In a significant development, Nigeria, the most populous nation in Africa, has entered into a multi-billion-dollar agreement with an Indian investment agency, Invest India, to bolster infrastructure projects encompassing power, rail systems, warehousing, and ports.
The CEO of Infrastructure Corporation of Nigeria Limited (InfraCorp), a government-backed infrastructure entity, Lazarus Angbazo, disclosed this during an interview in India, Bloomberg reports.
BrandNewsDay reports that this strategic partnership, inked on September 6, is anticipated to play a pivotal role in Nigeria’s quest to industrialize its agriculture and manufacturing sectors, ultimately reducing its reliance on imports.
Angbazo stated: “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.
Nigeria Multi-Billion Dollar Deal With Invest India
“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.”
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.