Nigeria must embrace manufacturing, India advises

India has advised Nigeria to move into manufacturing and to stop exporting her raw materials without value addition that will make the products competitive.
India Minister of State for External Affairs Mr. Shri  Akbar, said in Lagos that Nigeria’s economy would remain stunted if it is manufacturing driven.
He said that there were over 135 Indian companies with a networth in excess of over $10 billion in Nigeria.
Akbar said the position shows that the long standing relationship between Nigeria and India is not only on the upswing but also gathering momentum.
Akbar spoke in Lagos at the celebration of 60 years of Nigeria/ India Bilateral Relationship, themed:“Nigeria/ India @60 People. Partnerships. Prospects”.
Noting that a $10 billion investment is paltry, the envoy charged  Nigeria to embrace manufacturing.
He said with more cooperation between the two countries they could form not only economic but political block to the rest of the world.
Akbar further noted the growth of what he called ‘soft power’ between the two countries and urged that the entertainment industry should be encouraged beyond what it is now as according to him Indian movies are receiving a lot of followership in Nigeria.
The minister called for more factories and food processing companies in both countries to absorb the abundant natural resources lying fallow.
In his remarks, President, Lagos Chamber of Commerce & Industry (LCCI), Mr. Babatunde Ruwase said Trade relations between India and Nigeria has hit the 20 billion dollar mark and could increase if the necessary infrastructure is put in place.
He stressed that more can be done in the agricultural sector, transportation and infrastructure development.
The guest Speaker and CEO, Financial Derivatives Company Limited, Mr. Bismark Rewane  who spoke on ‘60 years of Economic & Foreign Diplomacy’ said India remains Nigerian’s largest trading partner with value of export at $6.75billion and trade imbalance of  $5.45billion in favour of Nigeria.  He also stated that the value of exports relative to imports last year was $6.75billion and $1.30billion in last year.
He cautioned that it may not always remain so as it has planned to discontinue the use of diesel cars as from 2030. He urged our policy makers to move fast to hedge against the move by nations to discontinue the use of diesel cars in the next decade.
He said: “India has overtaken the US as the largest importer of Nigeria’s crude oil and it accounts for 88 per cent of the total exports to India in Q2 of 2018 amounting to $1.76 billion. He disclosed that though India has a total GDP of $2.6trillion and Nigeria $376 billion,
Nigeria per capital income stood at $2,457 while India stood at $1,940. He regretted that India has one of the greatest income inequality and population stratification due to the caste system.
Rewane disclosed that the trade relations cut across various sectors such as telecoms, pharmaceuticals, automotive and agriculture, while several of the Indian companies invested in Ajaokuta iron & steel company and Aladja steel in Delta.
Constraints to trade between both countries he noted to include  but not limited to policy contradictions, currency policy, misalignment, multiple taxes, Power & infrastructure and trade restrictions.
Further opportunities for both countries Rewane observed to include in real estate, education, information and construction. He canvassed the need to deepen trade relations, explore opportunities in ICT sector
Source: Upshot Report
https://upshotreports.com/trade-between-india-nigeria-hits-20b/nd reduce trade imbalances.