Context:

Recently, the Prime Minister of India (PM) Narendra Modi visited Nigeria (Africa). 

More on News:

• Nigeria conferred it’s the Grand Commander of the Order of the Niger, to Prime Minister Narendra Modi.
• During the visit, the three MoUs were signed in cultural exchange, customs cooperation, and survey cooperation.
• The visit underlines India's interest in developing defence cooperation, trade, and technology transfer.

About India-Nigeria Relations

(I) Historical Background:

• India and Nigeria have had historical interconnections dating back to the 16th century with trade and cultural exchange.
• Post-independence: Both countries were free in the period 1940s-50s; their relation with India was strengthened in the 1960s, in the process of decolonization.
• Cultural & Education Exchange: India supported Nigerian independence and post-independence development; educational exchange started and many Nigerians started coming to India for education.
• Strategic Cooperation: The two countries have cooperated in regional and international affairs, particularly through the UN and Non-Aligned Movement.

(II) Strategic and Economic Relations:

• Trade partnership: India is Nigeria's second-largest trading partner, with bilateral trade standing at $7.9 billion.
  The bilateral trade volume between India and Nigeria has decreased from $14.95 billion in 2021-22 to $7.89 billion in 2023-24.
• India exports pharmaceuticals, textiles, machinery, and food products to Nigeria.India imports crude oil from Nigeria but does not have upstream assets there.
• The number of Indian companies surpasses 150 in Nigeria, amounting to $27 billion. India has the most important footprint in Nigeria's manufacturing and service sectors.
• The Indian Diaspora in Nigeria comprises approximately 60,000 people and is a key influence on further strengthening bilateral relations.

(III) Defence and Security Cooperation:

• India has offered various defence training opportunities to several Nigerian officers in the areas of defence and counter-insurgency.
• Shared security concerns about Boko Haram insurgency, piracy in the Gulf of Guinea, and oil theft present opportunities for enhanced cooperation.
• India can assist in countering terrorism through joint exercises, technology transfer, and intelligence sharing-including satellite surveillance and cybersecurity.

(IV) Economic Cooperation and Development Assistance:

• India has granted development assistance to Nigeria by way of concessionary loans as well as capacity-building programs in technical fields ($100 million).
• Healthcare, education, renewable energy, and infrastructure development have also been the focus areas in cooperation.
• India could collaborate with Nigeria in IT, health care, and agricultural development to support Nigeria's economic transformation and enhance job creation.

(V) Trade and Investment Potential:

• Despite the recent decline in trade growth, there remains an uncovered possibility to boost the exportation of pharmaceuticals, foodstuff, and clothing, among others.
• India would take up the possibility of rupee trade arrangements that would bypass the Nigerian Foreign Exchange shortages and, as such, boost trade volumes.

Significance of Nigeria for India:

• Nigeria is serving as a cornerstone of its engagement with Africa.
• Politically, Nigeria is Africa's most populous nation and largest economy, a regional leader in West Africa, and a pivotal player in the African Union.
  “Nigeria is the lynchpin of India’s Africa strategy,” which reflects its role in facilitating India’s outreach in the African continent.
• Economically, Nigeria is a critical energy partner for India, supplying over 8% of its crude oil imports, essential for India’s energy security.
  Nigeria's natural gas potential aligns with India’s growing demand for clean energy and fosters long-term energy cooperation.
• Nigeria supports India’s aspirations for a permanent United Nations Security Council seat, which strengthens global South solidarity.

Common Challenges

• Economical: India and Nigeria are imbalanced. India heavily imports Nigerian crude oil, while Nigeria's access to Indian markets for non-oil goods remains limited.
• Security concerns: Indian businesses operating in Nigeria sometimes face risks such as insurgencies in the Niger Delta, piracy, and corruption. 
• Dominance of China: Competition from China in Africa, including Nigeria, presents a geopolitical challenge for India. While China’s significant investments in Nigerian infrastructure and industries pose a competitive edge.
• Bureaucratic Delay: India's African outreach, including Nigeria, often suffers from bureaucratic delays and insufficient follow-through, which hinder deeper cooperation.

Some Initiatives

• The Pan-African e-Network Project is a significant initiative that enhances Nigeria’s access to telemedicine and e-learning powered by Indian technology.
• Indian Technical and Economic Cooperation (ITEC): India has supported capacity-building through scholarships and training programs. Nigerian students pursuing higher education in India contribute to people-to-people ties.

Conclusion

Both nations must collaborate in multilateral forums such as the UN to champion global South solidarity. A proactive and inclusive approach can solidify the India-Nigeria partnership in a rapidly evolving world order.