India has high stakes in Nigeria

By Atul Aneja

LAGOS, MARCH 27. India and Nigeria begin a fresh round of talks tomorrow which could help build a long-term partnership between the two countries.

India sees Nigeria as an important destination for its investments as well as a major contributor in its efforts to achieve energy security. Specifically, India visualises a role for itself in rehabilitating Nigeria's economy which has been battered by long years of military rule. Now that Nigeria is a democracy and wants to fix its derailed economy, India sees an opportunity to export its intermediate technology. For instance, Bharat Heavy Electricals Limited (BHEL) wants to sell its 370 MW and 110 MW turbines to Nigerian power plants.

Nigerian railway, which is an essential link to bring the oil in the south-east to ports such as Harcourt and Lagos as well as raw materials from the hinterland, could do with Indian help. The Indian Railway Construction Company (IRCON) is looking for a contract to revive the 870 kms. link between Abuja, Nigeria's political capital, and Lagos, the commercial capital on the coast.

India also has a stake in Nigeria's oil. Around one-sixth of India's requirement of ``sweet oil'', which is suitable for its refineries, is served by Nigeria. India purchased crude worth $ two billions from Nigeria last year. Indian Oil is also looking for purchasing Liquefied Natural Gas (LNG) for a similar amount in the future. According to India's plans most of its industry on the west coast can be powered by natural gas.India is willing to engage Nigeria, because the country in the not-so-distant future can achieve financial solvency.

Though large portions of Nigeria's oil revenues have in the past gone into private Swiss bank accounts, their transfers into the national treasury in the future can liberate it from its financial woes.

But India has stakes in Nigeria which go far beyond the economy, Nigeria, for instance, is seen by India as the gateway to ECOWAS, the large west African economic grouping. Nigeria is also seen as a leading political player in the region. The Organisation of African Unity (OAU) has designated Nigeria as its choice for a permanent seat in an expanded U.N. Security Council. Nigeria, on its part, has supported India's inclusion in the Council.

Island of stability

Secular Nigeria is also seen by India as well as by the industrialised world as a potential island of stability in a volatile African continent. Not surprisingly, Nigeria's elected President, Mr. Olusegun Obasanjo, who was the chief guest at the Republic Day parade, has been publicly backed by the United States as one of the most prominent leaders in the continent. The U.S. Defence Secretary, Mr. William Cohen, is expected in Nigeria shortly and there is talk about Mr. Clinton's visit.

India as well as the West see in Mr. Obasanjo, their best chances of battling the forces of radical Islam in the region.

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Section  : International
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