India-Nigeria Relations: Collaborations & Divergences

• 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.