RESTRICTED
WORLD TRADE S/FIN/W/12/Add.22
15October 1997
ORGANIZATION(97-4510)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM NIGERIA
Initial Offer onFinancial Services
Addendum
ThefollowingcommunicationiscirculatedattherequestofNigeriatoMembersoftheCommittee
onTrade inFinancial Services.
_______________
Nigeria undertakes commitments onfinancial services inaccordance withthe"Understanding
onCommitments inFinancial Services" (theUnderstanding).
Nigeria 'soffer entails farreaching commitments which clearly demonstrates thecontinuing
trade liberalisation being undertaken bytheGovernment ofNigeria. Tothisend,itisemphasised
thatforeigners, bothindividual andcorporate arelegally entitled toownupto100percentequity in
anydomestic enterprise. Furthermore, theNigerian Investment Promotion Decree of1995guarantees
against expropriation.
Thisoffer isconditional upon asatisfactory, MFN based outcome ofthefinancial services
negotiations.S/FIN/W/12/Add.22
Page2THE FEDERAL REPUBLIC OFNIGERIA
SPECIFIC COMMITMENTS -INITIAL OFFER OFFINANCIAL SERVICES
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
7. FINANCIAL SERVICES
(i) Themarket access commitments inrespect ofmodes (1)and(2)apply onlytothetransactions indicated inparagraphs B.3(a)and(b)andB.4(a)and(b)of
themarket access section oftheUnderstanding, respectively.
(ii) Noforeign company canestablish asubsidiary inNigeria unless itisdulyincorporated inNigeria.
(iii) Foreigners, corporate orindividuals canownupto100percentequity inanyenterprise.
(iv) TheMost Favoured Nation (MFN) treatment isaccorded toallcountries. However, asamember oftheEconomic Community ofWest African States
(ECCWAS), Nigeria iscurrently negotiating theuseoftravellers cheques inthecourse oftheeconomic integration oftheSub-region.
(v) Thetransfer ofinformation containing personal data, bank secret, securities secret and/or business secret isnotallowed.
(vi) TheNigerian Investment Promotion Commission Decree of1995 guarantees against expropriation.S/FIN/W/12/Add.22
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
A. Banking andother Financial
Services
(Excluding Insurance)
(a)Acceptance ofdeposits
andother repayable
funds from thepublic
(CPC 81115 -81119)
(b)Lending ofalltypes,
including consumer
credit, mortgage
credit, factoring and
financing of
commercial transaction
(CPC 8113)(1) None
(2) Unbound withtheexception of(c)
(3) None
(4) Unbound(1) None
(2) Unbound withtheexception of(c)
(3) None
(4) Unbound
(c)Guarantees and
commitments
(CPC 81199**)
(d)Financial leasing
(CPC 8112)S/FIN/W/12/Add.22
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(e)Allpayment and
money transmission
services, including
credit, payment and
similar cards,
travellers cheques and
cheques.
(CPC 81339**)
(f)Trading foraccount of
customers:
-money market
instruments
(CPC 81339**)
-foreign exchange
(CPC 81333)
-transferable securities
(CPC 81321*)
-other negotiable
instruments
(CPC 81339**)
(g)Asset management
(CPC 8119** +
81323*)S/FIN/W/12/Add.22
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(h)Settlement andclearing
services forfinancial
assets, including
securities
(CPC 81339** or
81319**)
(i)Provision andtransfer
offinancial
information and
financial data
(CPC 8131)S/FIN/W/12/Add.22
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
B. Insurance Services
(a)Allgovernment properties aretobeinsured withtheNational Insurance Corporation ofNigeria; unless where theHead ofState approves inwriting to
thecontrary.
(b)Allimports intoNigeria tobeinsured locally byinsurance companies registered inNigeria.
(c)Aninsurance broker hastoobtain approval before entering intocontract withforeign insurers.
(a)Life, accident and
health insurance
services (CPC 8121)(1)None
(2)Unbound
(3)None
(4)Unbound(1)None
(2)Unbound
(3)None
(4)Unbound
(b)Non-life insurance
services (CPC 8129)(1)None
(2)Unbound
(3)None
(4)Unbound(1)None
(2)Unbound
(3)None
(4)UnboundS/FIN/W/12/Add.22
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(c)Reinsurance and
retrocession
(CPC 81299*)(1)None
(2)None
(3) Theestablishment ofareinsurance
company inNigeria issubject tothe
approval oftheMinister ofFinance, who
shall have regard oftheneed tocontrol
thenumber ofreinsurance companies
operating inthecountry. Insurers are
required bylawtocede 20percentof
their business compulsorily toNigeria
Reinsurance Corporation which hasthe
right ofFirst Refusal before theceding of
anyreinsurance business outside Nigeria.
(4)Unbound(1)None
(2)None
(3)None
(4)Unbound
(d)Services auxiliary to
insurance, including
broking andagency
services (CPC 8140)(1)None
(2)None
(3)None
(4)Unbound(1)None
(2)None
(3)None
(4)Unbound