Nigeria could become India's leading strategic partner in Africa as both share a wide range of commonalities and have huge economic opportunities in the fields of infrastructure, power, farming and telecoms, an analyst said here today.
Ronak Gopaldas, an analyst at Rand Merchant Bank in South Africa, wrote in the daily 'Business Day' that resource-rich Nigeria can reduce India's vulnerability to oil prices and can play a pivotal role in meeting its huge energy needs.
He listed the similarities in risk factors between the two countries from a social, socioeconomic, operational and security standpoint as being significant in fostering greater synergy.
"Many of the traits now exhibited by Nigeria mirror those experienced by India during the initial stages of its high growth phase between 2003 and 2008," Gopaldas said.
"Both are characterised by a demographic boom, rapid urbanisation, a poor and ethnically diverse population and an array of vast economic opportunities.
"From a security perspective, both India and Nigeria have strong, powerful militaries and are key power brokers in volatile regions.
"As such, they have assumed the roles of regional hegemons and are key allies of the West in the diplomatic arena."
The analyst said investors looking at Nigeria will see a number of striking parallels with India, including huge economic opportunities in the infrastructure, power, farming, telecoms and consumer fields.
He said Nigeria is a market that cannot be ignored as Indian companies try to establish a foothold in Africa.
This was despite the challenges of similar shoddy infrastructure, chronic poverty, and a sizable and growing middle class.
"The presence of established Nigerian conglomerates with Indian roots, such as the Chellaram and Tolaram groups, also acts as an important link into expanding the commercial relationship between the two countries," Gopaldas said, citing the 36 per cent increase in bilateral trade to USD 17.3 billion in 2012.
Gopaldas is also of the view that India's vulnerability to oil prices can be aided by resource-rich Nigeria.
"India, in turn, can supply the West African nation with cars, pharmaceuticals, textiles and expertise to facilitate its robust non-oil sectors growth.
"Technological and medical expertise are other obvious areas of co-operation," he said.
