India and Nigeria have agreed to an early conclusion of a local currency settlement system agreement in a bid to strengthen economic cooperation between the two countries.
A delegation of seven officials from India, headed by Additional Secretary in the Commerce Ministry Amardeep Singh Bhatia, convened in Abuja, Nigeria, for the second session of the India-Nigeria Joint Trade Committee (JTC) on April 29–30.
This meeting marked the first gathering in five years, signalling a renewed commitment to bilateral engagement.
During the deliberations, both parties identified several key sectors for collaboration aimed at boosting trade and fostering mutually beneficial investments.
These sectors include crude oil, natural gas, pharmaceuticals, the unified payments interface (UPI), power and renewable energy, agriculture and food processing, education, transport, railways, aviation, and the development of micro, small, and medium-sized enterprises (MSMEs).
In a statement released on the social media platform X (formerly Twitter), the Department of Commerce affirmed, "Both sides agreed to the early conclusion of a local currency settlement system agreement to further strengthen bilateral economic ties."
A local currency settlement system between the two countries would help in promoting the use of the Indian rupee and the Nigerian naira for cross-border transactions.
Nigeria hosts a significant presence of Indian companies across various sectors, including telecom, hydrocarbons, textiles, chemicals, electrical equipment, pharmaceuticals, plastics, IT, and automotive. Indian automobile manufacturers, in particular, hold a prominent position in Nigeria's market.
India's exports to Nigeria comprise machinery and instruments, drugs, pharmaceuticals, fine chemicals, transport equipment, and electronic goods, while its imports primarily consist of petroleum, crude and petroleum products, non-ferrous metals, wood and wood products, and cashew nuts.
In the fiscal year 2022–23, bilateral trade between India and Nigeria amounted to USD 11.85 billion, with exports totaling USD 5.2 billion and imports reaching USD 6.7 billion. This figure represents a slight decrease from the USD 15 billion recorded in the previous fiscal year (2021–22).
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