Bridging continents: India and Nigeria’s bold vision for future cooperation – India News

As India prepares for Prime Minister Narendra Modi’s upcoming visit to Nigeria in November, Indian High Commissioner G. Balasubramanian sheds light on the multifaceted relationship between the two nations. With Nigeria’s economy largely driven by crude oil, the High Commissioner in an exclusive interaction with Financial Express Online outlined the opportunities and challenges that characterize this vital partnership.

When is the PM heading to Nigeria?

Though the visit has not been announced officially, he is expected to visit the African nation as part of his three-nation tour in November when he will head to Brazil for the G20 Summit. He is expected to first visit Nigeria, Brazil and Guyana.

Nigeria’s Economic Landscape

Nigeria stands as a crude oil powerhouse, generating approximately 90% of its revenue from petroleum and related products. The country boasts proven reserves of about 37.1 billion barrels of light and sweet crude oil, ranking it ninth globally in natural gas reserves with around 209.5 trillion cubic feet. Despite this wealth of resources, the oil and gas sector has faced significant disruptions, primarily due to militant attacks on infrastructure, which have prompted International Oil Companies (IOCs) to divest assets. However, the High Commissioner noted that the upstream market is poised for growth, driven by increased offshore exploration and production activities.

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Recent government reforms, including the removal of petrol subsidies and the decontrol of currency exchange rates, signal Nigeria’s commitment to economic reform. The Economic Recovery and Growth Plan aims to diversify the economy beyond its oil dependency.

Balasubramanian highlighted that the industrial sector, contributing approximately 23% to GDP, includes oil and gas, manufacturing, and construction, with agriculture also playing a significant role.

Expanding Trade Relations

Trade between India and Nigeria has seen fluctuations, with bilateral trade reaching $7.89 billion in 2023-24, down from $14.95 billion in 2021-22. The decrease is largely attributed to Nigeria diverting oil exports to Western markets and India’s exploration of alternative oil sources. Nevertheless, Indian exports, including engineering goods, refined crude, and pharmaceuticals, have been growing at an annual rate of about 10%.

He noted that over 200 Indian companies are currently operating in Nigeria, with investments totalling around $27 billion across various sectors, including pharmaceuticals, power, and construction. Indian companies are among the largest employers in Nigeria, second only to the federal government. With a keen interest in diversifying investments, potential sectors for further collaboration include power, transportation, infrastructure, maritime, agro-processing, mining, and textiles.

Agricultural Cooperation and Food Security

Agriculture is a cornerstone of Nigeria’s economy, employing roughly 70% of the population and contributing 25.18% to GDP in 2023. Despite having over 70 million hectares of arable land, only about 44% is currently cultivated. The Nigerian government recently lifted import duties on rice and grain to address food security, prompting expectations of significant rice imports in the coming months.

The Indian High Commissioner stressed the need for cooperation in agriculture, with Indian companies already engaged in edible oil plantations and interest in grain farming. Discussions are underway for a Memorandum of Understanding (MoU) focused on agricultural collaboration, which will include food processing, farm machinery, and irrigation techniques to mitigate post-harvest losses.

Defence and Security Collaboration

The defence relationship between India and Nigeria has historical roots, with India playing a crucial role in establishing the Nigerian Defence Academy and Naval War College. He highlighted ongoing military training exchanges and collaborative initiatives under the Indian Technical and Economic Cooperation (ITEC) program, which offers 150 slots annually for Nigerian defence personnel.

Amidst rising interest in military hardware, Nigeria is exploring the procurement of helicopters and fighter jets from Indian manufacturers like Hindustan Aeronautics Limited (HAL). According to him these developments align with the broader strategic partnership between the two nations, which has seen Nigeria acquiring defence supplies from India in recent years.

Technological Cooperation in Space and Cybersecurity

In addition to defence, India and Nigeria are collaborating in the fields of space and cybersecurity. An MoU on space cooperation is set to enhance bilateral ties, with specialized training programs for Nigeria’s National Space Agency scheduled for January 2025. Collaborative efforts will focus on remote sensing, mapping, and satellite development.

Furthermore, a recently signed MoU between the Indian Computer Emergency Response Team (CERT-IN) and Nigeria’s CERT-NG aims to strengthen cybersecurity cooperation. High Commissioner Balasubramanian mentioned that working group meetings under this MoU have already taken place, underscoring a commitment to addressing emerging cyber threats.

Strengthening Pharmaceutical Collaboration

India’s pharmaceutical sector holds a dominant position in Nigeria, with Indian products accounting for over 70% of the market. He stated that Nigeria views India as the “Pharmacy of the World” and is keen to deepen cooperation in this area. Indian investments in pharmaceuticals in Nigeria exceed $4 billion, with initiatives such as the Serum Institute of India’s agreement with Bio Vaccine of Nigeria for local vaccine production.

Discussions are ongoing regarding collaboration in active pharmaceutical ingredients (APIs) and clinical trials, alongside efforts to provide quality generic medicines through the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP). The Nigerian government is also interested in emulating India’s healthcare schemes, such as the COWIN platform and the Ayushman Bharat scheme, with Indian support.

Educational Exchange and Opportunities

Education remains a key area of cooperation, with India being a popular destination for Nigerian students. Currently, over 5,000 Nigerian students are enrolled in various courses in India, with approximately 1,300 student visas issued annually. The High Commissioner highlighted the establishment of two universities in Nigeria with Indian collaboration and ongoing negotiations for an educational cooperation MoU.

India has extended several scholarships for Nigerian students, facilitating access to quality education in renowned Indian institutions. This initiative not only promotes cultural exchange but also contributes to skill development in Nigeria.

 A Bright Future Ahead

The diverse sectors of cooperation, ranging from trade and agriculture to defence and education, position both nations for a mutually beneficial partnership. With a shared vision for growth and development, the two countries are poised to navigate the challenges and opportunities that lie ahead.

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