India has formally requested an increase in crude oil supplies from Nigeria as both nations move to deepen their long-standing economic partnership. The request was a central theme of high-level discussions between Nigerian Vice President Kashim Shettima and Indian Prime Minister Narendra Modi on the sidelines of the BRICS Summit in New Delhi.
The move signals a strategic shift for India, the world’s third-largest energy consumer, as it seeks to diversify its energy basket and secure stable supplies from West Africa. For Nigeria, the proposal offers a critical opportunity to regain lost market share in South Asia and boost foreign exchange earnings through structured, long-term energy contracts.
During the meeting, Prime Minister Modi emphasised India’s intent to strengthen bilateral trade, specifically highlighting the energy sector as the bedrock of the relationship. Nigeria has historically been a top supplier of light sweet crude to India, which is highly preferred by Indian refiners for its high gasoline yield and low sulphur content. However, in recent years, competition from discounted Russian oil and logistical challenges in Nigeria had slightly altered the trade balance.
Vice President Shettima, representing President Bola Tinubu, assured the Indian leadership of Nigeria’s commitment to providing a stable environment for investment. He noted that the Nigerian government is aggressively pursuing reforms in the oil and gas sector through the Petroleum Industry Act (PIA) to enhance production capacity and ensure reliable exports to strategic partners like India.
Strategic Energy Partnership and Market Dynamics
The push for more crude comes at a time when the NNPC Limited is working to ramp up national production towards its 2 million barrels per day (bpd) target. Recent data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows a steady recovery in production figures, providing the necessary headroom for Nigeria to entertain larger volume requests from government-to-government (G2G) agreements.
India’s demand for Nigerian crude is driven by its massive refining capacity. State-owned entities such as Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL) have long-standing relationships with Nigerian exporters. By seeking a formal increase in volumes, India aims to mitigate the risks associated with price volatility in the Middle East and the logistical complexities of the Black Sea routes.
Trade between the two nations is not limited to hydrocarbons. Prime Minister Modi and Vice President Shettima also discussed expanding cooperation in digital technology, agriculture, and manufacturing. India is already one of Nigeria’s largest trading partners, with bilateral trade figures previously exceeding $14 billion annually. Indian firms have a significant footprint in Nigeria, particularly in the pharmaceutical and automotive sectors, providing thousands of local jobs.
The National Bureau of Statistics (NBS) has consistently ranked India among the top five destinations for Nigerian exports. Strengthening this tie is expected to provide a buffer for Nigeria’s current account balance, especially as the country seeks to stabilise the Naira through increased export liquidity.
Beyond the immediate request for crude, the Indian delegation expressed interest in Nigeria’s “Decade of Gas” initiative. India’s growing demand for Liquefied Natural Gas (LNG) aligns with Nigeria’s efforts to monetise its vast gas reserves. Potential investments in gas infrastructure and fertiliser production were mooted as secondary pillars of the renewed trade push.
The meeting concluded with a commitment to revitalise the Nigeria-India Joint Commission. This body is expected to meet in the coming months to iron out the technical details of the increased oil supply and to facilitate smoother regulatory pathways for Indian investors entering the Nigerian tech and manufacturing spaces.
As Nigeria continues its economic overhaul, the success of these bilateral negotiations will be measured by the actual increase in daily export volumes and the subsequent arrival of fresh Indian capital in Nigeria’s midstream and downstream energy sectors. The next stage of the transaction will involve technical sessions between the Nigerian Ministry of Petroleum Resources and the Indian Ministry of Petroleum and Natural Gas.
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