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India to invest $14 billion in Nigeria

Utkarsh Classes 08-09-2023
India to invest $14 billion in Nigeria Agreements and MoU 5 min read

On September 6, 2023, it was informed by the Nigerian government that Nigeria had received assurances of a total investment of $ 14 billion from Indian investors.

In a significant progress towards economic cooperation, Nigeria has received investment commitments of about $14 billion from various Indian companies and the Government of India.

  • Nigerian President Bola Tinubu, at the invitation of India, is on a visit to New Delhi to attend the G20 Summit.
  • Nigerian President Bola Tinubu aims to promote development in key sectors such as steel, petrochemicals, power generation and defense through these partnerships.
  • According to Nigerian government spokesman Azuri Ngelele, Nigeria now also wants to sign an economic cooperation agreement with India.

INDIVIDUALS TO INVEST IN NIGERIA INITIATIVES:

  • Indian giants such as Jindal Steel & Power have made significant investment commitments in Nigeria. The company plans to invest $3 billion in Nigeria's steel industry to diversify the West African country's dependence on oil production.
  • Another Indian company, Indorama Corp, is looking to invest an additional $8 billion to expand its existing petrochemical facility in Nigeria.
  • Skippersil Limited and Bharti Enterprises have pledged to invest $1.6 billion in Nigeria over the next four years.
  • The funds will mainly be invested in the construction of power generation plants to strengthen Nigeria's energy infrastructure. Bharti Enterprises will also contribute $700 million for undisclosed projects in Nigeria.
  • In a mutually beneficial agreement, the Nigerian government has approved a $1 billion partnership with the Indian government. The deal is designed to strengthen the Defense Industries Corporation of Nigeria, which aims to achieve 40% self-sufficiency in the manufacture and production of defense equipment within a three-year time frame.

India provides second highest number of jobs in Nigeria:

  • More than 135 Indian-owned and operated companies, according to estimates by the Indian High Commission in Nigeria, Africa's most populous country (220 million), provide the second largest number of jobs in Nigeria after the government there.
  • In this context, it is estimated that Indian companies have invested about $19.3 billion in Nigeria. These investments by Indian companies are mainly engaged in sectors ranging from pharmaceuticals, telecommunications, power and broadcasting, manufacturing and retailing of consumer goods to the construction sector and air services.

Nigeria-India Presidential Round Table:

  • These commitments were formalized under the Nigeria-India Presidential Round Table and Conference, which aims to bring global capital into Nigerian infrastructure projects.
  • Nigerian President Bola Tinubu met Indian businessmen as part of the Nigeria-India Presidential Roundtable and Conference to mobilize international funding for infrastructure development.
  • President Bola Tinubu said in a statement, "We are ready to give you the best possible return on investment, like nowhere else in our country."
  • The government of Nigeria aims to promote investment to create jobs and finance the construction of urgently needed infrastructure such as railways, roads and power plants, rather than relying on borrowing.
  • In his biggest reforms in decades, Tinubu scrapped the popular but costly petrol subsidy and lifted restrictions on foreign exchange trading.
  • Faced with record debt, sluggish growth, unemployment and double-digit inflation, newly elected President Bola Tinubu has vowed to revive the economy.

FAQ

Ans. - Nigeria

Ans. - Jindal Steel and Power

Ans. - Indorama Corp
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