India, Nigeria agree to quickly conclude Local Currency Settlement System Treaty to strengthen economic ties

A seven-member delegation from India held a Joint Trade Committee (JTC) meeting with their Nigerian counterparts in Abuja and identified several areas of focus to enhance bilateral trade and mutually beneficial investments. Both sides agreed to quickly conclude the Local Currency Settlement System Agreement to further strengthen bilateral economic relations.

During the discussions held on April 29-30, the Indian delegation led by Amardeep Singh Bhatia, Additional Secretary, Department of Commerce, Union Ministry of Commerce and Industry, was accompanied by India’s High Commissioner to Nigeria G Balasubramaniam and Economic Advisor. Priya P Nair, Department of Commerce, Ministry said.

The JTC was co-chaired by Ambassador Noura Abba Rimi, Permanent Secretary, Federal Ministry of Industry Trade and Investment of Nigeria and Additional Secretary, Department of Commerce.

In a press release, the Commerce Ministry said, “In a wide-ranging dialogue, both sides reviewed in detail the recent developments in bilateral trade and investment relations and acknowledged the huge untapped potential for further expansion. To this effect, both sides identified several areas of focus to enhance bilateral trade as well as mutually beneficial investments.

“These include resolving market access issues of both sides and cooperation in key sectors such as crude oil and natural gas, pharmaceuticals, Unified Payment Interface (UPI), local currency settlement systems, power sector and renewable energy, agriculture and food processing . Education, Transport, Railways, Aviation, MSME, Development etc. “Both sides agreed to the early conclusion of the Local Currency Settlement System Agreement to further strengthen bilateral economic relations.”

The official delegation from India included officials from the Reserve Bank of India (RBI), Exim Bank of India and National Payments Corporation of India (NPCI). Officials from both sides remained actively engaged in the JTC proceedings.

The talks were held in a cordial and friendly atmosphere and were fruitful and received encouraging responses towards greater cooperation, addressing pending issues, promoting trade and investment, greater people-to-people contacts, according to the Commerce Ministry.

During the discussions, India and Nigeria committed to expeditiously address all issues hindering bilateral trade and promote trade between the two countries.

The trade delegation led by the Confederation of Indian Industry (CII) also accompanied the official delegation, which included representatives from various sectors such as power, fintech, telecom, electrical machinery, pharmaceuticals.

The deliberations at the second session of the India-Nigeria JTC were “cordial and forward-looking, indicating the cordial and special relations between the two countries.”

Nigeria is a major partner – India’s second largest trading partner in the Africa region. Bilateral trade between India and Nigeria to reach US$11.8 billion in 2022-23.

Bilateral trade in the year 2023-24 was 7.89 billion showing a declining trend. With a total investment of US$27 billion, about 135 Indian companies are actively engaged in Nigeria’s vibrant market. These investments take place across diverse sectors including infrastructure, manufacturing, consumer goods and services.