(Ecofin Agency) - The President of Nigeria, Muhammadu Buhari (photo), has announced that India plans to increase the amount of crude oil it imports from Nigeria.

This is coming more than a month after India and the United States have reduced their imports of Nigerian crude oil by 43 per cent and 53 per cent, respectively.

India reduced its imports from Nigeria in May 2016 as it bought 7.74 million barrels, compared to 13.51 million barrels in April, 12.51 million barrels in March and 12.70 million barrels in February.

“His country, which is the leading buyer of Nigeria's crude oil, will increase its purchase of the commodity in addition to natural gas,” Buhari said.

Following the series of production disruptions caused attacks on oil infrastructure in the Niger Delta by militant reducing the country’s output to the lowest in almost three decades, exports of crude oil have continued to dwindle.

Last week, Senate President Bukola Saraki, announced that Nigeria should farm-out interests in oil and gas joint ventures with oil majors and other state assets so as to raise funds in hard currency and help fund the 2016 budget.

This however, was rejected by members of the Senate.

Nigeria's 2016 budget which was the largest in the history of the country had suffered a setback as an oil price drop and militant attacks on oil pipelines in the Niger Delta have made the government struggle for funds, Reuters reports.

Anita Fatunji