Rajimon (44), working as an engineer in a construction firm at Uromi in Edo state of Nigeria, was kidnapped on September 13 when he was going to office, his relatives here said.
The abductors contacted Ray Royal construction company officials demanding a ransom of Rs 7.50 crore for his release, which was later reduced to Rs 5.50 crore and eventually to Rs 3.50 crore, he said.
Rajimon, working there for the last four years, was to come home on September 17.
His friend Jayamohan, who was here on leave, yesterday went to Nigeria and contacted company officials after which he received information about reduction in the ransom.
Company officials were in touch with the abductors and spoke to Rajimon who is safe in their custody, he said.
There has been no communication from Rajimon to the family so far, he said.
Local MP Jose K Mani spoke to Minister for Overseas Indian Affairs Vayalar Ravi, who in turn, has contacted the Indian Embassy in Nigeria, sources said.