Nigeria, India Ditch USD

An early conclusion of a local currency settlement system agreement has been reached between India and Nigeria in an effort to strengthen economic connections between the two nations

On April 29-30, the Department of Commerce reported that a seven-member Indian delegation, presided over by Additional Secretary in the Commerce Ministry Amardeep Singh Bhatia, attended the second session of the India-Nigeria Joint Trade Committee (JTC) in Abuja, Nigeria. It was conducted following a five-year lapse.

Both parties have identified several areas of mutual interest to strengthen bilateral trade and investments.

Crude oil, natural gas, pharmaceuticals, the local currency settlement system, the unified payments interface (UPI), power and renewable energy, agriculture and food processing, education, transportation, railway, aviation, and the development of MSMEs are among the sectors.

“To further strengthen bilateral economic ties, both parties agreed to the early conclusion of a local currency settlement system agreement,” the department announced on the social media platform X (formerly Twitter).

Establishing a domestic currency settlement system between the two nations would promote cross-border transactions conducted in Indian Rupee and Nigerian Naira.

In Nigeria, several Indian firms operate in the telecommunications, hydrocarbons, automotive, chemical, pharmaceutical, polymers, and information technology sectors.

Indian automotive manufacturers maintain a substantial market share in Nigeria.

India’s primary exports to Nigeria are manufacturing and instruments, pharmaceuticals and fine chemicals, transport equipment, electronic products, and metal fabrication.

Petroleum, crude and byproducts, non-ferrous metals, timber and byproducts, cashew nuts, and wood are the primary imports.

In 2022-23, bilateral trade amounted to USD 11.85 billion, comprised of USD 5.2 billion in exports and USD 6.7 billion in imports. Trade amounted to approximately $15 billion in 2021-22.

A senior delegation from the commerce ministry visited Australia and New Zealand.