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India and Nigeria
Context:
Prime Minister Narendra Modi underscored the importance of India’s strategic partnership with Nigeria during his discussions with Nigerian President Bola Ahmed Tinubu in Abuja.
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- This marks the first visit by an Indian Prime Minister to Nigeria in 17 years, signalling a renewed commitment to deepening bilateral ties in areas such as defence, energy, and trade.
- In his televised opening remarks, PM Modi identified terrorism, separatism, piracy, and drug trafficking as key global challenges and reaffirmed India and Nigeria’s shared commitment to combating these issues together.
- He also emphasised the role of the Indian expatriate community of nearly 60,000 in strengthening India-Nigeria relations and expressed gratitude to President Tinubu for ensuring their welfare.
Key Highlights of India-Nigeria Relations
Historical Context:
- Warm Bilateral Relations: India and Nigeria have shared over 60 years of diplomatic ties, rooted in shared struggles against colonialism and membership in the Non-Aligned Movement (NAM).
- Early Engagements: India established its first diplomatic mission in Nigeria in 1958, two years before Nigeria’s independence.
- Strategic Partnership: Elevated during former PM Manmohan Singh’s visit in 2007, the partnership emphasises mutual cooperation in multiple sectors.
Current Developments
- PM Modi’s Visit: The first Indian PM visit to Nigeria in 17 years, signalling renewed focus on defence, energy, and trade collaboration.
- Humanitarian Aid: India provided 20 tonnes of relief supplies to Nigeria for flood recovery.
- Global Cooperation: PM Modi reaffirmed shared commitments against terrorism, piracy, and drug trafficking, emphasising India’s support for the Global South and the African Union’s inclusion in the G-20.
Areas of Cooperation
Economic Ties:
- Trade Volume: Exceeds $14 billion annually, with Nigeria being India’s largest African trading partner.
- India’s Imports: Primarily crude oil (70% of total imports).
- India’s Exports: Pharmaceuticals, textiles, automobiles, and engineering goods.
- Investments: Over 200 Indian companies in Nigeria with $27 billion in investments, contributing significantly to local employment.
Energy Security: Nigeria supplies 12% of India’s crude oil needs, making it a critical partner in energy security.
Defence Collaboration: India provides defence training, equipment, and technical support, with notable contributions like the National Defense Academy in Kaduna.
Development Initiatives
- Technical and Economic Cooperation (ITEC): India has supported Nigeria with training programs and concessional loans, including $30 million for energy projects.
- Capacity Building: Initiatives in agriculture, technology transfer, and education aim to support Nigeria’s modernisation.
Diaspora Contributions
- Indian Community: Over 60,000 Indian expatriates contribute to Nigeria’s economy, healthcare, and cultural exchange.
- Cultural Influence: Indian cuisine, festivals, and Bollywood have fostered mutual cultural appreciation.
Challenges in Bilateral Relations
- Declining Trade Volume: Dropped from $14.95 billion (2021–22) to $11.8 billion (2022–23) due to reduced oil imports.
- Limited Upstream Energy Investments: Unlike China, India lacks significant strategic stakes in Nigeria’s energy sector.
- Sparse High-Level Engagements: Infrequent summits and joint commission meetings hinder dialogue.
- Rising Chinese Influence: China’s Belt and Road Initiative (BRI) projects pose competition to Indian investments.
- Economic Reforms in Nigeria: Subsidy cuts and currency devaluation create uncertainties for Indian investors.
Opportunities for Future Cooperation
- Enhanced Defence Collaboration: India can assist Nigeria with counterterrorism strategies, maritime security, and advanced defence supplies.
- Economic Diversification: Focus on renewable energy, IT, and infrastructure to reduce over-reliance on oil trade.
- Bilateral Trade Boost: Increase exports in pharmaceuticals, food, and textiles; explore rupee-based trade.
- Capacity Building: Leverage India’s expertise in healthcare, IT, and education for Nigeria’s development.
- Infrastructure Investments: Strengthen Nigeria’s transport and energy networks, inspired by Indian contributions in Ethiopia.
Strategic Recommendations
- Comprehensive Economic Partnership Agreement (CEPA): Establish frameworks to reduce trade barriers and foster industrial collaboration.
- Currency Swap Arrangements: Mitigate Nigeria’s foreign exchange shortage for smoother bilateral trade.
- Enhanced Diplomatic Engagements: Increase high-level visits and joint commission meetings for regular dialogue.
Leverage Indian Diaspora: Utilise the Indian community as cultural and economic ambassadors to deepen bilateral ties.
