India-Nigeria trade hits $9bn as firms deepen local production

Bilateral trade between India and Nigeria has surged, reaching approximately $9 billion in the 2025-26 fiscal year. This represents a significant 26% increase from the $7.13 billion recorded in 2024-25, indicating deepening economic ties that extend beyond oil and commodities into manufacturing, healthcare, energy, and technology.

India's influence in the Nigerian economy is substantial, with over 200 Indian companies currently operating in the country. These businesses have generated nearly 100,000 jobs, making them the second-largest private employers in Nigeria after the Federal Government. This expanding corporate presence signifies a strategic shift towards local production and investment.

Healthcare has emerged as a particularly strong area of cooperation. Indian pharmaceutical exports to Nigeria totaled $315 million in 2024-25, with India supplying about 40% of Nigeria's pharmaceutical imports. Indian companies have invested approximately $4 billion in pharmaceutical manufacturing facilities within Nigeria, a move aimed at bolstering local production capacity, strengthening supply chains, and supporting skilled employment.

The economic relationship, which dates back over six decades, was elevated to a Strategic Partnership in 2007. High-level political engagement has also intensified, with leaders from both nations undertaking reciprocal visits. India provides Nigeria with access to capital, technology, and expertise through development assistance and technical training programs, further solidifying the partnership.