India-Nigeria trade likely to hit $20 bn this year: Envoy

Lagos, Sep 12 (IANS): In yet another sign of India’s growing trade ties with Africa, India’s High Commissioner to Nigeria A.R. Ghanashyam has said that trade between his country and this West African nation is likely to rise beyond $20 billion this year.

“The last figure I have of trade between Nigeria and India is $19.5 billion. Given the way our relationship is growing and at the rate it is going, it may shoot up beyond $20 billion this year,” Ghanashyan told participants at the first ever Nigerian Leadership Initiative’s (NLI) diplomatic series.

The diplomatic series is a monthly event that has been instituted by the NLI to foster closer relationship with friendly countries that are ready to contribute to the growth of the Nigerian economy.

Ghanashyam questioned the non-existence of double taxation avoidance regulations between the two countries, and said it was an important issue that was creating challenges to most Indian companies. They were the biggest employers in Nigeria after the government, he said.

This must be resolved in order to improve the steady economic growth between the two countries.

“We don’t have a double taxation avoidance settlement, we don’t have an investment protection agreement,” he said adding that since Indian companies were contributing a lot to create employment in Nigeria, putting in place the required regulations would improve the relationship between the two countries.

Ghanashyam indicated that there were plans to meet officials of the Nigerian finance and the economic ministries to discuss the issue of double taxation which was very important if trade relations between the two countries were to be enhanced further.

“Nigeria is an emerging economy, so is India, China, and these are countries that if you look at projections made round the world over the next 20 to 30 years, are economies that would surpass the US,” said Umo Itsueli, president of the Nigeria-India Chamber of Commerce and Industry. He called for more collaborations between the two countries.

“It is important we learn and start collaborating with such countries with similar backgrounds. The federal government is the largest employer of labour in the country, next to that is Indian-owned companies.”