India-Nigeria trade hits $9bn as firms deepen local production
By Yinka Kolawole
India and Nigeria experienced a significant increase in bilateral trade, rising by 26 percent to approximately $9 billion in the 2025-26 fiscal year. This marks an improvement from $7.13 billion in 2024-25, reflecting the strengthening economic ties between the two nations that extend beyond oil and commodities into sectors such as manufacturing, healthcare, energy, technology, and job creation.
Abishek Singh, the Indian High Commissioner to Nigeria, reported that more than 200 Indian companies are currently operating in Nigeria, creating nearly 100,000 jobs. This positions Indian businesses as the second-largest employers of Nigerians, following the Federal Government.
The growth of Indian corporate presence indicates a transition from an export-driven relationship to a focus on local production. Indian firms are increasingly establishing manufacturing and production facilities in Nigeria across various sectors, including pharmaceuticals, power, construction, consumer goods, and healthcare. Vertika Rawat, India’s Deputy High Commissioner to Nigeria, highlighted that Indian pharmaceutical exports to Nigeria reached $315 million in 2024-25, accounting for approximately 40 percent of Nigeria’s pharmaceutical imports, with some medicine categories exceeding 90 percent.
Rawat also noted that Indian investment in pharmaceutical manufacturing in Nigeria is around $4 billion, reflecting a concerted effort to locally produce medicines rather than primarily relying on imports. This trend is expected to bolster skilled employment, enhance supply chains, and improve domestic production capacity.
The economic relationship between India and Nigeria has spanned over six decades and was elevated to a Strategic Partnership in 2007. Political engagement has intensified recently, with Nigerian President Bola Tinubu attending the G20 Summit in India in 2023 and Indian Prime Minister Narendra Modi visiting Nigeria in November 2024.
In addition to private investment, India has provided development assistance, concessional financing, and technical training through its Indian Technical and Economic Cooperation programme. This expanding partnership offers Nigeria increased access to Indian capital, technology, and expertise, aimed at enhancing its productive capacity.
