India-Nigeria Relations: Collaborations & Divergences

India-Nigeria Relations

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Context (DDN): Recently, India and Nigeria held talks in New Delhi to boost long-standing defence ties and explore new areas of cooperation.

India-Nigeria Relations

Areas of Cooperation

Shared Historical Ties: Relations trace back to the 1500s, with Indian traders in Kano, Nigeria.
Economic Importance: In 2023, India figured amongst the top 5 trading partners of Nigeria. Bilateral trade volume between Nigeria and India stands at US$7.89 billion (2023-24).
- Bilateral trade focuses on pharmaceuticals, textiles, and food items, with strategic partnerships in the hydrocarbon sector.
Development Assistance: India has extended five Lines of Credit amounting to US$395.44 million to Nigeria, repurposed for Nigerian-led infrastructure projects.
- Over 200 Indian companies operate in Nigeria, investing around $27 billion in manufacturing and related sectors. These firms are the second-largest employers in the country, after the Federal Government.
Defense & Security Cooperation: Joint efforts to combat terrorism (e.g., Boko Haram) and piracy in the Gulf of Guinea.
- India assisted in establishing key military institutions such as the Nigerian Defence Academy (NDA) in Kaduna and the Naval College in Port Harcourt.
Technological & Infrastructure Development: MoUs in areas like customs cooperation, geological surveys, and audiovisual advancements.
Human Resource Development: Every year, India offers about 250 civilians and 150 defence training slots under the Indian Technical and Economic Cooperation (ITEC) Programme to Nigeria, with Indian educational institutions as a preferred destination for Nigerian students.
Humanitarian Aid: Support for Nigeria’s flood relief efforts through humanitarian assistance.
Diaspora Contributions: Today, there are around 60,000 Indians in Nigeria, forming the largest expatriate community in West Africa.

Challenges in Relations

Economic Constraints: India’s exports to Nigeria declined by 29.7% in 2023-24, compounded by the lack of upstream hydrocarbon assets despite India being a key crude buyer.
Underutilized Development Aid: Nigeria has repurposed $290 million of India’s developmental assistance for localized initiatives.
Infrequent Engagement: Bilateral joint commission meetings are irregular, with significant gaps in direct collaboration.
China’s Dominance: Chinese investments and technological influence in Nigeria often eclipse India’s offerings, making it hard for India to emerge as a key partner.

Strengthening India-Nigeria Relations: Opportunities

Defense and Security Cooperation: Exploring defense equipment supplies and establishing credit lines for military needs.
Economic Integration: Boosting non-oil trade in pharmaceuticals and technology, supporting Nigeria’s economic stabilization, and exploring rupee-based trade to address forex shortages.
Technological and Infrastructure Development: Collaboration on building digital public infrastructure and supporting tech-driven governance.
Strengthen Bilateral Mechanisms: Reviving the joint commission for high-level dialogues and leveraging the African Union’s G20 membership for joint initiatives.
Enhanced Collaboration: Focus on defense, counter-terrorism, and digital innovation, with the diaspora serving as a bridge for deeper ties.

Nigeria

Nigeria is Africa’s largest democracy. It is the fastest-growing economy in Africa, with the 4^th largest economy and 3^rd largest manufacturing sector on the continent.
With the largest population in Africa, it is often referred to as the “Giant of Africa”.
It is situated on Africa’s West Coast, bordered by the Sahel and the Gulf of Guinea.
It is a founding member of the African Union. Additionally, Nigeria is a member of the United Nations, the Commonwealth of Nations, the Organisation of Islamic Cooperation, and the Organisation of the Petroleum Exporting Countries (OPEC).
It joined BRICS as a partner country in 2025 under the BRICS Plus Partnership created at the 16^th BRICS Summit.