India-Nigeria Local Currency Settlement System Agreement

India and Nigeria have agreed to finalize the Local Currency Settlement System Agreement to enhance bilateral trade. The agreement, to be settled in Indian rupees and Nigerian naira, was discussed during the 2nd session of the India-Nigeria Joint Trade Committee in Abuja.

Key Points from the 2nd Session

  • Delegation and Participants: Led by Amardeep Singh Bhatia, the Indian delegation included officials from RBI, EXIM Bank, and NPCI. The meeting aimed to identify areas for boosting trade cooperation.
  • Areas of Cooperation: Both nations targeted resolving market access issues and enhancing collaboration in sectors like Crude oil, Pharmaceuticals, UPI, Renewable Energy, Agriculture, Education, Transport, MSMEs, etc.

India-Nigeria Relations

India and Nigeria share robust political and economic ties dating back to India’s establishment of a Diplomatic House in Lagos in 1958. Notable visits include Prime Minister Nehru’s trip in 1962. Nigeria is India’s 2nd largest trading partner in Africa, with bilateral trade reaching USD 11.8 billion in 2022-23. Indian investment in Nigeria stands at approximately USD 27 billion, primarily in infrastructure and manufacturing.

About Nigeria

Nigeria, situated on Africa’s western coast, is a significant economy known for its oil exports. As an OPEC member since 1971, it plays a crucial role in the global oil market. Abuja serves as its capital, and its currency is the Nigerian naira. Bola Tinubu currently holds the presidency.

Piyush Shukla

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