Acting on a tip-off, the accused, Chima Akuma, was arrested on Monday from near Indian Park, Lado Sarai in Saket, DCP (Crime) G Ram Gopal Naik said.
Around 110 grams of cocaine, that was to be supplied to a person with the code name 'Hunk' for parties, has been seized, he said.
Police said the buyers have code names on the names of trees, animals or planets and the suppliers never get to know their real names.
Most of his buyers are young persons, including college going students in south Delhi and adjoining areas of the city, they said.
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Akuma came here in 2014 and was initially exporting readymade garments to Nigeria, police said, adding in order to earn quick money, he developed contacts with some drug traffickers of Nigerian origin.
He decided to become a cocaine supplier since the contraband is in high demand here. He rented a house in Neb Sarai village in August 2014 and allegedly started supplying drugs, they said.
Akuma came to New Delhi on a medical visa which had expired last year.