India-Nigeria Relations

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Table of contents

Context (FE | IE | HT): PM Narendra Modi’s visit to Nigeria is the first by an Indian PM in 17 years, aimed at deepening India-Nigeria relations across multiple sectors.

Significance of Modi’s Visit to Nigeria

Historical Milestone: First visit in 17 years, highlighting Nigeria’s importance in India’s African diplomacy.
Distinguished Honor: PM Modi conferred with the Grand Commander of the Order of the Niger, Nigeria’s second-highest honor, becoming only the second foreign dignitary to receive it.
Strategic Partnership: The visit strengthens the India-Nigeria strategic partnership, established in 2007.
Common Values: Both nations share multi-ethnic, multi-religious and democratic systems, positioning them as natural allies.

Shared Historical Ties: Relations trace back to the 1500s, with Indian traders in Kano, Nigeria.
Economic Importance: Nigeria, Africa’s second-largest economy, has bilateral trade of $7.9 billion, mainly in crude oil and Indian investments totaling $27 billion across sectors.
Trade Partnerships: Bilateral trade focusing on pharmaceuticals, textiles, and food items, with strategic partnerships in the hydrocarbon sector.
Diaspora Contributions: The 60,000 strong Indian community in Nigeria, is the largest non-African group and contributes significantly to the Nigerian economy.
Cultural Engagement: Strengthening people-to-people ties through cultural exchanges.
Development Assistance: India has provided $400 million in concessional loans, repurposed for Nigerian-led infrastructure projects.
Defense and Security Cooperation: Joint efforts to combat terrorism (e.g., Boko Haram) and piracy in the Gulf of Guinea, with over 250 Nigerian officers trained annually in India.
Technological and Infrastructure Development: MoUs in areas like customs cooperation, geological surveys, and audiovisual advancements.
Human Resource Development: 500 annual ITEC scholarships for civilian and defense training, with Indian educational institutions as a preferred destination for Nigerian students.
Humanitarian Aid: Support for Nigeria’s flood relief efforts through humanitarian assistance.

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.

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.