The Hindu : Front Page : New Delhi signs Abuja Declaration

Online edition of India's National Newspaper
Tuesday, Oct 16, 2007
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New Delhi signs Abuja Declaration

Sandeep Dikshit

ABUJA: India on Monday signed the “Abuja Declaration” with Nigeria, setting the stage for a strategic partnership with the world’s fifth largest producer of oil.

The declaration was signed by Prime Minister Manmohan Singh and the President of Nigeria, Umaru Musa Yar’Adua.

Both countries also signed four documents — two memoranda of understanding (MOUs) on promoting interaction between foreign office backed institutes, one MoU on defence cooperation and a protocol for foreign office consultations.

More important, it was agreed to ink nine documents that cover a gamut of issues such as drug trafficking, extradition, promoting trade and investment and a cultural exchange programme within six months. Once signed, these pacts would set the stage for a more intensive relationship between the two countries, said senior officials.

Although Nigeria is India’s biggest trading partner in Africa, both sides have lacked an institutional framework to back investments and commerce. In an attempt to plug this gap, India and Nigeria have agreed on a six-month timeframe to sign a double taxation avoidance treaty, a bilateral investment promotion and protection agreement, a trade agreement and a bilateral air services agreement (direct flights were discontinued after two years of operations). Within this period, they would sign pacts on providing mutual legal assistance and cooperate against drug trafficking.

On the defence side, India will set up two IT laboratories in defence academies of Nigeria. Both sides have agreed to undertake joint exercises as well as enhance cooperation in the United Nations-led peacekeeping operations.

Significantly, Nigeria is a participant in Africa Union’s (AU) peacekeeping operations in Sudan and it recently suffered a loss of 10 soldiers in an ambush. India is being persuaded by the U.S. to participate in a U.N. mandated hybrid force (along with the existing AU contingent) but it has been reluctant so far. Dr. Singh appreciated Mr. Yar’Adua for the rapidly growing ties in the energy sector and confirmed the understanding that both sides would continue to encourage further cooperation between their companies in the oil and gas sectors. They also reviewed the mega oil-for-infrastructure deal and resolved to operationalise it at the earliest.

While India would receive energy, in turn it would set up a thermal plant, a refinery and upgrade Nigerian railways. Energy partnership with African countries is crucial in India’s quest to reduce its dependence on West Asia. Not only is African oil low in sulphur content and thus more suited to Indian refineries, countries of this subcontinent also allow equity investment in oil exploration and processing that would allow Indian companies to participate in upstream activities.

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