PwC report identifies areas of mutual strengths for India, Nigeria

PricewaterhouseCoopers (PwC) recently released a report, pointing out areas Nigeria and India, can benefit from each other’s growing population.

In the report titled ‘Nigeria-India: Learning from two large democracies’ PWC pointed out that by the year 2100, India and Nigeria could be the two most populous countries in the world.

The report said both countries can use this to their advantage by collaborating to bring development.

The report noted that these differences can, however, pose a chance for Nigeria to tap into the opportunities of India and address similar challenges, as well as India investing in Nigeria to become a global influence.

“Despite the similarities between the two countries, India has managed to perform much better on certain key dimensions like; export of services, government — enabled development, strengthening the educational system, formalising the informal sector, technology adoption, and cultural exports. Improving on these key dimensions might help Nigeria close the gap between itself and India,” the report reads.

“The export of services is a huge area of opportunity that can be explored by Nigeria. India’s share of world services as of 2018 stood at 3.5 percent, which is seven times more than the 0.5 percent recorded in 1995. This growth can be primarily attributed to the rise of ICT services and medical and wellness tourism. The primary reason behind the growth of the services sector in India is the underlying infrastructure for producing an economically vibrant and skilled workforce.

“To initiate government-enabled development, the Nigerian government can develop conducive policy frameworks that encourage private sector participation, which can prompt further investments from India, and other countries and help address many pressing issues.”

The report added that despite India’s uniqueness, it can explore and gain from Africa’s largest trade centre, Nigeria, by investing in ICT services, tech startups, agriculture, education, energy and the pharmaceutical industry.

“India and Nigeria acting as close allies on the economy, environment, security and other areas requiring international co-operation, have the potential to fundamentally alter the geopolitical balance of power particularly if Nigeria can play a powerful leadership role in bringing Africa closer to India,” it added.

“Ultimately, the India-Africa co-operation will become the pillar of a new, multi-polar world.”

It also further pointed out sectors where India and Nigeria can collaborate.

“India can invest in start-ups in Nigeria, thus enabling the rapidly growing entrepreneurship culture in the country. In 2019, Nigerian start-ups received more than US$ 600 million 75 in venture capital funding. The Nigerian start up industry is booming and with Nigeria as the tech hub of Africa, India may well invest particularly in tech start-ups.

“Additionally, investment in skill development for higher labour productivity and boosting the service sector is an area that can be explored by India,” the report added.

On ICT, the reports said, “India can utilise its know how and technological expertise in filling the technology gap in Nigeria’s ICT sector.”

“The tech entrepreneurial ecosystem in India is booming and attracting investments from all over the world. It is supported by continuous technological advancements, innovations and initiatives by the Indian government. India can bring its know how and expertise to the Nigerian start up ecosystem and give a nudge to the already growing sector to achieve its full potential.

“India could set up a whole range of educational institutions in Nigeria and can also be a higher education destination for young Nigerians, who will be pivotal to sectoral development in Nigeria, especially the ICT services sector.

“Investment opportunities in Nigeria may also include sectors which face labour productivity issues such as agriculture. While investment in the agriculture sector has the potential for employment generation and poverty reduction for Nigeria, it is also lucrative for investors due to the availability of arable land and a large local market.

“India has been focusing on technology intervention to increase productivity in agriculture, presenting a strong business case for Indian companies to invest in Nigeria.

“India may potentially invest in pharmaceuticals, with the Nigerian pharma industry estimated to rise by 9% annually for the next ten years 76. Energy is another crucial sector that India can look to invest in.”