India, Nigeria move closer with $14 billion in investment commitments

In a significant stride towards economic cooperation, Nigeria has obtained investment commitments totalling nearly $14 billion from various Indian companies and the Indian government. The Nigerian President Bola Tinubu aims to spur development in key sectors like steel, petrochemicals, power generation, and defence through these partnerships.

Indian heavyweights like Jindal Steel and Power have made significant investment commitments in Nigeria. The company plans to inject $3 billion into Nigeria’s steel industry, diversifying the West African nation’s reliance on oil production. Indorama Corp, another Indian firm, intends to pour an additional $8 billion into expanding its existing petrochemical facility in Nigeria.

Skipperseil Ltd and Bharti Enterprises have each pledged to invest $1.6 billion in Nigeria over the next four years. The funds will be primarily channelled into constructing power generation plants to strengthen Nigeria’s energy infrastructure. Bharti Enterprises will also contribute $700 million towards undisclosed projects in Nigeria.

In a mutually-beneficial agreement, the Nigerian government has given the nod to a $1 billion partnership with the Indian government. This deal is designed to bolster the Defence Industries Corporation of Nigeria, with the goal of achieving 40% self-sufficiency in the manufacturing and production of defence equipment within a three-year time frame.

These commitments were formalised under the Nigeria-India presidential roundtable and conference, which aims to drive global capital into Nigerian infrastructure projects. President Tinubu, who is slated to attend the G20 summit in New Delhi later this week, hosted these talks. His attendance at the summit follows an invitation from India, the current holder of the rotating presidency of the G20 bloc.

Tinubu expressed optimism for potential investors, stating that Nigeria offers unparalleled returns on investments. The West African country aims to focus on investment-led growth, moving away from borrowing to finance its infrastructure and job creation needs.

“We are ready to give you the best returns for investment possible, there’s nowhere else like our country,” Reuters quoted Tinubu as stating.

(With Reuters inputs)