Required Report - public distribution

**Date:** 8/1/2007

**GAIN Report Number:** NI7016

NI7016

**Nigeria**

**FAIRS Country Report**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Ali Abdi, Agricultural Attaché

U.S. Consulate General

**Prepared by:**

Michael A. David, Agricultural Specialist

**Report Highlights:**

Sections Updated: I and VI

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Lagos \[NI1\]

\[NI\]

**TABLE OF CONTENTS**

[SECTION I. FOOD LAWS 3](#section-i.-food-laws)

[SECTION II. LABELING REQUIREMENTS
3](#section-ii.-labeling-requirements)

[SECTION III. PACKAGING AND CONTAINER REGULATIONS
4](#section-iii.-packaging-and-container-regulations)

[SECTION IV. FOOD ADDITIVES REGULATIONS
4](#section-iv.-food-additives-regulations)

[SECTION V. PESTICIDES AND OTHER CONTAMINANTS
5](#section-v.-pesticides-and-other-contaminants)

[SECTION VI. OTHER REGULATIONS AND REQUIREMENTS
5](#section-vi.-other-regulations-and-requirements)

[SECTION VII. OTHER SPECIFIC STANDARDS
8](#section-vii.-other-specific-standards)

[SECTION VIII. COPYRIGHT AND /OR TRADEMARK LAWS
8](#section-viii.-copyright-and-or-trademark-laws)

[SECTION IX. IMPORT PROCEDURES 8](#section-ix.-import-procedures)

[APPENDIX I. GOVERNMENT REGULATORY AGENCY CONTACTS
10](#appendix-i.-government-regulatory-agency-contacts)

[APPENDIX II. OTHER IMPORT SPECIALIST CONTACTS
11](#appendix-ii.-other-import-specialist-contacts)

This report was prepared by the Office of Agricultural Affairs of the
USDA/Foreign Agricultural Service in Lagos, Nigeria for U.S. exporters
of domestic food and agricultural products. While every possible care
was taken in the preparation of this report, information provided may
not be completely accurate either because policies have changed since
it's preparation, or because clear and consistent information about
these policies was not available. It is highly recommended that U.S.
exporters verify the full set of import requirements with their foreign
customers, who are normally best equipped to research such matters with
local authorities, before any goods are shipped. FINAL IMPORT APPROVAL
OF ANY PRODUCT IS SUBJECT TO THE IMPORTING COUNTRY\'S RULES AND
REGULATIONS AS INTERPRETED BY BORDER OFFICIALS AT THE TIME OF PRODUCT
ENTRY.\"

# SECTION I. FOOD LAWS

The National Agency for Food and Drug Administration and Control
(NAFDAC) is the Government of Nigeria\'s (GON) regulatory body
responsible for the registration and control of food product
manufacturing, importation, advertisement and distribution in Nigeria.
Under the provisions of GON Decree 19 of 1993 as amended by the food and
related products (Registration) Decree 20 of 1999 and the accompanying
guidelines, no food item may be imported, advertised, sold or
distributed in Nigeria unless it has been registered by NAFDAC. NAFDAC
was established to protect and promote public health by ensuring the
wholesomeness, quality and safety of food, water, drugs and other
regulated products consumed in Nigeria. NAFDAC defines food as any
\"article manufactured, processed, packaged, sold or advertised for use
as food or drink for human consumption, chewing gum and any other
ingredient which may be mixed with food for any purpose whatsoever.\"
Over the past few years, the management of NAFDAC has increased
surveillance to curb widespread adulteration of food products. The main
strategy employed by the agency for the enforcement of Nigeria's food
laws is the process of product registration. Contravention of the
provisions of existing food laws is subject to prosecution and
punishment as specified in the code. In recent years, NAFDAC appears to
have become more active and stringent in enforcing existing food laws,
which has increased the level of awareness of the consumer to make
informed choices and has also encouraged local producers. In theory, any
food item not registered with NAFDAC is not legally importable. In
practice, many processed foods routinely enter Nigeria through the land
boarders without having gone through the registration process.

# SECTION II. LABELING REQUIREMENTS

## A. General Requirements

NAFDAC regulations require food labeling to be informative and accurate.
Following are NAFDAC's minimum labeling requirements:

-   A product\'s brand name or common name must appear in bold letters.

-   Name and full \"location\" address of the manufacturer showing
    country of origin must be provided on the product label.

-   The production \"batch\" number, date of manufacture and best use
    before/expiry date.

-   Net content, specifying essential ingredients in metric weight for
    solids and metric volume for liquids.

-   Ingredients must be listed by their common names in order of their
    prominence by weight unless the food is \"standardized,\" in which
    case the label must include only those ingredients, which the
    standard makes optional.

-   Food additives and colors must be declared on the label. Spices,
    flavors and colors may be listed as such, without naming the
    specific material, but any artificial color or flavor should be
    identified as such.

-   Labeling should be in English. If it is in another language, an
    English translation must be shown on the label or package insert
    (where applicable).

-   If the standard U.S. label addresses the above-mentioned items, no
    additional labeling is necessary for imports of U.S. food items.

-   Stick‑on labels meeting NAFDAC requirements are permitted. Foreign
    labels must be adhered prior to product arrival at the Nigerian port
    of entry, provided they don't remove easily.

-   Sample‑size products or institutional packed products have no
    special labeling requirements.

-   NAFDAC registration number must be included on the product label.

## B. Requirements Specific to Nutritional Labeling:

-   The standard U.S. nutritional fact panel is acceptable by NAFDAC.

-   Any nutritional claim must be justified on the product\'s label.
    Nutritional labeling is mandatory for any prepackaged food item for
    which the manufacturer makes a nutrition or dietary claim.

-   Foods for special dietary uses with claims of disease prevention,
    treatment, mitigation, cure or diagnosis must comply with NAFDAC\'s
    guidelines for registration of drugs and be registered as medicinal
    products. Labels must contain directions for safe usage.

-   Additional nutritional labeling information is voluntary.

# SECTION III. PACKAGING AND CONTAINER REGULATIONS

-   At present, NAFDAC regulations are not specific on packaging, but
    the agency is in the process of developing regulation on packaging.
    No specific waste disposal laws or product recycling regulations
    impact on imported food products and NAFDAC does not impose any
    specific restrictions on packaging materials. However, plastics must
    be of food grade and should not leach into the product.

-   Nigerian importers, however, often express a marked packaging
    preference for certain high‑value food products (HVP), namely:

\--Relatively small‑sized products prepared and packaged for one‑time
use.

\--Products that can be shipped in bulk and re‑packaged locally.

> \--Perishable food products that undergo processing/packaging
> treatment to achieve an extended shelf life without refrigeration.

# SECTION IV. FOOD ADDITIVES REGULATIONS

Nigerian food additive regulations are specified in the GON\'s Decree 19
of 1993. NAFDAC has not developed a positive additive list. A very short
negative (prohibited) list does exist. Specific food additive
regulations of NAFDAC tend to focus on the usage of non-nutritive
sweeteners and on ingredients in wheat flour products. The food additive
and contaminant regulations of Codex Alimentarius Commission are applied
by NAFDAC in its assessment of food safety. NAFDAC requires that wheat
flour, vegetable oil and sugar be fortified with Vitamin A.

-   No person may manufacture, import, advertise, sell or present any
    food item or beverage containing a non- nutritive sweetener for
    human consumption unless the product is \"specified for special
    dietary usage.\"

-   Non-nutritive sweeteners, including saccharin and cyclamates, may be
    used in low‑calorie, dietary foods/beverages but are not permitted
    in any food or beverage to be consumed by infants or children.

-   Potassium bromate as a bread improver is not permitted.

Any person or company found to be in violation of any provision of the
Act 19 will be subject to a fine of 100,000 Naira (about \$1,000) or
imprisonment for a period of one year or both.

## 

# SECTION V. PESTICIDES AND OTHER CONTAMINANTS

The pesticide residue and mycotoxin standards of the Codex Alimentarius
Commission are applied by NAFDAC in its assessment of food safety. All
food products must have a certificate of analysis, which demonstrates to
NAFDAC\'s satisfaction that the item is free of pesticide and
radioactive contaminants in addition to other quality parameters. NAFDAC
reserves the right to subject any domestic or imported product to its
own analysis to determine freedom of contamination. NAFDAC officials
routinely subject imported foods to inspection and analysis at the port
of entry and at the retail level. Contaminated products are subject to
seizure and destruction by NAFDAC and possible prosecution.
Additionally, information on approved pesticides may be obtained from
NAFDAC (see contact information at end of this report).

# SECTION VI. OTHER REGULATIONS AND REQUIREMENTS

## A. General 

The manufacturer shall make an application for the registration of
processed food.

In case of a manufacturer outside Nigeria, such shall be represented in
Nigeria by a duly registered company with facilities to effect a recall
of the product when necessary. Note that the representative will be
responsible for ensuring that the health competent authority in the
country is informed of any serious hazard newly associated with a
product.

Importers of food products must first submit an application on a
prescribed form to the Directorate of Registration and regulatory
Affairs, NAFDAC, stating the name of the manufacturer, name (brand name
where applicable) of the product. This form, labeled [\"FORM
D-REG/001](http://www.nafdacnigeria.org/FOOD PRODUCTS.pdf)\" is
available online at NAFDAC's website for download.

A separate application form shall be submitted for each regulated
product.

The following are documentation for registration and renewal of permit
for imported food products:

-   Foreign manufacturers must be represented in Nigeria by a duly
    registered company or individual with the capacity to affect a
    product recall when necessary.

-   NAFDAC considers the local importer to be full responsible for all
    matters on the product, such as registration, distribution re-calls,
    legal actions etc.

-   The Nigerian importer/distributor must file evidence of a Power of
    Attorney from the manufacturer, which authorizes him to be the
    representative in Nigeria.

-   A certificate of manufacture and free sale issued by a competent
    health authority, authenticated by the Nigerian Embassy in the
    country of origin. Product license or evidence of product
    registration in the country of origin is an added advantage.

-   All importers must submit the certificate of registration of brand
    name/ trademark with the trademark Registry in the Ministry of
    Commerce in Nigeria. This is done in the name of the owner of the
    trademark to protect the owner.

-   A NAFDAC application form duly completed by the local agent
    (importer) for the registration of each regulated product.

-   Fifteen product samples (twenty in the case of dairy products) must
    be provided to NAFDAC for physical/laboratory analysis and vetting
    which takes about four to eight weeks.

-   Permit must be obtained to import limited quantities for the purpose
    of registration.

-   A comprehensive certificate of product analysis issued by the
    manufacturer.

-   A letter of invitation for the inspection of factory to be submitted
    by the applicant in Nigeria and shall state the full location
    address of the manufacturer, name of contact person, E-mail address,
    current phone and fax numbers.

NAFDAC registration involves a review of the manufacturing process, an
assessment of food safety and quality, and confirmation of compliance
with NAFDAC\'s labeling regulations. The process of registration now
involves GMP audit visits by inspectors of the agency to factory
locations in the respective countries of origin. The registration of any
food product with NAFDAC is a detailed process and could take between
1-3 months from the date samples are submitted for laboratory tests to
be completed. U.S. manufacturers/exporters wishing to sell their food
products in Nigeria also should be aware of relevant requirements and
regulations of the Nigerian Customs Service mentioned in section IX of
this report. A successful application will be issued a certificate of
registration with a validity period of five years.

### Guidelines for Agents of Foreign Manufacturers

Agents of foreign manufacturers are to take the necessary steps to
ensure that regulated products intended for the Nigerian market are
registered before consignments of such products are imported into the
country. The NAFDAC will normally authorize the importation of small
quantities of unregistered products for the purpose of submission as
samples for registration. A written authorization specifying the
quantity of the unregistered products to be imported can be obtained
from the Registration and Regulatory Affairs Directorate of NAFDAC at
the Central Laboratory Complex, Oshodi, Lagos, PMB 12949-12525, GPO
Marina, Lagos. On arrival of the imported samples and presentation of
the authorization to the NAFDAC inspectors at the ports, the consignment
will be treated the same way as other normal imported consignments.
Before the consignment is therefore cleared from the ports, the importer
is required to present the following: -

-   Authorization to import samples of the unregistered product.

-   Bank draft for the prescribed port inspection fees payable to
    NAFDAC.

-   Properly completed Customs Bill of Entry

-   Certificate of Analysis of the product issued by the manufacturer.

-   Certificate of Manufacture and Free Sale issued by a Government
    Authority empowered by law in the country of origin to exercise
    regulatory control over the product.

In the event of any violation, the consignment of the unregistered
product would be cleared from the ports to a bonded warehouse at the
expense of the importer. Thereafter, the importer is prosecuted and the
products forfeited to the Government together with any assets or
property obtained or derived directly or indirectly from the commission
of the offence.

## B. Expiry Dates

NAFDAC regulation stipulates that all food products should carry
best-before dates and/or shelf life on their packaging. The policy
states that the expiry date should be \"at least half the shelf life as
at time of inspection.\" The last sentence is interpreted to mean that
at the time of inspection (by NAFDAC after clearing Customs), that the
period from the inspection date until the expiration date should be
equal to or greater than half of the total shelf life of the product
(date of production until expiry). U.S. exporters are advised to specify
the month in words (July 1, 2005 or indicate mm/dd/yr) to avoid
conflicts that may arise in mistaking the day for the month.

## C. Registration Fees

The initial fee for registering each product is 750,000 naira (about
\$5,800). The license is renewable after every five years. The renewal
fee is 450,000 naira per product. Additionally, NAFDAC requires and
additional payment of port inspection and clearance fees of 90,000 Naira
for each container.

-   No applicant will be allowed to register a food product in more than
    one name.

-   Where different flavors of the same food are produced, each flavor
    will have to be registered separately.

-   Major supermarket operators or importers can import mixed container
    loads of high value products (HVP) under NAFDAC's global listing of
    supermarkets (GLS). Items allowed under the GLS include those
    regulated by NAFDAC sold in supermarkets and other specialties
    required by hotels, fast food chains and international organizations
    (excluding registered items). Firms participating in the program
    must have supermarkets that are certified by NAFDAC and are
    routinely inspected by the agency. The annual tariff for group
    product registration has been revised as follows:

  --------------------------------- -------------------------------------
  Number of Items                   Global Annual Registration Tariff

  Less than 500                     375,000 Naira

  501 - 2500                        1,000,000 Naira

  2501 - 5000                       2,500,000 Naira

  Greater than 5000                 5,000,000 Naira
  --------------------------------- -------------------------------------

Exchange Rate: US\$1 = 130 Naira

In addition to the fees, normal port handling charges are assessed.
Products imported under the GLS must meet the labeling and other
requirements listed in sections II and VI. For products imported under
GLS, a representative sample is subject to laboratory tests.

## D. Prepackaged Food Products 

The following guidelines govern the sale of prepackaged food products in
Nigeria:

-   No person may sell a prepackaged food unless a label has been
    affixed thereto.

-   A prepackaged food label must not be presented in a manner, which is
    false, deceptive or likely to create an erroneous impression
    regarding its character, quality, quantity and origin.

-   A complete list of ingredients used in preparing the food item will
    be declared on the label in a descending order of their proportion.
    A date of minimum durability must be identified on the label along
    with any special storage conditions.

-   Prepackaged food items that are treated with ionizing radiation must
    be so declared and the nature of the ionizing radiation will be
    stated on the label.

-   NAFDAC officials routinely visit depots, markets and retail outlets
    to confirm that all imported food products are in compliance with
    local regulations.

NAFDAC may prohibit the importation, distribution, sale or use of any
prepackaged food item, temporarily or permanently as well as impose
administrative fines against any product failing to comply with the
above regulations.

## E. Advertisement Requirements

-   NAFDAC must approve all advertisement/promotional materials prior to
    utilization.

-   Advertised food products must demonstrate to the GON that the
    products are legally registered with NAFDAC.

-   An application for advertisement must be submitted to NAFDAC for its
    approval. This approval process is in addition to the Certificate of
    Registration issued by NAFDAC, which authorizes importation and sale
    in Nigeria.

# SECTION VII. OTHER SPECIFIC STANDARDS

-   At present, Nigeria has no laws regulating products of
    biotechnology. However, a draft biosafety bill has been developed
    and will soon go for public debate. The draft bill advocates
    mandatory labeling of food items containing products of
    biotechnology to protect consumers right to know. When the bill is
    passed, NAFDAC will be the enforcement agency for labeling.

-   At present, NAFDAC requires wheat flour, vegetable oil and sugar
    consumed in Nigeria to be fortified with vitamin A. Salt must also
    be fortified with iodine.

# SECTION VIII. COPYRIGHT AND /OR TRADEMARK LAWS

Nigeria is a member of the World Intellectual Property Organization
(WIPO) and a signatory to the Universal Copyright Convention (UCC) and
other major International Agreements on Intellectual Property Rights
(IPR). Despite active participation in international conventions and an
apparent interest in IPR issues, GON efforts are largely ineffectual in
curtailing widespread copyright violations.

The Nigerian Standards Organization is responsible for issuing patents,
trademarks, and copyrights. Once conferred, a patent conveys the
exclusive right to make, import, sell, use a product, or to apply a
patented process. The Trademarks Act of 1965 governs the registration of
trademarks. Registering a trademark grants the holder the exclusive
right to use the registered mark for a specific product or class of
products.

Statutes, which govern IPR in Nigeria, include the Copyright Act of 1988
(amended in 1992). The copyright decree of 1988, which is based on WIPO
standards and U.S. copyright law, makes counterfeiting, exporting,
importing, reproducing, exhibiting, performing, or selling any work
without the permission of the copyright owner a criminal offense.
Enforcement of the 1988 law is not common. The expense and time required
to pursue a copyright infringement case through the Nigerian judicial
system often deters prosecution of such cases.

# SECTION IX. IMPORT PROCEDURES

## A. Inspection

Effective January 1, 2006, the GON commenced the implementation of
Destination Inspection (DI) to replace Pre-shipment Inspection (PSI).
Under the new scheme, goods destined for Nigeria's ports are inspected
at the point of entry rather than at the point of shipment, which was
hitherto the practice. The scheme will be carried out by the Nigeria
Customs Service (NCS), while three firms that will act as Destination
Inspection Service Providers, will provide scanning services at ports of
entry. For details of the operational guidelines for the new inspection
scheme, including import procedures, import duty payment procedures,
documentation requirements and processes, refer to GAIN Report NI7005.

Nigeria's ports continue to present major obstacle to trade. Clearances
may require the approval of NAFDAC, Standards Organization of Nigeria,
Nigerian Drug Law Enforcement Agency and a number of other agencies
stationed at Nigerian ports. Importers face inordinately long clearance
procedures, high berthing and unloading charges and corruption. It is
hoped that the recent adoption of the Automated System of Custom Data
(ASYCCUDA+++) with the assistance of UNCTAD will ultimately streamline
the operations of the Nigeria Custom Service.

As part of its commercialization program, the GON has embarked upon port
concessioning. Under this program, the GON owns the port while private
sector operators would provide some port operations. The GON adopted
this policy because of such perceived advantages as; increased
efficiency, increased return on assets and smoother operations.

## B. Documentation 

1.  Any person intending to import physical goods into Nigeria shall in
    the first instance process Form 'M' through any authorized dealer
    bank irrespective of the value and whether or not payment is
    involved.

2.  Supporting documents shall be clearly marked 'VALID FOR Foreign
    Exchange (FOREX) / NOT VALID FOR FOREX' as appropriate i.e.
    depending on whether or not foreign exchange remittance would be
    involved. The validity period of Form 'M' for plants and machineries
    shall be for a period of one year.

3.  All applications for goods subject to Destination Inspection shall
    carry the "BA" code; while those on exemption shall indicate "CB" in
    the prefix of the numbering system of the Form 'M'. Exemption shall
    be as approved by the Honorable Minister of Finance prior to
    completion of Form 'M'.

4.  The Form 'M' and relevant pro-forma invoice shall carry a proper
    description of the goods to be imported to facilitate price
    verification viz.

> A\) Generic product name, i.e. product type, category
>
> B\) Mark or brand name of the product where applicable.

C)  Model name and or model or reference number where\
    applicable.

D)  Description of the quality, grade, specification, capacity, size
    performance etc.

E)  Quantity and packaging and or packing.

    1.  Documents in respect of each import transaction shall carry the
        name of the product, country of origin, specifications, date of
        manufacture, batch or lot number, Standards to which the goods
        have been produced (e.g. Nigeria Standards-NIS, British
        Standards PD, ISO, IES, DIN (etc).

    2.  Where import items such as food, drinks, cosmetics, drugs,
        medical devices, chemicals etc., are regulated for health or
        environmental reasons, they shall carry EXPIRY dates or the
        shelf life and specify the active ingredients, where applicable.

## C. Flowchart: Import Documentation Procedures 

![](media/image2.wmf)

## D. Duty

The importer\'s bank issues a certified check to the Federal
Government\'s Import Duty account for payment of the import tariff. This
payment must be completed before the original IDR and other necessary
shipping documents are released by the Nigerian Customs Service (NCS) to
the importer who may now initiate the process of clearing his goods.
This could be accomplished during transport time.

In January 2006, Nigeria began a partial implementation of the ECOWAS
Common External Tariff (CET). The GON reduced its tariff bands from
twenty to five. The five tariff bands are a zero duty on capital goods,
machinery, and medicines such as anti-retroviral drugs and other
medicines not produced in the country; 5% duty on imported raw
materials; 10% duty on intermediate goods; 20% duty on finished goods;
and 50% duty on goods in industries that the GON wants to protect. All
HVP imports are assessed a 5 percent Value Added Tax, a port surcharge
equivalent to 7 percent of the duty amount and a Customs inspection
service charge equal to 1 percent of the duty amount. The GON frequently
reviews its list of items prohibited for imports. Exporters to Nigeria
should ascertain the import status of their products before shipment.

## E. Method of Payment

It is advised that confirmed, irrevocable letters of credit opened by
Nigerian banks with correspondent banks in the United States be used to
guarantee payment. U.S. exporters may wish to contact the Agricultural
Affairs Office of USDA in Lagos for assistance in locating reputable
representatives and/or importers for their products.

# APPENDIX I. GOVERNMENT REGULATORY AGENCY CONTACTS

1\. Prof. (Mrs.) Dora N. Akunyili

Director General

National Agency for Food and Drug Administration and Control

Federal Ministry of Health

Plot 2032, Olusegun Obasanjo Way

Zone 7, Wuse District

Abuja, Nigeria

Tel.: 234‑9‑5240996, 5240994

Fax: 234‑9-5240994

E‑mail: <nafdac.lagos@alpha.linkserve.com>

Website: www.nafdacnigeria.org

2\. Mrs. H.J. Keri

Director, Registration & Regulatory Affairs Directorate

National Agency for Food and Drug Administration and Control

Federal Ministry of Health

Central Laboratory Complex

Oshodi

PMB 12949-12525

GPO Marina

Lagos, Nigeria

Tel: 234-1-4748627, 26951142

Fax: 234-1-2695006

E‑mail: nafdacrr@linkserve.com

3\. Dr. John Ndanusa Akanya

Director General/ Chief Executive

Standards Organization of Nigeria

Plot 13/14 Northern Business District

Victoria Arobieke Street

Lekki Peninsula Scheme 1

Lekki, Lagos

Tel: 234-1-2708247, 2708230-5

E-mail: <info@sononline-ng.org>

# APPENDIX II. OTHER IMPORT SPECIALIST CONTACTS

Agricultural Affairs Office

U.S. Consulate General

2, Walter Carrington Crescent

Victoria Island, Lagos, Nigeria

Telephone: 234‑1‑261‑3926, 775 0830

Fax: 234-1-2629835

E‑mail: aglagos@usda.gov

Web site: [http://www.fas.usda.gov](http://www.fas.usda.gov/)