The accused, identified as Jerry Akubueze Nawama alias Soloman, was arrested by a team of Delhi Police's Special Cell from near Mehrauli Bus Terminal.
The contraband recovered from his possession is worth about Rs 1.75 crore on the international market, said Rajiv Ranjan, DCP of Special Cell.
During interrogation, Jerry told police that the heroin is of very fine quality and he was going to hand the same to one of his associates, known as Andy, Ranjan added.
The accused had come on a business visa for four months and started a garments business. However, he did not return to his country and illegally stayed back in India.
Initially, he sent some consignments of garments to Nigeria but later came into contact with a narcotics trafficker, the DCP said.
Following Nawama's arrest with the drug, a case has been registered under Section 21 of NDPS Act at Special Cell police station and an inquiry is on into the matter, added Ranjan.
