The special investigation squad arrested Surendra Pal last night on the charge of hacking a Nigerian Obodo Uzoma Simeon to death along with others at Parra village last week.
Pal was arrested from Chapora, a beachside village in north Goa.
Simeon was found dead with stab injuries last week. His murder has led to protests by Nigerians who had blocked the national highway.
Chief Minister Manohar Parrikar had claimed the murder as a drug trafficking-related crime.
The arrest of Pal came after Nigeria told India that it feared for the safety of its nationals in Goa and wanted immediate action against those behind the killing.
The Ministry of External Affairs today said it was expecting a report from Goa government in the matter by tomorrow.
The Spokesperson in the External Affairs Ministry said in New Delhi that the ministry has explained the circumstances and the situation to the Nigerian High Commission which was "concerned and anguished" over the incident and has asked for a thorough probe into the killing.
He said the MEA was in touch with the Goa Chief Secretary who has assured yesterday that the state government will "get to the bottom" of the matter and provide a report in 48 hours.
