Nigeria and India to soon end local currency trade settlement system

Nigeria and India will soon finalize a system to settle international trade between both countries in local currency following the second annual meeting of the Joint Committee on Trade (JTI) with the permanent secretary of the Nigerian Ministry of Industry, Trade and Investment, according to a statement from the Indian Ministry. trade

The focus of the meeting was on areas of shared interest between both countries, especially bilateral trade and the inherent growth potential.

  • The statement says, “To this end, both sides identified several areas of interest to enhance both bilateral trade and mutually beneficial investments. These include resolving market access issues of both sides and cooperation in key sectors such as crude oil and natural gas, pharmaceuticals, unified payments interface (UPI), local currency settlement system, energy and renewable energy sector, agriculture and food processing, and education. , Transport, Railway, Aviation, MSMEs, Development, etc.”
  • “Both sides agreed to the early conclusion of the Agreement on the Local Currency Settlement System to further strengthen bilateral economic ties.”

The officials of the Indian delegation consist of members of the Reserve Bank of India, EXIM Bank of India and the National Payments Corporation of India (NPCI).

What you should know

India is one of Nigeria’s largest trading partners and according to the National Bureau of Statistics (NBS) foreign trade report for 2023, trade between the two countries reached N5.88 trillion in 2023, making it in Nigeria’s third largest trading partner during the year.

  • In recent times, there have been growing calls to decouple international trade from the hegemony of the USD and ensure that nations around the world create locally accepted means of trade. This movement is particularly spearheaded by the BRICS+ group of nations, of which India is a founding member.
  • Nigerian Foreign Ministers, Amb. Yussuf Tuggar has revealed the country’s interest in joining the growing economic bloc in the next two years. After their last meeting in South Africa, the BRICS extended their invitation to five more members, including two African countries: Egypt and Ethiopia. Many analysts wondered why Africa’s largest economy was not invited.