India and Nigeria are on the verge of enhancing their economic relations through a local-currency debt settlement agreement, a move aimed at boosting bilateral trade. The agreement, announced by the Indian commerce and industry ministry, emerged from the second Session of the India-Nigeria Joint Trade Committee (JTC) in Abuja. The session addressed various sectors such as energy, pharmaceuticals, and transport, reflecting the countries' intent to broaden cooperation.
Representatives from the Reserve Bank of India (RBI), EXIM Bank of India, and the National Payments Corporation of India (NPCI) were part of the Indian delegation that engaged in discussions with Nigerian counterparts. A key development from these discussions was the push to finalize the Local Currency Settlement System Agreement, which is expected to facilitate easier trade transactions by enabling settlements in local currencies, thus reducing the dependency on foreign exchange.
Nigeria is India's second-largest trading partner in Africa, yet recent trends show a decrease in trade volume, underscoring the need for initiatives like the local currency settlement agreement to rejuvenate and sustain economic cooperation.
Source: menafn.com