Both the countries will works towards an early conclusion of Bilateral Investment Promotion and Protection Agreement (BIPPA).

The visiting Nigerian Foreign Minister H Odein Ajumogobia is here to co-chair the Fifth Session of the India-Nigeria Joint Commission alongwith his Indian counterpart, SM Krishna. This meeting of the joint commission is likely to discuss and finalise trade and investment issues and review bilateral relationship. The JCM proceedings would be held through four specialised sub-committees to ensure in-depth and comprehensive discussions.

Ajumogobia is on a three day visit to India from March 15 and is accompanied by his wife and is leading a high level official delegation

On March 17, he will visit the Foreign Service Institute of MEA and deliver a major speech at India International Centre on 'India and Nigeria: the Largest Democracies in World and Africa, as Agents of Inter-regional Cooperation for Global Peace and Development'. The speech has jointly been organised by MEA, the School of International Studies of the Jawaharlal University and India International Centre.

India-Nigeria relations have especially deepened and expanded dramatically since the historic visit of Indian Prime Minister to Nigeria in October 2007. The Abuja Declaration issued at the end of the visit proclaimed India and Nigeria to be 'Strategic Partners.'

India’s relations with Nigeria have intensified a surge in economic and people-to-people ties. Currently both countries are non-permanent members of the UN Security Council. India is trying to woo the African nations and the crucial India-Africa Summit is lated to be hosted in Ethiopia, this year.
India-Nigeria bilateral trade grew by over 50% during the first half of 2010-11 as compared to corresponding period of previous year. The trade is estimated to cross $12 billion in current financial year. Indian investments in Nigeria are estimated at $ 5 billion.

The Indian Minister for Petroleum and Natural Gas, S Jaipal Reddy in his meeting with Ajumogobia sought to import higher quantities of crude oil from Nigeria in the coming years. In view of the significant expansion in India’s refining capacity, Reddy indicated that the annual requirement of Nigerian crude oil would be around 18 million tonnes per annum from 2012-13 onwards. He said that India imported 13.2 million tonnes of crude oil from Nigeria in 2009-10.

Regarding LNG, Reddy said that India was interested in tying up LNG imports from Nigeria immediately, as the country’s requirement of LNG is projected to go up by 12 to 15 million tonnes per annum in the foreseeable future.

The Nigerian Foreign Minister indicated that the Nigeria LNG (NLNG) was considering to dilute a part of its stake, and the Indian public sector, GAIL was being considered as one of the parties. GAIL (India) Ltd. is pursuing participation in the Nigerian Gas Master Plan Project (NGMP) and has submitted a proposal along with other international consortium members.

GAIL has also expressed interest in participation in petrochemical projects and city gas distribution projects in Nigeria. GAIL is very keen to take equity in the upcoming Brass LNG and OK LNG Projects, to ensure long-term sourcing of LNG from Nigeria. Minister also offered technical assistance from India’s oil PSUs to Nigerian personnel in areas related to refining, pipelines, marketing, research & development.

Ajumogobia also said that steady progress was being made by the OVL Mittal Energy Ltd. (OMEL) consortium in OPL 279 and 285, where OMEL is carrying out the exploratory drilling and carrying out a detailed feasibility study for a downstream refinery. Referring to India’s investments in blocks OPL 321 and 323 in the upstream sector, he called for an early resolution of the litigation in Nigeria.

Reddy also met the Premier of the Province of Saskatchewan, Canada, Brad Wall. They discussed the possibilities of Indian companies investing in the upstream sector for exploration and exploitation of non-conventional hydrocarbons such as oil sands, shale oil, tight oil.
Addressing a business rountable organized by the apex industry body, FICCI, Ajumogobia said that the Nigerian Administration has been concentrating on economic reforms which seek to transfer state ownership of institutions to the private sector to make the productive sectors of the economy more efficient.

He said that the power sector generation and distribution have been opened to the private sector. The Nigerian Government is seeking to raise the country’s power generation capacity by offering competitive tariffs and distribution companies would be offered World Bank guarantees to mitigate their business risks.

He said that the reform of the country’s petroleum, oil and gas sector will be complete by May this year when the Bill to revamp the sector is enacted into law.

Likewise, the banking and financial sector has undergone reform through consolidation of 85 small banks into 25 well capitalized entities.

He expressed the hope that direct flights between Nigeria and India would be started soon and the Nigeria-Indian Joint Commission would be able to put in place an investment protection and guarantee agreement as also a double taxation avoidance agreement.

Indian Commerce and Industry Minister, Anand Sharma during his bilateral meeting with Ajumogobia expressed the need for an early conclusion of Bilateral Investment Promotion and Protection Agreement (BIPPA). Sharma said: “The complementarities of Nigerian and Indian economies needs to be harnessed for more extensive bilateral engagement.” He informed the Nigerian Minister about the many Indian companies’ investments in Nigeria and added that some more Indian companies are keenly interested in areas such as power and petroleum.


Sharma expressed satisfaction over the growing trade and investment between the both countries. He said that, “There has been growth of bilateral trade by 61.65 % in 2010 as compared to 2009.The annual trade is expected to reach a record level of $ 12 billion in 2010-11”. He further informed the visiting minister that, the total Indian investment in Nigeria during 2010 was estimated to be around $ 5 billion and total FDI from Nigeria during April 2000 to December 2010 was $ 6.49 million.

There are over 100 Indian companies present in Nigeria mainly in telecom, hydrocarbons, textiles, chemicals, electrical equipment, pharmaceuticals, plastics, IT and autos sectors. Indian automobile companies have significant presence in Nigeria. Major Items of export are: machinery and instruments, drugs, pharmaceuticals, fine chemicals, transport equipments, electronic goods, manufactures of metals and major items of import are: petroleum - crude and products, non-ferrous metals, wood and wood products, cashew nuts.