Indian companies’ financial commitments to their subsidiaries and joint-ventures in Nigeria reached $1.44 million (N591.84 billion) in the first two months of this year.
Data from Reverse Bank of India (RBI) obtained by Ripples Nigeria revealed that the investments were made in construction, agriculture, mining, retail, restaurants, and hotel.
However, all the financial commitments made are in form of loans.
Analysis of the data revealed that $596,000 worth of loan was issued out by Damodar Agro Industries Private Limited, Lloyd Insulations (India) Limited, and Transrail Lighting Limited to their Nigeria subsidiaries in January.
Transrail Lighting Limited gave another $750,000 loan to its subsidiary, Transrail Lighting Nigeria Limited while Ecovista Industries Pvt Limited got $100,000 from its parent company in India, Damodar Agro Industries Private Limited, in February.
For year-on-year, the total transactions for February represent a 175 percent increase over the $308,000 transaction recorded in February 2020.