India-Nigeria Trade Hits $9bn as Firms Expand Local Production
Trade between Nigeria and India rose by 26 per cent to approximately $9 billion in 2025–26, up from $7.13 billion recorded in the previous financial year.
The increase highlights the strengthening economic relationship between both countries, with cooperation expanding beyond traditional oil and commodity trade into manufacturing, healthcare, energy, technology and employment.
The Indian High Commissioner to Nigeria, Abishek Singh, said more than 200 Indian companies currently operate across Nigeria.
According to him, these businesses have created nearly 100,000 jobs, making Indian companies one of the largest sources of employment in the country outside the Federal Government.
Indian firms increase local production in Nigeria
The growing presence of Indian businesses also reflects a shift in the relationship between the two countries from a largely trade-focused partnership towards greater local production and investment.
Indian companies are increasingly setting up manufacturing and production operations in Nigeria across several industries, including pharmaceuticals, power, construction, consumer products and healthcare.
The expansion is expected to strengthen domestic supply chains while creating additional opportunities for Nigerian workers and businesses.
Pharmaceutical sector becomes key area of cooperation
Healthcare and pharmaceuticals have emerged as important components of India-Nigeria economic cooperation.
India’s Deputy High Commissioner to Nigeria, Vertika Rawat, disclosed that Indian pharmaceutical exports to Nigeria reached about $315 million in 2024–25.
She also said India accounts for approximately 40 per cent of Nigeria’s pharmaceutical imports, with its share exceeding 90 per cent in some categories of medicines.
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Indian investment in pharmaceutical manufacturing in Nigeria was estimated at about $4 billion, according to Rawat.
The growing focus on domestic pharmaceutical production could help Nigeria reduce dependence on imported finished medicines while expanding manufacturing capacity within the country.
Stronger economic ties between Nigeria and India
Economic relations between Nigeria and India have developed over more than six decades and were elevated to a Strategic Partnership in 2007.
Political engagement has also continued to grow. President Bola Tinubu travelled to India for the G20 Summit in 2023, while Indian Prime Minister Narendra Modi visited Nigeria in November 2024.
Beyond private-sector investments, India has supported Nigeria through development assistance, concessional financing and technical training under its Indian Technical and Economic Cooperation (ITEC) programme.
What stronger India-Nigeria ties could mean for Nigeria
The deepening partnership provides Nigeria with opportunities to access Indian capital, technology, technical expertise and industrial experience.
For Nigeria, increased investment in local manufacturing could support job creation, improve domestic supply chains and strengthen productive capacity.
As bilateral trade continues to expand, both countries are expected to explore opportunities across manufacturing, pharmaceuticals, energy, technology and other sectors capable of supporting long-term economic growth.
