By Emmanuel Thomas l Monday, Sept 14, 2026
ABUJA — In a major push to revive commercial exchanges to historic peaks, Nigeria and India have agreed to deepen their strategic economic relationship, with New Delhi signaling a strong interest in resuming large-scale purchases of Nigerian crude oil.
The diplomatic and economic commitment was solidified during a high-level bilateral meeting between Nigeria’s Vice President, Kashim Shettima, and Indian Prime Minister Narendra Modi on the sidelines of the just-concluded BRICS Leaders’ Summit in New Delhi.
Bilateral trade between Africa’s largest economy and India reached an all-time high of $14.95 billion during the 2021–2022 financial year. However, commercial exchanges experienced a noticeable dip down to $7.13 billion in the 2024–2025 fiscal period, driven predominantly by a decline in Indian imports of Nigerian crude oil amid changing global energy supply dynamics.
According to data disclosed by the Indian High Commissioner to Nigeria, Shri Abhishek Singh, trade relations have already begun a steady recovery, climbing back to approximately $9 billion in the 2025–2026 financial year.
During the summit meeting, Prime Minister Modi made a direct case for revitalizing energy partnerships, highlighting that increased purchases of crude oil from Nigeria remain central to restoring bilateral trade volume toward the former $15 billion baseline.
Responding to India’s proposition, Vice President Shettima assured that Nigeria would actively consider the request, framing it within the broader economic restructuring efforts of President Bola Ahmed Tinubu’s administration.
”Nigeria will examine the request as part of broader efforts by President Tinubu’s administration to attract sustainable foreign investment and build strategic global partnerships capable of expanding the country’s productive capacity,” Shettima stated.
The economic relationship between Nigeria and India is grounded in deep historical links dating back to Nigeria’s pre-independence era, with official diplomatic relations established in 1958. Over the decades, India has consistently ranked among Nigeria’s largest trading partners globally and remains one of its primary export destinations in Asia.
Historically, energy exports—specifically light sweet crude oil types like Bonny Light—formed the backbone of this bilateral trade. Indian state-owned refiners long preferred Nigerian crude for its low-sulfur content and high yield of gasoline and diesel.
Beyond energy, India represents one of the largest source markets for Foreign Direct Investment (FDI) in Nigeria. Over 135 Indian companies operate actively across the Nigerian market, boasting an estimated aggregate investment of over $19.3 billion. Key operational sectors include:
Pharmaceuticals: Companies such as Ranbaxy, Cipla, and Bharti Airtel have established significant market footprints.
Manufacturing & Industrial Production: Heavy involvement in steel processing, plastics, and consumer goods packaging.
Automotive: Dominance in the supply of commercial tricycles (Keke NAPEP), two-wheelers, and heavy-duty utility vehicles.
Agriculture & Technology: Increasing investments in mechanized farming tools, telecom infrastructure, and software services.
The economic downturn in trade between 2022 and 2025 was largely attributed to global geopolitical shifts that prompted Asian refineries to diversify energy procurement, alongside local production constraints within Nigeria’s oil sector.
With Nigeria’s crude oil production regaining stability and national reforms underway to streamline foreign direct investment, the New Delhi pact signals a mutual determination to reposition both countries as primary trade anchors within the Global South.
