India and Nigeria share a very long history that started in 1958. In today’s world, India and Nigeria are aggressively trading with each other. It is quite common to see people from Nigeria living in the developed cities in India like New Delhi, Bangalore, Bombay, and Gurgaon. Indian educational institutions are also aggressively inviting students from Africa including meritorious students from the country of Nigeria. In the year 2015, a sizeable Nigerian delegation of over 100 delegates visited India to analyze and discuss future collaborations and growth opportunities. The Nigerian president Muhammadu Buhari headed this delegation. In the year 2016 Vice President of India Shri M. Hamid Ansari along with a large delegation visited Nigeria to give shape to a shared vision.
In this blog post, we will let you know about a couple of factors on which these economies are working together for mutual growth.
Import and export between India and Nigeria
In the year 2016-17 India did export products, and services worth $1771.33 Million. On the import front, India did import more than three times of what it exported to Nigeria. The total import was worth about $7,659 Million
The world knows that India does import oil from Middle Eastern Nations. Iran also supplies a vast amount of fuel to India. Indo Nigerian relationship is going stronger because India is now importing about 12% of its crude oil requirement directly from Nigeria.
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Indians in Nigeria
Indians are dominating the business sector in Nigeria and many other African Nations. It is very common to find multiple organizations that are headed by people of Indian Origin. Traditionally Indian and African communities have been able to find common grounds. They easily stick together in various nations like Mauritius, Java, Sumatra, Caribbean Island, Nigeria and West Indies.
A massive number of Indian companies are already operating in Nigeria. These companies are working in multiple Industries that includes Fintech, Power, Petrochem, Pharmaceutical, Automotives, Logistics, FMCG, Consumer Durables, Healthcare and solar.
Bollywood gaining popularity in Nigeria
Nigeria is home to many creative people. There are a lot of production houses and talented actors. Having said that Bollywood is also making an impact on the minds of people. In the year 2014, the Indian Film Festival was inaugurated in Abuja on March 31st. People from Nigeria got the opportunity to look at few films from Bollywood. With the availability of access to YouTube and other video sharing websites, people from Nigeria are already keeping a great track on Bollywood and the Indian movie industry. Television channels in Nigeria also broadcast Bollywood movies and Indian programs sometimes. These activities certainly help in creating a strong people to people relationship.
Exchange Programs at University and Educational institutions
Indian and Nigerian educational institutions are taking the initiative of signing multiple Memorandum of understanding(MOU). The reason for signing these MOU is to enable the student exchange program. With the help of the student exchange programs students from each nation get the opportunity to understand the culture and way of life of the other country. Apart from student exchange program, different educational institutions in India and Nigeria have also started exchanging the faculty members for small time frames. It is quite common to see a professor from Nigeria giving a lecture at a university or college in the national capital territory of Delhi and vice-versa.
The Indian community in Nigeria is tiny in numbers. It’s roughly less than 40,000 people. Despite being so small in size, the community gets the right to establish their temples in Nigeria. Indian community especially the Hindu population is free and have open access to their religious aspirations. It creates a positive impact in the minds of the people in India. People in India also offer similar flexibility to Nigerian nationals.
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The new government in India has visualized a 360-degree growth for the nation. This cannot happen without focusing on sports. It is quite common to see International coaches training Indian athletes. Out of these many International coaches, few coaches are also from Nigeria. Athletics and Soccer are the two domains where African coaches are in high demand. Skilled coaches from Nigeria add a new dimension to sports learning in India
Now that we have discussed some factors that will and are adding growth to these two Nations let’s look at
Some crucial challenges of both nations.
Nigeria is going through a transformation. Unfortunately, it appears that the nation will take a lot of time to transform. The current challenge with Nigerian businesses is primarily of taxation. City, State, and Nation charge separate taxes from business owners. It creates a massive problem concerning cash flow. SMEs in Nigeria are rarely into export, and for them, the domestic consumption is critical. Till the time the local tax structure is not modified and adjusted for the betterment of the business community, growth will be a challenging task for Nigeria.
The critical challenge for India. After a long time, India has seen a stable government coming into the power under the leadership of Shri Narendra Modi. The government is taking every measure to ensure world class infrastructure along with removing a lot of red tapes. The government is becoming stronger after each election. The crucial challenge which India is facing at this point is a heavy dependence on wealthy Nations like The UK, The US, Australia, Canada, Germany, France and few others.
It is good to have a business relationship with these financially wealthy nations, but India as a nation should also concentrate on building the relationship with emerging economies in Latin America and Africa. It should be the initiative of smaller entrepreneurs as well. Prominent entrepreneurs never create a movement it’s always created by small entrepreneurs. India will generate massive profit and massive global recognition if the entrepreneurs from India start to aggressively work with entrepreneurs in other developing nations especially from Latin America and Africa.
This article was written by Bankim Chandra who is a Merchant Account Consultant with Quadrapay.com. He works with merchants from across the globe including Africa. He enjoys writing about Financial Technology(Fintech), Payment Gateway, Merchant account and high risk echeck processing. The focus of writing this article was to generate a content that can help people to understand how India and Nigeria are planning to go ahead together and attain mutual growth. You can reach Bankim on [email protected]
We also recommend you to read these two reference sites which will give you a much deeper insight. These two links shall be considered the source of the article