Introduction

Nigeria is a large country located on the West Coast of Africa. It has a physical size of 923,768.64 square kilometers and a population of more than 110 million people, making it the largest black nation in the world. Nigeria is bounded in the North by Republic of Niger, in the South by the Atlantic Ocean, in the East by Cameroon and in the West by Benin Republic. It is located entirely in the tropics and lies between Latitudes 4° and 14° North and Longitude 3° and 14° East. The Climate pattern can be divided into two well-defined seasons, namely, rainy season (April – October) and the dry season (November – March). Temperatures are higher in the North while the South especially along the coast experience more rainfall.

Nigeria is essentially an agricultural country. Her varied climatic environment from north to south permits the successful growth of a wide spectrum of crops. About 65% of the Labour force engage in agriculture.
Opportunities exist for local and foreign investors with commensurate technology to invest in direct agricultural production, food processing and other ancillary services as Nigeria strives to increase agricultural production both for local consumption, industrial demand and export.

Livestock production is more pronounced in the north, fishing predominates in the creeks, inland rivers and lakes of the south. Cereals (maize, rice, wheat, millet guinea corn) can be grown in both north and south while root crops (yam, cassava, coco yam, sweet and Irish potatoes) though grown throughout the country thrive best in the middle belt. Fruits and vegetables grow throughout the country, while tree crops such as kola, cocoa, oil palm, rubber flourish more in plantations in the south. Cotton, coffee, sheanuts and sugarcane are tree crops predominantly grown in the northern parts of the country.


Investment Climate

The Nigerian Government has put in place a number of investment incentives for the stimulation of private sector investment from within and outside the country. The investment opportunities in Nigeria include a wide range of solid minerals, vast and fertile agricultural land and forest resources as well as substantial petroleum and natural gas reserves. While some of the incentives cover all sectors, others are limited to some specific sectors. The nature and application of these incentives have been considerably simplified. They include: Companies Income Tax Act; Pioneer Status; Tax Relief for Research and Development; Capital Allowance; In-plant training; Investment in Infrastructures; Investment in Economically Disadvantaged Areas; Labour Intensive Mode of Production; Local Value Added; Re-Investment Allowance; Minimum Local Raw Material Utilisation. Specific incentives apply in the following sectors: Industry; Agriculture; Solid Minerals; Petroleum; Tax Incentives to Gas Industry; Gas Production Phase; Gas Transmission and Distribution; Gas Exploitation (Upstream Operation); Gas Utilisation (Down Stream Operation); Telecommunications; Energy (Electricity); Tourism; and, Transport.


Nigeria – India Relations 

Commerce & Industry - Nigeria remains one of India’s largest trading partners in Africa. Some of the major exports of India to Nigeria include rice, a wide range of medical drugs & pharmaceuticals, fine chemicals, dyes, coal-tar, transport equipment & spare parts, machinery & equipment and manufactured metals. On the other hand, Nigeria’s exports to India include crude oil & allied products, cashew nuts, wood & wood products, artificial resins, plastic materials, gold and silver.

Efforts are already underway to consider and sign a fresh Trade Agreement between the two countries. A draft Investment Promotion and Protection Agreement has been exchanged for consideration and eventual signing.

On small-scale industry, Nigeria’s request for training, transfer of technology, operation and establishment of Small & Medium Enterprises (SMEs) in the area of solid minerals, agro-allied products, industry, chemical and Information Technology is being considered by India. 

Following the Joint Commission Session held in 2000 in Abuja, a four-man delegation of the Nigeria Machine Tools (NMT) Limited, Osogbo, visited the Hindustan Machine Tool (HMT) Limited of India in mid-May 2000. The visit, a prelude to the utilization of the grant from India to revive the NMT Osogho, was undertaken to finalise, with HMT of India, the specification of machinery, items needed for NMT’s revival. HMT of India is the designated implementing agency for the revival of NMT.

Energy, Power & Steel - On petroleum and liquefied natural gas (LNG), Nigeria is expected to be one of India’s major energy suppliers in the latter’s quest to achieve energy security. Both sides have, therefore, expressed willingness to cooperate and sign a long-term agreement for India to purchase Nigeria’s crude oil and to collaborate in other upstream and downstream projects of mutual interest. To this end, the request of India to purchase six (6) million tons of crude oil per annum is being given priority attention by the appropriate authorities of both countries.

Negotiations are on between Bharat Heavy Electricals Limited (BHEL), a Government of India undertaking, and Nigeria Electric Power Authority (NEPA) for the construction of a 370 MW Greenfield Power project. BHEL has also indicated interest in the rehabilitation of the 110-MW captive Ajaokuta Steel thermal unit and NEPA’s hydro and thermal units. There is also a proposal for joint ventures in the manufacturing of fuses, transmission towers, breakers, insulators and distribution transformers. Interest has also been expressed in investment in the existing Power Transformer and Electrical Repair Shop of the Ajaokuta Steel Company as well as in the non-conventional energy systems such as solar photovoltaic system and wind electric generator.

Metallurgical Engineering Company, a Government of India undertaking, has indicated its interest to participate in the revival of Ajaokuta Steel Plant and rolling mills. India has also been requested to participate in Nigeria’s privatization plan in the steel sector as well as in the divestment of part of Government’s 70 percent holding in ALSCON and other upstream and downstream projects in the aluminium sector.

Technical Cooperation - India and Nigeria have always desired better and increased cooperation in the areas of shipping, railways, and production of passenger vehicles through joint ventures and suitable investments. Efforts are being made to solidify their avowed intentions. Both sides have also agreed to review the Bilateral Air Services Agreement (BASA).

As Nigeria is India’s second largest trading partner in Africa and has the potential to be one of the richest countries in the world and India has achieved high level of technology to be world leader, both countries should exploit the opportunities of cordial relationship for their mutual benefit.


Nigeria Country Data