Context:
- Prime Minister Narendra Modi is embarking on a historic visit to Nigeria, marking the first such trip in 17 years.
- The visit aims to unlock investment opportunities for Indian companies in sectors like mining, infrastructure, and defense, while also strengthening security and energy partnerships between the two nations.
Previous Visit by Indian Prime Minister:
- The previous visit by an Indian PM to Nigeria was by Manmohan Singh in Oct 2007.
- During that visit, both countries elevated the status of their bilateral relationship to a “Strategic Partnership”.
Commonalities between India and Nigeria:
- India with a population of more than 1.4 billion, and Nigeria with more than 220 million people, are large developing and democratic countries with
- Multi-religious,
- Multi-ethnic, and
- Multilingual societies.
- India as the largest democracy in the world and Nigeria as the largest in Africa, make them a natural partner.
- Complementarity in various strategic areas such as hydrocarbons, defence, institution building, health care and education.
Historical Relations between India & Nigeria:
- Colonial Connection: Both countries were under British colonial rule.
- Non-Aligned Movement (NAM): Both were part of NAM and shared a commitment to decolonization, peace and South-South cooperation.
- Diplomatic ties were established before Nigeria got independence: In 1958, India setup its diplomatic office in lagos.
Economic relations between India & Nigeria:
- India is a major trading partner for Nigeria, with Indian products accounting for over 70 percent of the pharmaceutical market in Nigeria.
- Bilateral Trade: It reached $7.89 billion in 2023-24 (In 2022-23 it was $11.8 billion).
- India imports a significant amount of crude oil from Nigeria.
- “Over 200 Indian companies are currently operating in Nigeria, with investments totaling 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.
Indian Diaspora:
- The Indian diaspora in Nigeria is quite significant and has a long history.
- There are approximately 800,000 people of Indian origin living in Nigeria, making them the largest racial minority in the country.
- Nearly 50,000 Indians in Nigeria, the largest OYIBO (Non- African) group in the country are well regarded for their low profile, professionalism and integrity.
- Bollywood is very popular in Nigeria.
Recent Development:
- Prime Minister Narendra Modi’s visit to Nigeria on November 16-17, 2024, marks a significant milestone as it is the first visit by an Indian Prime Minister to Nigeria in 17 years.
Key Areas of Cooperation:
- Trade and Investment: Both countries are working on finalizing a local currency settlement system to facilitate smoother trade transactions. Indian companies have invested around $27 billion in Nigeria, creating numerous job opportunities.
- Defence and Security: India and Nigeria have enhanced their defence cooperation, including naval collaboration in the Gulf of Guinea to combat piracy and ensure maritime security.
- Technology and Cybersecurity: An MoU on space cooperation and cybersecurity has been signed, focusing on areas like remote sensing, satellite development, and cybersecurity training.
- Healthcare and Pharmaceuticals: India supplies over 70% of the pharmaceuticals in the Nigerian market, highlighting the critical role of Indian companies in Nigeria’s healthcare sector.
Challenges:
- India losing ground over the past decade:
- The bilateral trade is half its peak a decade ago when India was Nigeria’s largest trading partner.
- Despite being the top buyer of Nigerian crude, India has no upstream assets there.
- Low high-level contacts:
- The PM’s visit takes place after 17 years.
- Last meeting of the bilateral joint commission, (this year was after 13 years).
- Multi-lateral focus through African Union:
- Nigeria is too big and important a partner for India to channel its development assistant multilaterally through the African Union.
- Inability of India to leverage the local Indian Diaspora:
- India diaspora is 2nd largest employer in Nigeria.
- The private sectors of both countries have not been empowered by government of India.
Challenges which Nigeria is facing:
- Several economic and security head winds:
- Consequently, Nigeria withdrew petroleum subsidies costing $10 billion annually.
- Freed the National Currency (Naira) of controls.
- Dismissed Central Bank Governor, Head of Secret Service and military brass.
- Challenges due to Boko Haram, Gulf of Guinea piracy, and a turbulent neighbourhood.
- Social and Cultural Challenges:
- Cultural Differences: While the Indian diaspora in Nigeria plays a significant role in bilateral relations, cultural differences and occasional social tensions can pose challenges.
How India can Help?
- Economic stabilization:
- Nigeria faces a critical foreign exchange shortage.
- India can help for economic stabilization through some strategic initiatives such as:
- Partnership for upstream hydrocarbons and infrastructure.
- Bilateral comprehensive economic partnership agreement and
- Large financial facilitation through lines of credit and barter arrangements.
- The possibility of rupee-based trade can also be put on the table.
- India can provide the Nigerian requirements of petroleum products, foodstuffs, consumer goods, pharmaceuticals, CNG conversion kits, textiles and garments, agricultural inputs, and power equipment.
- Upgradation of security and defense services to Nigeria:
- India can help Nigeria to meet the terrorism and other associated challenges like helping the Nigeria to fight against Boko Haram, Stopping piracy in Gulf of Guinea.
- This would also boost India’s defense exports and revive bilateral defense ties.
Way Forward:
- The relationship between India and Nigeria is poised for further growth, with both countries committed to deepening their strategic partnership. The ongoing high-level visits and agreements in various sectors underscore the importance of this bilateral relationship in the global context. Addressing challenges requires continuous dialogue, mutual understanding, and collaborative efforts.
Conclusion:
India-Nigeria relations represent a strategic partnership poised for greater heights. With shared democratic values, complementary economies, and mutual interests in security and development, both nations are working towards unlocking untapped potential. High-level visits like PM Modi’s mark a renewed commitment to strengthening ties, overcoming challenges, and exploring new avenues for collaboration in trade, defense, technology, and people-to-people connections. A robust and dynamic relationship between these two nations is critical for fostering regional and global stability, economic growth, and sustainable development.
Expected Questions:
Q. Discuss the role of India and Nigeria in the Non-Aligned Movement and their shared vision in global diplomacy.
Q. Analyze the strategic importance of Nigeria in India’s energy security policy.
Q. Evaluate the significance of the recent MoUs signed between India and Nigeria on cybersecurity and space cooperation.
Q. How can India and Nigeria enhance their defense and maritime security cooperation to address piracy in the Gulf of Guinea?
