India and Nigeria will shortly sign a local currency agreement.

Timmy Mabs |24th May, 2024.

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At the Joint Trade Committee (JTC) meeting in Ajuba, both parties talked about working together on the United Payments Interface (UPI) in addition to the settlement of transactions in local currency.

In order to facilitate trading in domestic currencies and settle other capital and current account transactions, India and Nigeria have agreed to expedite the conclusion of the Local Currency Settlement System Agreement, according to a statement released on Friday.

At the Joint Trade Committee (JTC), which was convened in Ajuba, both parties addressed cooperation in the United Payments Interface (UPI) in addition to the settlement of transactions in local currency.

The Reserve Bank of India (RBI), EXIM Bank of India, and National Payments Corporation of India (NPCI) officials were included in the official delegation from India to Nigeria in addition to representatives from the commerce ministry.

India began trading in its own currency with neighboring Nepal and Bhutan in March 2024. Additionally, the Indian rupee has been recognized by Sri Lanka as a foreign currency, enabling two-way trade.

Bangladesh and other nations are also keen to trade in rupees with India. Rupee-Dirham commerce has also begun in the UAE and India.

A Memorandum of Understanding (MoU) was signed in March in Mumbai by the Bank Indonesia (BI) and the RBI to create a framework to encourage the usage of local currencies.

Indian banks have offered Special Rupee Vostro Accounts for banks from over 22 countries. These nations include the UK, Israel, Kenya, Malaysia, Mauritius, Myanmar, Belarus, Botswana, Fiji, Germany, Guyana, and Mauritius.

Both parties committed to working together to resolve market access issues at the JTC and conducted a thorough evaluation of recent developments in bilateral trade and investment ties. The power industry, renewable energy, medicines, natural gas and crude oil, and pharmaceuticals were among areas of collaboration that were proposed. Topics including education, transportation, agriculture, and food processing were also discussed.

India's second-largest trading partner in Africa is Nigeria. In 2023–24, bilateral trade between Nigeria and India was valued at $7.8 billion, a decrease from $11.8 billion the year before. Approximately 135 Indian firms are actively participating in the Nigerian industry, having invested a total of $27 billion.

The Organization of Petroleum Exporting Countries (OPEC) includes Nigeria as a member. India purchased $2 billion worth of crude from Nigeria between April and January of the preceding fiscal year, a significant decrease from $5.4 billion the year before. Petroleum products are India's main export to Nigeria. Moreover, India imports LNG from Nigeria.