About 30 grams of high-quality cocaine, said to be worth Rs 1 crore was seized from the accused, police said.
Godwin Ulo, presently residing in Mohali, was arrested near a forest nursery in Daria village here.
Ulo was arrested while he was on his way to Shimla to deliver the consignment to some unknown person, police said.
During interrogation, Ulo said that he was into this trade since 2010.
"He had developed links with other major drug peddlers in India and abroad, who are directly or indirectly involved in the smuggling and supplying of the contraband in India," a police official said.
He said that the accused had bought the consignment from another Nigerian, Atol, from Delhi.
He was booked under various sections of the Narcotic Drugs and Psychotropic Substances (NDPS) Act. Police are now looking for Atol.