Nigeria and India sign $X billion deal to boost infrastructure and agriculture

In a noteworthy development, Nigeria, the most populous nation in Africa, has forged a multi-billion-dollar agreement with Invest India, an Indian investment agency. This partnership aims to bolster various infrastructure projects, including those related to power, rail systems, warehousing, and ports.

During an interview in India, Lazarus Angbazo, the CEO of Infrastructure Corporation of Nigeria Limited (InfraCorp), a government-supported infrastructure entity, revealed this exciting news, as reported by Bloomberg.

This strategic collaboration, which was officially established on September 6, is expected to play a pivotal role in Nigeria’s efforts to industrialize its agriculture and manufacturing sectors. Ultimately, this move aims to reduce Nigeria’s dependency on imports.

Angbazo commented on this partnership, saying:

• “We are looking at increasing the productivity of our agricultural sector by industrializing it. Agriculture represents about 40% of Nigeria’s economy. If we want to have the biggest impact, that’s where we’re going to have to start.”
• This is the latest in a string of deals between the two nations as Nigeria, a country of more than 200 million people, seeks to plug an infrastructure deficit and stimulate economic growth. To do this, it needs at least $3 trillion over 30 years, the InfraCorp CEO explained.
• “We’ve got a gap of about $125 billion annually and we’re probably spending somewhere in the neighbourhood of about $10 billion a year,” he said.

Although specific financial details of the deal were not disclosed, Angbazo clarified that the partnership aims to expand Nigeria’s ports to enhance its container processing capacity, an essential move for a country of Nigeria’s size. He pointed out,

• “For a country of our size, we should have a container processing capacity of about 50 million containers. We’re doing four, so you can see the gap.”

Here’s what you should know

InfraCorp is a government-backed infrastructure investment vehicle jointly owned by the Central Bank of Nigeria, Africa Finance Corporation (AFC), and Nigeria Sovereign Investment Authority.

The agency’s primary focus is on transport and logistics, with an initial potential investment of up to N163 billion ($212 million).

During President Bola Ahmed Tinubu’s recent visit to India, Nigeria secured substantial investments, amounting to nearly $14 billion, during the Nigeria-India Presidential Roundtable and Conference in New Delhi, India.

Notably, Indorama Petrochemical Limited committed an impressive $8 billion for the expansion of its fertilizer production and petrochemical facility in Eleme, Rivers State.

Additionally, Jindal Steel and Power Limited, a prominent private steel producer in India, pledged a substantial $3 billion investment in Nigeria, following productive discussions with President Tinubu.