Nigeria, India intend on swapping regional currencies in trade
Date
5/14/2024 4:39:29 AM
(MENAFN) India and Nigeria are poised to solidify their economic partnership through an upcoming agreement on local-currency debt settlement, signaling a strategic move to enhance bilateral trade relations. The Indian commerce and industry Ministry announced the impending agreement following discussions held during the second Session of the India-Nigeria Joint Trade Committee (JTC) in Abuja, Nigeria's capital.
The discussions, which covered various sectors including energy, pharmaceuticals, and transport, underscored the mutual commitment of both nations to expand cooperation beyond traditional trade domains. The Indian delegation, comprising representatives from key institutions such as the Reserve Bank of India (RBI), EXIM Bank of India, and the National Payments Corporation of India (NPCI), engaged in constructive dialogue aimed at bolstering economic ties between the two countries.
A significant outcome of the discussions was the agreement to expedite the conclusion of the Local Currency Settlement System Agreement, aimed at facilitating smoother trade transactions between India and Nigeria. This agreement is expected to reinforce bilateral economic relations by promoting transactions conducted in local currencies, thereby reducing reliance on foreign exchange mechanisms.
Additionally, both India and Nigeria have identified several key areas for collaboration aimed at fostering mutually beneficial investments and addressing market-access issues. These areas encompass diverse sectors such as crude oil and natural gas, pharmaceuticals, Unified Payments Interface (UPI), power sector and renewable energy, agriculture and food processing, education, and transportation, among others.
Notably, Nigeria holds a pivotal position as India's second-largest trading partner in Africa, with bilateral trade reaching significant volumes in recent years. However, recent trade figures have indicated a declining trend, highlighting the importance of proactive measures to revitalize and sustain bilateral economic cooperation.
As India and Nigeria move forward with their commitment to strengthen economic ties, the impending local currency settlement agreement represents a pivotal step towards fostering greater trade resilience and sustainability between the two nations.
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