Both sides to finalise Local Currency Settlement System Agreement soon

Several areas of focus identified: Digital Economy and Digital Public Infrastructure, Crude oil and Natural Gas, pharmaceuticals

A seven-member delegation from India led by Additional Secretary, Department of Commerce, Ministry of Commerce and Industry, Shri Amardeep Singh Bhatia, accompanied by High Commissioner of India to Federal Republic of Nigeria,Shri G Balasubramanian and Economic Adviser, Department of Commerce, Ms. Priya P. Nair held a Joint Trade Committee (JTC) meeting with their Nigerian counterparts in Abuja from 29.04.2024 to 30.04.2024. The JTC was co-chaired by Permanent Secretary, Federal Ministry of Industry Trade and Investment, Nigeria, Ambassador Nura Abba Rimi; and Additional Secretary, Department of Commerce.

In a comprehensive dialogue, both sides undertook a detailed review of recent developments in bilateral trade and investment ties and acknowledged the vast untapped potential for further expansion. To this effect, both sides identified several areas of focus for enhancing both bilateral trade as well as mutually beneficial investments. These include resolving of market access issues of both sides, and cooperation in key sectors such as Crude oil and Natural Gas, Pharmaceuticals, Unified Payments Interface (UPI), Local Currency Settlement System, Power Sector and Renewable Energy, Agriculture & Food Processing, Education, Transport, Railway, Aviation, MSMEs, Development etc. Both sides agreed to early conclusion of Local Currency Settlement System Agreement to further strengthen bilateral economic ties.

Official delegation from India consisted of officials from Reserve Bank of India (RBI), EXIM Bank of India and National Payments Corporation of India (NPCI). The officials of both sides actively engaged in the proceedings of the JTC.The discussions were held in a cordial and friendly atmosphere and were fruitful. There was enthusiastic response towards greater cooperation, addressing pending issues, boosting trade and investment, greater people to people contacts.

In a concerted effort to bolster bilateral trade, both sides committed to expeditiously address all issues impeding bilateral trade and facilitate trade promotion between the two nations. A business delegation led by CII also accompanied the official delegation comprising representatives from various sectors like power, fintech, telecommunications, electrical machinery, pharmaceuticals, etc. The deliberations of the 2nd Session of India-Nigeria JTC were cordial and forward-looking, indicative of the amicable and special relations between the two countries.

Nigeria is a major partner- the 2nd largest trading partner of India in Africa region. Bilateral trade between India and Nigeria stood at USD 11.8 billion in 2022-23. In the year 2023-24, the bilateral trade stands at 7.89 billion showing a declining trend. With a total investment of USD 27 Billion, approximately 135 Indian companies are actively engaged in Nigeria’s vibrant market. These investments traverse diverse sectors, encompassing infrastructure, manufacturing, consumer goods and services.

Local Currency Settlement System Agreement to be finalised to strengthen bilateral trade and payment cooperation and resolve market access issues Agreement to finalise a Local Currency Settlement System Agreement and related payment cooperation measures was identified as a primary objective to strengthen bilateral trade and reduce reliance on third currency settlements. Both sides committed to early conclusion of this settlement framework, discussed integration with Unified Payments Interface-style mechanisms, and endorsed coordinated involvement of central banking, export finance and payment infrastructure institutions to operationalise cross border local currency flows and address market access obstacles.