In a significant stride towards attracting foreign investments, the Nigerian Federal Government has successfully secured a substantial $7 billion investment deal from India.
The official announcement was made by Mr. Gangadharan Balasubramanian, the Indian High Commissioner to Nigeria, during the 75th Republic Day celebrations on Friday night.
This development comes on the heels of India’s earlier commitment to invest $14 billion in Nigeria, pledged during the G20 Summit held in September of the previous year.
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President Tinubu’s active participation in the G20 Summit proved instrumental in solidifying the $14 billion pledge aimed at bolstering the Nigerian economy and fostering stronger economic ties between the two nations.
Balasubramanian revealed that, following President Tinubu’s engagement in the G20 Summit, $7 billion of the promised investment has now been formalized through a signed agreement.
“Out of the $14 billion promised during this visit as investment into Nigerian economy, $7 billion has already been signed immediately after the visit,” he said.
During the Republic Day celebrations, the Indian High Commissioner noted the robust economic relations between India and Nigeria. He highlighted the historical and enduring ties between the two nations, dating back to before Nigeria gained independence.
“India and Nigeria enjoy strong and historical relations. With the ties dating back to before Nigeria’s independence, our bilateral relations have been nurtured by the leadership of both the countries,” he said.
Balasubramanian noted that currently, close to 150 Indian companies are operating within Nigeria, collectively contributing a substantial investment of $27 billion. This investment, primarily concentrated in the manufacturing sector, has translated into job creation, making Indian companies significant employers in Nigeria, second only to the Federal Government.
Highlighting the unique and special relationship between India and Nigeria, Balasubramanian recounted the memorable visit of H.E. Mr. Bola Ahmed Tinubu, President of the Federal Republic of Nigeria, to the G20 Summit in September 2023. He said the visit played a crucial role in consolidating bilateral ties, and as a testament to the commitment made during that summit, $7 billion of the pledged investment has already been finalized.
Furthermore, the Indian High Commissioner provided insights into the ongoing efforts to deepen business relations between India and Nigeria. He mentioned the successful visit of India’s External Affairs Minister Dr. S. Jaishankar for the Joint Commission meeting earlier in the week. During this visit, meaningful interactions took place with Nigerian leadership, the business community, and the Indian Diaspora, further strengthening the ties between the two nations.
Speaking on behalf of the Indian government, Balasubramanian expressed solidarity with Nigeria in their joint journey towards development. He conveyed the unwavering commitment of the Government of India to fortifying the ties and fostering mutually beneficial collaborations.
Adding depth to the economic perspective, Minister of Foreign Affairs, Ambassador Yusuf Tuggar, shed light on the substantial trade volume between Nigeria and India. According to the minister,
Over the last two years, the trade volume reached approximately $20 billion, comprising $14.95 billion in the formal sector and around $5 billion in the informal sector, according to the minister. This economic collaboration spans various sectors, contributing significantly to the growth and development of both nations.
As of the fourth quarter of 2021, India was the main importer of Nigeria’s crude oil. The exports of crude oil to the Asian country amounted to approximately 774.5 billion naira.
However, recent data indicates a notable shift in Nigeria’s crude oil exports. The Netherlands has overtaken India as the largest buyer of Nigerian crude oil. In the first nine months of 2023, the Netherlands purchased Nigerian crude oil worth N2.5 trillion, while India’s imports were valued at N1.6 trillion.
Analysts attribute this shift to sanctions related to the Ukraine conflict, compelling India to seek discounted Russian oil and subsequently reduce its demand for Nigerian crude.
The $7 billion investment deal with India marks a substantial achievement for Nigeria in its ongoing efforts to attract foreign investments and fortify economic ties with strategic partners. This significant financial commitment will undoubtedly contribute to Nigeria’s economic growth and development, fostering a deeper and more resilient partnership with India.