Syllabus
GS Paper 2 – Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context
Prime Minister Narendra Modi arrived in Nigeria early on Sunday (November 17), ahead of his visit to Brazil for the G20 Leaders’ Summit.
Source
The Hindu| Editorial dated 19th November 2024
This time for Africa
India and Nigeria have enjoyed over six decades of friendly and deep-rooted bilateral relations, being natural partners due to their large populations, democratic frameworks, and multi-religious, multi-ethnic societies. As the world’s largest democracy and Africa’s largest democracy, their partnership holds significant promise for global South-South cooperation.
Historical Engagement
- Diplomatic Ties Established (1958):
- India opened its first diplomatic mission in Nigeria in 1958, two years before Nigeria’s independence.
- Marked the start of strong bilateral relations.
- Strategic Partnership (2007):
- Relations were elevated to a strategic partnership during Prime Minister Manmohan Singh’s visit to Nigeria.
Areas of Cooperation
- South-South Cooperation:
- Collaboration in multilateral organizations such as the United Nations, G77, and Non-Aligned Movement (NAM).
- Both nations articulate the concerns of the developing world effectively on global platforms.
- Defence Cooperation:
- India supports Nigerian defense forces through training, capacity building, and equipment supply.
- Example: National Defense Academy at Kaduna showcases enduring defense ties.
- Development Cooperation:
- India aids Nigeria through the Indian Technical and Economic Cooperation (ITEC) Programme since 1964.
- Extended $30 million Lines of Credit for projects like gas-fired turbine electricity in Nigeria.
- Economic Cooperation:
- Nigeria is India’s largest trading partner in West Africa, with $20 billion in investments.
- Nigerian oil contributes 12% of India’s crude oil imports, highlighting energy ties.
- Energy Cooperation:
- India is a significant buyer of Nigerian crude oil, fostering energy security.
- Collaboration in renewable and sustainable energy can be a potential area of growth.
Challenges in Relations
- Declining Bilateral Trade:
- Trade fell from $14.95 billion (2021-22) to $11.8 billion (2022-23) due to reduced oil imports from Nigeria.
- Limited Upstream Energy Investments:
- India lacks strategic investments in Nigeria’s energy sector, unlike competitors like China.
- Sparse High-Level Engagements:
- Joint Commission meetings are infrequent, and the last Indian Prime Ministerial visit occurred 17 years ago.
- Chinese Influence:
- Increasing Chinese investments through the Belt and Road Initiative (BRI) challenge India’s position in Nigeria.
- Economic Instability in Nigeria:
- Recent subsidy cuts and currency devaluation in Nigeria create uncertainties, impacting Indian investments.
Future Areas of Cooperation
- Defense and Security:
- Address Nigeria’s challenges like Boko Haram terrorism, piracy, and oil theft.
- Strengthen defence collaboration through training programs and technology transfer.
- Economic Collaboration:
- Stabilize Nigeria’s economy through partnerships in hydrocarbons and infrastructure development.
- Consider barter trade arrangements to ease Nigeria’s foreign exchange shortages.
- Trade Enhancement:
- Boost bilateral trade beyond $7.9 billion by increasing exports of pharmaceuticals, textiles, and foodstuffs.
- Promote rupee-based trade to diversify payment mechanisms.
- Capacity Building:
- Leverage Indian expertise in IT, healthcare, and education to enhance Nigeria’s human resource and infrastructure development.
Way Forward
- Comprehensive Economic Partnership Agreement (CEPA):
- Establish frameworks to reduce trade barriers and encourage investment in defense and hydrocarbons.
- Currency Swap Arrangements:
- Mitigate forex shortages and stabilize trade through currency swaps.
- Infrastructure Investments:
- Invest in transport networks and other critical infrastructure in Nigeria to strengthen bilateral cooperation.
- Diaspora Engagement:
- Utilize the 50,000-strong Indian diaspora in Nigeria as cultural and business ambassadors.
Conclusion
India and Nigeria’s strategic partnership has immense potential to address mutual challenges and capitalize on shared opportunities. By deepening cooperation in trade, defense, and energy, addressing existing challenges, and fostering an inclusive economic framework, the two nations can ensure long-term prosperity and mutual growth.
Related PYQ
Increasing interest of India in Africa has its pros and cons. Critically examine? [ UPSC Civil Services Exam – Mains 2015]
Practice Question
Discuss the significance of India-Nigeria relations in the context of South-South cooperation and global geopolitics. Highlight the challenges in their bilateral ties and suggest measures to enhance their partnership. [250 words]
Guidelines for Answering the Question
- Introduction:
- Briefly introduce the historical and strategic significance of India-Nigeria relations.
- Mention their shared democratic values, economic ties, and contributions to South-South cooperation.
- Body:
- Highlight key areas like defense, energy, economic cooperation, and multilateral platforms.
- Mention Nigeria as India’s key energy partner and its strategic position in Africa.
- Discuss declining bilateral trade, limited investments, sparse high-level engagements, and external competition like China.
- Highlight Nigeria’s internal challenges, including political instability and economic reforms.
- Propose steps like signing a Comprehensive Economic Partnership Agreement, currency swap mechanisms, and increased defense and infrastructure collaboration.
- Emphasize leveraging India’s expertise in IT, education, and health sectors.
- Conclusion:
- Summarize the potential of India-Nigeria relations in driving mutual growth and contributing to global South-South cooperation.
- End with a note on the importance of strengthening ties to ensure long-term strategic benefits for both nations.