’s support. This partnership encompasses various aspects, including capacity building, medical infrastructure development, pharmaceutical cooperation, technology transfer, disease control, and research collaboration. By leveraging India’s expertise and resources, Nigeria aims to enhance its healthcare services and improve the well-being of its citizens.

(Source Business Standard)

The Way Forward

As emerging economic powers in the world scenario, both nations have a few challenges ahead to nurture and strategic partnership to a new height. India must have a full-proof delivery mechanism with a resource-rich country like Nigeria. At the same time, the Nigerian state authority needs to gear up on multiple fronts, including speeding up reforms and implementation in the healthcare and education sectors to escape from the talent brain drains. As a trusted partner country, India has to reinvest some of its profit revenue in this sector to build positive media and public perception. CSR also can play a significant role in creating a positive perception of the Indian government and business enterprises operating in the country. The growing social tension due to economic disparity is quite visible in Nigerian society, and the Government must implement bold reforms.

Nigeria also must improve its internal security situation by battling insurgent groups like Boko Haram more effectively, and India, with its counter-insurgency experience, can share strategic inputs.

Our government must be very transparent in all governmental deals and public-private partnerships. The Government should have periodical contacts at both the ministerial and leadership level for smooth sailing. For routine measures, dedicated senior officials in both countries may review follow-ups and progress monitoring.

Although our relationship has yet to reach the peak of progress, the nations and the political leadership are working in the same direction. In the words of Mr BN Reddy, former Indian High Commissioner in Nigeria,  “Our bilateral relations shared by both the nations are now characterized by warmth and forward-looking approach, and there is vast scope for cooperation in new frontiers. Thus India must align its concern with the Nigerian priorities and transform the goodwill generated over the year into concrete mutual gains”. (Source thekootneeti.in)

Ahead of the G-20 foreign minister’s meeting on March 23, Mr Geoffrey Onyeama, Minister of Nigerian foreign affairs, met his Indian counterpart  Dr S. Jaishanker in New Delhi and conveyed President Muhammadu Buhari’s appreciation to the Prime Minister of India for the invitation extended to Nigeria to participate in the G-20 meeting. He also added the nation’s commitment towards strengthening multilateralism and deepening cooperation on food and energy security, sustainable development, and counter-narcotics. (Source The Guardian)

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About the Author

Utpal is a seasoned marketing writer, blogger, and solopreneur specializing in copy and content writing. With over five years of experience, I have successfully operated as a freelancer catering to diverse clients and agencies. I write on multiple domains in most digital content formats (long and short). I also do off-page writing like press releases, news articles, etc.

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