India and Nigeria to Expedite Local Currency Settlement System Agreement

On 30th April, 2024, India and Nigeria announced aim to strengthen economic ties through an early conclusion of a local currency settlement system agreement.

Key Points

Joint Trade Committee Meeting: India-Nigeria Joint Trade Committee holds second session after five years, identifying key focus areas for collaboration.
Delegation Visit: Seven-member Indian delegation led by Additional Secretary in the commerce ministry visits Abuja for bilateral discussions.
Focus Sectors: Bilateral cooperation to encompass sectors such as crude oil, natural gas, pharmaceuticals, UPI, power, renewable energy, agriculture, education, transport, and MSMEs development.
Local Currency Settlement System: Both countries prioritize early conclusion of local currency settlement system agreement to facilitate cross-border transactions in Indian Rupee and Nigerian Naira.
Indian Presence in Nigeria: Indian companies operate in telecom, hydrocarbons, textiles, chemicals, pharmaceuticals, IT, and auto sectors in Nigeria.
Bilateral Trade Dynamics: India exports machinery, drugs, transport equipment, and electronic goods to Nigeria, while importing petroleum, metals, wood products, and cashew nuts.
Trade Statistics: Bilateral trade between India and Nigeria stood at $11.85 billion in 2022-23, with exports at $5.2 billion and imports at $6.7 billion, marking a decline from $15 billion in 2021-22.