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Nigeria, India Trade Falls to $12bn in 2016

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  • Nigeria, India Trade Falls to $12bn in 2016

Indian Acting High Commissioner, Mr Kaiser Alam, has said that the trade volume between Nigeria and India dropped to $12 billion in 2016.

Alam said this at a reception to mark the 68th Republic Day of India in Abuja on Thursday.

The envoy explained that the trade volume dropped from $16 billion in 2015 to $12 billion in 2016 due to the fall in oil prices.

“The decrease was because of the change in oil prices; we were importing the same amount but the oil prices came down.

“Above all, our trade was the same and the trade surplus was in favour of Nigeria” he said.

He said that 2016 marked a significant year in bilateral relations, adding that both countries sought to expand relations in all areas.

“Our Vice President, Mr Hamid Ansari, came to Nigeria in September 2016 and cooperation in agriculture was discussed in great detail.

“Nigeria’s Ministry of Agriculture will visit India in March and we hope the ministry will utilise the visit to discuss cooperation further and implement ideas.

“We want a holistic approach in our relations so was we can increase our cooperation; we have a defence cooperation that is very robust.

“In bilateral relations, there is always room for improvement that is why our leaders visit to expand relations,” he said.

The envoy said that the scholarship slots for short term courses under the India Technical and Economic Cooperation had been increased from 200 to 300.

Alam added that the increase would open up more opportunities for Nigerian government officials to participate in such opportunities to improve their skills in various areas.

He recalled that India had released a Line of Credit (LoC) of $100 million dollars for power projects in Lagos, Kaduna and Enugu States.

The envoy added that this was in line with an agreement signed by both countries in 2014.

Also speaking, Minister of Foreign Affairs, Mr Geoffrey Onyeama urged the Indian Government to facilitate the process of accessing the LoC by Nigeria and also Indian companies wishing to invest in Nigeria.

Onyeama said this would hasten Nigeria’s infrastructural development and economic diversification.

The minister was represented by Mr Mohammed Suleiman, Director, Regions of the ministry.

He also urged both countries to strengthen economic relations to reduce trade imbalance.

“This can be addressed through creating the enabling environment for Nigerian products to gain access into the Indian market and encouraging Indian companies operating in Nigeria to engage Nigerians in their companies, ” he said

The minister added that India emerged the largest buyer of Nigeria’s crude oil.

He said that more than 100 Indian companies operated in the country in different sectors and there were about one million Indian citizens in Nigeria.

“There are estimated 50,000 Nigerian citizens in India, majority of who are students”, he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

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Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

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Economy

FG to Partly Fund Six Rail Projects Connecting All Regions

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FG to Partly Fund Six Rail Projects Connecting All Regions

The Federal Government will pay a total sum of N71 billion to partly fund six rail projects connecting all regions of the country.

In the report obtained from the Federal Ministry of Finance, Budget and National Planning, the six rail projects marked for development this year are Lagos-Kano rail line (ongoing), Calabar-Lagos (ongoing), and Ajaokuta-Itakpe-Aladja (Warri).

Others are the Port Harcourt-Maiduguri railway, the new Kano-Katsina-Jibiya-Maradi line in Niger Republic and the Abuja-Itakpe and Aladja-Warri Port and refinery/Warri new harbour.

The Buhari administration will also spend N15.1 billion on the development of safety and security of critical projects, airport certification, runway construction, terminal building, among others in the aviation sector in 2021.

Last week, Rotimi Amaechi, Minister of Transportation, said the Lagos-Kano line would be connected from the Ibadan end of the Lagos-Ibadan railway and would cost $5.3 billion.

We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What was approved a year ago was the contract,” the minister said.

He added, “The moment I announced that the Federal Government had awarded a contract of $5.3bn to CCECC (China Civil Engineering and Construction Corporation) to construct Ibadan-Kano, people assumed the money had come in; no.

“We have not got the money, which is a year after we applied for the loan. We have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence.”

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Economy

FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

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FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

In a bid to improve the usage and enhance the convenience of train transport in Nigeria, the Federal Government on Thursday announced the launching of the Electronic Ticketing platform for the Kaduna-Abuja rail services.

The N900 million E-ticketing platform was introduced by the Minister of Transportation, Chibuike R. Amaechi, and the Nigerian Railway Corporation.

Amaechi said the new platform would improve efficiency, promote accountability, reduce leakage and enhance economic growth, as well as save time.

The E-ticketing platform was a Public-Private Partnership project done in conjunction with Secure ID Solutions, who provide and would manage the system for 10 years in an effort to recoup its investment before the Nigerian Railway Corporation take charge.

Kofo Akinkugbe, the Chief Executive Officer, Secure ID Solutions, said as the new E-platform issued 25,000 tickets after a successful pilot test on Thursday.

Potential Travelers can book via three ways:

1. Mobile app
2. Website
3. POS or Cash at the station

A validator would be used to scan the ticket barcode to ascertain its authenticity before boarding.

Amaechi further announced that self-service ticket vending machines at various train stations would be introduced soon.

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