The previous Air Services Agreement (ASA) was inked in January 1978.
"The updation of the Agreement is as per latest International Civil Aviation Organisation (ICAO) template keeping in view of latest developments in civil aviation sector and with an objective to improve the air connectivity between the two countries," an official release said today.
Approval for the revised pact has been given by the Cabinet, chaired by Prime Minister Narendra Modi.
ASA permits both sides to designate one or more airlines and they would have the right to establish offices in each other's territory for promotion as well as sale of air services.
"As per new provision, each side shall be entitled to operate a maximum of 7 frequencies per week in each direction on the routes specified in the route schedule," it added.
Besides, the revised pact has provisions relating to revocation or suspension of operating authorisation, principles governing operations of agreed services, routing flexibility, commercial opportunities and aviation safety, among others.
"The revised agreement signifies an important landmark in the civil aviation relations between India and Nigeria and has the potential to spur greater trade, investment, tourism and cultural exchanges between the two countries," the release said.
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