By Benson Daniel
Bilateral trade between Nigeria and India rose by 26 per cent to about $9 billion in the 2025 to 2026 financial year, up from $7.13 billion recorded in the previous year, as companies from both countries deepen investments and expand local production.
The development highlights the growing strength of the economic relationship between the two countries, with cooperation increasingly extending beyond traditional trade in crude oil and manufactured goods to areas such as healthcare, pharmaceuticals, energy, technology, construction and industrial production.
The Indian High Commissioner to Nigeria, Abhishek Singh, disclosed that more than 200 Indian companies currently operate in Nigeria, employing nearly 100,000 people.
The expanding presence of Indian businesses is also changing the nature of bilateral economic relations, with companies increasingly establishing production facilities in Nigeria rather than relying solely on exports from India.
Indian firms are active in several sectors of the Nigerian economy, including pharmaceuticals, power, construction, consumer goods, healthcare and other services. The increased focus on domestic production is expected to support employment, strengthen local supply chains and improve Nigeria’s industrial capacity.
Healthcare and pharmaceutical manufacturing have emerged as particularly important areas of cooperation. Indian Deputy High Commissioner to Nigeria, Vertika Rawat, said Indian pharmaceutical exports to Nigeria reached $315 million in 2024 to 2025, while India accounts for about 40 per cent of Nigeria’s pharmaceutical imports.
India’s investment in pharmaceutical manufacturing in Nigeria is estimated at about $4 billion, reflecting growing efforts to establish production capacity within the country and reduce dependence on imported finished medicines.
The shift towards local manufacturing could provide Nigeria with several economic benefits, including employment creation, technology transfer, skills development and stronger domestic supply chains.
For Indian companies, Nigeria offers access to one of Africa’s largest consumer markets and a strategic base for expanding into other parts of the continent.
The growing investment relationship also creates opportunities for Nigerian businesses to participate more actively in supply chains connected to Indian companies operating locally.
Beyond pharmaceuticals, cooperation between the two countries is expanding across energy, technology, agriculture, construction and manufacturing, areas that could attract additional investment as both governments seek to deepen economic ties.
The increase in trade comes as Nigeria continues to pursue policies aimed at attracting foreign direct investment while encouraging companies to establish production facilities within the country.
For Nigeria, attracting more investment into manufacturing and other productive sectors could help diversify the economy, increase non oil activity and reduce pressure on foreign exchange by replacing some imports with locally produced goods.
The relationship between both countries has continued to strengthen over the years, with bilateral engagement now covering a broad range of economic and strategic interests.
With trade reaching about $9 billion and hundreds of Indian companies operating in Nigeria, the next phase of the partnership is expected to focus increasingly on investment, local production and value addition.
If sustained, the shift could deepen industrial cooperation between Nigeria and India while creating new opportunities for employment, technology transfer and economic growth.
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