RESTRICTED  
  
WT/TPR/S/356  
9 May 2017  
(17-2481) Page: 1/104 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
NIGERIA  
This report, prepared for the fifth Trade Policy Review of Nigeria, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the  Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Nigeria on its trade policies 
and practices.  
 
Any technical questions arising from this report may be addressed to Jacq ues Degbelo (tel: 022 
739 5583), Mena Hassan (tel: 022 739 6522) and Xinyi Li (tel: 022 739 5579).  
 
Document WT/TPR/G/356 contains the policy statement submitted by Nigeria.  
 
 
Note: This report is subject to restricted circulation and p ress embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Nigeria. This report was drafted in 
English.  WT/TPR/S/356 • Nigeria  
 
- 2 - 
 
  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  11 
1.1   Main Features of the Economy  ................................ ................................ ..................... 11 
1.2   Recent Economic Development s ................................ ................................ ................... 12 
1.2.1    Subdued economic growth  ................................ ................................ ........................ 12 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 14 
1.2.3    Monetary policy  ................................ ................................ ................................ .......14 
1.2.4    Foreign exchange policy  ................................ ................................ ........................... 15 
1.2.5    Balance of payments  ................................ ................................ ................................ 16 
1.3   Trade Performance  ................................ ................................ ................................ .....17 
1.3.1    Trade in goods  ................................ ................................ ................................ ........ 17 
1.3.2    Trade in services  ................................ ................................ ................................ .....21 
1.4   Foreign Direct Investment  ................................ ................................ ........................... 23 
2   TRADE AND INVESTMENT  REGIMES ................................ ................................ ...........  24 
2.1   General Framework  ................................ ................................ ................................ ....24 
2.2   Trade Policy Objectives  ................................ ................................ ............................... 26 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 27 
2.3.1    WTO ................................ ................................ ................................ ...................... 27 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 28 
2.3.2.1    Regional agreements  ................................ ................................ ............................. 28 
2.3.2.1.1    African Union  ................................ ................................ ................................ .....28 
2.3.2.1.2    Economic Community of West African States (ECOWAS)  ................................ ......... 29 
2.3.2.2    Other agreements and arrangements  ................................ ................................ ......30 
2.3.2.2.1    African Growth and Opportunity Act (AGOA)  ................................ .......................... 30 
2.3.2.3    Economic Partnership Agreement (EPA) with the European Union (EU)  ........................ 30 
2.3.2.3.1    Developing -8 countries (D8)  ................................ ................................ ................ 31 
2.3.2.4    Bilateral Trade Agreements  ................................ ................................ .................... 31 
2.4   Investment Regime  ................................ ................................ ................................ ....32 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  35 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 35 
3.1.1    Customs procedures ................................ ................................ ................................ .35 
3.1.2   Customs valuation  ................................ ................................ ................................ ...37 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 37 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 38 
3.1.4.1    Overview  ................................ ................................ ................................ ............. 38 
3.1.4.2    Tariff bindings  ................................ ................................ ................................ ......38 
3.1.4.3    Applied tariff  ................................ ................................ ................................ ........ 39 
3.1.4.4    Duty and tax exemptions and concessions  ................................ ............................... 41 
3.1.4.5    Preferential tariffs  ................................ ................................ ................................ .41 WT/TPR/S/356 • Nigeria  
 
- 3 - 
 
  3.1.5    Other taxes  and charges  ................................ ................................ ........................... 41 
3.1.5.1    Import adjustment tax (IAT)  ................................ ................................ .................. 41 
3.1.5.2    Supplementary protection tax (SPT)  ................................ ................................ ........ 42 
3.1.5.3    Other border taxes  ................................ ................................ ................................ 42 
3.1.5.4    Internal taxes  ................................ ................................ ................................ .......42 
3.1.6    Import prohibitions , restrictions, and licensing  ................................ ............................ 43 
3.1.7    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 44 
3.1.8    Other measures  ................................ ................................ ................................ .......44 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 44 
3.2.1    Export procedures and requirements  ................................ ................................ .......... 44 
3.2.2    Export taxes, charges, and levies  ................................ ................................ ............... 45 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 45 
3.2.4   Export support and promotion  ................................ ................................ ................... 45 
3.2.5    Export processing zones (EPZs)  ................................ ................................ ................. 45 
3.2.6    Export finance, insurance, and guarante es ................................ ................................ ..46 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......46 
3.3.1    Taxation and incentives  ................................ ................................ ............................ 46 
3.3.1.1    Taxation  ................................ ................................ ................................ .............. 46 
3.3.1.2    Tax incentives  ................................ ................................ ................................ ......48 
3.3.1.3    Non-tax incentives  ................................ ................................ ................................ 49 
3.3.2    Trade -related investment measures (TRIMs)  ................................ ............................... 50 
3.3.3    Standards, technical regulations and other requirements  ................................ .............. 50 
3.3.4    Sanitary and phytosanitary measures  ................................ ................................ ......... 52 
3.3.5    Competition policy and price controls  ................................ ................................ ......... 54 
3.3.5.1    Competition policy  ................................ ................................ ................................ 54 
3.3.5.2    Price controls ................................ ................................ ................................ ........ 54 
3.3.6    State trading, state -owned enterprises, and privatizatio n ................................ ............. 54 
3.3.6.1    State trading enterprises  ................................ ................................ ....................... 54 
3.3.6.2    State -owned enterprises and privatization  ................................ ................................ 54 
3.3.7    Government procurement  ................................ ................................ ......................... 54 
3.3.8    Intellectual property rights  ................................ ................................ ........................ 57 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  60 
4.1   Agriculture, Fishing and Forestry  ................................ ................................ .................. 60 
4.1.1    Agriculture  ................................ ................................ ................................ .............. 60 
4.1.1.1    Overview  ................................ ................................ ................................ ............. 60 
4.1.1.2    Trade in agriculture  ................................ ................................ ............................... 62 
4.1.1.3    Agricultural policy  ................................ ................................ ................................ .64 
4.1.2    Fishing  ................................ ................................ ................................ ................... 66 
4.1.3    Forestry  ................................ ................................ ................................ .................. 67 
4.2   Mining and Energy  ................................ ................................ ................................ ......68 WT/TPR/S/356 • Nigeria  
 
- 4 - 
 
  4.2.1    Overview  ................................ ................................ ................................ ................ 68 
4.2.2    Policy  ................................ ................................ ................................ ..................... 69 
4.2.3    Petroleum products  ................................ ................................ ................................ ..71 
4.2.4    Natural gas  ................................ ................................ ................................ ............. 72 
4.2.5    Solid minerals  ................................ ................................ ................................ ......... 73 
4.2.6    Electricity  ................................ ................................ ................................ ............... 75 
4.3   Manufacturing  ................................ ................................ ................................ ............ 76 
4.3.1    Overview  ................................ ................................ ................................ ................ 76 
4.3.2    Automotive industry  ................................ ................................ ................................ .77 
4.3.3    Cement  ................................ ................................ ................................ .................. 78 
4.4   Services  ................................ ................................ ................................ .................... 78 
4.4.1    Financial services  ................................ ................................ ................................ .....78 
4.4.1.1    Banking  ................................ ................................ ................................ ............... 79 
4.4.1.2    Insurance  ................................ ................................ ................................ ............ 80 
4.4.2    Transport  ................................ ................................ ................................ ................ 81 
4.4.2.1    Road transport  ................................ ................................ ................................ .....81 
4.4.2.2    Rail transport  ................................ ................................ ................................ .......82 
4.4.2 .3   Air transport  ................................ ................................ ................................ ......... 83 
4.4.2.4    Maritime transport  ................................ ................................ ................................ 84 
4.4.3    Telecommunications  ................................ ................................ ................................ .85 
4.4.4    Postal services  ................................ ................................ ................................ ........ 87 
4.4.5    Entertainment  ................................ ................................ ................................ ......... 87 
4.4.6    Tourism  ................................ ................................ ................................ .................. 88 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 90 
 
CHARTS  
 
Chart 1.1 Product compositions of merchandise trade, 2010 and 2016  ................................ .....19 
Chart 1.2 Direction of merchandise trade, 2010 and 2016  ................................ ....................... 21 
Chart 3.1 Average tariff rates, by WTO product category, 2011 and 2017  ................................ .40 
Chart 3.2 Distribution of MFN applied tariff rates, 2011 and 2017  ................................ ............ 40 
Chart 3.3 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2017  ............................ 41 
 
TABLES  
 
Table 1.1 GDP by economic activity, 2010 -16 ................................ ................................ ........ 11 
Table 1.2 Selected macroeconomic indicators, 2010 -16 ................................ .......................... 12 
Table 1.3 Balance of payments, 2011 -15 ................................ ................................ .............. 16 
Table 1.4  Trade in services , 2009-15 ................................ ................................ .................... 22 
Table 2.1 Sel ected trade -related legislation, March 2017  ................................ ......................... 25 
Table 2.2 Tax and investment incentives, March 2017  ................................ ............................ 32 WT/TPR/S/356 • Nigeria  
 
- 5 - 
 
  Table 3.1 Customs clearanc e breakdown by selectivity lane ................................ ..................... 36 
Table 3.2 Trading across borders in Nigeria: cost of doing business in 2017  .............................. 37 
Table 3.3 Stru cture of applied MFN tariffs in Nigeria, 2011 and 2017  ................................ ........ 39 
Table 3.4 Import adjustment tax (IAT) list  ................................ ................................ ............ 42 
Table 3.5 VAT collection , by source, 2010 -15 ................................ ................................ ........ 43 
Table 3.6 Rates of withholding tax, 2016  ................................ ................................ .............. 48 
Table 3.7 Minimum levels of local raw materials for tax conc ession purposes, 2016  .................... 49 
Table 3.8 Procurement methods and thresholds of application, 2016  ................................ ........ 55 
Table 3.9 Procurement approval thr esholds, 2016  ................................ ................................ ..56 
Table 3.10 Contract awards, by procurement method, 2013 -14 ................................ ............... 56 
Table 3.11 Results of closed dispute cases relate d to public procurement, 2013 -14 .................... 57 
Table 3.12 Memberships of intellectual property treaties, 2016  ................................ ................ 57 
Table 4.1 Production of se lected crops, 2009 -2014 ................................ ................................ .60 
Table 4.2 Key crops: national demand and supply (2016 estimate)  ................................ .......... 61 
Table 4.3 Livestock production, 20 09-2014 ................................ ................................ ........... 62 
Table 4.4 Exports of agricultural products, 2009 -2016 ................................ ............................ 62 
Table 4.5 Imports of agricultural products, 2009 -2016 ................................ ........................... 63 
Table 4.6 Nigeria's Agricultural Transformation Agenda: selected achievements (2011 -
2015)  ................................ ................................ ................................ ............................... 64 
Table 4.7 Estimated output for fisheri es, 2012 -15 ................................ ................................ ..66 
Table 4.8 Trade in fish and fish products, 2009 -2016 ................................ ............................. 67 
Table 4.9 Oil reserves, production and exports, 2011 -15 ................................ ........................ 69 
Table 4.10 Natural gas production, 2011 -15 ................................ ................................ .......... 72 
Table 4.11 Production of solid minerals, 2011 -15 ................................ ................................ ...73 
Table 4.12 Air traffic data, 2011 -16 ................................ ................................ ...................... 84 
Table 4.13 Performance of ports, 2009 -15 ................................ ................................ ............ 85 
Table 4. 14 Telecommunications data, 2011 -16 ................................ ................................ ......86 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by product group, 2010 -16 ................................ .................... 90 
Table A1.2 Merchandise imports by product group, 2010 -16 ................................ ................... 91 
Table A1.3 Merchandise exports by destination, 2010 -16 ................................ ........................ 92 
Table A1.4 Merchandise imports by origin, 2010 -16 ................................ ............................... 93 
 
Table A2.1 Nigeria's Involvement in Dispute Settlement Cases - as Third Party  .......................... 94 
Table A2.2 Selected notifications to the WTO, July 2010 to December 2015  .............................. 95 
 
Table A3.1 Nigeria's applied MFN tariff su mmary, 2017 ................................ ........................... 96 
Table A3.2 Products on which Nigeria's customs duty rates differ from ECOWAS CET  .................. 97 
Table A3.3 Goods and services  exempt from VAT, 2016  ................................ .......................... 99 
Table A3.4 Import Prohibition List, 2017  ................................ ................................ .............  100 WT/TPR/S/356 • Nigeria  
 
- 6 - 
 
  Table A3.5 Absolute Import Prohibition List, September 20 16 ................................ ................  102 
Table A3.6 List of Imported Goods and Services not entitled to foreign exchange in the 
Nigerian Foreign Exchange Markets  ................................ ................................ ....................  104 
 WT/TPR/S/356 • Nigeria  
 
- 7 - 
 
  SUMMARY  
1. Nigeria is the 26th largest economy in the world, and the biggest in Africa where it is the 
leading oil exporter, with the largest natural gas reserves. As a result of its 2014 rebasing 
exercise, Nigeria's GDP almost doubled from US$270 billion in 2013 to US$510 billion in 2014, and 
its economy has become more services driven (about 61% of GDP in 2016). This GDP increase by 
about 90% resulted from, inter alia , re-estimation of the contributions of certain sectors of the 
economy such as telecommunications, entertainment, and retail, which were previously not 
captured or underreported; the informal sector was re -estimated to account for  about 44% of 
GDP. 
2. Nigeria's economy recorded strong growth of about 7% per year in the decade  leading up to 
2015,  thanks to high world prices o f oil and natural gas. However, the sharp decline in oil prices 
since the third quarter of 2014 has posed major challenges to the economy , which  significantly 
slowed down to 2.7% in 2015 and further went into recession in 2016 with a growth rate of 
-1.5%. Exports declined by 45%, led by a sharp fall in revenue from oil from 23.4% of GDP in 
2011 to 3.7% in 2015. Low export receipts (mainly from oil) subsequently induced lower domestic 
demand that has impacted the non -oil sector. Weaknesses in the business en vironment (e.g. 
unreliable and expensive electricity supply, and governance issues, including in the oil sector) have 
also played their part.  
3. The economic recession and the subsequent devaluation/depreciation of the Nigerian naira 
(pegged to the US dollar  until June 2016) somehow contained imports dominated by manufactured 
products. In June 2015, restrictions were introduced on access to foreign exchange from the 
Central Bank of Nigeria (CBN) for 41 categories of imports (ranging from rice, soap, and private 
jets to personal travel for education and healthcare), with a view to containing outflows of 
international reserves and "resuscitating" domestic industries. The current account shifted from a 
surplus of US$10.8 billion in 2011 to a deficit of US$15.4 bi llion in 2015, and international reserves 
significantly dropped from a peak of US$43.8 billion in 2013 to US$28.3 billion in 2015.  
4. Overall, the economic crisis and the various measures taken to address it have more 
significantly reduced exports than impor ts, and the importance of trade for Nigeria has decreased, 
with a trade (in goods and services) to GDP ratio of 21.1% in 2015, down from 52.8% in 2011. 
The United States has been replaced by the European Union (EU) as the largest market for 
Nigeria's expor ts, while the EU remains the primary source of its imports. Nigeria is a net importer 
of services.  
5. Despite its current modest contribution to GDP (10% in 2015), oil still accounts for about 
90% of export earnings and 70% of government revenue. Therefore, i n line with its Vision 
20:2020 and its Economic Recovery and Growth Plan (ERGP) 2017 -2020 aiming to make the 
country one of the top 20 leading global economies by 2020, Nigeria identified four priority sectors 
for its economic diversification efforts: agri culture, solid mineral mining, construction materials, 
and manufacturing.  
6. Nigeria intends to diversify its economy away from oil by building a competitive 
manufacturing sector , which should facilitate integration into global value chains (GVCs) and boost 
productivity; as well as a strong services sector to be supported by an enabling environment for 
private -sector -led growth, industrial competitiveness and sustainable development. The recent 
merging of trade, industry and investment under the ambit of the Federal Ministry of Industry, 
Trade and Investment (FMITI) reflects Nigeria's intention to effectively coordinate between these 
three key areas to improve its trading and investment environment.  
7. Domestic inflation has generally been above the 9% annual ta rget set by the CBN, with a 
peak of 15.7% in 2016. It has been fuelled by devaluation/depreciation of the naira accumulatively 
by about 100%. However, due to  generally lower inflation in partner countries, this weakening of 
the naira has resulted in an app reciation of its real effective exchange rate (REER) by 25%. The 
Government's recent expansionary fiscal policy is likely to lead to further appreciation of the REER 
and to further jeopardize the competitiveness of Nigeria's goods and services. This may le ad to 
pressure for more protection and increase the instability of the trade regime.  WT/TPR/S/356 • Nigeria  
 
- 8 - 
 
  8. Nigeria's trade -related legislation has remained largely unchanged with many outdated laws 
still in place. Several bills, including on competition, the metallurgical indus try, postal services, and 
transport (eight bills), are awaiting approval by the National Assembly. New mining legislation was 
enacted in 2011 and new petroleum legislation is under consideration.  
9. Nigeria's investment regime is largely liberal, with 100% fo reign ownership allowed in all but 
the petroleum sector where investment is limited to joint -ventures or production -sharing 
agreements and a minimum share of 55% must be owned by the Government. It is compulsory for 
foreign investors to be locally incorpor ated as limited -liability companies. As part of the 
Government's efforts to improve Nigeria's competitiveness, the registration fee for setting up a 
company was reduced from ₦50,000 to ₦15,000 in 2013.  
10. Nigeria is an original Member of the WTO and actively  participates in the activities of the 
organization. However, despite its efforts to ensure compliance with its WTO obligations, Nigeria 
still lags behind with some 20 notifications. Nigeria is also a founding member of the Economic 
Community of West Afric an States (ECOWAS) and is fully engaged in negotiations to establish a 
continental free trade area (CFTA) under the African Union by 2017. Negotiations between the EU 
and the West African States on an Economic Partnership Agreement (EPA) were concluded on 30 
June 2014; Nigeria has not yet signed this agreement. Under the African Growth and Opportunity 
Act (AGOA), Nigeria benefits from preferential access for its petroleum to the US market.   
11. As a member of ECOWAS, Nigeria has appli ed the five -band (zero, 5% , 10%, 20%, and 
35%) Common External Tariff (CET) since April 2015, albeit with a certain flexibility. In 2017, 
Nigeria's average applied MFN tariff rate is 12.7%, up from 11.9% in 2011. Its final bound tariff 
rates average 117.3% and the tariff binding co verage remains low at 19.2% of total lines. Low 
binding coverage and high average bound rates leave ample margins for tariff changes, thus 
rendering the tariff regime less predictable.  
12. Under ECOWAS, Nigeria also applies the Import Adjustment Tax (IAT) avai lable to member 
States that consider  flexible application of the CET (higher or lower protection of selected 
products)  to be necessary  during the five year transition period; and a 0.5% community fee. The 
IAT applied by Nigeria ranges from 5 -60%, with the highest rate charged on cereals (60%). A 
Supplementary Protection Tax is also available under ECOWAS as a safeguard measure; Nigeria 
has not used it. Moreover, a myriad of additional taxes and levies are unilaterally collected by 
Nigeria on imports and exp orts.  
13. Nigeria grants customs duty concessions to imports of, inter alia , agricultural inputs such as 
fertilizer, seeds and machinery to improve agricultural productivity. Duty -free imports of plants 
and machinery for the mining sector are allowed. All goo ds imported into export processing zones 
are also exempt from customs duties and other taxes. The companies income tax (CIT) holiday is 
the primary tax incentive accorded to investors, notably to companies with "pioneer status". 
Nigeria maintains some indu strial policies to promote local raw materials utilization, and local 
value added/manufacturing. Measures in this regard include CIT holidays, and preferences for 
bidders with "Nigerian content", mainly in the oil and gas sector. However, Nigeria notified to the 
WTO in 1996 that it did not have local content laws or regulations.  
14. In addition to the 41 categories of imports for which access to foreign exchange from CBN is 
banned, Nigeria also maintains import prohibitions and restrictions on various grounds, including 
protection of domestic industries. In fact, Nigeria has two lists of import prohibitions; moreover, it 
also prohibits imports of specified goods (rice since 2013 and vehicles since 2016) through land 
borders in order to combat smuggling.  
15. All stan dards in Nigeria are mandatory, and are, therefore, technical regulations. A total of 
222 new standards were developed during the review period. Goods subject to technical 
regulations require certification. Nigeria maintains two certification programmes: t he Standards 
Organization of Nigeria Conformity Assessment Programme (SONCAP) for imported goods, and the 
Mandatory Conformity Assessment Programme (MANCAP) for domestically  produced goods. 
SONCAP certification is required for each container and each produ ct; consequently the cost of 
certification increases with the number of containers or products.  WT/TPR/S/356 • Nigeria  
 
- 9 - 
 
  16. Nigeria's regime on sanitary and phytosanitary (SPS) measures has remained largely 
unchanged. Imported food, drugs, cosmetics, medical devices, packaged water, detergents and 
chemicals must be registered with  the National Agency for Food and Drug Administration and 
Control (NAFDAC). Each registration is specific to the individual product and the individual 
operator.  Importation of animals and animal products is subject to controls through an import 
permit system. Imports of meat (including beef, pork, mutton, and frozen chicken ) remain 
prohibited.  
17. Nigeria has progressed in implementing its privatization programme. Most of its state -owned 
power generation companies  were privatized in November 2013 , but power transmission remains 
under state monopoly. Nigerian Telecommunications Plc and its subsidiary, Nigerian Mobile 
Telecommunication Limited, were privatized in April 2015. Nigeria still has no legislation on 
compet ition. It has terminated price controls/regulations on most products except  for, inter alia , 
petroleum products, electricity, and postal and compulsory insurance services. The legal and 
institutional framework for government procurement has remained largel y unchanged.  
18. The Nigerian Customs Service (NCS) undertook  several reforms in 2013 with a view to 
expediting the release and clearance of goods . These include : establishing a pre -arrival clearance 
system called Pre -Arrival Assessment Report (PAAR); setting  up a trade hub/portal for traders to 
access information; and terminating the pre -shipment inspection system which resulted in NCS 
being responsible for conducting scanning and risk management services in lieu of private 
operators. However, the PSI charge,  i.e. the Comprehensive Import Supervision Scheme (CISS) 
fee of 1% on the f.o.b. value of imports, continues to be levied. In 2011, NCS also set up a pseudo 
authorized economic operator (AEO) programme called Fast Track. Plans were announced to 
reduce the number of government agencies at Nigerian  ports from 14 to 7 with a view to 
facilitating goods clearance. Nigeria ratified the WTO Trade Facilitation Agreement on 20 January 
2017.  
19. Despite these efforts to facilitate trade, the cost of doing business in Nig eria is rather high. 
Customs procedures and documentation requirements remain burdensome and, according to the 
World Bank's Doing Business Report 2017, Nigeria is ranked 181th out of 190 countries for trading 
across borders. Between 2011  and 2016, the numb ers of consignments physically inspected and of 
the related documents checked by NCS almost doubled , account ing for 70% of the total cleared in 
2016.  
20. Nigeria's regime on intellectual property rights (IPRs) has remained largely unchanged. Most 
of its IPR l aws date back to before 1995. Geographical indications (GIs) are protected as 
certification marks under the Trademark Act. In 2015, Nigeria set up a Joint IPR Action Plan 
Committee  to combat IPR infringements.  On 16 January 2017, Nigeria notified the WTO o f its 
acceptance of the Protocol Amending the TRIPS Agreement.  
21. Agriculture is crucial to the economy and farming provides a livelihood to over 60% of the 
Nigerian population, although only 40% of the arable land is cultivated. Nigeria's agricultural 
sector  has been in decline over the past four decades. In 2011, the Government embarked on two 
new policies  – the Agricultural Transformation Agenda (ATA) and the Agricultural Promotion Policy 
(2016 -2020)  – to transform agriculture from a development -oriented to  an agribusiness -focused 
industry based on integrated value chains. To this end, several programmes are in place; 
incentives are available to farmers to increase domestic production of certain commodities (such 
as cassava, rice and wheat); and several impo rt prohibitions and restrictions are imposed on 
agricultural products. Nonetheless, the sector still faces various challenges, including shortages of 
feedstock as inputs; poorly maintained drainage systems; and poor transport networks which 
prevent timely transfer of agricultural goods to markets.  
22. Given the central role of the gas and petroleum sector to Nigeria's economy, and despite the 
country's wealth of oil and gas, the sector continues to face many challenges, including sporadic 
supply disruptions; oi l thefts leading to severe pipeline damages, production losses, pollution, and 
disruption of production; aging infrastructure; and poor maintenance and the resulting oil spills.  
Nigeria has one of the lowest rates of net electricity generation per capita i n the world. Despite 
holding Africa's largest oil reserves, Nigeria imports almost all of its refined petroleum products 
largely due to low capacity utilization rates and security problems at its refineries. The drop in 
global crude oil prices in recent ye ars allowed Nigeria to slowly phase out its contentious fuel 
subsidy programme that it began reforming in early 2012. The subsidy was completely removed in WT/TPR/S/356 • Nigeria  
 
- 10 - 
 
  2016. Investors in the oil and gas sector are subjected to an array of taxes, charges and local 
content requirements.   
23. Nigeria is trying to diversify away from oil by building a competitive manufacturing sector, 
especially in automotive assembly, cement, and textiles and clothing. The m ain challenges to the 
manufacturing sector include poor electricity supply and infrastructure; competition from mainly 
smuggled imports; and poor access to credit.   
24. The services sector, especially telecommunications which have benefited from increased 
competition, continuously grew over the review period. Nigerian banks i n general remain 
adequately capitalized; however, rising non -performing loans (NPLs) and reduced creditworthiness 
of borrowers remain a concern. Although Nigeria’s transportation matrix is one of the best in West 
Africa, the sector suffers from underinvest ment and poor maintenance, with the majority of roads, 
railways, airports and ports in need of modernization. Entertainment emerged from the 2014 
rebasing exercise as a key sector of the Nigerian economy; it comprises the third -largest film 
industry in the  world in terms of production. However, a high piracy rate prevents the industry 
from generating optimal revenue.  
 WT/TPR/S/356 • Nigeria  
 
- 11 - 
 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Nigeria is situated in West Africa, and became the largest economy in the African continen t 
after its GDP rebasing in 2014. 1 In 2015, Nigeria's GDP stood at ₦95.2 trillion (about 
US$494.6  billion). The rebasing exercise (base year: 2010) has led to a change in the sectoral 
structure of Nigeria's economy: industry, including oil and gas, is no longer the largest sector; it 
has b een superseded by services, especially telecoms and banking. In 2015, the contributions to 
GDP from agriculture, industry, and services (including "trade") were 21%, 16%, and 59% 
respectively (Table 1.1). The economy has now become services driven: with "t rade" accounting 
for one third of the contribution by the sector to GDP. The informal sector was estimated to 
account for 44% of the economy.  
Table 1.1 GDP by economic activit y, 2010 -16 
(% of GDP at current ba sic prices)  
  2010  2011  2012  2013  2014  2015  2016   
Agriculture  23.9 22.3 22.1 21.0 20.2 20.9 21.2 
     Crop production  21.4 19.8 19.6 18.6 17.8 18.3 18.6 
     Livestock  1.8 1.8 1.7 1.7 1.8 1.9 1.8 
     Forestry  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
     Fishing  0.5 0.5 0.4 0.5 0.5 0.5 0.5 
Crude petroleum & natural gas 15.4 17.5 15.8 12.9 10.8 6.4 5.4 
Solid minerals  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Manufacturing, of which:  6.6 7.2 7.8 9.0 9.8 9.5 8.8 
     Food, beverage & tobacco  4.2 4.2 4.4 4.8 4.8 4.6 4.0 
     Textile, apparel & footwear  0.6 1.0 1.3 1.6 2.0 2.0 2.0 
     Cement  0.4 0.4 0.4 0.6 0.7 0.8 0.6 
Construction  2.9 3.0 3.1 3.3 3.6 3.7 3.5 
Services, of which:  51.2 49.9 51.2 53.7 55.5 59.4 61.0 
     Trade  16.5 16.4 16.5 17.1 17.6 19.2 20.4 
     Transport  1.3 1.2 1.3 1.3 1.3 1.4 1.5 
     Information and communication  10.9 10.1 10.1 10.4 10.8 11.5 11.3 
          Telecommunication & information services  9.0 8.3 8.3 8.3 8.3 8.7 8.4 
          Broadcasting  1.0 1.0 1.0 1.2 1.3 1.6 1.7 
          Motion pictur es, sound recording & music  0.9 0.8 0.8 1.0 1.1 1.2 1.2 
          Publishing  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
     Finance & insurance  3.5 2.4 2.8 3.0 3.1 3.5 3.5 
     Real estate 7.6 7.3 7.7 8.3 8.4 8.7 8.2 
     Professional, scientific & technical services 3.1 3.5 3.7 3.7 3.8 4.2 4.4 
     Public administration  3.7 3.9 3.1 3.0 3.0 2.7 2.7 
     Education  1.5 1.8 1.7 1.9 2.0 2.2 2.4 
Note:  2016 figures are provisional.  
Source:  WTO Secretariat calculation, based on the data provided by the authorities.  
1.2.  Nigeria is a resource -rich country, particular ly in hydrocarbons such as oil and gas. Nigeria 
has Africa's largest proven hydrocarbon reserves: at the end of 2015, Nigeria had 37.1 billion 
barrels of proven reserves of crude oil and 180.1 trillion cubic feet o f natural gas reserve s.2 Nigeria 
is a member of the Organization of the Petroleum Exporting Countries (OPEC). In addition to 
                                                
1 National Bureau of Statistics (NBS) online information, " Measuring Better: Frequen tly Asked Questions 
on the Rebasing/Re -benchmarking of Nigeria's Gross Domestic Product (GDP )". Viewed at: 
http://www.nigerianstat.gov.ng/pdfuploads/FAQ%20on%2 0Nigeria%20GDP%20Rebasing.pdf .  
2 BP (2016), BP Statistical Review of World Energy 2016 . Viewed at: 
https://www.bp.com/content/dam/bp/pdf/energy -economics/statistical -review -2016/bp -statistical -review -of-
world -energy -2016-full-report.pdf .  WT/TPR/S/356 • Nigeria  
 
- 12 - 
 
  hydrocarbons, Nigeria has large reserves of bitumen, coal, columbite, iron ore, tin, zinc, as well as 
gemstones (e.g. sapphires, ru bies, and emeralds).  
1.3.  During the period under review (2011 -17), the GDP share of oil and gas continued to decline 
(Table 1.1): in 2015, it was 6.4%, down from 17.5% in 2011. Nevertheless, the economy of 
Nigeria remains heavily dependent upon oil: oil contri buted to 70% of government revenues and 
90% of foreign reserves in 2015.  
1.4.  The services sector accounted for almost 60% of GDP in 2015, including "trade" (19.2%), 
and information and communication (11.5%). Agriculture accounted for 20.9% of GDP in 2015, 
down  from 22.3 in 2011 (Table 1.1). The manufacturing sector remains underdeveloped, mainly 
suffering from electricity shortage, difficulties in accessing imported inputs, financial constraints, 
as well as from foreign exchange restrictions.  
1.5.  Nigeria has a ver y young population. It is estimated that Nigeria's population reached 
193.4  million at the end of 2016; some 70% of the population are below 30 years of age. The 
labour force rose by 14.4% between 2011 and 2015, ending the period at 76.95 million persons. 
The official unemployment rate was 13.9% in the third quarter of 2016.3 The labour productivity in 
Nigeria grew by 52.5% in the five years from 2011 to 2015.4 However, wealth inequality is severe 
in Nigeria, with a national average poverty rate  of 33.1% in  2012/2013 (varying widely  between 
16% in the South -West to 50.2% in the North -East).5 
1.2  Recent Economic Developments  
1.2.1   Subdued economic growth  
1.6.  After having grown by about 7% a year over the last decade, the Nigerian economy 
significantly slowed down in 2015 with a growth rate of  2.7% (Table 1.2). According to preliminary 
statistics, Nigeria has entered a recession, with negative growth rates over the first three 
consecutive quarters of 2016: the economy contracted by 0.36% in the first quarter, 2.06% in the 
second quarter, and by 2.24% in the third quarter. The IMF estimated that Nigeria's economy 
would have contracted by about 1.5% in 2016.6  
1.7.  High dependence on oil production is a major factor in  the slowdown of the Nigerian 
economy. Indeed, a sharp decline in  oil production in 2013, caused by the militant insurgence in 
the oil produc ing Niger Delta  region, reduced Nigeria's revenues from oil to 7.1% of GDP in 2013, 
compared to 23.4% in 2011 . The sharp decline in world oil prices, from US$115/barrel in mid -
2014 to US$37/barrel at the end of 2015, further lowered oil revenues to 3.7% of GDP in 2015. 
Consequently, government revenues fell to 7.8% of GDP and the public deficit doubled from the 
previous year to 3.7% of GDP in 2015. Exports dropped by 42% in 2015, pu shing the current 
account from a surplus of 0.2% of GDP to a deficit of 3.1% of GDP, and foreign portfolio inflows 
slowed significantly (Table 1.2).  
Table 1.2 Selected macroeconomic indicators, 2010 -16 
  2010  2011  2012  2013  2014  2015  2016  
GDP at current market prices ( ₦ trillion)  55.5 63.7 72.6 81.0 90.1 95.2 .. 
GDP at current market prices (US$ billion)  369.1  414.1  461.0  515.0  568.5  494.6  .. 
Real GDP (annual %age change at 2010 market 
prices)  7.8 4.9 4.3 5.4 6.3 2.7 .. 
Crude oil price (US$/barrel)a 92.8 111.5  114.5  112.8  63.3 37.8 .. 
Production of crude oil  
(million barrels per day)a 2.6 2.3 2.2 2.1 2.2 2.1 .. 
                                                
3 NBS online information, "National Summary Data Page – Labour Market". Viewed at: 
http://nso.nigeria.opendataforafrica.org/txlswp/labor -market . The official unemployment figure does not take 
into account the large informal economy.  
4 NBS online information, "Labour Productivity Report". Viewed  at: 
http://nigerianstat.gov.ng/report/487 .  
5 World Bank (2014), Nigeria Economic Report 2014 . 
6 The International Monetary Fund (IMF) online information, " World Economic  Outlook  (WEO) update, 
January 2017". Viewed at: 
http://www.imf.org/external/pubs/ft/weo/2017/update/01/index.htm?cmpid=Bbanner .  WT/TPR/S/356 • Nigeria  
 
- 13 - 
 
    2010  2011  2012  2013  2014  2015  2016  
GDP per capita  2,315  2,529  2,740  2,980  3,203  2,714  .. 
Population (m illion)  159.4  163.8  168.2  172.8  177.5  182.2  .. 
Unemployment rate (%)  5.1 6.0 10.6 10.0 7.8 9.0 13.1 
Inflation (CPI, % change)  13.7 10.8 12.2 8.5 8.1 9.0 15.7 
GDP by type of expenditure at current prices (% of GDP)   
Final consumption  74.8 73.9 66.6 80.0 78.2 84.4 .. 
     Household  65.7 65.0 58.0 72.5 71.4 78.0 .. 
     Non-profit institu tions serving households  0.4 0.4 0.4 0.4 0.4 0.4 .. 
     General government  8.7 8.5 8.2 7.2 6.5 5.9 .. 
Changes in inventories  0.7 0.7 0.7 0.7 0.7 0.7 .. 
Gross fixed capital formation  16.6 15.5 14.2 14.2 15.1 14.8 .. 
Net exports  7.9 9.9 18.5 5.1 6.0 0.1 .. 
     Exports of goods and services  25.3 31.3 31.4 18.0 18.4 10.6 .. 
     Imports of goods and services  17.4 21.5 12.9 13.0 12.5 10.5 .. 
Public finance, consolidated government (% of GDP)b, c  
Total revenue  20.0 29.9 14.3 11.0 10.5 7.8 .. 
     Oil revenue  14.0 23.4 10.4 7.1 6.5 3.7 .. 
     Non-oil revenue, of which:  6.0 6.5 3.9 3.9 4.0 4.1 .. 
          Import and excise duties  0.9 1.1 0.7 0.5 0.6 0.5 .. 
          VAT  1.6 1.7 1.0 1.0 0.9 0.8 .. 
Total expenditure  26.9 29.4 14.7 13.4 12.3 11.5 .. 
Overall balance  -6.9 0.5 -0.3 -2.4 -1.8 -3.7 .. 
Total public debtd .. .. .. 64.5 67.7 65.4 57.4 
     % of GDP  .. .. .. 12.5 11.9 13.2 .. 
     Domestic debt (US$ billion)  30.3 36.5 42.0 55.7 58.0 54.7 46.0 
         % of GDP  8.2 8.8 9.1 10.8 10.2 11.1 .. 
     External debt stock (US$ billion)  4.5 5.7 6.5 8.8 9.7 10.7 11.4 
          % of GDP  1.2 1.4 1.4 1.7 1.7 2.2 .. 
External sector         
₦/US$ (period average)  150.3  153.9  157.5  157.3  158.6  192.4  .. 
Real effective exchange rate (based on CPI: ind ex, 
2000=100)e 100.0  100.3  111.4  118.8  127.1  126.1  113.6  
Nominal effective exchange rate (based on CPI: 
index, 2000=100)e 100.0  94.1 95.9 96.7 98.0 91.2 73.1 
Current account (US$ billion)b 13.3 10.8 17.5 19.2 0.9 -15.4 .. 
     % of GDP  3.6 2.6 3.8 3.7 0.2 -3.1 .. 
Exports of goods and services (%age change, BoP 
basis)b 41.8 23.4 -3.8 0.9 -15.6 -42.0 .. 
Imports of goods and services (%age change, BoP 
basis)b -34.4 179.1  -10.9 -5.2 11.9 -16.8 .. 
Workers' remittances, credit (US$ billion)  19.8 20.6 20.5 20.8 20.8 20.4 .. 
     % of GDP  5.4 5.0 4.5 4.0 3.7 4.1 .. 
External reserves stock (US$ billion)  32.3 32.3 32.6 43.8 34.2 28.3 .. 
     In months of imports equivalent  7.7 5.8 6.8 9.5 6.7 6.5 .. 
FDI flows in Nigeria (US$ billion)  6.1 8.9 7.1 5.6 4.7 3.1 .. 
     % of GDP  1.7 2.2 1.5 1.1 0.8 0.6 .. 
FDI stock in Nigeria (US$ billion)  60.3 69.2 76.4 82.0 86.7 89.7 .. 
     % of GDP  16.3 16.7 16.6 15.9 15.2 18.1 .. 
.. Not available.   
a Figures based on the month of December for each year.  
b Preliminary for  2015.  
c Information on government budget extracted from various IMF Country Reports on Nigeria.  
d Preliminary for 2016.   
e An increase indicates appreciation.  
Source:    Statistical information provided by the Nigerian authorities; Central Bank of Nigeri a, online 
information , "Annual Statistical Bulletin ". Viewed at 
https://www.cbn.gov.ng/documents/Statbulletin.asp ; Debt Management Office, Nigeria, online 
information , "Debt Profile". Viewed  at: https://www.dmo.gov.ng/debt -profile ; IMF (2012), Country 
Report No. 12/194 , July; IMF (2014), Country Report No. 14/103 , April; IMF (2015), Country Report 
No. 15/84 , March; IMF (2016), Country Report  No. 16/101 , April; IMF online information, 
"International Financial Statistics ". Viewed at: http://elibrary -data.imf.org/DataExplorer.aspx ; 
UNCTAD Stat. Viewed at: 
http://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?sCS_ChosenLang=en ; and the 
World Bank's World Development Indicator database. Viewed at WT/TPR/S/356 • Nigeria  
 
- 14 - 
 
  http://databank.worldbank.org/data/views/variableselection/selectvariables.aspx?source=world -
development -indicators . 
1.8.  During the period under review, the p erformance of the non-oil sector was mixed. Indeed, 
the growth of non -oil GDP reached a peak in 2013 at a rate of 8.4%, then slowed to 3.7% in 
2015.7 This slowdown is attributed to the high spillover impact of oil on the non -oil sector . Lower 
oil receipts affect the non-oil sector through the input -output linkage channels: (1) lower 
government spending, particularly capital expenditure; and (2) lower disposable income for private 
sector expenditure. Considering the oil price drop in 2014, the IMF estimated that a decline in the 
purchasing power of oil earnings by 38% would reduce GDP by about 1%, and that subsequently a 
decline in public investment of 40% would reduce GDP by about 0.5%.8 
1.9.  With aims to diversify the economy away from oil dependence, and to cre ate jobs for the 
ever growing population, Nigeria considers manufacturing and agriculture as key sectors, and 
implemented various reform programmes in recent years (e.g. some pilot programmes to improve 
access to agricultural inputs ( Section 4.1) ), as well  as structural reforms to address the high costs 
and unreliability of electricity supply, the low quality of  the road network, low access to credit, 
gaps in health and education levels, and shortcomings in the business environment and 
governance indicators .9 The recent expansionary budgets are to address severe infrastructure 
deficit, and to finance high -impact and high value -added projects such as power, integrated 
transportation, and housing.  
1.10.   In order to improve access to credit for micro, small, and medium enterprises (MSMEs), and 
to support MSMEs, the Development Bank of Nigeria (DBN) and the Movable Asset Collateral 
Registry (MACR) have been established. The DBN and the MACR were expected to operate as from 
mid-2016. Moreover, in an effort to reform the  oil sector, in early November 2016, the Senate 
passed part of the Petroleum Industry Bill, which will break the state -owned Nigerian National 
Petroleum Corporation (NNPC) into two commercial entities. Once adopted, the law is expected to 
strengthen govern ance in the oil sector.  
1.2.2   Fiscal policy  
1.11.   Except for a slight surplus in 2011, Nigeria's budget was in deficit over the period under 
review ( Table 1.2). Indeed, because of the slump in the oil sector that traditionally accounts for 
over 50% of public revenue,  there has been a significant fall in public revenue from oil from its 
peak (for the period) of 23.4% of GDP in 2011 to 3.7% of GDP in 2015.  Despite its upward trend 
since 2012, the public deficit has been contained by the decline in public expenditure fro m 29.4% 
of GDP in 2011 to 11.5% of GDP in 2015. Nonetheless, with a view to creating jobs and addressing 
structural problems, the Government adopted an expansionary fiscal policy in 2016, with an 
increase in public expenditure by some 22% (from its 2015 le vel) to ₦6.08 trillion; with public 
revenue projection of ₦3.86 trillion, a deficit of ₦2.22 trillion is expected – the highest public 
deficit in Nigeria's history.  
1.12.   The projected ₦2.2 trillion deficit, equivalent to 2.16% of GDP, takes Nigeria's overall debt -
to-GDP ratio to 14% in 2016, which is not high by international standards. However, debt servicing 
will become more challenging given declining public revenue. Debt service (i.e. interest payment) 
already takes up almost 40% of federal government revenue. This will raise concerns about fiscal 
sustainability over the medium and long terms. As suggested by the IMF, Nigeria needs to raise 
non-oil revenue to ensure fiscal sustainability while maintaining infrastructure and social 
spending.10 Non-oil revenues stem fro m company income tax (CIT), value added tax (VAT), 
customs and excise duties, and federation account levies ( Section 3.3.1), among others.  
1.2.3   Monetary policy  
1.13.   The Central Bank of Nigeria (CBN) has been operating a de jure  monetary targeting regime 
since 1974.  Price stability is the primary objective, and the CBN has an inflation target of 6 -9%. 
                                                
7 The Central Bank of Nigeria online information , "Annual Stat istical Bulletin ". Viewed at: 
https://www.cbn.gov.ng/documents/Statbulletin.asp .   
8 IMF (2015), IMF Country Report No. 15/85.  
9 IMF (2016), IMF Country Report No. 16/101.  
10 IMF (2016), IMF Country Report No. 16/101 . WT/TPR/S/356 • Nigeria  
 
- 15 - 
 
  The Monetary Policy Committee of the CBN sets the "operating target" interest rate – the Monetary 
Policy Rate (MPR). Other policy intervention instruments by the CBN in clude: Open Market 
Operations, Discount Window Operations, Cash Reserve Ratio (CRR) and foreign exchange Net 
Open Position.  
1.14.   Except for the years 2013 -15, the inflation rates were above the CBN's target of 9% 
(Table  1.2). Inflation, which grew to 9. 0% in 20 15 from 8.1% in 2014, accelerated further to 
15.7% in 2016. According to the CBN, the inflation pressure stemmed from the exchange rate 
pass-through, the scarcity of refined petroleum and high electricity tariffs. As the Government is 
implementing an expan sionary fiscal policy, the inflation is expected to continue to hike.  
1.15.   Over the period, the CBN generally tightened its monetary policy when facing an upward 
pressure on inflation, except for the short period from November 2015 to March 2016 when it 
decrea sed its MPR by 2% in response to the weak growth.11 The CBN raised its MPR from 9.25% to 
12% in October 2011, then to 13% in November 2014, and further to 14% in July 2016. 
Nonetheless, the currency peg added to the constraints to the conduct of monetary po licy by the 
CBN. 
1.16.   The CBN also used the CRR to manage liquidity. In July 2013, the CBN introduced a 
separate CRR on public sector deposits at 50% while the CRR on private sector deposits was 12%. 
The CRR on public sector deposits was raised further to 75% i n January 2014; whereas the CRR on 
private sector deposits was raised to 15% in March 2014 and further to 20% in November 2014. 
In May 2015, the CBN harmonized the CRR for both public and private sector deposits at a rate of 
31%. In response to the impleme ntation of the Treasury Single Account (TSA), the CBN 
subsequently cut the CRR to 25% in September 2015. Currently, the CRR is maintained at a rate 
of 22.5%. As suggested by the IMF, the intervention of changing the CRR weakened the signalling 
effect of ch anges in the MPR, and made the CBN's overall monetary policy stance less clear.12 
1.2.4   Foreign exchange policy  
1.17.   Effective from 20 June 2016, the CBN abandoned its currency peg with the US dollar and 
adopted a flexible exchange rate regime. Since then, the naira h as depreciated by more than 60%. 
However, the CBN has maintained restrictions on access to foreign exchange for importation of 
certain goods and services since June 2015.  
1.18.   Before 20 June 2016, the de jure  exchange arrangement in Nigeria was a managed float.  
Nigeria' s de facto  exchange rate arrangement is a stabilized arrangement, as the CBN has 
maintained the naira at a pegged rate within a 2 percent band against the US dollar in the 
interbank market since March 2015.  
1.19.   According to the CBN, over 90% of its re serves come from oil sales, and historically oil has 
constituted up to 75% of government revenue. As the decrease in oil prices had caused a fall in 
foreign reserves, the CBN spent  up to US$100 million daily to maintain the naira within a 
traditional band of 160 -176 to the dollar. Following a 25% drop in official reserves to around 
US$33 billion by February 2015, the CBN imposed restrictions on commercial banks' foreign 
exchange trading, closed the official foreign exchange auction window, and channelled th ose 
transactions to the interbank market. The CBN then effectively devaluat ed the official rate in the 
interbank market by about 18%, and maintained the peg at the rate of 198 naira to the US dollar 
until June 2016.  
1.20.    In June 2015, the CBN circulated a lis t of 41 items for which it would no longer supply 
foreign exchange.13 The CBN estimated that importation of these 41 products, ranging from rice  
and soap to private jets, cost US$12.3 billion in foreign exchange in the first five months of 2015 
                                                
11 Monetary easing has failed to spur economic activity due to increased banking system credit to the 
public sector.  
12 IMF (2016), IMF Country Report No. 16/102 . 
13 The Central Bank of Nigeria circulars, TED/FEM/FPC/GEN/01/010, 23  June 2015, viewed at: 
http://www.cbn.gov.ng/Out/2015/TED/TED.FEM.FPC.GEN.01.010.pdf ; TED/FEM/FPC/GEN/01/011, 30 June 
2015, viewed at: http://www.cbn.gov.ng/Out/2015/TED/TED.FEM.FPC.GEN.01.011.pdf ; and 
TED/FEM/FPC/GEN/01/012, 1 July 2015, viewed at: 
http://www.cbn.gov.ng/Out/2015/CCD /tedcircular062015.pdf .  WT/TPR/S/356 • Nigeria  
 
- 16 - 
 
  (Section 3.1 .6). Further capital controls include limits on ATM withdrawals and cross -border 
electronic debit transactions, and restricted access to foreign currency for those travelling abroad 
for education or healthcare.  
1.21.   The restrictions on foreign exchange have se rved to protect certain sectors of the economy, 
but others are cutting production and shedding labour, resulting in cuts in investment and 
consumption. As the IMF reported, the BOP impact of reducing imports has been offset to a large 
extent by lower inves tment and reduced non -oil exports, as firms have experienced difficulties in 
importing inputs for production.  
1.22.   The CBN's interventions through tight management of the interbank market and the 
restrictions on access to foreign exchange have resulted in a wid e spread between the rates on the 
interbank market and bureau de change (BDC) markets; the spread between these two rates have 
become wider since June 2015. In October 2016, the exchange rate in the interbank market was 
₦305.2/US$ against ₦462/US$ in the BDC markets.  
1.23.   The naira depreciated against the US dollar by 9% in 2015 and a cumulative 19% since 
October 2014, but with the dollar stronger against other currencies, the devaluation has only been 
by about 10% in nominal  effective terms. With inflation higher than in trading partners, the real 
effective exchange rate (REER) only depreciated by 3% in that time, leaving the naira 25% 
stronger in real terms than in 2011 (Table 1.2) . 
1.2.5   Balance of payments  
1.24.   Nigeria's current acco unt shifted to a deficit in 2015 at US$15.4 billion, compared to the 
surplus of US$10.8 billion in 2011. The changes in the current account and BOP of Nigeria are 
attributed to the term -of-trade shock, mainly driven by the fluctuation in oil price. The oil  trade 
account fell from US$74.6 billion in 2011 to US$33.9 billion in 2015. However, other components 
of the current account provided some offset, as deficits in the services and income balances 
narrowed, and non -oil imports decreased after a spike in 201 4 (Table 1.3).  
Table 1.3 Balance of payments, 2011 -15 
(US$ billion)  
  2011  2012  2013  2014  2015a 
Current account  10.8 17.5 19.2 0.9 -15.4 
Goods  33.1 39.5 42.5 21.0 -6.4 
     Exports (f.o.b.)  99.9 96.9 97.8 82.6 45.9 
          Crude oil & gas  93.9 91.3 90.6 76.5 42.4 
             Crude oil  83.1 80.4 81.1 66.1 35.9 
             Gas 10.8 10.9 9.4 10.4 6.5 
          Non-oil 6.0 5.6 7.2 6.1 3.4 
     Imports (f.o.b.)  -66.8 -57.4 -55.3 -61.6 -52.3 
          Crude oil & gas  -19.3 -19.0 -15.2 -13.8 -8.5 
          Non-oil -47.4 -38.4 -40.1 -47.8 -43.8 
Services (net)  -21.4 -21.7 -19.6 -22.9 -16.5 
     Credit  3.4 2.4 2.4 2.0 3.2 
     Debit  -24.8 -24.1 -22.0 -24.9 -19.6 
     of which:        
           Transportation (net)  -6.5 -8.4 -7.5 -8.0 -5.9 
           Travel  -6.0 -5.6 -5.4 -5.3 -5.2 
           Financial services  -0.3 -0.4 -0.7 -1.2 -0.9 
           Other business services  -6.0 -4.4 -3.3 -4.7 -1.9 
Income (net)  -23.0 -22.3 -25.7 -19.2 -12.7 
     Credit  0.9 1.0 0.9 1.6 0.9 
     Debit  -23.9 -23.2 -26.6 -20.8 -13.6 
Current transfers (net)  22.0 22.0 22.0 21.9 20.2 
     Credit  22.5 22.5 22.7 22.8 22.1 
     Debit  -0.5 -0.5 -0.7 -0.9 -1.9 WT/TPR/S/356 • Nigeria  
 
- 17 - 
 
    2011  2012  2013  2014  2015a 
          of which: workers' remittances (net)  20.6 20.5 20.7 20.8 19.4 
Capital and financial account  -5.4 -12.5 7.7 12.3 -1.0 
     Capital account (net)  0.0 0.0 0.0 0.0 0.0 
     Financial account (net)  -5.4 -12.5 7.7 12.3 -1.0 
          Direct investment  8.1 5.6 4.4 3.1 1.6 
          Portfolio investmen t 3.6 15.1 10.4 1.8 0.9 
          Other investment  -16.8 -22.0 -8.0 -1.1 -9.4 
          Reserve assetsb -0.3 -11.2 1.0 8.5 5.9 
Net errors and omissions  -5.3 -5.0 -27.0 -13.2 16.5 
a Provisional.  
b Negative sign indicates accretion to reserves while posi tive sign indicates depletion of reserves.  
Source:  Central Bank of Nigeria online information , "Annual Statistical Bulletin ". Viewed at 
https://www.cbn.gov.ng/documents/Statbulletin.asp .  
1.25.   Inflows of portfolio investment fell dramatically during the review period. In 2014, the 
portfolio investment into Nigeria was recorded at US$1.8 billion, down from US$10.4 billion in the 
previous year; in 2015, the portfolio investment decreased further to US$0.9 billion (Table 1.3). 
The market uncertainty , as well as the foreign exchange controls , surely contributed to this sharp 
decline.14 
1.26.   During the period under review, Nigeria's external reserve gradually increased to its peak in 
2013 at a level of US$43. 8 billion, then dropped significantly. The foreign reserve fell by 16% to 
US$28.3 billion in December 2015 from US$34.2 billion in December 2014 (Table 1.2). Much of 
this drop stems from the sale of reserves in defence of the naira, with low oil prices als o a factor, 
as oil exports are still Nigeria's primary source of foreign exchange. Despite controls put in place 
by the CBN, reserves fell by an additional US$470 million in the first two months of 2016.  
1.3  Trade Performance  
1.3.1   Trade in goods  
1.27.   During the period u nder review, Nigeria experienced a significant decline in its merchandise 
exports: total exports in 2016 stood at US$33.7 billion, down from its peak of US$143.2 billion in 
2012, and US$125.6 in 2011. Merchandise imports by Nigeria also declined for the sa me period, 
though at a smaller scale: total imports in 2016 were valued at US$34.9 billion, compared to 
US$64 billion in 2011.  
1.28.   Nigeria's exports are mostly primary products. Fuel continues to be  Nigeria's major export 
commodity, accounting for around 90% o f total exports during the review period  (96.5% in 2016, 
up from 87.1% in 2010 ) (Chart 1.1).  The share of crude oil  in total exports  increased from 70.4% 
in 2010 to 82% in 2016. However, the volume of crude oil exports from Nigeria fell during the 
period u nder review; the decline is in part a result of changing structure  in the global energy 
market, i.e. a rise of supply from other sources and decrease in demand from major markets.  
1.29.   Generally, Nigeria's total exports fell less than its oil exports. During th e review period, 
exports of manufactured products experienced an upward trend of contribution to total exports 
(except in 2016). The buoyed non -oil export products were machinery and transport equipment, 
most notably vehicles and vehicle parts, which are a  particular focus for the current 
Administration. In 2015, 7.4% of Nigerian total exports were machinery and transport equipment, 
a sharp increase from 2.8% in the previous year, and from 1.2% in 2010 (Table A1.1). Agriculture 
accounted for 2.3% of total e xports in 2016, with food exports representing 2.2% of the total in 
2016.  
1.30.   Imports continued to be dominated by manufactured products but their share declined from 
86.5% in 2010 to 55.9% in 2016. Among the manufactured imports, transport equipment 
witnessed  the biggest drop: from 23.2% in 2010 to 9% in 2016 (Chart 1. 1). This significant 
decrease may be explained by the development of domestic industry. Non-electrical machinery 
                                                
14 Oxford Business Group (2016), The Report: Nigeria 2016 . WT/TPR/S/356 • Nigeria  
 
- 18 - 
 
  accounted for the largest share of manufactured imports in 2016 (15.7%), followed by chemical s 
(12.5%).  
1.31.   Nigeria significantly increased its fuel imports, from 1.3% in 2010 to 28.6% in 2016, 
making fuel the second -largest share of total imports in 2016 (Table A1.2). This spike may 
partially reflect the distortion caused by the fuel subsi dy scheme operated in Nigeria (Section 4).15 
It is reported that importers/traders imported excessive amount s of fuel in relation to  the actual 
domestic demand , with  the excessive imports then informally re -exported to neighbouring 
countries.  
1.32.   Nigeria increa sed its agricultural imports from 11% in 2010 to 14.1% in 2016. Most 
agricultural imports were  food, accounting for about 94% of total agricultural imports (Table  A1.2). 
This trend might be reversed due to the foreign exchange controls implemented since Ju ne 2015.  
                                                
15 The fuel subsidy operates like that the Government pays to importers/traders the price differences 
between the import prices and the pump prices of petrol and kerosene, w here the pump prices of petrol and 
kerosene were regulated at 97 and 50 naira per litre, respectively.  WT/TPR/S/356 • Nigeria  
 
- 19 - 
 
  Chart 1.1 Product compositions of merchandise trade, 2010 and 2016  
 
a Primary data . 
Source:  UNSD, Comtrade database (SITC Rev.3), and data provided by Nigeria's National Bureau of 
Statistics (NBS).  
1.33.   During the review period, the United States ceased to be  the primary  destination of Nigerian 
exports due to its production of fracking shell oil. With the United States  reducing its energy 
imports, Nigeria has lost a major export destination for its crude o il. For instance, during the first 
three quarter s of 2015, only 3.2% of Nigeria's crude reached the United States . However, this 
drop in oil export s to the United States  was partially offset by increased exports to India, the WT/TPR/S/356 • Nigeria  
 
- 20 - 
 
  Netherlands and Spain, which c ollectively imported 37.8% of crude in the same period. In 2010, 
34.4% of Nigerian exports were destined for the United States , compared to 12.1% in 2016.  
1.34.   Europe, in particular the European Union, has become the largest market for Nigeria's 
exports since 2 011. In 2016, 36.6% of Nigerian exports went to Europe, up from 23.5% in 2010. 
More than 90% of Nigerian exports to Europe were destined for the EU. The share of exports to 
India also increased from 10.5% in 2010 to 18% in 2016, making India the second -largest export 
market for Nigeria (Chart 1.2). ECOWAS is Nigeria's second -largest non -oil export market, 
generating earning s of US$2.3 billion in 2016.  
1.35.   Just as exports to the United States  have fallen since 2010, imports from the United States  
have also dropp ed during the same period, from 17.9% of total imports in 2010 to 8% in 2016. 
Since 2010, i mports have increasingly originated from the EU and China. The share of imports 
from the EU significantly increased in the five years from 21.8% in 2010 to 43.4% in 2016, 
whereas China raised its share of products  imported to  Nigeria  from 16.6% to 19.7% over the 
same period (Chart 1.2).  WT/TPR/S/356 • Nigeria  
 
- 21 - 
 
  Chart 1.2 Direction of merchandise trade, 2010 and 2016  
 
a Primary data . 
Source:  UNSD , Comtrade database (SITC Rev.3), and data provided by Nigeria's National Bureau of 
Statistics (NBS).  
1.3.2   Trade in services  
1.36.   Nigeria was a net importer of services throughout the period under review (Table 1.3). After 
the spike in 2014, the deficit of trade in services became narrower. In 2015, the services trade WT/TPR/S/356 • Nigeria  
 
- 22 - 
 
  had a deficit of US$16.5 billion, compared to a deficit of US$22.9 billion in 2014. Like the situation 
in 2009, the lower deficit in services trade was mainly due to the contraction in imports rather 
than the expansion of exports (Table 1.4). Factoring in the foreign exchange controls imposed 
since June 2015, it is expected that the deficit in trade in services will further decrease.  
Table 1.4 Trade in services, 2009 -15 
(US$ million)  
  2009  2010  2011  2012  2013  2014  2015a 
Exports  2,242  3,118  3,415  2,420  2,416  1,991  3,160  
     Transportation  1,110  1,994  1,601  1,406  1,108  774 1,808  
        Passenger  191 169 66 84 78 62 57 
        Freight  573 1,439  1,058  869 554 346 451 
        Other  346 386 477 453 476 366 1,301  
     Travel  608 576 628 559 542 543 404 
        Business travel  0 0 0 0 0 0 0 
        Personal travel  608 576 628 559 542 543 404 
Education -related expenditure  0 0 0 0 0 0 0 
Health -related expenditure  0 0 0 0 0 0 0 
Other personal travel  608 576 628 559 542 543 404 
     Insurance services  1 1 2 2 4 22 43 
     Communication services  37 48 50 51 52 54 77 
     Construction services  0 0 0 0 0 0 0 
     Financial services  8 14 16 11 22 14 254 
     Computer & informatio n services  0 0 0 0 0 0 0 
     Royalties and licen ce fees  0 0 0 0 0 0 0 
     Other business services  14 18 36 55 203 100 88 
        Operational leasing services  0 0 0 0 0 0 0 
        Misc. business, professional, and 
technical services  14 18 36 55 203 100 88 
Personal, cultural & recreational 
services  0 0 0 0 0 0 0 
     Government services n.i.e . 463 467 1,082  336 484 484 487 
Imports  18,904  21,590  24,776  24,136  21,982  24,854  19,613  
     Transportation  6,159  8,595  8,122  9,780  8,585  8,779  7,749  
        Passenger  1,238  2,815  2,959  3,124  3,315  3,331  3,405  
        Freight  4,759  5,605  4,878  6,398  4,996  5,002  4,167  
        Other  163 175 285 258 273 446 176 
     Travel  5,068  5,634  6,653  6,191  5,912  5,811  5,605  
        Business travel  735 764 1,111  830 690 1,155  1,311  
        Personal travel  4,333  4,869  5,542  5,361  5,222  4,656  4,295  
Education -related expenditure  2,193  2,415  2,694  2,567  2,506  2,239  2,247  
Health -related expenditure  892 1,009  1,111  1,042  998 835 746 
Other personal travel  1,248  1,445  1,737  1,752  1,718  1,582  1,301  
     Insurance services  396 508 709 733 223 335 332 
     Communication services  347 288 231 413 572 874 718 
     Construction services  44 131 89 112 87 70 52 
     Financial services  50 34 320 434 748 1,241  1,119  
     Computer & information services  188 125 166 177 316 699 338 
     Royalties and licen ce fees  211 -226 215 253 261 253 253 
     Other business services  4,196  4,514  6,071  4,426  3,519  4,824  1,959  
        Operational leasing services  1,198  1,123  1,884  1,487  1,100 1,123  576 
Misc. business, professional, and 
technical services  2,998  3,391  4,187  2,939  2,419  3,701  1,383  
Personal, cultural & recreational 
services  11 53 80 74 21 302 161 
     Government services n.i.e . 2,234  1,482  2,118  1,541  1,738  1,666  1,327  
Balance (US$ billion)  -16.7 -18.5 -21.4 -21.7 -19.6 -22.9 -16.5 
a Provisional . WT/TPR/S/356 • Nigeria  
 
- 23 - 
 
  Source:  Central Bank of Nigeria online information , "Annual Statistical Bulletin ". Viewed at 
https://www.cbn.gov.ng /documents/Statbulletin.asp .  
1.37.   The ma in component of services trade in Nigeria is transportation services, which accounted 
for 57.2% of exports and 39.5% of imports in 2015.  
1.38.   Tourism exports experienced a decline during the period under review,  in particul ar from 
2014 to 2015  when they  record ed a 25% decline: Nigeria exported US$543 million of travel  
services  in 2014  against US$404 million in 2015. Financial services recorded a more than ten -fold 
growth over the same period , account ing for 0.7% of total ser vices exports in 2014 and 8% in 
2015 (Table 1.4).  
1.39.   Regarding  services imports, Nigerian s spent a considerably large share on travel, including 
overseas education and healthcare. In 2015, US$ 2.25 billion were spent on education -related 
services (11.5% of tot al services imports in 2015) and US$746 million were spent on health -
related services (3.8% of total imports of services) (Table 1.4). In line with the foreign exchange 
restrictions imposed on overseas education and healthcare, the imports of these service s are 
expected to decrease. In 2015 , Nigeria imported US$1.38 billion of professional and technical 
services (7.1% of total services imports in 2015).    
1.4  Foreign Direct Investment  
1.40.   During the period under review, foreign direct investment (FDI) in Nigeria c ontinued to 
decline: from US$8.9 billion in 2011 to US$3.1 billion in 2015 (Table 1.2). The decline was 
attributed to a number of factors such as uncertainty related to elections, security concerns, 
infrastructure gap s, and corruption.  
1.41.   It is reported that the United Kingdom remains the most important source of FDI in Nigeria, 
followed by the United States, Belgium, Saudi Arabia, and Qatar.16  
 
                                                
16 Oxford Business Group (2016), The Report: Nigeria 2016 , page 38.  WT/TPR/S/3 56 • Nigeria  
 
- 24 - 
 
  2  TRADE AND INVESTMENT  REGIMES   
2.1  General Framework  
2.1.  Nigeria is a Federal Republic comprising 36 states and a Federal C apital Territory. Based on 
its fourth Constitution, adopted in 1999, t he system of government rests on a separation of the 
legislative, executive and judicial authorities.1 The government is led by an elected  President, who 
serves as Head of State, Chief E xecutive of the Federation , and Commander -in Chief of the armed 
forces. The President and the V ice-President are both elected and serve a four -year term, 
renewable only once. A  newly elected President came into power  on 29 May 2015.  
2.2.  The National Assembly,  Nigeria's bicameral legislature at the federal level, is headed by the 
President of the Senate.   The Senate is composed of 109 membe rs, with three senators elected 
from each of the 36 states and one from the Federal Capital  Territory . The House of 
Represe ntatives comprises  360 members from the 36 states based on a proportional 
representation .  Each member of the National Assembly is elected to serve for a term of four 
years,  renewable . The National Assembly has exclusive competence in passing legislation o n issues 
including trade matters and it may share competence with the state houses of assembly.2 The 
latter legislates at the state or local Government level on, inter alia , the collection of fees and 
taxes; and the development of the agricultural and indu strial sectors. The President may attend 
any joint meeting of the National Assembly or any meeting of either the House o r the Senate.   
2.3.  The judiciary branch of government is autonomous and independent; and adjudicates   
disputes.  The highest court is the S upreme Court followed by the Federal Court of Appeal, the 
Federal and State High Courts, the Sharia court of Appeal, Magistrate Courts, and Area Court . 
Each state has its own judicial system. At the State level, there are Customary Courts and 
Customary App eal Courts. Judges are appointed by the President, with a recommendation from the 
National Judicial Council, and are then confirmed by the Senate. The Nigerian legal system is 
based on English common law and traditional law, with 12 northern states also im plementing 
sharia law in some capacity.3   
2.4.  Executive bills are introduced by the Federal Executive Council to the National Assembly 
where they must be passed by both the Senate and the House of Representatives, and assented to 
by the President, before they  become law.4  Private bills may also be introduced by members of 
the National Assembly. Bills are passed in both houses by a simple majority of votes cast. 
However, if the President withholds his assent, the bill will require a two thirds majority in both  
houses, after which it becomes law, without the President's assent.  
2.5.  The Federal Executive Council  (FEC) consists of the President, the Vice President, and 
Ministers.  Chaired by the President, the FEC initiat es, reviews and implements  major polic ies, 
including  on trade. The National Economic Management Team  (EMT)  has overall responsibility for 
coordinating trade policy among responsible ministries; the EMT deliberates on economic policies 
and social development.  It is headed by the Vice President and incl udes Ministers in charge of 
Finance, Budget and National Planning, Industry, Trade and Investment; the Governor of the 
Central Bank; and a Special Advisor on Economic Affairs. The Trade Policy Advisory Council (TPAC) 
performs advisory roles and provides po litical direction on trade policy formulation.  Chaired by the 
Vice President , TPAC comprises representatives from the Federal Ministries in charge of Foreign 
Affairs, Industry, Trade, Investment, Agriculture, Water Resources, Information, and 
Communicatio ns.  
2.6.  In 2011, the Federal Ministry of Commerce and Industry was restructured and became t he 
Federal Ministry of Industry, Trade and Investment (FMITI) . This restructuring expanded the 
                                                
1 Constitution of the Federal Republic of Nigeria, 1999. Viewed at: 
http://www.icnl.org/research/library/files/Nigeria/constitution2.pdf    (3 October 2016).  
2 The areas in which the National Assembly has exclusive and shared competence are listed in Part I and 
Part II respectively, under the second schedule of the Constitution of the Federal Republic of Nigeria.  
3 Oxford Business Group Report, Nigeria (2015) page 14.  
4 Before a bill is presented to the Federal Executive Council it must be sent to the Federal  Ministry of 
Justice for legal drafting.  WT/TPR/S/356 • Nigeria  
 
- 25 - 
 
  Ministry's portfolio to include investment matters, in addition to indus try and trade.5 Within the 
ambit of the FMITI, the Enlarged National Focal Point  on trade matters  (ENFP) , established in 
2001,  helps coordinate and makes recommendations on WTO and other trade related matters.  
The ENFP comprises various committees and sub -committees covering different trade matters. Its 
membership include s key economic ministries, members of the Organized Private Sector (OPS), 
academia, p rofessional bodies and parliamentarians.  
2.7.  Under the ENFP, the Trade Negotiations Committee (TNC) provid es an advisory role to the 
Minister on policies and initiatives relating to trade, and technical support for international trade 
negotiations. Its main activities include monitoring and offering advice on pertinent domestic, 
regional and international deve lopments, and on implementation of approved policies, as well as 
carrying out studies on trade.  
2.8.  The National Council on Industry, Trade and Investment (NC ITI) is a statutory body 
established for the sensitization, consultation, de -briefing as well as moni toring of trade policy 
between the Federal Government and the various State Ministries in charge of trade and industry 
matters. Issues are generated through memoranda from stakeholders on trade and investment 
matters for consideration by the Council , and d raft communiqués  of and action plans for major 
decisions taken by the council for immediate implementation. It s membership comprises the 
Minister of FMITI  as Chair; States Commissioners in charge of trade and industr y matters; Heads 
of Parastatals on trade and trade-related matters ; and the OPS.   
2.9.  Nigeria's trade -related legislation has remained largely unchanged since its last Trade Policy 
Review in 2011 (Table 2.1). The main trade -related laws are t he Customs and Excise Management 
Act (CEMA) Cap 45, Law of  the Federation of Nigeria of  2004 and its amendments; and the 
Companies and Allied Matters Act No.1  of 1990. Several laws in Nigeria are outdated and new 
legislation for some sectors is pending approval by the National Assembly; including draft bills on 
competition policy; the metallurgical industry; postal services and eight bills in the transport 
sector.   
Table 2.1 Selected trade -related legislation, March 2017  
Area  Title of law/regulation  
Customs  Customs and Excise Management Act, Cap 45, LFN, 2004  
 Customs and Excise Management (Amendment) Act, No. 20, 2003  
 Customs and Excise Management Act, Cap 84, 1959  
 Customs and Excise (Special Panel and other Provisions) Cap 45, LFN, 2004  
 Customs and Excis e Agents (Licensing) Regulations 1968 (Legal Notice 
95/1968) as amended  
 Decree No. 45, 1992 as amended by Decree No. 77, 1993  
Contingency measures  Customs Duties (Dumped and Subsidized Goods) Act, Cap 87, 1958  
Import prohibitions  Endangered Species ( Control of International Trade and Traffic) Act, Cap 
E9.LFN, 2004  
Export promotion and 
assistance  Export Incentives (Miscellaneous Provisions) Act, Cap 118, LFN, 1990, as 
amended by Act No. 65 of 1992  
 Nigerian Export Promotion Council Act, Cap 306, LFN,  1990 as amended by 
Act No. 64 of 1992 and CAP 306, LFN 2004.  
 Nigeria Export -Import Bank Act No. 38, 1991  
 Nigeria Export Processing Zones Act No. 63, 1992  
 Export of Nigerian Produce Act, Cap 119, LFN, 1990 as amended in 2004  
 Export Produce (Federal  Powers) Act, Cap 120, LFN, 1990, as amended in 
2004 
 Oil and Gas Export Free Zone Act No. 8, 1996  
Export prohibition  Export (Prohibition) Act, cap 121, LFN, 1990, as amended in 2004  
Intellectual property  Trade Marks Act, Cap 436, LFN, 1990  
 Industria l Inspectorate Act, Cap 180 LFN, 1990  
                                                
5 The restructuring of the FMITI was modelled similar to the ministries in the United Kingdom, Malaysia 
and Singapore. Online information: Viewed at: http://www.fmiti.gov.ng/index.php/the -ministry/about -fmiti (3 
October 2016).  WT/TPR/S/3 56 • Nigeria  
 
- 26 - 
 
  Area  Title of law/regulation  
 Patents and Designs Act, Cap 344, LFN 1990  
 Copyright Act, Cap 68, LFN, 1990 as amended by the Copyright (Amendment) 
Decree No. 98, 1992 and the Copyright (Amendment) Decree No. 42 of 1999  
 National Office of Indu strial Property Act, Cap 268, LFN, 1990, as amended by 
Act No. 82, 1992  
Standards and technical 
regulations  Standards Organization of Nigeria Act, Cap 412, 1990, as amended by Act No. 
18, 1990 and Act No. 14 of 2015  
Price controls  Productivity, Prices an d Income Board Act, Cap 372, LFN, 1990  
 Petroleum Act, Cap 350, LFN, 1990  
Taxation  Petroleum Profits Tax Act, Cap P13, LFN 2004  
 Personal Income Tax Act, Cap P8, LFN 2004, as amended in 2011  
 Companies Income Tax Act, Cap C21, LFN 2004, amended in 2007  and 2011  
 Value Added Tax Act, Cap VI, LFN 2004 amended in 2007 and 2011  
 Industrial Development (Income Tax Relief) Act, Cap 17, LFN 2004  
 Stamp Duties Act, Cap s8, LFN 2004  
 Capital Gains Tax Act, Cap C1, LFN 2004  
 Taxes and Levies (Approved list f or collection) Act, Cap T2, LFN 2004  
 Education Tax Act, Cap E4, LFN 2004  
Business and 
investment  Companies and Allied Matters Act No. 1, 1990  
 Labour Act, Cap 198, LFN, 1990  
 Bankruptcy Act, Cap 30, LFN, 1990, as amended by Act No. 109, 1992  
 Industr ial Promotion Act, Cap 181, LFN, 1990  
 Investment and Securities Act No. 45, 1999  
 Investments and Securities Decree No. 34, 1999  
 Nigerian Investment Promotion Commission Act No. 16, 1995 as amended by 
Act No. 32, 1998  
 Public Enterprises (Privatizati on and Commercialization) Act, No. 28, 1990  
Others  Trade Disputes Act, Cap 432, LFN, 1990  
 Trade Disputes Essential Services Act, Cap 433, LFN, 1990  
 Foreign Exchange (Monitoring and Miscellaneous Provisions) Act No. 17, 1995  
 Money Laundering (Prohibi tion) Act, No. 7, 2003  
 National Shipping Policy Act, Cap 279, LFN, 1990  
 Nigerian Shippers' Council Cap N133 LFN 2004 and subsidiary regulations  
 Coastal and Inland Shipping (Cabotage) Act, No. 5, 2003  
 External Trade Letters of Credit (Control) Act , Cap 124, LFN, 1990  
 Consumer Protection Act, No. 66, 1992  
 Trade Malpractices (Miscellaneous Offences) Act No. 67, 1992  
Source:  Nigerian authorities; and various online sources.  
2.2  Trade Policy Objectives  
2.10.   As part of its Vision 20:2020  and th e Nigerian Ec onomic Recovery and Growth Plan  (ERGP)  
(2017 -2020) , Nigeria strives to become one of the top 20 leading global economies by 2020. To 
meet this objective, t he country aims to diversify away from oil by building a  competitive 
manufacturing sector which facilitates integration into Global Value Chains (GVCs) and boost s 
productivity , as well as a strong services sector.  The Government's priorities are to invest in 
infrastructure to create an enabling environment for growth, industrial competitiveness and 
sustai nable development.  
2.11.   The vision of the ERGP is one of sustained inclusive growth by driving a structural economic 
transformation of Nigeria with an emphasis on improving both public and private sector efficiency. 
This is aimed at increasing national product ivity and achieving sustainable diversification of 
production, to significantly grow the economy and achieve maximum welfare for its citizens, 
beginning with food and energy security.  The ERGP has three broad strategic objectives: (1) WT/TPR/S/356 • Nigeria  
 
- 27 - 
 
  restoring growth, (2)  investing in the Nigerian people, and (3) building a globally competitive 
economy. Nigeria's  main trade policy objective is to substantially increase the contribution of trade 
to its GDP, the country's share of global trade , as well as to contribute to pr omoting intra-African 
trade, so as to accelerate economic growth and national sustainable development.   
2.12.   In 2014, Nigeria embarked on the Nigerian Industrial Revolution Plan (NIRP)  and on the 
National Enterprise Development Programme (NEDEP).  The NIRP was d eveloped with the aim of 
boosting manufacturing from 4% to 10% of GDP by 2020  and as a first targeted effort to develop 
an industrialization roadmap that is simultaneously strategic, comprehensive and integrated in 
industrial sectors in which Nigeria has a  comparative advantage such as auto assembly, food 
processing, steel, petrochemicals,  and textiles and clothing . The NEDEP is a new and strategic way 
of delivering enterprise development in the country by directly  addressing the critical factors that  
have inhibited growth . NEDEP aims to: (i) create 3.5 direct million jobs in 3 years; (ii) i ncrease 
SME's export s by 100% ; and  (iii) reduce the formal – informal sector gap by 50%.  The 
implementing agencies for NEDEP are the Bank of Industry (BOI), the Small and  Medium 
Enterprises Development Agency of Nigeria (SMEDAN), and the Industrial Training Fund (ITF).  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.13.   Nigeria is an original member of the WTO, following ratification on 6 December 1994.6 
Nigeria ratified the WTO Trade Facilitation Agreement on 20 January 2017 and  accepted the 
Protocol amending the TRIPS Agreement on 16 January 2017.  Nigeria has not signed any of the 
WTO plurilateral agreements . Nigeria was involved in six trade -related dispute s as a third party  
(Table A2.1). Nigeria's trade policies have been reviewed four times ; the last review took place in 
June 2011.  
2.14.   Nigeria is an active member in the negotiations under the Doha Development Agenda, and 
participates in several negotiating groups, including the African  Group, the ACP Group, and the G -
90 Group.  In the agricultural negotiations, it is in the G -20 and the G -33 group  of developing 
countries.  In the NAMA negotiations, Nigeria is one of the countries to which Paragraph 6 of the 
first draft of modalities ref ers.7 In the TRIPS negotiations and as part of the African Group, Nigeria 
is one of the proponents of the W52 proposal, sponsoring a proposal on geographical indications to 
create a multilateral register for wines and spirits, and extending the higher leve l of protection 
beyond wines and spirits and  on disclosure where  patent applicants would  disclose the origin of 
genetic resources and traditional knowledge used in the inventions .8    
2.15.   In the negotiations on trade facilitation, Nigeria was an active partici pant in the negotiating 
process and remained engaged in post -Bali work.9 In November 2014, Nigeria submitted an early 
category A notification10; the country's B and C commitments have not been notified yet to the 
WTO. In the area of E-commerce, Nigeria is a  member of the Friends of E -Commerce for 
Development (FED) and a co -sponsor of the Non -paper  on a Work Programme on E -Commerce. As 
a proponent, Nigeria believes that E-Commerce is a new reality for businesses and can be and has 
been leveraged to support de velopment.11 
2.16.   In WTO Ministerial Conferences, Nigeria has continuously emphasized the importance of the 
development dimension to the rules -based Multilateral Trading System and that a dequate technical 
and capacity building assistance is specifically tailored  to the trade and development needs of 
individual countries .  
                                                
6 GATT document Let/1957,  7 December 1994.  The Marrakech Agreement Establishing the WTO has not 
been incorporated into Nigerian law, and therefore the legal status of th e WTO obligations in the domestic legal 
system is not yet clearly established. In particular, traders and investors are unable to invoke WTO provisions 
in domestic courts as the WTO Agreement does not in itself have the force of law in Nigeria.  
7 In paragr aph 6 of the first version of the NAMA text, later paragraph 8.  This includes a group of 
countries with less than 35% of non -agricultural products covered by legally bound tariff ceilings. They have 
agreed to increase their binding coverage substantially, but want to exempt some products.  
8 WTO Document TN/C/W/52 . 
9 In 2013, during the final phase of the trade facilitation negotiations, Nigeria was selected as one of the 
three Friends of the Chair to help WTO Members reach consensus.  
10 WTO Document WT/PCTF /N/NGA/1.  
11 WTO Document JOB/GC/101/Rev.1 , 28 July 2016.  WT/TPR/S/3 56 • Nigeria  
 
- 28 - 
 
  2.17.   There are on -going efforts by the authorities to ensure Nigeria fulfil its WTO obligations. 
Nigeria has made notifications on SPS and TBT measures up to 2015 but is still lagging behind in 
other  WTO areas such as Agriculture, Pre -shipment Inspection, Anti -dumping, Import Licensing, 
Quantitative Restrictions, Rules of Origin, and Customs Valuation (Table A2.2). According to the 
authorities, the main challenge Nigeria faces in implementing WTO agre ements is the difficulty in 
their domestication and in fulfilling the notification obligations for transparency purposes.  
2.3.2   Regional and preferential agreements  
2.3.2.1   Regional agreements  
2.3.2.1.1   African Union  
2.18.   Nigeria  is a founding member of the African Union (AU) , succes sor to the Organization of 
African Unity (OAU). The organs of the AU include the Assembly of Heads of State and 
Government; the Executive Council; the Commission; the Permanent Representatives' Committee; 
the Peace and Security Council; the Economic, Socia l and Cultural Council; a Court of Justice, and 
a Pan -African Parliament.  
2.19.   The AU aims to become an economic and political union. The Abuja Treaty provides for the 
establishment of the African Economic Community (AEC) by 2028, using existing regional 
econo mic communities (RECs) as pillars.12 Nigeria participates in this process as a member of the 
Economic Community of West African States (ECOWAS). However, the integration process has 
been slow. At the 2012 AU Summit, African leaders endorsed a road map aimin g at fast -tracking 
the process, with the goal of establishing a continental free trade area (CFTA) by 2017.13 
According to the plan, RECs were encouraged to establish their Free Trade Agreements (FTAs) by 
2014. Their consolidation into a continent -wide FTA would have started in 2015, leading to the 
establishment of one economic and monetary union by 2028.  
2.20.   The objective of the CFTA is to overcome dependence on Africa's exportation of primary 
products, to promote social and economic transformation for inclusi ve growth, as well as 
industrialization and sustainable development, with the aim of increasing intra-African trade by 
50% by 2022 . The scope of the negotiations covers rules of origin; sanitary and phytosanitary 
measures; technical barriers to trade; trad e remedies; customs procedures and trade facilitation; 
as well as draft modalities for trade in goods and trade in services.  
2.21.   The New Partnership for Africa's Development (NEPAD) was adopted by AU Members in 
2001 with the objectives to, inter alia , "halt t he marginalisation of Africa in the globalisation 
process and enhance its full and beneficial integration into the global economy".14 The AU/NEPAD 
African Action Plan (AAP) is the main framework defining priority programmes and projects. For 
the period  2010-15, the AAP defined projects in priority areas, including "trade, industry, market 
access and private -sector development".  
2.22.   Through the African Peer Review Mechanism, the AU has been providing an opportunity for 
countries to voluntarily submit for review their policies and practices in the areas of democracy 
and political governance; economic governance and management; corporate governance; and 
socio-economic development. Nigeria acceded to the Mechanism in 2003 and had been reviewed 
twice.15  
                                                
12 The pillars of the AEC are: the Community of Sahel -Saharan States (CEN -SAD), the Common Market 
for Eastern and Southern Africa (COMESA), the East African Community (EAC), the Economic Community of 
Central African States (ECCAS), the Economic Community of West African States (ECOWAS), the 
Intergovernmental Authority on Development (IGAD), the Southern African Development Community (SADC), 
and the Arab Maghreb Union (UMA).  
13 African Union (2012), Decision on Boosting Intra -African Trade and Fast Tracking the Continental Free 
Trade Area  (Assembly/AU/Dec. 394(XVIII)). 
14 NEPAD, online information. Viewed at: http://www.nepad.org/ . 
15 In their latest report, the panel of  experts identified several economic constraints facing Nigeria such 
as poor resource mobilization, a lack of access to credit, and a lack of institutions to support agricultural credit. 
It also noted that poverty, poor energy supply, and inadequate and po orly maintained infrastructure are the 
key challenges to the country's political and socio -economic development. The validation meeting emphasized 
that it is imperative that Nigeria consolidates its efforts towards: diversification of the economy to reduce  the WT/TPR/S/356 • Nigeria  
 
- 29 - 
 
  2.3.2.1.2   Economic Comm unity of West African States (ECOWAS)  
2.23.   Nigeria  is a founding member of the ECOWAS  establish ed in May 1975.16 The ECOWAS was 
notified to the WTO in 2005 under the Enabling Clause .17 The aims of the Community are to 
promote cooperation and integration, leading to the establishment of an economic union in West 
Africa in order to raise the living standards of its peoples, and to maintain and enhance economic 
stability, foster relations among Member States and contribute to the progress and development of 
the Afric an Continent.  The objective of ECOWAS is to promote cooperation and integration within 
the West African sub -region and to harmoni ze trade and investment practices for its 15 (West 
African ) member states  and ultimately achieve a full customs union.18   
2.24.   ECOW AS members adopted a common external tariff (CET) in January 2006  with four tariff 
bands. In 2009, a fifth band was adopted. In October 2013, the CET was approved  and 
implementation began on 1 January 2015. However, Nigeria began implementing it in April 2 015.  
The ECOWAS  CET consists of five bands : zero on essential social commodities; 5% on essential 
commodities, raw materials  and capital goods; 10% on intermediate products; 20% on consumer 
goods; and 35% on specific goods for economic development.19  
2.25.     Under the regional free trade agreement agenda, a regional instrument known as ECOWAS 
Trade Liberalization Scheme (ETLS) was put in place in 1990 to achieve an effective Free Trade 
Area within ECOWAS. ECOWAS members including Nigeria have been implementing t his scheme 
since 1990. To benefit from the ETLS, companies must be registered , and register their products 
as meeting the rules of origin specified under the scheme. For the registration of the products to 
be considered as an ECOWAS originating product, a National Approval Committee (NAC) examines 
the application of the approved enterprises and if found to conform with protocols of the scheme 
grants the approval and then send s the decision to the ECOWAS Commission for verification and 
notification to other member States. Nigeria has the biggest number of ap proved enterprises and 
products with 525 companies and over 1000 products registered in the scheme. The Ministry of 
Foreign Affairs chairs the  National Approval Committee  (NAC)  for Nigeria.  
2.26.   The ECOWAS tra de liberalization scheme involves three categories of products: unprocessed 
goods, traditional hand icraft products , and industrial products (both processed and semi -processed 
goods). To benefit from the scheme, unprocessed goods and traditional hand icraft products must : 
originate in ECOWAS Member States ; appear on the list of products annexed to the decisions 
liberalizing trade for these products; be accompanied by a certificate of origin and an ECOWAS 
export declaration form; be subjected to the Customs fo rmalities as necessary in the importing 
country ; and meet SPS  and TBT  requirements in the case of products  subject to such measures . 
Industrial or processed goods must satisfy the rules of origin under which a finished product is 
deemed to originate from w ithin the region, if at least 60% of the raw materials used in its 
production come from ECOWAS member countries or if the value added is 30% of the ex -works 
cost price (excluding taxes) and be manufactured by companies  in which Community nationals 
hold an equity share of at least 25%.  
2.27.   The ECOWAS Monetary Cooperation Programme  (EMCP) , adopted in 1987, called for the 
creation of a single monetary zone in the sub -region. As part of their efforts to implement the 
EMCP, the Heads of State of six non-WAEMU ECOWA S members have been working since 2000 to 
                                                                                                                                                  
impact of external shocks, encourage private sector -led development, improve infrastructure to create a 
conducive environment for business development, reduce youth unemployment, right -size and transform the 
civil-service and combat corruption.   
16 The other members of ECOWAS are Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, The Gambia, 
Ghana, Guinea, Guinea -Bissau, Liberia, Mali, Niger, Senegal, Sierra Leone, and Togo.  
17 WTO document WT/COMTD/N/21, 26 September 2005 . 
18 The ECOWAS institutions are: t he Authority of Heads of States and Governments, the Council of 
Ministers, the Community Parliament, the Economic and Social Council, the Community Court of Justice, and 
the Commission. ECOWAS underwent institutional reforms three times since its inception . In 2007, the 
ECOWAS Secretariat was transformed into a Commission.  Its most recent reform in July 2013 established six 
new departments  taking the total number of department s to 13, overseen by the President and the Vice 
President.   
19 Adopted in Niamey , the CET was based on a structure previously implemented by the eight member 
states of the West Africa n Economic and Monetary Union (UEMOA). The Niamey conference led to the 
formation of an ECOWAS -UEMOA Joint Committee for the management of the CET; whereby a fifth band was 
introduced to take into account the need to protect some specific industries .  WT/TPR/S/3 56 • Nigeria  
 
- 30 - 
 
  establish a second monetary zone in the sub -region, the West African Monetary Zone (WAMZ).20 
The WAMZ  would comprise Sierra Leone , The Gambia, Ghana, Guinea , Liberia, and  Nigeria and is 
due to be in place in 2020 after it was postponed several times .  
2.28.   The ECOWAS Protocol of Free Movement establishes the right of entry, residence and 
establishment of ECOWAS citizens in the region. ECOWAS citizens with a valid travel document 
and health certificate may travel to any Member state without a visa. In the recent revision of the 
Protocol, the deployment of the ECOWAS Biometric Card regime removed the need for a residence 
card. ECOWAS citizens are to be accorded same conditions for establishment of companies as 
nationals of m ember States.   
2.29.   In order to facilitate trade among ECOWAS countries, the Commission launched the 
Abidjan -Lagos Highway Project. A single ECOWAS logbook and bond are still to be implemented. In 
the meantime, ECOWAS and WAEMU  Commissions launched the Regional  Road Transit Facilitation 
Programme, with a view to simplifying and harmonizing their road transport regulations and 
procedures. Through the programme, joint control posts were established along some inter -state 
corridors.    
2.30.   Despite all the measures taken  to integrate the ECOWAS sub -region, the level of intra -trade 
remains low. T he regional market still accounts for only a small fraction of Nigeria’s total trade  
(around 6% of the country's total exports in 2016).   Based on data sourced from UN C omtrade in 
2016, crude oi l from Nigeria contribute d to around 85% of ECOWAS total exports. Some of the 
challenges facing ECOWAS traders include administrative bureaucracy; inadequate knowledge of 
import/export procedures; lack of awareness of the ETLS; inadequate inf ormation on products; as 
well as overall poor trade -related infrastructure.  
2.3.2.2   Other agreements and arrangements  
2.3.2.2.1   African Growth and Opportunity Act (AGOA)  
2.31.   The African Growth and Opportunity Act offers to products from 40 Sub -Saharan African 
countries includi ng Nigeria duty -free access to the US market.  Enacted in 2000, AGOA was initially 
designed for an eight year period from 2000 -08 but was extended up to 2015. After the 
completion of its initial 15 year period (2000 -15), AGOA was extended on 29 June 2015 b y a 
further 10 years, to 2025. AGOA allows duty and quota free exports of 6,400  product categories to 
the US market  including items such as apparel and footwear, wine, certain motor vehicle 
components, a variety of agricultural products, chemicals and stee l. AGOA eligibility requirements 
include continuous improvement in beneficiary countries' rule of law, respect for human rights and 
labour standards.  
2.32.   Despite export opportunities under AGOA, Nigeria's benefits are limited to primarily 
exporting petroleum to the United States .  According to data from the Nigerian National Bureau of 
Statistics, in 2014, petroleum accounted for 69% of total exports to the United States .  In 2015, 
Nigeria recorded the lowest exports in three years; the value of exports decline d from N16.304 
billion in 2014 to N9.729 billion in the fourth quarter of 2015, representing a 40.3% decline. This 
was due to lower  US merchandise import s of oil-related products .21  
2.3.2.3   Economic Partnership Agreement (EPA)  with the European Union (EU)  
2.33.   Nigeria is a signatory to the Cotonou Agreement (successor to the Lomé Convention) 
between the European Union (EU) and 78 African, Caribbean and Pacific (ACP) countries. The 
Agreement was signed on 23 June 2000 and entered into force in April 2003. It was first  revised in 
2005, then in 2010. This agreement constitutes the legal basis for the EU and Nigeria's 
partnership , and builds upon three interlinked pillars: a political dimension; development and 
finance cooperation; and economic and trade cooperation.  Under the latter, ACP countries, except 
South Africa, benefited from non -reciprocal trade preferences during an interim period (2001 -
                                                
20 All WAEMU countries are members of ECOWAS.  
21 "AGOA benefits: Still A Long Way for Nigeria", May 22, 2016, Punch Newspapers; 
http://punchng.com/agoa -benefits -still-long-way-nigeria/   WT/TPR/S/356 • Nigeria  
 
- 31 - 
 
  2007).22 At the end of the interim period on 31 December 2007, these unilateral preferences were 
to be replaced by WTO -compatible reciprocal economic partnership agreements (EPAs) between 
the EU and individual ACP countries or groups of countries.23   
2.34.   In 2014, after several years of negotiations, an EPA was concluded between the EU and 
West Africa, comprising 16 countries (ECOWAS memb er States and Mauritania) and two regional 
organizations (ECOWAS, WAEMU).  The EPA with West Africa covers trade in goods and 
development cooperation . There is also the possibility for further negotiations on sustainable 
development, services, investm ent an d other trade -related issues . In July 2014, the ECOWAS 
Heads of State endorsed the EPA and  opened it up for signature by m ember States. As at March 
2017, 13 out of 16 West African States have signed the Agreement. Only The Gambia, Nigeria and 
Mauritania ha ve not yet signed.   
2.35.   Under the EPA negotiations, ECOWAS is expected to receive duty free and quota free 
market access for its goods and development support, while the EU would receive access to 
ECOWAS markets for goods. Both parties agreed to set up a Joint  ECOWAS -EU implementation 
and monitoring team. The agreement also provides for periodic review; and exclusion list of some 
goods.  
2.36.   Nigeria accounts for around half of EU exports to the region and nearly 70% of EU imports 
from West Africa, with oil represen ting the biggest share. Nigerian non -oil exports to the EU are 
also important and include cocoa and preparations; skins and leather; fish and crustaceans; oil 
seeds, rubber, copper, wood and wood charcoal.  
2.3.2.3.1   Developing -8 countries (D8)  
2.37.   Nigeria is a member o f the Developing -8 (D-8) formed in 1997 as an organization for 
economic cooperation along with Bangladesh, Egypt, Indonesia, Iran, Malaysia, Pakistan and 
Turkey. Nigeria signed the D -8 Preferential Trade Agreement (PTA) in 2006 but is yet to ratify it. 
The D-8 is aimed at boosting trade by reducing duties in order to improve member states’ position 
in the global economy, diversify and create new opportunities in trade relations, enhance 
participation in decision -making at international level, and improve st andards of living.  
2.38.   Nigeria attaches high importance to increasing trade and economic activities among the D -8 
Members and in 2013, during the run -up to the first D -8 Trade Ministers council meeting in Abuja, 
Nigeria issued a statement to support the organ ization's vision to actualize its 2008 -2018 road 
map in priority areas such as trade in agricultural products and food security; industry and small 
and medium enterprises; transportation, civil aviation and shipping; and energy, minerals and 
mining. During  the second Trade Ministers’ Council Meeting held on 17 February, 2016 in 
Islamabad, Members agreed on a new date for the implementation of the D -8 Preferential Trade 
Agreement which would have commenced on 1 July 2016. Recently, in 2016, Nigeria has calle d for 
the abolition of visa requirements among D -8 members to ensure free movement of people and 
goods .   
2.3.2.4   Bilateral Trade Agreements  
2.39.   Nigeria has signed 16 Bilateral Trade Agreements (BTAs)24 and nine Memorandum of 
Understanding (MoU) agreements.25 Nigeria si gned a Trade and Investment Framework Agreement 
(TIFA) with the United States. The agreement provides for dialogue on improving and enhancing 
trade and investment opportunities between the two parties.   
                                                
22 These included duty -free treatment on industrial, processed agricultural and fishery products, subject 
to a safeguard clause. For certain products (bananas, beef and veal, and sugar), the EU provided special forms 
for market access under "commodity protocols".  The preferential rules of origin contained product -specific 
requirements and allowed for regional accumulation.  
23 Under the Cotonou Partnership Agreeme nt, ACP countries have had DFQF access for 100% of their 
exports; however ACP Members could not maximize the benefits from the agreement due to stringent rules of 
origin, TBT and SPS measures.  
24 Algeria, Benin, Cameroon, Chad, China, Cote d'Ivoire, Cuba, E gypt, Ethiopia, Iran, Liberia, Kenya, 
Niger, Tunisia, Uganda and Viet  Nam.    
25 Canada (TICA), China, Greece, Indonesia, Namibia, Niger, Chinese Taipei,  South Africa, and Spain.  WT/TPR/S/3 56 • Nigeria  
 
- 32 - 
 
  2.40.   Despite market access opportunities through the diff erent trade agreements and 
arrangements, Nigeria's trade , especially in non -oil goods , still remains limited. In particular intra -
African trade is low despite the efforts made to increase trade within the ECOWAS sub -region; and 
exports of some manufactured  products to the United States and to the EU are also limited.   
2.4  Investment Regime  
2.41.   As part of its Vision 20:2020, Nigeria seeks to establish the private sector as the engine of 
economic growth, with the Government providing the enabling environment for pri vate investors, 
both domestic and foreign, to operate. The recent merge of trade, industry and investment 
responsibilities under the ambit of FMITI is proof of the country's aim to effectively coordinate 
between these three key areas to improve Nigeria's t rading and investment environment.  
2.42.   The principal laws regulating foreign investment in Nigeria are the Nigerian Investment 
Promotion Commission Act (NIPC) No.16 of 1995; and the Foreign Exchange (Monitoring and 
Miscellaneous Provisions) Act No.17 of 1995.  The NIPC Act governs the entry of foreign direct 
investment into Nigeria and guarantees that foreign investors are able to transfer their capital, 
profits and dividends (less 10% withholding tax) attributable to their investments. It is compulsory 
for for eign companies operating in Nigeria to be locally incorporated as limited -liability companies.   
2.43.   Foreign ownership of firms is allowed up to 100% in all but the petroleum sector where 
investment is limited to joint ventures or production -sharing agreements ; the government owns a 
share of 55% . Investment in industries considered crucial to national security is precluded to both 
Nigerian and foreign investors such as the production of arms and ammunition; narcotic drugs and 
psychotropic substances; and milita ry, paramilitary disciplined services uniforms. The Federal 
Executive Council may, from time to time, determine what other items enter the negative list. 
There are several tax and investment incentives for many sectors  (Table 2.2) . 
Table 2.2 Tax and investment incentives, March 2017  
Sector  Description  
All sectors  Taxes:  
 (i) 30% company income tax in all sectors, except companies in the preferred sectors 
(agriculture, mining of solid minerals, petroleum and expor t) where it is 20% for 
the first 5 years   
(ii) tax holiday on companies investing in pioneer industries for 3 years, renewable for 
an additional 2 years;   
(iii) tax relief on research and development is restricted to 10% of total profit;  
(iv) rural Investment Allowance for companies located in areas more than 20 km 
without government -provided infrastructure in the year in which the investment 
occurred at:  
a. 100% of the cost of infrastructure where no facilities are provided,  
b. 50% of the cost of infrastructure where no elect ricity is provided,  
c. 30% of the cost of infrastructure where no water is provided,  and  
d. 15% of the cost of infrastructure where no tarred road is provided;  
(v) capital allowances from 10% to 95%.  
 Investment incentives:  
 (i) unconditional transferability of fund s through an authorized dealer in freely 
convertible currency;  
(ii) no enterprise shall be nationalized or expropriated by any government of the 
Federation , unless the acquisition is in the national interest or for public purpose, 
in which case there are legal procedures to follow;  
(iii) any company incorporated in Nigeria is allowed to have access to land rights for 
the purpose of its activity in any state in the country.  
Industrial sector  (i) companies with Pioneer Status are entitled to a tax holiday for 3 years, whic h may 
be extended by a further 2 years;  
(ii) manufacturing companies with turnover of less than N1 million are taxed at 20% 
for the first 5 years of operation.  
Oil and gas  (i) tax rate under the Petroleum Profit Tax (PPT) Act:  
a. 85% for mature sole risk or joint -venture partners, marginal field operators, 
and service contracts that have fully recovered their capital investment;  
b. 65% for newer sole risk or joint -venture partners, marginal field operators, 
and service contracts that have not fully recovered their capit al investment;  WT/TPR/S/356 • Nigeria  
 
- 33 - 
 
  Sector  Description  
c. 50% for profit sharing contracts;  
d. 30% for gas production, transmission and distribution.  
(ii) capital allowance at the rate of 20% per annum in the first 4 years, 19% in the 5th 
year and the remaining 1% in the books;  
(iii) investment tax credit at 50 % for production sharing contracts;  
(iv) petroleum investment allowance at varying rates from 5% to 20% depending on 
water depth;   
(v) repatriation of profits;   
(vi) no foreign exchange regulation;  
(vii) dividend derived from manufacturing companies in petro -chemical and li quefied 
natural gas subsector exempt from tax.  
 
Agriculture  (i) 100% capital allowances;  
(ii) capital allowances on agri -allied plant and equipment are 95% with 5% retained.  
Solid minerals  (i) three to five -year tax holiday;   
(ii) possible capitalization of expenditure o n exploration and surveys;   
(iii) provision of 100% foreign ownership of mining companies or concerns;  
(iv) capital allowance.  
Tourism  (i) tax holidays;   
(ii) longer moratorium and import duty exemption on tourism -related equipment;  
(iii) tax exemption on 25% of incomes derived from tourists by hotels.  
Telecommunications  (i) pioneer status.  
Gas exploitation  (i) investment needed to separate oil from gas to be considered part of oil field 
development cost;  
(ii) capital investments to deliver gas to point -of-use or point -of-transfer to be 
treated as capital investment for oil development;  
Gas utilization  (i) tax-free period of 3 years; or an additional investment allowance of 35%;  
(ii) accelerated capital allowances after the tax free period of 95% with 5% retained 
on the books;  
(iii) 15% investment capit al allowance;  
(iv) gas development projects taxed under the CITA (not the PPT);  
(v) 0% royalty.  
Exporting  (i) company profits in respect of goods exported are exempt from tax provided: the 
proceeds are repatriated to Nigeria and used exclusively for the purchase of r aw 
materials, plant, equipment, and spare parts; and the company is established in 
an export processing zone;  
(ii) profits of companies whose supplies are exclusively input to the manufacture of 
products for export are excluded from tax;   
(iii) investment tax credit s at 15% where a company replaces obsolete plant and 
machinery or 25% for companies engaged in fabrication of spare parts for export 
and local consumption;   
(iv) retention of export proceeds in a foreign currency in a domiciliary account with a 
Nigerian bank;   
(v) export development fund to cover expenses on export promotion activities;   
(vi) export adjustment fund to compensate exporters for high cost of local production, 
arising mainly from infrastructural deficiencies;   
(vii) unrestricted remittance of profits and divid ends;  and  
(viii)    zero-rated VAT.  
Source:  Nigerian authorities . 
2.44.   All domestic and foreign companies in Nigeria must register with the Corporate Affairs 
Commission  (CAC),  an autonomous body which reports to the FMITI . The only exception is for 
companies intendin g to operate in an export -processing zone or the Onne Oil and Gas Free Zone, 
where a licence from the Nigerian Export Processing Zones Authority is required. Companies with 
foreign participation must have a minimum share capital of N10 million (around US$5 0,000) to 
obtain a business permit and register with the NIPC through its "one -stop" investment centre ; 
which takes from 1 -2 days . In 2013, the registration fee was reduced to N15,000 from N50,000 as 
part of the government's efforts to improve Nigeria's co mpetitiveness.  
2.45.    A foreign investor registered with NIPC is guaranteed unconditional transfer and 
repatriation of dividends or profits attributed to the investment; payment of interest and capital on 
foreign loans; and the remittance of proceeds (net of tax es) in the event of a sale or liquidation of 
the company or any interest attributable to the investment. Any dispute between an investor and WT/TPR/S/3 56 • Nigeria  
 
- 34 - 
 
  the Government in respect of investments in Nigeria is settled by negotiation between the parties 
and as a last res ort submitted to arbitration at the option of the aggrieved party.   
2.46.   Nigeria has 33 bilateral investment treaties  (BITs)  at different stages of implementation.26 
Nigeria has 13 double taxation agreements27; treaties pending ratification include those with 
Kenya, Mauritius, Qatar, South Korea, Spain and Sweden. As a concession to its double -taxation -
treaty partners, the government approved a standard treaty rate of 7.5% for withholding tax on 
dividends, interests and royalties when paid to a resident of a treat y country. The Nigerian taxes 
to which the treaties apply are on personal income, corporate income, capital gains and petroleum 
profits.  
2.47.   Doing business in Nigeria is difficult and the country's ranking has worsened since the last 
Review according to the W orld Bank's Doing Business 201 7 report.  In 201 7, Nigeria is overall 
ranked 169 out of 189 countries for ease of doing business and 18 1 in terms of ease of trading 
across borders.28 Similarly, in the World Bank's 2016 Logistics Performance Index, Nigeria ra nks 
93rd out of 163 countries in terms of Customs Efficiency.29 Nigeria's competitiveness is also quite 
low; it ranks 127 out of 138 countries. The main factors holding back Nigeria’s competitiveness 
include an underdeveloped infrastructure (132nd), which i s rated as the country’s most problematic 
factor for doing business; and irregular payments and bribes (129th). 
 
 
 
                                                
26 During the period under review, Nigeria signed BITs with Cameroon (2014), Ca nada (2014), Chad 
(2012), Cote d'Ivoire (2013),  Turkey (2011), the State of Kuwait (2011) , and Poland (2013). In 2016, new 
BITs were signed with Morocco, Singapore,  and the United Arab Emirates.  
27 Belgium, Canada, China, Czech Republic, France, Italy, the Netherlands, Pakistan, the Philippines, 
Romania, Slovakia, South Africa,  and the U nited Kingdom . 
28 World Bank, Doing Business Report (2017), Viewed at: 
http://www.doingbusiness.org/d ata/exploreeconomies/nigeria . 
29 World Bank, Logistics Performance Index (2016), Viewed at: 
http://lpi.worldbank.org/international/global .    WT/TPR/S/356 • Nigeria  
 
- 35 - 
 
  3  TRADE POLICIES AND P RACTICES BY MEASURE       
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures  
3.1.  The Customs and Excise Management Act (CEMA)1 Cap 45 Law of 2004  vests legal authority 
in the Nigeria Customs Service (NCS) to act on behalf of Nigeria in all customs matters.2 The main 
objectives of national customs policy  in Nigeria are trade facilitation, security and revenue 
generation. Nigeria became a signatory to the Revised Kyoto Convention on 28 June 2012.  
3.2.  Import procedures are the same for both foreigners and Nigerians. Any person intending to 
import goods into Nig eria must complete an electronic import declaration (e -form M) through any 
authorized dealer bank, irrespective of the value. In addition to form M, the importer must 
provide: a detailed description of the goods, including commercial name, make, whether ne w, 
used or refurbished, and the standards adopted; quantity; unit cost of goods; total cost of the 
goods; cost of freight; mode of transportation; shipment details (i.e. full container load, bulk, 
loose or low container load); any other charges stated on f orm M; country of origin; country of 
supply; pro -forma invoice; insurance certificate; regulatory certificate/permits (e.g. NAFDAC, 
SONCAP Pharmaceutical Board of Nigeria, etc.) and any additional documents that might be 
prescribed by a relevant government  agency.  Used automobiles and personal effects do not 
require e -Form M.  
3.3.  After verification of the information provided on the form, the authorized dealer bank is 
required to submit the completed and approved form to the office of the scanning service and r isk 
management system within five days for approval. E -Form M is uploaded directly to the customs 
platform at no cost. Since 2013, NCS has been in charge of conducting scanning and risk 
management services in lieu  of private sector operators.3 However, the  Comprehensive Import 
Supervision Scheme (CISS) fee of 1% on the f.o.b. value of imports has been  maintained. Form M 
only becomes valid for importation once it has  been accepted by the scanning service and risk 
management system.  If accepted (the decision  to accept or reject the declaration has to be made 
within a day), the documents are forwarded for clearance of goods.  
3.4.  The initial validity period of an approved e -Form M for general merchandise is 180 days, 
which may be extended for an additional 180 days  by the authorized dealer bank. For capital 
goods, the initial validity of an approved e -Form M is 365 days subject to a maximum extension of 
another 365 days. However, any subsequent request for revalidation of e -Form M requires  
approval from the Central Bank of Nigeria. The use of a  customs broker is not mandatory in 
Nigeria to import goods.  
3.5.  In order to expedite the release and clearance of goods and determine the level of risk of the 
goods being imported (risk assessment), Nigerian Customs put in place a  pre-arrival clearance 
system called the Pre-Arrival Assessment Report (PAAR) on 1 December 2013. Through t his 
platform,  documentary examination is conduct ed before the arrival of goods; the importer is 
notified whether documentary examination, scanning or  physical inspection are required before the 
arrival of goods; and the release of goods is facilitate d for those not requiring 
examination/inspection upon arrival.  
                                                
1 Nigeria's last trade policy review report in 2011 noted that new legislation was being prepared to 
replace CEMA (WT/TPR/S/247/Rev.1, page 25).  
2 This is supported by various supplementary laws, including: Customs and Excise (Special Panel and 
other Provisions) Cap 45, Law s of the Federation of Nigeria, 20 04; Customs Duties (Dumped and Subsidized 
Goods) Act Cap 87 Laws of the Federation of Nigeria; Nigeria Pre -shipment Inspe ction Decree No. 36 of 
November  1979 further amended by Decree No. 11 of 19 April 1996; Decree No. 45 of 1  June 1992 as 
amended by Decr ee No . 77 of 29  August  1993; Customs and Excise Management (Amendment) Act No. 20 of 
2003; and Constitution of the Federal Republic of Nigeria.  
3 Nigeria practices a Destination Inspection Scheme, which commenced on 1 January 2006. Under th e 
scheme, goods destined for Nigerian ports are inspected at the point of entry rather than at the point of 
shipment. The seven -year contract granted to Cotecna, SGS, and Global Scan, to act as inspection agents at 
Nigeria' s seaports, border posts, and airports expired on  31 December  2012, but was extended for an 
additional 6 months. Then, i n July 2013 , the Nigeria Customs Service took over  implementation of the 
Destination Inspection Scheme using its own personnel; thus terminating  any further extension of inspection 
contracts.  WT/TPR/S/356 • Nigeria  
 
- 36 - 
 
  3.6.  To reduce delays in the import clearing process, a Central Clearing System (CCS) has been 
introduced as a one -stop shop at the border. Depending on the good in question, Customs invites 
agencies like National Agency for Food and Drug Administration and Control (NAFDAC ) and the 
Standard s Organization of Nigeria ( SON) to inspect the goods on a cas e-by-case basis. In 2011, 
the Nigerian authorities announced plans to facilitate goods clearance through Nigerian ports by 
reducing the number of government agencies operating at  the ports from 14 to 7.4 However, 
implementation of this policy has been repo rtedly uneven, and the time required to clear goods 
through the ports remains long.  
3.7.  Nigeria's risk management system consists of four selectivity lanes (Table 3.1). During the 
period under review, the number of goods that were physically examined and for which  documents 
were checked by Customs (red lane) almost doubled from 2011  to 2016; accounting for 70% of 
total goods being cleared in 2016. The percentage of g oods not undergoing any checks at all by 
Customs, known as the green lane, remained stable during the review period , averaging around 
16% of total goods. The percentage of g oods subjected to verification of documents depending on 
the good being imported (yellow lane) declined sharply from  47% of total goods cleared  in 2011 to 
less than 1% in 2016 . Goods subjected to clearance under the blue lane, where the goods are 
released but the documents and the goods can be selected randomly for post clearance audit by 
Customs, increas ed significantly over the review period. For Nigeria to better facilitate its  trade, 
Customs needs to expedite the release and clearance of goods by gradually lowering the number 
of consignments that are subjected to the red lane and move more towards the green lane.   
Table 3.1 Custom s clearance breakdown by selectivity lane 
(Number of declarations)  
 2011  2012  2013  2014  2015  2016  
Green  42,443  41,150  34,850  31,555  34,255  30,712  
Blue 185 41 240 44,341  45,053  27,286  
Yellow  100,865  107,770  119,977  22,597  187 112 
Red 73,055  78,146  86,27 0 127,335  147,819  130,815  
Total  216,548  227,107  241,337  225,828  227,314  188,925  
Source:  Nigeria n authorities . 
3.8.   In March 2013, Nigerian Customs launched a trade portal and hub that allows traders to 
access customs regulations online; to submit customs doc uments electronically; and consult trade 
information online. More specifically, the trade portal and hub helps traders conduct tariff 
search es; receive information regarding arrived vessels; submit trade documents and track their 
trade transaction status o nline; pay online through e -payment facilities using a credit card; access 
a help  desk; and quickly consult  important information on the different government agencies 
involved in trade matters. Nigeria Customs has a pseudo authorized economic operator (AEO ) 
programme called Fast Track. Select operators , mostly manufacturers and assemblers , found to be 
consistent with their declaration are granted this status.  
3.9.  Despite recent efforts by the Nigerian authorities to facilitate trade, customs procedures and 
documentation requirements remain burdensome for traders. According to the World Bank's Doing 
Business Report 2017, Nigeria is ranked 181st out of 190 countries for trading across borders (see 
Table 3.2).5 For the Logistics Performance Index LPI6 2016, Nigeria  is ranked 90th out of 160 
countries.7 
                                                
4 The Nigeria Customs Service, the Nigerian Ports Authority, the Nigerian Immigration Service, the 
Nigerian Police Force, the Nigerian Maritime Security and Safety Agency, the National Drug Law Enforcement 
Agency, and the Ports Health Agency.  
5 World Bank (2016), Doing Business Report . Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/nigeria/#trading -across -borders  [11/11/2016].  
6 The Logistics Performance Index is a benchmarking tool created to help countries identify the 
challenges and opportunities they face in their performance on trade logistics  including customs and trading 
infrastructure.  
7 LPI Index 2016. Viewed at: 
http://lpi.worldbank.org/international/global?sort=asc&order=Customs#datatable  [11/11/2016].  WT/TPR/S/356 • Nigeria  
 
- 37 - 
 
  Table 3.2 Trading across borders  in Nigeria : cost of doing business in 2017  
Indicator  Lagos  Sub-Saharan 
Africa  OECD  
high-income  
countries  
Time to export: Border complian ce (hours)  135 101 12 
Cost to export: Border compliance (USD)  786 571 150 
Time to export: Documentary compliance (hours)  131 91 3 
Cost to export: Documentary compliance (USD)  250 225 36 
Time to import: Border compliance (hours)  284 141 9 
Cost to impor t: Border compliance (USD)  1,077  662 115 
Time to import: Documentary compliance (hours)  173 105 4 
Cost to import: Documentary compliance (USD)  564 313 26 
Source: The World Bank Group online information  "Doing Business in Nigeria 2017" : Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/nigeria/#trading -across -borders . 
3.10.   Nigeria has a transit regime with other ECOWAS countries. Under the ECOWAS  Inter-State 
Road Transit (ISRT)  Scheme , the transportation of goods is allowed by road from one customs 
office in one Member State to another through one or more member States free of duties, taxes, 
and restrictions while in transit. Additional measures p ut in place to ensure the smooth operation 
of the ISRT Scheme include the setting  of annual quotas between countries in respect of vehicles 
licensed to undertake interstate transport of goods; the development  of regulation s to govern the 
sharing of freight  between the country of transit and the land -locked country for both transit goods 
and local goods from the country of transit ; and the drawing up of itineraries for interstate traffic. 
There is an electronic bond system which is free of cost. However, if the electronic bond system  is 
not used , there is a mandatory escort system which  costs around US$18 per night. In 1998 , the 
Federal Government of Nigeria,  through the Federal Ministry of Transport , appointed  the Nigerian 
Export -Import Bank ( NEXIM ) as the N ational Guarantor of the ISRT Scheme in Nigeria.  
3.1.2   Customs valuation  
3.11.   In Nigeria, customs valuation is based on the transaction value of the imported goods in the 
first instance. According to the authorities, in around 80% of cases, import duties are based on  the 
transaction value. If the transaction value is not available, then duty is determined based on the 
transaction value of identical goods or, when a comparison with identical goods is not possible, the 
transaction value of similar goods is considered. I n cases where none of the above methods are 
possible, the following are considered in order of preference: sales value in Nigeria of identical 
goods; sales value in Nigeria of similar goods; computed value; and lastly, a reasonable value 
according to the c ustoms authorities.8  
3.12.   In some cases, Nigeria n Customs finds it difficult to assess the valuation for a certain 
product. For example, it notes that it is difficult to confirm invoice value with transaction value. For 
social reasons, the government may maint ain a minimum value on certain products, such as staple 
foods, second -hand goods and tyres, in which case the government sets a benchmark.   
3.1.3   Rules of origin  
3.13.   Nigeria's non -preferential rules of origin are contained in the Customs Duties Act of 2004. 
Under t he Act, the country of origin for goods imported into Nigeria is deemed to be the country in 
which they were wholly produced or where at least 75% of the production cost was incurred, 
either in the form of value added during production or from materials an d components used in 
production.  
3.14.   As a member of ECOWAS, Nigeria applies ECOWAS rules of origin, under which a finished 
product is deemed to originate from within the region if at least 60% of the raw materials used in 
its production come s from ECOWAS membe r countries or if the value added is 30% of the ex -
works price (excluding taxes). Proof of ECOWAS origin must be supported by a certificate of origin. 
However, a certificate is not required for agricultural, livestock products and handicraft goods. 
Goods p roduced in free zones or under special economic regimes are not considered as originating 
products.   
                                                
8 WTO document G/VAL/N/1/NGA/1, 5 September 2008. This is the most recent information provided by 
the Nigerian authorities to the WTO in relation to customs valuation.  WT/TPR/S/356 • Nigeria  
 
- 38 - 
 
  3.15.   In case of dispute, the member State contesting the community origin of the product is 
required to  bring the issue to the attention of the competent autho rity in the issuing country. 
Within 45 working days, the exporting country is required to provide  all necessary information 
regarding the condition under which the certificate was provided to the product. The product 
whose origin is contested should not be  denied entry into the territory of the imported country nor 
refused the benefit of the ECOWAS Trade Liberalization Scheme ( ETLS). The importer is required  
to deposit a guarantee during the investigation into the originating status of the product. If the 
conflict is not settled at the national level, the case is reported to the ECOWAS Commission which 
will put in place a task force to investigate and determine the originating status of the contested 
product.  
3.1.4   Tariffs  
3.1.4.1   Overview  
3.16.   During the period under review, important changes to Nigeria's tariff structure took place. 
As of 11 April 2015, Nigeria began to implement the new ECOWAS Common External Tariff (CET) 
for a five -year period (2015 -19).9 The main changes that were introduced with the new CET 
include a fift h band at a tariff rate of 35% for specific goods for economic development. In addition 
to the CET, complementary measures of national application can be applied. Th ese consist of an 
import adjustment tax (IAT) and a supplementary protection tax (SPT). The se additional measures 
are intended  to allow ECOWAS States to adjust, if necessary, during the first five years of CET 
implementation. These complementary measures should not apply to more than 3% of a 
member's total tariff lines. As a result of these meas ures, the total level of nominal tariff 
protection (the sum of the tariff, IAT and SPT rates) on any good should not exceed 70%.  
3.17.   The ECOWAS CET consists of 5 ,899 tariff lines with five bands:  
 Zero (duty free) on 85 tariff lines for essential social goods;  
 5% on 2 ,146 tariff lines for goods of primary necessity, raw materials and specific 
inputs;  
 10% on 1 ,373 tariff lines for inputs and intermediate goods;  
 20% on 2 ,165 tariff lines for final consumption goods; and  
 35% on 130 tariff lines for specific goods for economic development.  
3.18.   Revision of the CET may be initiated by a member State. Proposals for revision are reviewed 
semi-annually by the Management Committee of the ECOWAS CET and, in the event of 
acceptance, are validated by the ECOWAS/WAEMU Commissions  before being transmitted to the 
Council of Ministers of ECOWAS.  
3.19.   Changes to the tariff in Nigeria do not need to be approved by  Parliament. The Tariff 
Technical Committee meets and makes a recommendation to the Minister of Finance, after which it 
is sent t o the President. A regulation is sufficient to change the tariff. Once the changes have been 
made, they are notified to the ECOWAS Commission.  
3.1.4.2   Tariff bindings  
3.20.   Nigeria's tariff bindings remain low, covering only  19.2% of all tariff lines. The average 
bound tariff rate was 117.3% in 2017: 150% for agricultural products and 49.3% for non -
agricultural goods (WTO definition). Low binding coverage and high average bound rates leave 
ample margins for tariff changes, thus rendering the tariff regime less predictabl e. 
                                                
9 On 25 October 2013, at the Extraordinary Conference of Heads of State and Government held in Dakar 
(Senegal), the ECOWAS Common External tariff (CET) replaced that of WAEMU which had been in force since 
2000. All ECOWAS Member States currently apply the CET, with the exception of Cabo Verde and Sierra Leone.  WT/TPR/S/356 • Nigeria  
 
- 39 - 
 
  3.1.4.3   Applied tariff  
3.21.    Nigeria's 2017 tariff comprise s 5,924 lines at the HS  10–digit level and is based on the 
HS12 nomenclature (Table A3.1). The tariff is fully ad valorem  like the ECOWAS CET. Nigeria's 
national tariff deviates from the ECOWAS CET either be cause of the imposition of the IAT or the 
introduction of new tariff lines (Table A3.2). These complementary measures are taken into 
account for the current tariff analysis. The average applied MFN tariff rate is 12.7% in 2017, 
higher than its 11.9% level in 2011 (Chart 3.1). As per the WTO definition, average tariffs on 
agricultural products  (16.6% ) are higher than on non -agricultural goods  (12%) in 2017. On the 
basis of ISIC, manufacturing is the most tariff -protected sector (1 2.9% on average), followed b y 
agriculture (11.9%), and mining and quarrying (5.1%) (Table 3.3).  
Table 3.3 Structure of applied MFN tariffs in Nigeria, 2011 and 2017  
Per cent  
  2011  2017  Final bounda  
1. Bound tariff lines (% of all tari ff lines)  n.a. n.a. 19.2 
2. Simple average tariff rate  11.9 12.7 117.3  
 Agricultural products (WTO definition)  15.6 16.6 150.0  
 Non-agricultural products (WTO definition)  11.3 12.0 49.3 
 Agriculture, hunting, forestry and fishing (ISIC 1)  12.9 11.9 150.0 
 Mining and quarrying (ISIC 2)  5.3 5.1 Unbound  
 Manufacturing (ISIC 3)  12.0 12.9 108.0  
3. Duty-free tariff lines (% of all tariff lines)  2.1 2.7 0.0 
4. Simple average rate of dutiable lines only  12.2 13.1 117.3  
5. Tariff quotas (% of all tariff lin es) 0.0 0.0 0.0 
6. Non-ad valorem  tariffs (% of all tariff lines)  0.0 0.0 0.0 
7. Domestic tariff peaks (% of all tariff lines)b 0.0 0.9 0.0 
8. International tariff peaks (% of all tariff lines)c 39.9 39.6 19.2 
9. Overall standard deviation of applied r ates 8.0 9.1 48.0 
10. Coefficient of variation   0.67 0.72 0.4 
11. Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
n.a. Not applicable.  
a  Final bound rates are taken from the CTS database.  
 The final bound schedule is based on HS07 nomenclat ure and consists of 982  lines (19.2% of the 
5,112 tariff lines are bound ). 
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisan ce rates are those greater than zero, but less than or equal to 2%.  
Note:  The 2011 tariff is based on HS07 nomenclature consisting of 5,673 tariff lines (at the 10 -digit tariff 
line level). The 2017 tariff is based on HS12 nomenclature consisting of 5,924  tariff lines (at the 10 -
digit tariff line level).   
Source:  WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).  
3.22.   Duty-free items account for 2.7% of all tariff lines in 2017 and apply to, inter alia,  
pharmaceuticals,  fertilizers, mineral fuels, plastics, rubber and educational materials. The 
coefficient of variation increased from 0.6 7 in 2011 to 0.72 in 2017, indicating increased dispersion 
of tariff rates.  WT/TPR/S/356 • Nigeria  
 
- 40 - 
 
  Chart 3.1 Average tariff rates, by WTO product category, 2011 and 2017  
051015202530
1 2 3 4 5 6 7 8 910 11 12 13 14 15 16 17 18 19 20 21 22 23 24
WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).%Chart 3.1
Average tariff rates, by WTO product categories, 2011 and 2017
1 WTO Agriculture
2 Animals and products
3 Dairy products
4 Fruit, vegetables, and 
plants
5 Coffee and tea
6 Cereals and preparations
7 Oil seeds, fats and oils 
and their products      8 Sugars and confectionary
9 Beverages, spirits, and 
tobacco
10 Cotton
11 Other agricultural 
products
12 WTO non -agriculture
13 Fish and fishery 
products
14 Minerals and metals15 Chemicals and 
photographic supplies
16 Wood, pulp, paper, and 
furniture
17 Textiles
18 Clothing19 Leather, rubber, 
footwear, and travel goods
20 Non -electric machinery
21 Electric machinery
22 Transport equipment
23 Non -agricultural 
products
24 Petroleum
Source:2011 averages are based on HS07 nomenclature and 2017 on HS12. Note:MFN 2011
MFN 2017
Average applied rate
2011 (11.9%)
2017 (12.7%)
 
Note:  2011 averages are based on HS07 nomenclature and 2017  averages  on HS12.  
Source:  WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).  
Chart 3.2 Distribution of MFN applied tariff rates, 2011 and 2017  
(2.1%)(45.4%)
(12.7%)(37.0%)
(2.9%)(2.7%)(35.8%)
(21.8%)(35.6%)
(0.03%)(3.1%)
(0.9%)
05001,0001,5002,0002,5003,000
Duty-free 5 10 20 30 35 >=402011 2017
WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).Chart 3.2 Distribution of MFN applied tariff rates, 2011 and 2017
Number of tariff lines
Source:Note: Figures in parentheses denote the share of total lines.  
 
Note:  Figures in parentheses denote the share of total lines.  
Source:  WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS) . WT/TPR/S/356 • Nigeria  
 
- 41 - 
 
  3.23.   In aggregate, Nigeria's 2017 tariff displays mixed escalation: the average applied MFN tariff 
was 10. 5% on raw materials; 10.2% on semi -processed products; and 14.7% on fully processed 
products. However, at a disaggregated level (ISIC two -digit) level, t he tariff displays positive 
escalation in most industries, including food and beverages ; textiles and apparels; wood products; 
paper , printing and publishing. Tariff escalation is mixed or negative in certain industries. In 
industries where the tariff disp lays positive escalation, the effective rate of protection is higher 
than the nominal protection and may result in  inward orientation of production. On the other hand, 
mixed or negative escalation may result in loss of competitiveness (Chart 3.3) . 
Chart 3.3 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2017   
0.05.010.015.020.025.0Chart 3.3 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2017
%
Food, 
beverages, 
and  
tobacco
Textiles, 
apparel
Wood 
products
Paper, 
printing, and 
publishing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal 
products
Other 
manufacturingRaw materials Semi -processed Fully processed
n.a.
n.a.Average applied rate in manufacturing 
(12.9%)
n.a.           Not applicable.
Total 
manufacturing 
WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).Source:
 
n.a. Not applicable.  
Source:  WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).  
3.1.4.4   Duty and tax ex emptions and concessions  
3.24.   In order to attract investment, Nigeria provides customs duty exemptions and concessions 
for agricultural inputs such as fertilizer, seeds and machinery to improve agricultural productivity. 
Duty-free imports of plants and machiner y for the mining sector are also allowed. All goods 
imported into export processing zones are exempt from customs duty and other taxes 
(Section  3.2.4).  
3.1.4.5   Preferential tariffs  
3.25.   As a member of ECOWAS, Nigeria grants tariff preferences to the other ECOWAS membe r 
States (Section 2). According to the authorities, Nigeria faces some challenges implementing the 
origin and classification aspects of the ECOWAS Trade Liberalization Scheme (ETLS).  
3.26.   Nigeria grants tariff preferences to other countries that participate in  the Global System of 
Trade Preferences (GSTP).  
3.1.5   Other taxes and charges  
3.1.5.1   Import adjustment tax (IAT)  
3.27.   The import adjustment tax (IAT) is one of two complementary national measures that are 
designed to allow ECOWAS member States to adjust gradually to the im pact of the CET over a 
transitional period of five years, until 1 January 2020.  The IAT can be applied on any goods 
originating in third countries. It may be used to strengthen the level of protection of a product WT/TPR/S/356 • Nigeria  
 
- 42 - 
 
  under the CET if a member State considers  it insufficient, or to lower it if deemed exaggerated.  
The maximum rate of the IAT corresponds to the differential between the tariff rate applied 
previously and the new ECOWAS CET rate on the products in question.   
3.28.   Nigeria applies the IAT to strengthen  the level of tariff protection for certain products or to 
reduce the tariff protection granted by the ECOWAS CET to other goods. The IAT applies to a list of 
product categories grouped under 97 tariff lines. It ranges between 5 -60% (Table 3.4). The 
highes t rate of the IAT is charged on cereals ( 60%). The tariff analysis is inclusive of the IAT . 
Table 3.4 Import adjustment tax (IAT) list  
HS2 Description  No of TLs  
(at the 10 - 
digit level)  IAT 
simple 
average 
(%) Range 
(%) 
 Total  97 27.0 5-60 
10 Cereals  4 40.0 20-60 
11 Wheat or meslin flour  1 50.0 50.0 
22 Beverages, spirits and vinegar  14 35.0 35.0 
24 Tobacco and manufactured tobacco substitutes  4 35.0 35.0 
25 Portland cement  2 35.0 30-40 
39 Plastics and ar ticles thereof  1 5.0 5.0 
48 Paper and paperboard; registers, account books, note 
books, order books  1 5.0 5.0 
52 Cotton  4 25.0 25.0 
72 Iron and steel  12 10.0 10.0 
73 Articles of iron or steel  3 20.0 20.0 
85 Electrical machinery and equipment and parts  8 25.0 15-35 
87 Vehicles other than railway or tramway rolling stock, and 
parts and accessories  43 28.3 5-50 
Source:  WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).  
3.1.5.2   Supplementary protection tax (SPT)  
3.29.   The Supple mentary protection tax (SPT) is designed to protect a local product in the event 
of an increase of at least 25% in the average (over the last three years for which data are 
available) value of imports of the product into the territory of an ECOWAS member S tate. The SPT 
can also be applied if, in any given month, the average c.i.f. import price (in national currency) of 
a product falls below 80% of the average c.i.f. import price of the good over the last three years 
for which data are available. The tax may  be imposed for a maximum period of one or two years 
depending on the case. Based on import prices, the SPT resembles  a safeguard measure. Nigeria 
does not currently apply the SPT.  
3.1.5.3   Other border taxes  
3.30.   Nigeria also applies to imports: a port development levy  of 7% of the duties payable (tariff); 
an ECOWAS community levy of 0.5%10; a Comprehensive Import Supervision Scheme Charge of 
1% on the f.o.b. value of imports; a statistical tax of 1%; a national automotive council levy of 
15% on new imported vehicles and  used vehicles, and of 5% on tyres; and a special levy of 15% 
on imports of Portland Cement.11  
3.1.5.4   Internal taxes  
3.31.   The value added tax (VAT) was introduced in 1993, replacing the old sales tax. The VAT is 
applied at a flat rate of 5% to all taxable goods and se rvices, including imported goods.12 VAT is 
calculated on the duty -inclusive c.i.f. value of imports, and on the sales price of domestically 
                                                
10 The levy is imposed on goods from non -ECOWAS member States and is used to financ e the activities 
of the ECOWAS Commission and Community institutions.  
11 European Commission online information, "Trade Barriers: Nigeria". Viewed at: 
http://madb.europa.eu/madb/barriers_d etails.htm?barrier_id=105346&version=4 . 
12 It is reported that recoverable input is limited to VAT on goods imported directly for resale and goods 
that form the stock -in-trade used for the direct production of any new product on which the output VAT is 
charged. WT/TPR/S/356 • Nigeria  
 
- 43 - 
 
  produced goods. Exports are zero -rated. VAT proceeds are distributed to the federal, state and 
local governments in s hares  of 35%, 40% and 25% respectively. More than three quarters of VAT 
revenues were collected from domestically produced goods and services, while some 20% of VAT 
revenues were generated from collection on imported products (Table 3.5).  
Table 3.5 VAT collection, by source, 2010 -15 
(N billion)  
 2010  2011  2012  2013  2014  2015  
Total tax revenue  2,839.4  4,628.5  5,007.7  4,805.6  4,714.6  3,741.8  
VAT collection  564.9  659.2  710.6  802.7  803.0  767.3  
   Domestic supply  436.6  492.1  546.0  629.7  616.9  597.4  
   Imports  128.3  167.1  164.6  173.0  186.1  169.9  
Source:    Information provided by the authorities.  
3.32.   In 1997, the Federal Inland Revenue Service (FIRS) issued a circular listing goods and 
services that are exempted from VAT (Table A3.3).  These include, among others, basic food items 
produced within the country, books and educational materials, agricultural equipment, plant and 
machinery for use in the Export Free Z ones, and all medical and pharmaceutical products and 
services. Excise duties are applied on eleven categories of goods. The duty is applied at 5% on 
perfumes and cosmetics, non -alcoholic beverages and fruit juices, soaps and detergents, spaghetti 
and noodles, telephone recharge cards, corrugated paper and paper board, and toilet paper and 
cleansing tissues. It is applied at a rate of 20% on cigarettes and tobacco and alcoholic 
beverages.13 Customs collect s VAT and excise duties at the border.  
3.1.6   Import prohibitions, restrictions, and licensing  
3.33.   According to Nigeria's legislation, import prohibitions may be applied to protect domestic 
industries; to reduce balance -of-payments deficits; and on moral or safety grounds. Nigeria has 
two lists of prohibited goods: the "Import Prohibition List by Trade" and the "Absolute Impo rt 
Prohibition List". Items included or removed from either list are notified through government 
notices and decrees. A waiver to import or re -export items on the prohibition list s may be granted 
by the President upon the recommendation of the Minister of Finance.  
3.34.   Since Nigeria's last review in 2011, the number of products on  the "Import Prohibition List 
by Trade"  has been gradually reduced from 44 to 23 . However , some  product groups have been 
added to the list more recently : cane or beet sugar and chemica lly pure sucrose; rethreaded and 
used pneumatic tyres; used motor vehicles ; and farmed fish  (Table A3.4).14 The goods on the 
absolute import prohibition list have remained unchanged since 2011. This list has been primarily 
maintained on moral or safety grou nds (Table A3.5).15 According to the authorities, the "Import 
Prohibition List by Trade" is not applied to ECOWAS countries.  
3.35.   In order to combat smuggling, Nigeria prohibits the imports of specified goods (rice since 
2013 and vehicles since 2016) through la nd borders. Moreover, to encourage local production for 
certain products, importers of 41 categories of items have been  banned from access to foreign 
exchange by the Central Bank of Nigeria since August 2015 (Table A3.6) . 
3.36.   Nigeria grants tariff reductions o n specified quantities of imports of selected products (rice, 
sugar, cement and frozen fish). To benefit from the reductions, local producers of these goods 
have to meet certain criteria. The scheme operates like a tariff quota system but further 
informati on on it is not available.  
3.37.   Nigeria abolished its general import licensing system in 1986. Based on its last notification 
to the WTO in 2012, Nigeria does not maintain any general import licensing requirements.16 
However, import permits may be required to im port goods  that are on the import prohibition list 
                                                
13 Nigeria Customs online information. Viewed at: 
https://www.customs.gov.ng/Guidelines/Excise/index.php . 
14 Import Prohibition List. Nigeria Customs Service. Viewed at: 
https://www.customs.gov.ng/ProhibitionList/import.php  [29/09/2016].  
15 Absolute Import Prohibition List. Nigeria Customs Service. Viewed at: 
https://www.customs.gov.ng/ProhibitionList/import_2.php  [29/09/2016].  
16 WTO document G/LIC/N/3/NGA/7, 17 January 2012.  WT/TPR/S/356 • Nigeria  
 
- 44 - 
 
  by trade granted by the President , on the export prohibition list for re -export , or that  originate 
from ECOWAS . Established assemblers and manufacturers are given approval to bring in 
completely knocked down (CKD) components for assembly in Nigeria. An approval letter is 
required  for import permits. Import permits are required to import bagged cement and frozen fish.  
3.1.7   Anti-dumping, countervailing, and safeguard measures  
3.38.   Nigeria has not imposed any anti -dump ing or countervailing duties since its last review in 
2011.  Nigeria's law covering contingency measures is outdated. Under the Customs Duties 
(Dumped and Subsidies Goods) Act 1958, a special duty may be imposed on any goods deemed to 
be dumped by companies  or subsidized by any Government or authority outside Nigeria. Goods 
are considered to have been dumped if the export price is lower than the "fair market price". The 
provisions of this Act may be invoked if there is a threat of material injury to potentia l or 
established industries in Nigeria, and if the imposition of a special duty does not conflict with 
Nigeria's international agreements.  
3.39.   Nigeria does not have legislation on safeguard measures. No safeguard measures have been 
officially taken by Nigeria  during the period under review. However, based on reference prices, the 
Supplementary Protection Tax (SPT) is allowed under ECOWAS and it  resembles  a safeguard duty. 
However, Nigeria does not currently apply the SPT.  
3.1.8   Other measures  
3.40.   Nigeria maintains coun tertrade arrangements and buy -back schemes that are used to 
conserve foreign exchange earnings. Under these policies, companies and individuals are 
encouraged to undertake industrial projects that involve  sourcing machinery and equipment from 
overseas supp liers, through such arrangements, on a medium - and long -term basis. However, 
countertrade arrangements and buy -back schemes are not permitted for the importation of 
consumer goods. Neither policy has been used during the period under review.  
3.2  Measures Direc tly Affecting Exports  
3.2.1   Export procedures and requirements  
3.41.   All exporters must be registered with the Nigerian Export Promotion Council (NEPC) and 
incorporated or registered in Nigeria. For registration, exporters are required to submit a 
completed applicatio n form, a copy of the certificate of incorporation, form CAC 7, and the 
memorandum and articles of association.17 The registration process takes two days from 
submission of all the required documents.18 Exporters need to renew their registration every two 
years, submitting a current company tax clearance certificate, evidence of export performance 
within the previous two years, and a certified copy of form CAC 7.   
3.42.   Exporters are required to complete and register an export proceeds (NXP) form with an 
authorize d dealer (commercial or merchant bank) of their choice. The NXP form is completed in six 
copies. The processing bank retains the first copy and the second copy is sent to the Central Bank 
of Nigeria (CBN). After extraction of relevant information, the same  copy is forwarded to the 
National Maritime Authority (NMA). The third, fourth, fifth and sixth copies are sent to Customs.  
After shipment of the goods and necessary endorsements by Customs, the copies are sent to the 
CBN, the NEPC , and the exporter , while a copy is retained by Customs.19 
3.43.   The NXP aims to, inter alia , ensure that all export proceeds be repatriated into the 
exporter's non -oil domiciliary account, maintained with the processing bank, within 180 days of 
shipment. A currency retention scheme all ows exporters to retain 100% of their foreign exchange 
earnings in their non -oil domiciliary accounts.  
                                                
17 For co -operative societies, evidence of registration is required in place of certificate of incorporation.   
18 The cost  of the application form is N1,000 and the registration fee is N10,000. Renewals and 
replacements cost N5,000 and N10,000 respectively.  
19 Nigeria Customs Service online information, "Notice to Exporters". Viewed at: 
https://www.customs.gov.ng/Stakeholders/notice_exporters.php . WT/TPR/S/356 • Nigeria  
 
- 45 - 
 
  3.44.   Other export documents include (where applicable):  a pro  forma invoice; a sales contract; 
an NEPC registration certificate; relevant sanitary and phytosa nitary certificates; shipping 
documents; and other completed forms as required by the importing country.  
3.2.2   Export taxes, charges, and levies  
3.45.   According to Nigeria's export amendment decree of 1992, and to encourage value addition, 
all raw materials or unproce ssed commodities, whether agricultural or mineral, are subject to an 
export levy as prescribed by the NEPC. As a result, exports of unprocessed cocoa beans are 
subject to a US$5 per tonne levy and exports of other raw materials to a levy of US$3 per tonne.  
Revenue from these levies is primarily used for servicing Nigeria's financial obligations to the 
international commodity organizations to which it is a signatory . The levies are collected by the 
Central Bank of Nigeria on behalf of the Ministry of Agricul ture and the Export Commodities 
Coordinating Committee.   
3.46.   The Nigerian authorities levy a charge of 0.5% on non -oil exports under the National Export 
Supervision Scheme; 75% of the revenue goes to a pre -shipment inspection company for every 
product that is  being exported and the remaining 25% is retained by the Secretariat which 
monitors the export process and it is a unit within the Central Bank of Nigeria.   
3.2.3   Export prohibitions, restrictions, and licensing  
3.47.   According to its Export Prohibition Act of 1989, Nigeria prohibits particular goods from being 
exported for purposes of domestic food security, value -added considerations, preservation of 
cultural heritage, and protection of the environment and wildlife. The list of goods has not changed 
during the perio d under review and include s: maize, timber (rough or sawn), raw hides and skin 
(including wet blue and all unfinished leather), scrap metals, unprocessed rubber latex and rubber 
lumps, artefacts and antiquities, and wildlife animals classified as endangere d species and their 
products.20 Licences are required to export petroleum products.  
3.2.4   Export support and promotion  
3.48.   The Nigerian Export Promotion Council is responsible for promoting non -oil exports by 
encouraging Nigerian exporters to increase their export volume, broaden export product and 
market coverage , and diversify the productive base of the economy. Under the Export Act 
(Incentives and Miscellaneous Provisions) of 1992, as amended in 2004, the Export Expansion 
Grant (EEG) Scheme provides cash incentiv es for exporters based on the export value of their 
products.  
3.49.   To benefit from the scheme, the intended beneficiary must be: registered with the 
Corporate Affairs Commission (CAC); a registered exporter with the Nigerian Export Promotion 
Council (NEPC); a m anufacturer/producer or merchant of products of Nigerian origin for the export 
market (i.e. the products must be made in Nigeria); and the export proceeds must be repatriated 
into a domiciliary account in Nigeria and confirmed by the Central Bank of Nigeri a.   
3.50.   Applications for the EEG are assessed on "weighted eligibility criteria" (based on data 
provided by individual applicant companies ): local value added (20%); local content (20%); 
employment of Nigerian nationals (20%); priority sector (10%); export gr owth (25%); and capital 
investment growth (5%). The maximum EEG rates for different product categories are: finished 
goods, 30%; semi -finished goods, 15%; and primary goods, 15%; while the minimum rates are 
15%, 5%, and 5% respectively.  
3.2.5   Export processing zones (EPZs)  
3.51.   The Nigerian Export Processing Zones Authority (NEPZA) is a Federal Government Agency 
under the supervision of the Federal Ministry of Industry, Trade and Investment, and was 
established under the Nigeria Export Processing Zones Act 63, of 199 2. The Agency is responsible 
for promoting and facilitating local and international investments into licensed export processing 
                                                
20 Nigeria Customs Service, Export Prohibition List. Viewed at: 
https://www.customs.gov.n g/ProhibitionList/export.php  [27/10/2016].  WT/TPR/S/356 • Nigeria  
 
- 46 - 
 
  zones (EPZs) in Nigeria. EPZs were set up to strategically improve Nigeria's investment climate by 
stimulating export -oriented b usiness activities through strengthen ed strategic national economic 
policies, streamlin ed administrative approval processes and a one -stop-shop service for interested 
businesses.  
3.52.   NEPZA administers the incentives for EPZs which can be operated by the publi c or private 
sector or a combination of both. Incentives provided to companies located in EPZs include: tax 
holiday from all federal, state and local government taxes, and levies; duty free and VAT 
exemptions on the importation of capital goods, machinery/ components, spare parts, raw 
materials and consumable items into the zones; 100% foreign ownership of investments; waiver of 
all import and export licences; waiver on all expatriate quotas; one -stop approvals for permits, 
operating licences and incorporati on papers; permission to sell 25% of goods into the domestic 
market; and rent -free land during the first 6 months of construction (for government -owned 
zones).  
3.53.   An investor interested in setting up an enterprise in  one of  Nigeria' s EPZs is required to 
compl ete and submit an investor 's application form along with the required documents such as 
four copies of feasibility studies, four copies of an environment impact assessment (EIA), a 
marketing strategy, sources of funding as well as a five -year financial pro jection plan.   
3.54.   There are 34 EPZs spread across Nigeria. Some cater for specific economic activities while 
others are more general in nature. As at December 2015, there are 399 licensed enterprises 
operating in the various EPZs in Nigeria which directly em ploy around 12,000 people. In 2015, the 
total value of FDI was US$200 billion and the value  of exports was US$145 million. Goods sold on 
the domestic market accounted for N73 million.  
3.2.6   Export finance, insurance, and guarantees  
3.55.   The Nigerian Export -Import Ba nk was established by Act 38 of 1991 as Nigeria' s Export 
Credit Agency (ECA) with a share capital of N50 billion. The Bank is equally owned by the Central 
Bank of Nigeria (CBN) and the Federal Ministry of Finance Incorporated (MOFI).  
3.56.   The Bank has the broa d mandate of diversifying the Nigerian economy and developing the 
external sector through the provision of : export credit facilities in both local and foreign currencies, 
risk-bearing facilities (Export Credit Guarantee and Export Credit Insurance ), and business 
development and financial advisory services. The major sectors of participation are  the 
manufacturing, agriculture, solid minerals and services sectors. The Bank 's products and services 
can be accessed by an exporter either directly or through the deposit money banks (DMBs) at 
concessionary rates. NEXIM is also National Guarantor under the ECOWAS Inter -State Road Transit 
programme.  
3.57.   In order to benefit from the services of NEXIM, the exporter must be a duly registered 
Nigerian company and also be registered with the Nigerian Export Promotion Council (NEPC) as an 
exporter. The proportion to be financed depends on the type of facility/product: for pre -shipment, 
up to 75% of the value of the export; for post -shipment, up to 85% of the value of the export;  for 
rediscounting and refinancing of export bills , up to 100% of the invoice value; and for project -
related financing, up to 100% of the invoice value of the equipment provided it does not exceed  
80% of the total project cost. NEXIM charges up to a maximu m rate of 2% for guarantee fees and 
1% for management fees for its guarantee facility.  
3.3  Measures Affecting Production and Trade  
3.3.1   Taxation and incentives  
3.3.1.1   Taxation  
3.58.   Under the Taxes and Levies Decree of 1998, taxation in Nigeria is enforced by the  three 
tiers of  the Government, i.e. the federal, state, and local government s. Each tier of the 
Government has its sphere of taxation. At the federal level, in addition to import tariffs and export 
levies, the Federal Government may collect companies income tax, withhol ding tax on WT/TPR/S/356 • Nigeria  
 
- 47 - 
 
  companies21, petroleum profit s tax, value  added tax, capital gains tax, stamp duties, education 
tax, and some personal income tax.22 Under the Ministry of Finance, the Federal Inland Revenue 
Service (FIRS) is the agency that handl es all federal t ax issues.23 
3.59.   The companies income tax is payable for each year of assessable profits of any company 
(outside the oil and gas sector)24 at a rate of 30%. The taxation base includes profits accruing in, 
derived from, brought into or received from trade, busine ss or investment. Nigerian resident 
companies are required to pay tax on their worldwide income; non -resident companies are taxed 
on the proportion of their income earned in Nigeria.25  
3.60.   Companies active in the oil and gas sector (including construction and consulting companies 
providing services to oil companies) are subject to the petroleum profits tax, under the Petroleum 
Profits Tax Act (a separate tax law regulating tax on companies income in the oil and gas sector). 
The taxable income of a petroleum com pany comprises proceeds from the sale of oil and related 
substances used by the company in its own refineries plus any other income of the company 
incidental to and arising from its petroleum operations.  
3.61.   For resident companies in the upstream sector of th e oil and gas industry, the taxable 
income is subject to the rate of 85%, but this rate is lowered to 65.75% during the first five years 
of operation. Oil companies operat ing under production sharing contracts are liable to a tax rate of 
50%. The petroleum  profits tax rate for companies in the downstream sector is 30%, while it is 
applied at a rate of 45% to liquefied natural gas (LNG) projects . A petroleum profits tax of 20% is 
applied to the assessable income of non -resident companies engaged in the oil a nd gas sector.  
3.62.   A capital gains tax is imposed on all gains accruing to a taxpayer from the sale or lease or 
other transfer of proprietary rights in a chargeable asset. Such chargeable assets may be corporeal 
or incorporeal, regardless of whether such an as set is situated in Nigeria or not.26 Computation of 
capital gains tax is done by deducting the sum received or receivable from the cost of acquisition 
to the person realizing the chargeable gain plus expenditure incurred on the improvement or 
expenses incid ental to the realization of the asset.  
3.63.   Generally, company dividends or other company distribution whether or not of a capital 
nature are liable to the capital gains tax. However corporate securities are exempted from the tax. 
Dividends paid in the form of bonus share s or scrip shares to individual shareholders are not 
subject to the tax; also , where a company is a shareholder in another company then such 
dividends are excluded from the profits of the company for the purposes of computation of the tax. 
The capital gains tax is applied at a rate of 10%  to companies and to Abuja residents only.  
3.64.   As stipulated in Nigerian laws27, certain activities and services are subject to a withholding 
tax. This basically means that where , during transactions in any of the spe cified activities or 
services, a payment is due from one person to another, the person making the payment is 
expected to deduct tax at the applicable rate and remit it to the relevant tax authority (Table 3.6). 
The withholding tax is applied to individuals  and companies, irrespective of being resident or not.  
                                                
21 Withholding tax on individuals is collected by the states.  
22 The Federal Government collects personal income tax in respect of armed forces personnel, police 
personnel, residents of Abuja FCT, external affairs  officers, and non -residents. Other personal income taxes 
such as PAYE are collected by state governments.  
23 Nigerian Federal Inland Revenue Service (FIRS) online information. Viewed at: 
http://www.firs.gov.ng/ .  
24 The Companies Income Tax is applied at a rate of 30% to gas production and gas transmission and 
distribution companies. See Nigeria Investment Promotion Commission online information, "Investment 
Incentives". Viewed at: http://www.nipc.gov.ng/index.php/invest -in-nigeria/investment -incentives.html .  
25 Companies are deemed to be resident companies if they are registered or incorporated in Nigeria.  
26 Similar to the spi rit of the companies income tax, where the taxpayer is a non -resident company or 
individual, the tax will only be levied on the amount received or brought into Nigeria.  
27 Legal provisions are found in Sections 68 to 72 of the Personal Income Tax Decree No.  104 of 1993; 
Sections 60 to 64 of the Company Income Tax Act (as amended); and Section 51(a) of the Petroleum Profits 
Tax Act (as amended).  WT/TPR/S/356 • Nigeria  
 
- 48 - 
 
  Table 3.6 Rates of withholding tax, 2016  
Activities/services  Corporate body rate  
(%) Individual rate  
(%) 
Dividends  10 10 
Royalties  10 10 
Interest  10 10 
Director fees  10 10 
Rent (including hire of equipment)  10 10 
All aspect s of building construction and related activities  5 5 
All aspect s of contract activities or agency arrangements 
including contract for supply  5 5 
Management services  10 5 
Consult ancy and professional fee s 10 5 
Technical services  10 5 
Commission  10 10 
Source:  Information provided by the Nigerian authorities .  
3.65.   An education tax at a rate of 2% of assessable profits is imposed on all companies 
incorporated in Nigeria. This tax is v iewed as a social obligation placed on all companies to ensure 
that they contribute to the development of educational facilities in the country.  
3.66.   Every employee of a Nigerian incorporated company is required to contribute a certain 
percentage of their sala ry to the Nigerian Social Investment Trust Fund. The rates of contributions 
are defined as: 2.5% of the salary (subject to a maximum of N1,200 per annum) of an employee, 
and 5% of the basic salary of an employer.28 Expatriates are excluded from this require ment 
provided that they show proof of a similar contribution in their home country.  
3.67.   A number of transactions are subject to stamp duties; the duties are collected by the state 
and federal authorities, depending on the transaction/administrative service.29 Indeed,  stamp 
duties are regarded as transaction taxes, and the rates chargeable would depend on the 
classification of the document. Some documents attract specific stamp duties while ad valorem  
rates apply to others.  
3.3.1.2   Tax incentives  
3.68.   Nigeria notified to the  WTO that, over the period 2007 -08, it d id not maintain any subsid ies 
under the meaning of Article 2 of the Agreement on Subsidies and Countervailing Measures.30 
3.69.   Pursuant to the Industrial Development (Income Tax Relief) Act, Nigeria provides companies 
income tax holidays  to "pioneer status" companies investing in specified industrial activities. The 
tax holiday is for three years and may be extended for up to another two years upon satisfaction 
of specified conditions. To qualify, a joint venture company or  a wholly foreign -owned company 
must have a minimum share capital of N10 million and have incurred a capital expenditure of not 
less than N5 million.31 An application for pioneer status must be submitted within one year of the 
commencement  of commercial pro duction. Currently, there are 71 approved industries/activities 
with "pioneer status" in which companies may be engaged to benefit from the tax holiday.  
3.70.   Some concessions are granted to petroleum companies known as capital allowance and 
petroleum investment  allowance. The capital allowance is deducted when calculating  the taxable 
income and covers  expenditure on equipment  and pipelines, and storage facilities, as well as 
buildings and drilling costs, these being referred to as qualifying assets. The applicab le rate of 
capital allowance for any year is 20% of the cost of the qualifying assets applied on a straight -line 
basis for the first four years and 19% for the fifth year.32 The petroleum investment allowance is 
                                                
28 This contribution is based on the assumption that the maximum basic salary in Nigeria is N48,000 per 
annum.  
29 These transactions include: incorporation of companies, increase in companies authorized share 
capital, mortgage bonds, debenture and dealing in securities, settlement of estates and conveyance of 
property.  
30 WTO document G/SCM/N/186/NGA, 12 November 2009.  
31 For "indigenous company", the threshold is N150,000.  
32 For any accounting period, the tax on the company should not be less than 15% of the tax which 
would have been assessable, had no capital allowances been granted to the company.  WT/TPR/S/356 • Nigeria  
 
- 49 - 
 
  regarded as an addition to capital allowance,  and covers new investments in assets for petroleum 
exploration. It is available in the accounting period in which the assets are first used.  
3.71.   Nigeria also offers concessions on companies income tax to promote local raw materials 
utilization, local value ad ded, and local manufacturing. A 20% tax credit is accorded for five years 
to firms in certain sectors, subject to minimum local raw materials utili zation in their production 
(Table 3.7). A 10% tax concession for five years is granted essentially to enginee ring industries 
that use imported parts and components as inputs; the concession is aimed at encouraging local 
fabrication rather than the mere assembly of completely knocked down parts. Furthermore, any 
taxpayer who purchases locally manufactured plant an d machinery and equipment is similarly 
entitled to a 15% investment tax credit on such fixed assets bought for business use.  
Table 3.7 Minimum levels of local raw materials for tax concession purposes, 2016  
Industrial sector  Minimum level of local materials  
Agro-allied 70% 
Engineering  60% 
Chemical  60% 
Petrochemical  70% 
Source:  Nigerian Investment Promotion Commission online information. Viewed at: 
http://www.nipc.gov.ng/index.php/invest -in-nigeria/investment -incentives.html .  
3.72.   Nigeria provides a number of export incentives (see Section 3.2. 4).  
3.73.   Tax incentives are accorded to activities that address structural issue s such as infrastructure 
development. For instance, a company may enjoy a once-and-for-all deduction of 20% of the cost  
of the activity  from tax, if it provides basic infrastructure such as roads, water, and electricity 
where they do not exist. For researc h and development (R&D), there is an incentive of 120% tax 
deductible expenses provided the R&D is carried out in Nigeria; and 140% for R&D on local raw 
materials . 
3.74.   Companies engaged in gas utili zation are entitled to a tax -fee period of up to five years an d 
tax-free dividends during the tax -free years. Also, companies engaged in gas utili zation enjoy a 
15% investment capital allowance; loan interest on gas projects may be tax deductible, subject to 
prior approval from the Federal Ministry of Finance.  
3.3.1.3   Non-tax incentives  
3.75.   Nigeria maintains an Agricultural Credit Guarantee Scheme Fund (ACGSF) managed by the 
Central Bank of Nigeria. ACGSF guarantees up to 75% of the amount of credits lent by banks for 
agricultural projects.33 Currently, the capital base for ACGSF is N3 billion.  
3.76.   In addition, ACGSF develop ed an Interest Drawback Programme (IDP) for farmers. The IDP 
aims at "reducing effective borrowing rates without the complication of introducing a dual interest 
rate regime or contradicting the existing deregulation  policy of the government".34 Under the IDP, 
farmers borrow from banks at market -determined rates and the IDP provide s interest rebate s to 
them where the loans are repaid as and when due.35 The IDP was established with a fund of 
N2 billion.  
3.77.   Nigeria also deve loped an Agricultural Credit Support Scheme (ACSS) and a Commercial 
Agriculture Credit Scheme (CACS), in partnership with participating banks. The schemes provide 
loans to farmers and agro -allied entrepreneurs, at capped interest rates of 8% and 9%, 
respec tively.  
                                                
33 The eligibility of a gricultural projects for guarantees is set forth in the Guidelines for the Agricultural 
Credit Guarantee Scheme. Viewed at: 
https://www.cbn.gov.ng/out/Publicati ons/guidelines/dfd/1990/guidelines -acgsf.pdf . 
34 The Central Bank of Nigeria online information, "Interest Draw Back". Viewed at: 
https://www.cbn.gov.ng/devfin/idppage.asp .  
35 The eligibility and co nditions for interest drawback are set forth in the Guidelines for the Interest 
Drawback Programme. Viewed at: 
https://www.cbn.gov.ng/out/Publications/guidelines/df d/acgsfidpguideline.pdf .  WT/TPR/S/356 • Nigeria  
 
- 50 - 
 
  3.3.2   Trade -related investment measures (TRIMs)  
3.78.   Nigeria notified to the WTO that it does not have local content laws or regulations; however, 
"the Industrial Policy of Nigeria provides for incentives aimed at promoting the use of local raw 
materials".36 
3.79.   The Nigerian Oil and Gas Industry Content Development Act, enacted in April 2010, 
provides that first consideration shall be given to Nigerian operators, and to Nigerian goods and 
services, when awarding licences or contracts in the Nigerian oil and gas ind ustry.37 The Act 
provides a price preference of 10% for Nigerian bidders; the Act also provides a 1% preference for 
all bidders with Nigerian content that is at least 5% higher than the closest competitor.38 Some 
restrictions are maintained on workforce empl oyment including a cap on expatriate positions.39 In 
the last TPR of Nigeria in 2011, some Members expressed concern that the provision of the Act 
may not be consistent with the obligations under the WTO Agreement on Trade -Related 
Investment Measures.40 
3.80.   Nigeria also provides several tax incentives for utilization of local raw materials or for 
increasing local value added (Section 3.3.1.2).  
3.3.3   Standards, technical regulations and other requirements  
3.81.   During the period under review, the institutional framework for s tandards and technical 
requirements remained largely unchanged. The main piece of legislation is the Standards 
Organization of Nigeria Act, 2015; this Act repeals the old Standards Organization of Nigeria Act, 
2004. The new act provides additional function s for the Organization, and increases penalt ies for 
non-compliance. The enquiry point for technical barriers to trade (TBT) is the Standards 
Organization of Nigeria (SON); and the Federal Ministry of Industry, Trade and Investment is 
responsible for notifi cations to the WTO.  
3.82.   Nigeria submitted three notifications to the WTO in the period from January 2011 to 
November 2016 regarding its technical regulations and conformity assessment procedures.41 One 
of the notifications informed the WTO Members that Nigeria was developing its National Quality 
Policy (since December 2014), and it provided Members 60 days to comment on the draft policy. 
Nigeria notified two measures on conformity assessment that are applied to locally  produced and 
imported goods, respectively; the notified measures were already in force at the time of 
notification. Nigeria did not notify any measures with regard to standards during the review period.  
3.83.   Standards established by SON are called Nigerian Industrial Standards (NIS). All standards 
in Nigeria are mandatory, i.e. technical regulations. Products currently covered include chemicals, 
civil engineering, electrical engineering, mechanical engineering, processed food, and textile s and 
leather. All Nigerian technical regulations are available in  SON's library.42 According to SON, 222 
new standards have been established since January 2011, covering, inter alia,  chemical s, 
electric/electronic  goods , food, mechanical  products , textile s, building materials and civil  
engineering . 
3.84.   Nigerian industrial standards are established by consensus and approved by the Standards 
Council of SON. Eight Technical Groups support the Standards Directorate.43 At the national level, 
the Directorate coordinates the activities of the experts, relevant stakeholders and other interested 
parties on the  National Technical Committees that develop the Nigerian Industrial Standards  (NIS) . 
According to the authorities, when formulating an NIS, Nigeria will consider adoption or adaption 
of relevant international standards that already  exist. As of end November 2016, there were about 
                                                
36 WTO document G/TRIMS/N/1/NGA/1, 31 July 1996.  
37 Articles 3, 7, and 12, the Nigerian Oil and Gas Industry Content Development Act  of 2010.  
38 Articles 14 and 16, the Nigerian Oil and Gas Industry Content Development Act  of 2010.  
39 Articles 31(2) and 32, the Nigerian Oil and Gas Industry Content Development Act  of 2010.  
40 WTO document WT/TPR/M/247/Add.1, 29 August 2011.  
41 WTO documents G/TBT/N/NGA/2, G/TBT/N/NGA/3, and G/TBT/N/NGA/4, 14 December 2015 . 
42 Standards Organization of Ni geria (SON) digital library. Accessed at: 
http://demo.acesd.com.ng/[25/11/2016 ].  
43 These Technical Groups include: Electrical/Electronic Group, Food/Codex Group, Chemical Technology 
Group, Civil/Build ing Group, Service Standards Group, Mechanical/Metrology Group, Textile & Leather Group, 
and International Standards Group.  WT/TPR/S/356 • Nigeria  
 
- 51 - 
 
  1,300 Nigerian Industrial Standards and more than 13,000 international standards (including 41 
ECOWAS standards) in force in Nigeria.  
3.85.   All goods (locally produced or imported) subject to technical regulation s require conformity 
assessment and certification before they are placed on the market, under the Standards 
Organization of Nigeria Conformity Assessment Programme (SONCAP)44 for imported goods, and 
under the Mandatory Conformity Assessment Programme (MANCA P) for domestically produced 
goods.  
3.86.   Under SONCAP, all imported products are subject to pre -shipment certification. A SONCAP 
Certificate (SC) is a mandatory customs clearance document in Nigeria and imports that are not 
accompanied by an SC will be denied e ntry. Exporters of goods to Nigeria must supply their local 
SON country office with a valid test report and photographs of the product they wish to export to 
Nigeria.45 Four international accreditation firms (IAFs) operate the SONCAP on behalf of SON for 
certification.46 An SC is required per container/per product, and is valid for between six to twelve 
months. It is reported that the cost of a SONCAP procedure amount s to some US$600 per 
container/per product, and for mixed shipment (i.e. containing different  products) the cost will be 
multiplied accordingly.  
3.87.   Similarly, the Mandatory Conformity Assessment Programme (MANCAP) is applied to all 
locally  manufactured products.47 The MANCAP aims to ensure that all locally  manufactured 
products conform to the relevant  NIS before being presented for sale in Nigeria or exported. A 
MANCAP certificate is valid for three years after which the product must undergo recertification. 
The MANCAP logo is to be fixed on the smallest unit pack of the product before the good is 
introduced into the market for sale.  
3.88.   SON also operates a number of voluntary certification schemes, including the Voluntary 
Product Certification Scheme (NIS Mark of Quality), Nigerian Quality Award Scheme (NQA), and 
Product -Type Certification for Exports.   
3.89.   Nigeria accepts test reports and certifications from laboratories in other  countries as long as 
the laboratory is accredited to ISO 17025. However, the authorities noted that inspection, 
sampling, and re -testing (when necessary) must be done at the SON Lab oratory.  
3.90.   SON carries out enforcement operations through market surveillance and border inspections 
with Customs (for imports). SON may initiate market surveillance, or react to complaints. Products 
that are not compliant with NIS will be removed from marke ts, and/or are subject to rectification. 
SON publishes lists of products that have been  blacklisted/destroyed, rectified, and "downgraded" 
on its own website.48 SON states that its enforcement activities are financed through rectification 
handling fees/fine s.49  
3.91.   SON is a member of the International Organization for Standardization and the International 
Electrotechnical Commission. It is also affiliated to the British Standards Institute, The American 
National Standards  Institute , the Deutsches  Institute für N ormung , the Japan Industrial Standards 
Committee, the Korean Agency for Technology and Standards, the Standardization Administration 
of China, the Ghana Standards Board, the Bureau of Indian Standards, and the South African 
Bureau of Standards.   
3.92.   All produ cts circulated in the Nigerian market are required to bear a label indicating the 
name of the product, its country of origin, specifications, date of manufacture, batch or lot 
number, and the standard(s) to which it complies. The labelling must be in Engli sh, in addition to 
any other languages required, and metric units of measurement must be used. Pharmaceutical and 
chemical products must carry expiry dates and/or shelf life, and specify active ingredients, where 
                                                
44 WTO document G/TBT/N/NGA/4, 14 December 2015.  
45 Photographs need to show all relevant markings such as country of manufacture, etc . 
46 The four international accreditation firms are: China Certification and Inspection Group, Cotecna 
Inspection Limited SA, Société Générale de Surveillance (SGS) SA, and Intertek.  
47 WTO document G/TBT/N/NGA/3, 14 December 2015.  
48 SON online information , "Enforcement". Viewed at: http://son.gov.ng/enforcement/ .  
49 The fines and penalties are provided for in Section 28, the Standards Organization of Nigeria Act, 
2015.  WT/TPR/S/356 • Nigeria  
 
- 52 - 
 
  applicable, on their packaging. Information  on performance life and rating may be required on 
electrical appliances, depending on the product.  
3.93.   Food products must comply with specific labelling requirements from NAFDAC, such as:  
production batch number; net contents, including essential ingredient s in metric weights for solids, 
semi-solids, and aerosols, and metric volume for liquids; food colourings and additives ; and a 
best-before date. It is mandatory for all products that have been registered by NAFDAC to display 
a NAFDAC registration number (s ee below).  
3.3.4   Sanitary and phytosanitary measures  
3.94.   During the period under review, the institutional and legal framework concerning sanitary 
and phytosanitary (SPS) measures remained largely unchanged. The main legislation include s the 
Food and Drug Act ( CAP. F32 L.F.N. 2004) , the Food, Drugs and Related Products (Registration, 
etc.) Act ( CAP. F33 L.F.N. 2004) , the Animal Disease (Control) Act ( CAP. A17 L.F.N. 2004 ), and 
the Agriculture (Control of Importation) Act ( CAP. A13 L.F.N. 2004) .  
3.95.   The Federal Ministry of Industry, Trade and Investment is the notification authority for 
Nigeria to the WTO SPS Committee, and the national enquiry points are: for food safety issues, the 
National Agency for Food and Drug Administration and Control (NAFDAC); for animal health,  the 
Department of Veterinary & Pest Control Service (DVPCS) under the Federal Ministry of Agriculture 
and Rural Development (FMARD);50 and for plant health, the Nigeria Agricultural Quarantine 
Service (NAQS). Nigeria is a member of the World Organi sation f or Animal Health (OIE), Codex 
Alimentarius Commission (CAC), and a contracting party to the International Plant Protection 
Convention (IPPC).  
3.96.   Nigeria notified 17 regular SPS measures to the WTO in the period from 1 January 2011 to 
1 March 2017.51 Nigeria in dicated that 14 of the notified measures were based on international 
standards. All 17 notified measures were already in force prior to this review period and cover food 
safety (including food additives), pesticides, and food labelling. Nigeria has not not ified any 
emergency SPS measures to the WTO.  
3.97.   Pursuant to the National Agency for Food and Drug Administration and Control Act (CAP. N1 
L.F.N. 2004), NAFDAC regulates seven types of products (known as "regulated products"), namely, 
processed and semi -proces sed food, drugs, cosmetics, medical devices, packaged water, 
detergents , and chemicals. All "regulated products" must be registered with NAFDAC before they 
are manufactured, imported, exported, advertised, and circulated in the market. The registration 
process involves site inspection of facilities;52 assessment of food safety and quality; laboratory 
analysis, and radiation test ing, where applicable; the control of advertisement to ensure that 
claims are not exaggerated; and test ing of compliance with labell ing requirements. NAFDAC 
indicated that each registration must be specific to the individual product and individual operator 
(e.g. manufacturer, importer). A registration is valid for five years, renewable.  
3.98.   Imported "regulated products" are also subject to  NAFDAC registration requirements. 
Imported drugs, cosmetics, medical devices, and food products must be covered by a certificate of 
manufacture and free sale from the competent regulatory body in the exporting country, and 
authenticated by the Nigerian Em bassy in the country of origin53, prior to any importation. 
Furthermore, certain samples must be sent to NAFDAC's laboratories for testing, at least three 
months before the product arrives in Nigeria. NAFDAC applies Nigerian Industrial Standards as well 
as the CAC's food additive and contaminant regulations, and pesticide residue and mycotoxin 
standards, in its assessment of food safety. NAFDAC noted that imported "regulated products" are 
cleared at the point of entry.  
                                                
50 The Department of Livestock was the origi nal national enquiry point concerning SPS measures for 
animal health. The Department of Livestock was split into two entities in 2014, namely the Department of 
Veterinary & Pest Control Services and the  Department of Husbandry Services . The Department of V eterinary & 
Pest Control Services as sumes the role of  veterinary authority of Nigeria.  
51 WTO documents G/SPS/N/NGA/1 -17, all dated in September 2015.  
52 The cost of site inspection by NAFDAC officials is borne by the applicant for registration.  
53 If there i s no Nigerian embassy in the country of origin, any commonwealth country embassy in that 
country can do the authentication.  WT/TPR/S/356 • Nigeria  
 
- 53 - 
 
  3.99.   For exports of the "regulated products" , certificates from NAFDAC are also required. Export 
certificates are issued only if the manufacturer of the product maintains the requirements under 
"good manufacturing practice", and the product passes the NAFDAC's laboratory tests.   
3.100.   The Nigeria Agricult ural Quarantine Service (NAQS) is an agency under the Federal 
Ministry of Agriculture and Rural Development. It regulates enforcement of animal, fisheries and 
plant health measures in connection with imports and exports of agricultural products at the 
borders, with a view to minimizing the risk to agriculture, food safety and the environment. NAQS 
publishes, on its website, a list of products subject to NAQS controls.54 According to NAQS, this list 
is based on the result of risk analysis and will be revised periodically. NAQS operates a "single 
window" to electronically process documentation requirements (e.g. permit applications and 
issuance) and arrangements for border inspection of consignments.  
3.101.   Under the Animal Diseases (Control) Act, the importation of a nimals, animal products, 
hatching eggs, poultries, biologics, and infectious agent s is prohibited unless a permit is granted 
from DVPCS. Importers must apply to DVPCS for an International Veterinary Certificate (i.e. an 
import permit) for each batch of imp orts. For imports of live animals (including poultr y) and animal 
products (including meat), a sanitary certificate from the veterinary authorities of exporting 
countries is a prerequisite document for application for an import permit. According to the 
authorities, Nigeria's sanitary requirements, standards and guidelines are based on the provisions 
of the OIE Terrestrial Anima l Health Code. Moreover, an import risk assessment is deemed 
necessary when higher standards are required.  Once an import permit is g ranted, a copy of the 
permit will be forwarded to NAQS for enforcement at the borders.  
3.102.   The i mportation of meat , including beef, pork, mutton, and frozen chicken , remain s 
prohibited. In March 2016, a Member raised its concerns in the WTO SPS Committee over Nigeria's 
import restrictions on all types of refrigerated or frozen meat and foods containing meat. In 
response, Nigeria indicated that the measures were applied to protect health and life due to a lack 
of importers' capacity to cope with safety requireme nts, and that the measures were under 
review.55 
3.103.   No imports of aquatic products are allowed in the absence of a quarantine permit of entry 
from NAQS issued within 24 hours before departure from the country of origin. Upon arrival, the 
aquatic products are su bject to NAQS inspection and quarantine treatment for 14 days. Dependent 
on the quarantine observation and laboratory results, the imported aquatic products may be 
cleared from Customs or subject to quarantining extension.  
3.104.   The i mportation of plants, seeds , oil, artificial fertilizers and other similar products is 
subject to an import permit issued by NAQS. An export certificate from the exporting country is 
required for fresh plants and plant products as a prerequisite document for import permit 
applicatio n. The issuance of an import permit would depend on the risk level in the country of 
origin. A permit may not be issued if the plant type is prohibited or if the country of origin is 
known to be a high -risk area. An import permit is valid for a period of 1 2 months.  
3.105.   Nigeria prohibits imports of genetically modified products, except  for research purposes. 
However, it is reported that in May 2016 Nigeria's National Biosafety Management Agency issued a 
permit for the commercial release of genetically modified c otton, and a permit for the confined 
field trial of genetically modified maize.56 There are no provisions on food ingredients containing 
genetically modified organisms.  
                                                
54 Nigeria Agricultural Quarantine Service online information, "List of HS Codes controlled by NAQS". 
Viewed at: http://www.naqs.gov.ng/downloads/hscode.xls .  
55 WTO document G/SPS/R/82, 7 June 2016.  
56 Premium Times  news article, " Nigeria deploys genetically modified cotton, maize despite safety 
concerns" , 8 June 2016. Viewed at : http://www.premiumtimesng.com/news/headlines/204966 -nigeria -
deploys -genetically -modified -cotton -maize -despit e-safety -concerns.html .  WT/TPR/S/356 • Nigeria  
 
- 54 - 
 
  3.3.5   Competition policy and price controls  
3.3.5.1   Competition policy  
3.106.   Nigeria has no specific legisl ation on competition or anti -trust issues.  Since 2002, a 
competition bill has been under consideration by the National Assembly. In July 2016, it was 
reported that the National Assembly has identified the bill as one of its "priority bills for passage". 
The draft bill attempted to regulate "possible abuses of dominant positions by business, and anti -
competitive combines, and to establish the Federal Competition and Consumer Protection 
Commission". The authorities indicated that the bill is expected to be pa ssed in the National 
Assembly by the end of 2017.  
3.107.   The Investment and Securities Act of 1999 grants powers to the Securities and Exchange 
Commission as well as to the Federal High Court to review or deny approval of any corporate 
merger or acquisition that may restrain trade or create monopolies. Proposed mergers and 
acquisitions must also be reviewed by the Federal and Inland Revenue Service, which examines 
the tax implications or consequences of such transactions.  
3.3.5.2   Price controls  
3.108.   The authorities indicated that the Price Control Act of 1977 was abolished in 1986, and 
that there has been no price control mechanism since then. Nonetheless, prices are being 
regulated for, inter alia,  electricity, compulsory insurance, retailed refined petroleum, 
telecommunicati ons, and postal services (Section 4).  
3.3.6   State trading, state -owned enterprises, and privatization  
3.3.6.1   State trading enterprises  
3.109.   Nigeria notified to the WTO that it does not maintain any state trading enterprises within 
the meaning of the working definition cont ained in Paragraph 1 of the Understanding on the 
Interpretation of Article XVII of the GATT 1994.57 
3.3.6.2   State -owned enterprises and privatization  
3.110.   The legal framework for privatizing and divesting government shares in public sector 
enterprises (PSEs) was laid do wn in the Public Enterprises (Privatization and Commercialization) 
Act of 1999. It appears that the provision of the Act that allows the Government to retain a 40% 
stake in utilities, refineries, steel companies and fertilizer companies no longer applies.  
3.111.   During the period under review, privatization transactions were concentrated in the power 
sector. The authorities noted that all power generation companies have been privati zed – 16 out of 
19 companies were privatised in November 2013, two were privatised in 2014, and the last one in 
January 2015. Nigeria also privati zed Nigerian Telecommunications Ltd (NITEL) and its subsidiary, 
Nigerian Mobile Telecommunications Ltd (MTEL) in April 2015.  
3.112.   The strategies for partial privati zation in the finance sector for, inter alia , the Bank of 
Industry, the Bank of Agriculture, the Nigeria Commodity Exchange, and the Federal Mortgage 
Bank of Nigeria have been approved by the National Council of Privati zation. The work to 
implement these strategies is ongoing, though at a slow pace.  
3.113.   The Bureau of Public Enterprises (BPE) remains as the executing agency in the field of 
privati zation. According to the BPE, as of 9 February 2017, there were 110 enterprises that are 
fully or partially owned by the Federal Government of Nigeria . 
3.3.7   Government procurement  
3.114.   During the period under review, the institutional framework for government procurement 
remained largely unchanged. The l aw pertaining to government procurement is the Public 
                                                
57 WTO documents G/STR/N/13/NGA, 27 April 2011, and G/STR/N/14/NGA, 12 September 2012.  WT/TPR/S/356 • Nigeria  
 
- 55 - 
 
  Procurement Act of 2007. According to the authorities, the UNCITRAL model legal framework is 
applied in  Nigeria. Nigeria is neither a signatory nor an observer to the plurilateral Agreement on 
Government Procurement.  
3.115.   Under the Public Procurement Act, the National Council on Public Procurement (NCPP) and 
the Bure au of Public Procurement (BPP) are responsible for the procurement of any goods, services 
or works by the Federal Government of Nigeria as well as by any entity that derives at least 35% 
of the funds used for procurement from the Federation's share of the Consolidated Revenue 
Fund.58 The functions of the NCPP include reviewing, amending, and approving procurement 
thresholds; setting policy on public procurement; approving the appointment of the directors of 
the BPP; reviewing and approving the audited accoun ts of the BPP; and approving changes in the 
procurement process to adapt to the improvement in modern technology. The BPP serves as the 
secretariat for the NCPP.  
3.116.   The BPP publishes the thresholds for approval by the NCPP.59 The procurement method 
thresholds have not changed since the enactment of the Public Procurement Act (Table 3.8); any 
procurement of goods, services, or works  valued above N2.5 million must be through an open 
competitive bidding process.  
Table 3.8 Procurement methods and thresholds of application, 2016  
Procurement/ selection 
method and 
prequalification  Goods  Works  Non-consultant 
services  Consultant 
services  
International/ national 
competitive bidding  N100 million and 
above  N1 billion and 
above N100 million and 
above  n.a. 
National competitive bidding  N2.5 million and 
above but  less 
than N100 million  N2.5 million and 
above but  less 
than N1 billion  N2.5 million and 
above but less  
than N100 million  n.a. 
Shopping ( market survey)  Less than N2.5 
million  Less than N2.5 
million  Less than N2.5 
million  n.a. 
Single source/ direct 
contracting ( minor value 
procurements)  Less than N0.25 
million  Less than N0.25 
million  Less than N0.25 
million  Less than N0.25 
million  
Prequalification  N100 million and 
above N300 million and 
above  N100 million and 
above  n.a. 
Quality and cost based n.a. n.a. n.a. N25 million and 
above  
Consultant qualifications  n.a. n.a. n.a. Less than N25 
million  
Least cost n.a. n.a. n.a. Less than N25 
million  
n.a. Not applicable . 
Source : Information provided by the authorities.  
3.117.   The BPP issue s a "certificate of no objection" to procuring entities for contract award (Table 
3.9). The tender boards may approve and award a contract related to a procurement project that 
has obtained such a cer tificate without further review by the NCPP. The approval thresholds have 
not changed since the enactment of the Act.  
                                                
58 Six state governments have also implemented the Act.  
59 The Bureau of Public Procurement (BPP) online information, "Approval Threshold". Viewed  at: 
http://www.bpp.gov.ng/index.php?option=com_joomdoc&view=documents&path=Approved_Revised_Thres hol
ds_for_Service -Wide_Application.pdf&Itemid=724 .  WT/TPR/S/356 • Nigeria  
 
- 56 - 
 
  Table 3.9 Procurement approval thresholds, 2016  
Approving 
authority/" no 
objection" to 
awar d Goods  Works  Non- 
consultant 
services  Consult ant 
services  
BPP issues " no 
objection" to 
award/FEC 
approves  N100 million and 
above  N500 million and 
above  N100 million and 
above  N100 million and 
above  
Ministerial 
Tenders Board  
 N5 million and 
above but les s 
than N100 
million  N10 million and 
above but less 
than N500 
million N5 million and 
above but less 
than N100 
million  N5million and 
above but less 
than N100 million  
Parastatal Tenders 
Board  N2.5 million and 
above but less 
than N50 million  N5 million and 
above but less 
than  N250 
million  N2.5 million and 
above but less 
than N50 million  N2.5 million and 
above but less 
than N50 million  
Accounting 
Officer: 
Permanent  
Secretary  Less than N5 
million  Less than N10 
million  Less than N5 
million  Less than N5 
million  
Accounting 
Officer: Director 
General/CEO  Less than N2.5 
million  Less than   
N5 million  Less than N2.5 
million  Less than N2.5 
million  
Source:  Information provided by the authorities.  
3.118.   According to the latest available data from the authorities, in 2014, pr ocurement through 
competitive bidding (including selective tendering) overtook procurement by direct contracting, 
and accounted for the largest share of procurements in terms of contract number and contract 
values. In 2014, 278 out of 585 contracts (48%) w ere awarded through competitive bidding, up 
from 135 in 2013 (44%); in terms of value, around 50% of the contracts were awarded through 
competitive bidding, up from 29% in 2013 (Table 3.10).  
Table 3.10 Contrac t awards, by procurement method, 2013 -14 
 Contract number  Contract value ( N million)  
Procurement method  2013  2014  2013  2014  
International competitive bidding  41 36 33,189 619,058 
National competitive bidding  45 116 301,421 781,434 
Selective tendering  49 126 152,840 1,131,771 
Direct contracting  141 245 1,149,498 2,511,012 
Repeat procurement  28 57 40,582 46,585 
Emergency procurement  4 5 10,182 7,788 
Total 308 585 1,687,712 5,097,647 
Source:  Information provided by the authorities.  
3.119.   The Public Procurem ent Act provides preferences to domestic suppliers when evaluating 
tenders under international competitive bidding.60 However, the Act stipulates that where a 
procuring entity intends to allow domestic preferences, the bidding documents must clearly 
indicat e the preferences to be granted and the information required to establish the eligibility of a 
bid for such preferences. The BPP must periodically set the limits and the formulae for the 
preference margin computation.  
3.120.   In case of a dispute, the bidder may apply for an administrative review in the first instance 
to the accounting officer61 in the procuring entity. If the accounting officer fails to reach a mutually 
                                                
60 Section 34, the Public Procurement Act of 2007.  
61 The Accounting Officer in procurement is the person charged with line supervision of the conduct of all 
procurement processes, ensuring compliance wit h the provision of the Public Procurement Act by the entity. 
See Section 20, the Public Procurement Act.  WT/TPR/S/356 • Nigeria  
 
- 57 - 
 
  satisfactory decision, the bidder may apply to the BPP for a review. Final recourse is to the F ederal 
High Court. According to the latest available data, there were 194 petitions (i.e. requests for 
review) received in 2014, up from 167 petitions in 2012; among the 194 petitions in 2014, 165 
petitions were related to bidding evaluation or contract aw ards. In 2014, there were 138 dispute 
cases settled, among which there were 41 rulings in favour of the procuring entity, 31 in favour of  
the bidders, and 13 cases where the procuring entity was  order ed to re-procure  (Table 3.11).  
Table 3.11 Results of closed dispute cases related to public procurement, 2013 -14 
Ruling  2013  2014  
In favour of petitioner  53 31 
In favour of procuring entity  74 41 
In favour of third party  7 16 
Wrong administrative procedure  19 37 
Re-procure  0 13 
Total 153 138 
Source:  Information provided by the authorities . 
3.121.   Under the Act, a tender can be excluded from the bidding process: if a supplier, contractor 
or consultant has given or pledged any monetary benefit to an employee in the pr ocurement entity 
so as to influence the procurement decision; where the supplier, contractor or consultant has 
reneged or failed to complete adequately any public procurement contract over the three years 
preceding the start of the current procurement proc eedings; where the bidder is in receivership or 
is the subject of any insolvency proceedings; where the bidder is in arrears with respect to tax, 
pension or social insurance payments; or where the bidder has been convicted of a crime 
committed in connectio n with procurement proceedings.  
3.122.   The BPP maintains a Whistle Blowing Policy which will enable all stakeholders, contractors, 
civil society and the general public to report any observed and verifiable incidents of fraud, 
corruption, collusion and coercion i n any government financed contracts.62 The BPP has no powers 
to prosecute. Offenders are referred to the Attorney General of the Federation for prosecution.  
3.3.8   Intellectual property rights  
3.123.   The institutional and legal framework for intellectual property rights (IPRs) in Nigeria 
remained largely unchanged during the period under review. Protected IPRs include patents, 
designs, trademarks, and copyrights.63 Most of Nigeria's intellectual property laws date back to 
before 1995; all Nigerian IPRs legislation was notified to the WTO in 2001.64 On 16 January 2017, 
Nigeria notified the WTO of its acceptance of the Protocol Amending the TRIPS Agreement.65 
3.124.   Nigeria is a member of the World Intellectual Property Organization (WIPO)  and 
participat es in a number of WIPO -administ ered treaties as a contracting party (Table 3.12).  
Table 3.12 Memberships of intellectual property treaties, 2016  
Conventions/Treaties  Status  Date of effect  
Berne Convention for the Protection of Literary and  Artistic Works  In force  14/09/1993  
Paris Convention for the Protection of Industrial Property  In force  02/09/1963  
Universal Copyright Convention  In force  14/02/1962  
Patent Cooperation Treaty  In force  08/05/2005  
Patent Law Treaty  In force  28/04/2005  
Rome Convention for the Protection of Performers, Producers of 
Phonograms and Broadcasting Organizations  In force  29/10/1993  
Marrakesh VIP Treaty  Signed  28/06/2013  
WIPO Copyright Treaty  Signed  24/03/1997  
WIPO Performances and Phonograms Treaty  Signed  24/03/1997  
                                                
62 BPP online information, "Procurement Procedure Manual Final Version". Viewed at: 
http://www.bpp.gov.ng/index.php?option=com_joomdoc&view=documents&path=PROCUREMENT%20PROCED
URE%20MANUAL%20Final%20Version.doc&Itemid=781 .  
63 The World Intellectual Propert y Organization (WIPO) online information, "WIPO Lex: Nigeria". Viewed 
at: http://www.wipo.int/wipolex/en/profile.jsp?code=NG .   
64 WTO documents series IP/N/1/NGA, 6 November 2001.  
65 WTO doc ument, WT/Let/1235, 26 January 2017.  WT/TPR/S/356 • Nigeria  
 
- 58 - 
 
  Source:  The World Intellectual Property Organization (WIPO) online information . Viewed at: 
http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=128C ; and informa tion provided by 
the authorities.  
3.125.   Patent and design applications are filed, examined and granted by the Trademarks, 
Patents and Designs Registry. Patent applications must be made by Nigerian residents. Foreign 
technology transfer agreements that are effect ive in Nigeria are registered through the National 
Office for Technology Acquisition and Promotion (NOTAP). In Nigeria, applications for patent s are 
subject only to formal examination, i.e. if the formal requirements for filing the application are 
satisfie d, a patent will be granted. However, patents are not granted for inventions or innovations 
for private use, on a non -commercial scale, or for scientific research or teaching purposes; patents 
are not granted for plants or animal varieties or essentially b iological processes.  
3.126.   Under the Act, patents are granted for a period of 20 years, subject to payment of annual 
fees. If a patent is not utilized or if it is underutilized for four years since it was applied for, or 
three years since it was granted (whiche ver is later), a mandatory licence may be obtained from 
the courts to use the patent. The Act does not provide for opposition procedures. Rather, any 
interested person can request the Federal Court to invalidate a patent based on any of the grounds 
listed in the Act.66 
3.127.   A compulsory licence may be granted if: the patented invention is not being worked in 
Nigeria; the extent of the working does not meet the demand for the patented invention on 
reasonable terms; "working in Nigeria is being hampered by importat ion of the patented 
invention"; and/or the establishment or development of industrial or commercial activities in 
Nigeria is being hampered by a lack of working of the patented invention. A compulsory licence 
can also be granted where a later patent cannot  be worked without infringing an earlier issued 
patent.  
3.128.   The Patents and Designs Act also allows for the registration and protection of industrial 
designs. Under the Act, industrial designs are protected for an initial period of five years and may 
be renewe d for two additional five -year terms.  
3.129.   The Trade  Marks Act allows for registration of trademarks that meet the requirements of 
distinctiveness, for an initial period of seven years, renewable indefinitely subject to payment of a 
fee. The Act also permits th e registration of collective marks and certification marks. Additionally, 
as part of the goodwill of a business, a registered trademark may be transferred. Protection of 
services is not covered under the current regime. According to the authorities, geogra phic 
indications (GIs) are protected as certification marks.  
3.130.   A trademark may be deregistered after a five -year period of non -use. However, Section 32 
of the Trade  Marks Act provides protection to an invented word or invented words that become so 
well known  that their use in relation to other goods would be likely to be taken as indicating a 
connection in the course of trade between those goods and a person entitled to use the trademark 
in relation to the familiar goods; therefore famous trademarks are not s ubject to removal from the 
registry.  
3.131.   The Patents and Designs Act, as well as the Trade  Marks Act, are administered by the 
Commercial Law Department, under the Federal Ministry of Industry, Trade and Investment. There 
are no provisions on protection of comm ercial secrets and undisclosed information.  
3.132.   The Copyright Act of 1988 (as amended in 1999) provides protection on literary, musical, 
artistic, cinematographic films, sound recordings and broadcasts.67 The Act grants exclusive rights 
for the production, repr oduction, translation, or publication of a work, public performance, or 
broadcast as well as the making of any cinematographic film s. In addition, exclusive rights are 
granted in connection with any adaptation or distribution for commercial purposes. "Mora l rights" 
                                                
66 These could include situations such as: the subject matter of the patent is not patentable (namely, it 
lacks novelty, inventive activity and/or industrial applicability); the description of the invention does not 
sufficiently cover it and/or the claims do not define the scope of protection or exceed the limits of the 
description; and/or a patent for the same invention has already been granted in Nigeria based on a prior 
application or an application entitled to an earl ier filing date.  
67 Computer programs and data compilation are protected as literary works.  WT/TPR/S/356 • Nigeria  
 
- 59 - 
 
  are not covered under the Act. Literary, musical and artistic works are protected for the duration 
of the author's life plus 70  years. Cinematographic works, photographs, sound recordings, and 
broadcasts are protected for 50  years from the end of  the year in which they were first released. 
As a signatory to the Universal Copyright Convention, Nigeria provides national treatment to all 
other signatories of the convention. The Copyright Act is administered by the Nigerian Copyright 
Commission, under  the Federal Ministry of Justice.  
3.133.   Intellectual property rights infringements and violations are dealt with under Nigeria's 
general law of civil procedure. Courts may award injunctions, damages (including recovery of 
profits), and destruction of infringing  goods (as well as materials and goods used for their 
production ), and seizure and confiscation of counterfeit goods. However, enforcement is a slow 
process, and most companies consider damages awarded to be too small to be an effective 
deterrent. At prese nt, most companies consider injunctions to be the most effective instrument 
against IPR infringements.  
3.134.   According to the authorities, Nigeria set up a Joint IPR Action Plan Committee  to combat 
IPR infringements. The Joint Committee is  comprised of represent atives from the Trademarks, 
Patents and Designs Registry, the Nigerian Copyright Commission, the National Office for 
Technology Acquisition and Promotion, NAFDAC, SON, Nigeria Immigration Service, Nigeria 
Customs Service, and the Police. For instance, in 2 015 the Nigerian Copyright Commission carried 
out 51 anti -piracy operations, and seized five containers of pirated goods such as books, CDs, and 
DVDs valued at about N1.6 trillion.  
 WT/TPR/S/356 • Nigeria  
 
- 60 - 
 
  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, Fishing and Forestry  
4.1.1   Agriculture  
4.1.1.1   Overview  
4.1.  Agriculture is crucial to the Nigerian economy due to , inter alia , its contribution to GDP , which 
was 21.2% in 2016.  Farming provides a livelihood to over 60% of the Nigerian population. The 
agricultural sector has been in decline over the past fo ur decades. However, since the last review 
in 2011, the Government has embarked on the Agricultural Transformation Agenda (ATA) and the 
Agricultural Promotion Policy (2016-2020)  to transform agriculture from a development -oriented to 
an agribusiness -focuse d sector based on integrated value chains.  
4.2.  Nigeria is the largest producer of cassava in the world and fourth largest for cocoa. After 
years of declining production, national food production grew by 21 million tonnes between 2011 
and 2014  and led to a sha rp reduction in food imports. In general, crop production accounts for 
85% of all agricultural production, with livestock, poultry, fisheries,  and forestry accounting for the 
rest. The staple crops include rice, cassava, yam, sorghum, millet, groundnuts an d palm oil 
(Table  4.1). 
4.3.  Agricultural production in Nigeria is primarily based on subsistence farming by smallholders 
using transitional rotational fallow fa rming with surplus production traded on local markets. The 
main cash crops, grown on larger farms , include cotton, cocoa, rubber and groundnuts.  
Table 4.1 Production of selected crops, 2009 -2014  
('000 tonnes)  
 
2009  2010  2011  2012  2013  2014  % of 2014  
world 
production  Growth 
rate p.a. 
(%)  
2009 -
2014  
Cashew n uts, with shell  800 864 814 839 867 894 24.1 2.3 
Cassava  36,822  42,533  46,190  50,950  47,407  54,832  20.4 8.3 
Cow peas, dry  2,372  3,368  1,644  5,146  4,631  2,138  38.3 -2.1 
Groundnuts, with shell  2,978  3,799  2,963  3,314  2,475  3,413  7.8 2.8 
Maize  7,358  7,677  8,878  8,695  8,423  10,791  1.0 8.0 
Millet  4,930  5,170  1,271  1,281  910 1,385  4.9 -22.4 
Oil, palm  1,233  971 930 940 880 910 1.6 -5.9 
Oil, palm fruit  8,500  8,000  8,000  8,100  8,000  7,962  2.9 -1.3 
Okra 1,050  1,084  844 1,999  1,886  2,040  21.2 14.2 
Onions, dry  1,300  1,346  1,238  900 802 985 1.1 -5.4 
Palm kernels  221 233 210 220 228 235 1.5 1.2 
Pineapples  1,000  1,487  1,482  1,433  1,442  1,465  5.8 7.9 
Plantains  2,700  2,676  2,699  2,977  2,983  3,040  9.9 2.4 
Potatoes  1,000  1,004  1,071  1,098  1,142  1,185  0.3 3.5 
Rice, paddy  3,546  4,473  4,613  5,433  4,823  6,734  0.9 13.7 
Sorghum  5,279  7,141  5,690  5,837  5,300  6,741  9.8 5.0 
Sugar cane  1,402  820 794 1,039  1,045  1,057  0.1 -5.5 
Sweet potatoes  3,300  3,385  3,531  3,604  3,690  3,775  3.5 2.7 
Taro (cocoyam)  3,033  2,957  3,012  3,200 2,933  3,273  32.4 1.5 
Tomatoes  1,750  1,800  1,491  2,060  1,925  2,144  1.3 4.1 
Yams  29,092  37,328  33,134  32,319  35,618  45,004  66.1 9.1 
Source:   FAOStat.  Viewed at: http://www.fao.org/faostat/en/#da ta [Accessed March 2017] .  
 
 WT/TPR/S/356 • Nigeria  
 
- 61 - 
 
  Table 4.2 Key crops: national demand and supply (2016 estimate)  
 Demand (tonnes)  Supply (tonnes)  Observations  
Rice 6.3 million  2.3 million  Insufficient supply chain integration r emains 
an issue  
Wheat  4.7 million  0.06 million  Driven by demand for various types of wheat 
(white, hard, durum, etc. ) for bread, biscuits 
and semovita which are not found on the local 
market  
Maize/Corn  7.5 million  7.0 million  Limited imports required bu t can increase if  
demand for feed rises  
Soya beans  0.75 million  0.6 million  Animal feed is driving demand  
Chickens  200 million birds  140 million  Gap filled by illegal imports that enter the 
market at lower prices; gap also a moving 
target based on fas t food  demand   
Fish 2.7 million  0.8 million  A decrease in ocean catch and weakness in 
aquaculture yields due to the high cost of fish 
feed is a constraint on growth   
Milk/Dairy  2.0 million  0.6 million  Gap driven by insufficient milking cows and 
low yield s (15 -25 litres/day versus averages 
of 35-40 litres in NZ/US)  
Tomato  2.2 million  0.8 million  Actual production is 1.5 million tonnes with 
0.7 million tonnes (post -harvest) lost  
Yams  39 million  37 million  Limited shortages but supply expected to rise 
in the near future  
Oil palm 8.0 million  4.5 million  Refers to fresh fruit bunch (FFB) from which 
oil is extracted at a 10% -15% efficiency rate  
Cocoa  3.6 million  0.25 million  Demand is driven by global demand which will 
rise to 4.5 million by 2020  
Cotto n 0.7 million  0.2 million  Demand is for cotton seed and could rise to 
1.0-1.5 million tonnes subject to textile sector 
revival  
Sorghum  7.0 million  6.2 million  Demand will rise further if use as feed grows 
in 2016 -2020. Imports of malt extracts and 
glucos e syrup currently fill the gap, hence a 
commercial threat for Nigerian farmers  
Source:  Federal Ministry of Agriculture and Rural Development , Agricultural Promotion Policy . Viewed at: 
http://fmard.gov.ng/publications/downloads/2016 -nigeria -agric-sector -policy -roadmap_june -15-
2016_final/ . 
4.4.  Nigeria has 84 million hectares of arable land, with only 40% cultivated and just 10% 
optimized acco rding to the Federal Ministry of Agriculture and Rural Development (FMARD) 
(Table  4.2). Land in Nigeria is governed by the 1978 Land Use Act that gives the states control 
over land designated as urban, and local governments control over land considered as rural. 
Agricultural lands are available for 50 -year leasehold or for 99 -year freehold, regardless of the 
nationality of the investor. According to FAO, an occupancy certificate requires  completion of  14 
steps and takes six to nine months.  
4.5.  The livestock su bsector is smaller than the crop subsector in Nigeria. Livestock farming plays 
an important role that goes beyond providing meat and animal products, as animals also provide 
manure, fuel, transport, and farm energy. Livestock farming is also the most effic ient use of 
uncultivated land and animals can be fed on crop residues such as damaged fruit and grains as 
well as straw that would otherwise be wasted.  
4.6.  Livestock production grew by 5.4% in 2014, slightly lower than the 6% growth recorded in 
2013.  Poultry a nd beef production increased by 7.5% and 5.7% compared with their respective 
growth rates of 4.9% and 3.8% in 2013. The growth was enhanced by new investments in the 
subsector (Table 4.3).  WT/TPR/S/356 • Nigeria  
 
- 62 - 
 
  Table 4.3 Livestock production, 2009 -2014  
('000 tonnes)  
 2009  2010  2011  2012  2013  2014  
Eggs, hen, in shell  613 622 636 640 650 660 
Hides, cattle, fresh  51 50 59 60 62 .. 
Cattle meat  330 312 356 288 378 381 
Chicken meat  273 245 246 276 285 293 
Game meat  145 155 163 165 165 .. 
Goat meat  284 288 210 217 239 245 
Pig meat  226 234 243 249 254 262 
Sheep meat  149 171 172 123 136 139 
Whole fresh cow milk  472 519 563 566 570 585 
..  Not available.  
Source:  FAOStat. Viewed at: http://www.fao.org/faostat/en/#data  [Accessed March 2017].  
4.7.  Challenges to the growth of the agriculture sector persist despite  the new measures taken by 
the authorities in recent years. The challenges include a shortage of feedstock as inputs ; poorly 
mainta ined drainage systems; and poor transport networks which prevent timely transfer of 
goods .  
4.1.1.2   Trade in agriculture  
4.8.  Nigeria continues to be a net importer of agricultural goods. Its main exports are 
concentrated in a few commodities: cocoa beans and products thereof, sesame seeds, gum arabic, 
cigarettes, cut flowers , and cotton; these crops accounted for around 91% of total agricultural 
exports in 201 6.   
4.9.  Backed by high global commodity prices, exports of agricultural products continued to grow 
during the revi ew period, peaking  at around US$7,630 million in 2012, after which they declined to 
around US$1,402 million in 2015 and US$680 million in 2016. The main destination for Nigeria's 
exports of cocoa and its by -products is the E uropean Union , which accounts fo r 80% of Nigeria's 
exports (Table 4.4).   
Table 4.4 Exports of agricultural products, 2009 -2016a 
(US$ million)  
 2009  2010  2011  2012  2013  2014  2015  2016b 
Total exports of agricultural 
products  2,226  3,181  2,356  7,630  4,634  2,085  1,402  680 
     % of total exports (%)  4.5 3.7 1.9 5.3 5.1 2.0 2.8 2.0 
Major productsc 1,827  2,393  1,887  5,394  3,341  1,665  1,146  620 
     % of total agricultural exports  82.1 75.2 80.1 70.7 72.1 79.9 81.7 91.1 
HS 1801 Cocoa beans, who le or broken, 
raw or roasted  1,251  1,048  959 3,033  1,543  627 460 237 
HS 2402 Cigars, cheroots, cigarillos and 
cigarettes, of which:  97 170 174 272 170 138 106 123 
HS 240220 Cigarettes containing 
tobacco  96 170 173 252 163 138 105 123 
HS 1207 Other oil s eeds and oleaginous 
fruits, whether or not broken, of which:  195 641 390 498 867 557 363 102 
     HS 120740 Sesamum  seeds  194 638 388 495 843 554 360 101 
HS 1804 Cocoa butter, fat and oil  152 185 87 161 270 146 58 54 
HS 0801 Coconuts, Brazil nuts and 
cashew nuts  87 234 205 634 285 92 73 31 
HS 1902 Pasta, whether or not cooked 
or stuffed or otherwise prepared  8 28 13 21 55 42 40 25 
HS 2302 Bran, sharps and other 
residues  21 13 8 678 20 17 15 16 
HS 1208 Flours and meals of oil seeds 
or oleaginous fruits  0 0 0 0.2 1 0.1 0 15 
HS 2202 Waters, including mineral 
waters and aerated waters  2 25 8 8 32 12 5 10 WT/TPR/S/356 • Nigeria  
 
- 63 - 
 
   2009  2010  2011  2012  2013  2014  2015  2016b 
HS 0910 Ginger, saffron, turmeric, 
thyme, bay leaves, curry and other 
spices  14 49 42 88 98 33 26 8 
Note:  0 refers to zero. 
a WTO definition of agricul ture: HS Chapters 01 -24 less fish and fishery products (HS Chapter 3, 0508 
0511.91, 1504.10, 1504.20, 1603 -1605 and 2301.20) plus some selected products (HS 2905.43, 
2905.44, 2905.45, 3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 
5101-5103, 5201 -5203, 5301, and 5302).  
b Preliminary data.  
c According to the size of 2016 exports.  
Source:  WTO Secretariat calculations, b ased on UNSD's Comtrade database; and data provided by the 
Nigerian authorities.  
4.10.   Nigeria continues to depend on imports  to meet domestic demand for food, although the 
country's food import bill declined from US$18,897 million in 2011 to US$4,192  million in 201 6 
(Table 4.5). In 201 6, the share of agricultural imports fell to 12% of total imports from 29.5% in 
2011. Nigeria is a large importer of wheat which accounted for 27% of total agricultural imports in 
2016. Imports of rice have significantly declined since 2012, due to the frequent ban on imports 
imposed by the authorities.  Other imported agricultural goods of signific ance include cane sugar, 
milk in powder, malt extract and palm oil. Imports of wheat primarily come from the United 
States, milled rice from Thailand, raw cane sugar from Brazi l, and milk powder from the EU.  
Table 4.5 Imports of agricultural products, 2009 -2016a 
(US$ million)  
 2009  2010  2011  2012  2013  2014  2015  2016b 
Total imports of agricultural 
products  3,402  3,834  18,897  6,886  6,951  6,884  4,905  4,192  
     % of total imports  10.0 8.7 29.5 19.2 15.6 14.8 14.1 12.0 
Major productsc 2,566  2,471  9,637  5,575  3,500  5,429  3,755  3,178  
     % of total agricultural imports  
 75.4 64.4 51.0 81.0 50.3 78.9 76.6 75.8 
HS 1001 Wheat and meslin  1,108  840 3,476  1,491  1,295  1,740  1,270  1,134  
HS 1701 Cane or beet sugar and 
chemically pure sucrose  305 373 1,479  948 873 854 601 774 
HS 0402 Milk and cream, of which:  250 291 1,582  427 387 789 445 343 
HS 040221  Not containing added  
sugar or other sweetening matter  168 156 1,046  274 220 474 243 210 
HS 040210  In powder, granul es 
or other solid forms  47 97 232 91 117 215 109 86 
HS 1901 Malt extract  179 150 1,077  329 342 514 289 234 
HS 1511 Palm oil and its fractions, of 
which:  10 9 40 91 167 402 265 202 
     HS 151110  Crude oil  9 9 40 55 122 360 182 105 
HS 2106 Food prepara tions not 
elsewhere specified or included  101 109 77 75 121 102 100 144 
HS 2401 Unmanufactured tobacco; 
tobacco refuse  66 87 58 84 95 97 82 102 
HS 2207 Undenatured ethyl alcohol 
of an alcoholic strength by volume of 
80 % vol. or higher  40 79 88 128 114 131 128 102 
HS 1107 Malt, whether or not 
roasted  35 40 106 80 68 120 77 72 
HS 1006 Rice, of which:  472 495 1,653  1,920  38 679 498 71 
HS 100630 Semi -milled or wholly 
milled rice  355 404 1,552  1,466  29 657 492 70 
a WTO definition of agriculture (see above ). 
b Preliminary data.  
c According to the size of 2016 imports.  
Source:   WTO Secretariat calculations, based on UNSD 's Comtrade database; and data provided by the 
Nigerian authorities.  WT/TPR/S/356 • Nigeria  
 
- 64 - 
 
  4.1.1.3   Agricultural policy  
4.11.   The Federal Ministry of Agriculture and Rural Deve lopment (FMARD) is responsible for 
Nigeria's overall agricultural policy, including on veterinary matters. Nigeria' s agriculture sector 
has undergone major reforms since the last review. In 2011, the Government introduced the 
Agricultural Transformation Ag enda (ATA) (2011 -15) to overhaul agricultural productivity and 
output (Table 4.6). Its main objectives are (i) to increase agricultural and domestic food 
production and generate employment; (ii) to make Nigeria self -sufficient and increase production 
of five key crops: rice, cassava, sorghum, cocoa , and cotton; and (iii) to develop the agribusiness 
sector by building supply value chains.  
4.12.   To reach these objectives, several programmes were initiated under ATA  to help farmers . 
These include the Growth Enhance ment Support Scheme (GESS), the Staple Crop Processing 
Zones (SCPZs) and the Nigeria Incentive -Based Risk Sharing System (NIRSAL). NIRSAL  has 
reduced the risk s of banks ' lending to farmers by de -risking lending to the agricultural sector. 
Under GESS, input  costs to farmers , such as the cost of seeds and fertilizers , are subsidized. With 
the support of the Government, farmers enrolled in the programme receive a 50% subsidy on their 
inputs. The Government manages the distribution of inputs through an electron ic-wallet system. 
As at the end of 2014, there were 14 million farmers benefiting from this scheme.  
4.13.   The Staple Crop Processing Zones are regionally customized industrial parks that are 
designed to attract large -scale food processors and other industrial u sers of agricultural products 
to boost local value added. Currently , 14 sites  have been  selected across Nigeria for the first set of 
SCPZs , which are intended for the production and processing of priority agricultural products under 
the ATA, i.e. rice, sor ghum, cassava, livestock, fish , cocoa, cotton, maize, palm oi l, onions, 
soybean and tomato.  
Table 4.6 Nigeria's Agricultural Transformation Agenda: selected achievements (2011 -
2015)  
Value chain stage Illustrat ive achievements  
Input supply  Set-up of the Growth Enhancement Support Scheme (GE SS) to 
register smallholder farmers and provide targeted input subsidies 
(E-Wallet):  
 GESS database contains 10.5 million farmers  
 Targeted means -based subsidies provided to 12 to 14 million 
farmers between 2011  and 2014  
Farmers gained improved access to inputs, i.e. fertilizers and seeds.  
Financing  In partnership with the Central Bank and Bankers Committee, set up 
of NIRSAL credit guarantees;  
Revival and partial ₦15 billio n recapitalization of the Bank of 
Agriculture;  
Engagement with commercial banks to finance GES S and boost 
lending to agriculture from 1% to 6% of all formal credit by 2015;  
Creation of special funds to support farmers e.g. N10B Cassava Fund 
and FAFIN/KfW  Facility of US$35M.  
Infrastructure & logistics  Designation of staple crop processing zones;  
First site in Kogi for cassava production remains under development;  
Concession of federal warehouses and storage assets.  
Production  Introduction of new higher  yielding crop varieties e.g. cocoa  and rice 
(Faro 42 and 44);  
Domestic food production rose by an incremental 20.1 million tonnes:  
 Rice paddy production rose by an estimated 2.0 -2.5 million 
tonnes  
 Creation of a Federal Department of Agricultural Extens ion. 
Market access  Re-establishment of selected commodity marketing boards, e.g. 
Cocoa Marketing Corporation  
Others  Reforms of the Agricultural Research Network (ARCN)  
Source:  FMARD , Agricultural Promotion Policy . Viewed at: http://fmard.gov.ng/publications/downloads/2016 -
nigeria -agric-sector -policy -roadmap_june -15-2016_final/  
4.14.   In 2016, a new strategy was adopted – the Agriculture Promo tion Policy (APP) ( 2016-2020) 
– which builds on the ATA. The new strategy  focuses on four main goals: food security; import WT/TPR/S/356 • Nigeria  
 
- 65 - 
 
  substitution; job creation; and economic diversification.1 To achieve food security and boost export 
earnings  (through economic dive rsification) , the strategy focuses on expanding production for a 
number of crops (from 2016 -2018), including  rice, wheat, maize, soya beans and gum arabic. For 
export crops, the focus will be on cocoa, cassava, palm oil, sesame and gum arabic.   
4.15.   The Govern ment aims to increase its overall production of priority commodities (i.e. wheat, 
rice, cassava, and sugarcane) to reach 20 million tonnes. It also wishes to attain rice self -
sufficiency by 2017 and 50%  lower wheat imports by the end of 2017. To this end, several 
measures have been implemented : a tariff of 15% has been imposed on imports of wheat grain; a 
65% levy has been imposed on imports of wheat flour; and a policy has been introduced to require 
millers to fortify wheat flour with vitamin A. In additio n to being on the Import Prohibition List2, 
cassava is eligible for fiscal incentives aim ed at stimulating increased domestic production and 
processing of the crop. In 2012, the Government required bakeries to include 10% cassava flour in 
wheat flour for b read production; this was gradually increased to 40% by 2015. Bakeries were  
required  to have compl ied with the new requirements within 18 months of their introduction in July 
2013. Some fiscal incentives, such as duty -free imports of related equipment and machinery, were 
also introduced to make the policy attractive and easily attainable. Imports of rice were banned 
from 2012 to October 2015. Since 25 March 2016, rice imports through land borders have been 
banned. Furthermore, in August 2015, the Central Ba nk of Nigeria banned access to foreign 
exchange by importers of 41  categories of goods (including rice) (Section 3) . 
4.16.   On average, tariffs on agricultural products (WTO definition) were higher at 16.6% in 201 7 
than on other products ( 12.7%). Using the ISIC d efinition, the tariff rates on agricultural products 
averaged 11.9% in 2016. However, the level of nominal protection by tariff and other duties and 
charges ranges up to 70% in the case of cereals, alcoholic beverages and tobacco (Table A3.1).  
Value -added tax is also charged on a wide range of alcohol products upon entry, at a rate of 5% 
(Section 3 ). 
4.17.   In order to assist farmers, the Government has plans to set aside ₦40 billion 
(about  US$200  million) at an interest rate of 9% under its new Anchor Borrowers P rogram, which 
will be managed by the Central Bank of Nigeria. Under this program me, farmers would be given 
financial assistance through a bank loan . The loan  would be held in an account from which  
agricultural input suppliers will be paid directly for thei r supplies of, inter alia , seeds, fertilizers, 
and equipment to farmers.  
4.18.   Incentives available to the sector include:   
 Pioneer Status;  
 Tax relief for research & development;  
 A minimum local raw materials utilization tax credit of 20% for 5 years to indu stries 
that attain minimum levels of local materials sourcing and utilization (70% for agro -
allied businesses);  
 Imports of agricultural machinery and equipment are duty free (effective January 
2012);  
 Corporate tax rebates of 12% are available to bakers o n attainment of 40% cassava 
blend within a period of 18 months (effective March 2012);  
 Companies in the agro -allied business do not have their capital allowance restricted , 
and the payments of minimum tax by companies that make small or no profits do not 
apply to agro -allied business;  
                                                
1 Agriculture Promotion Policy (2016 -2020) . Viewed at: http://fmard.gov.ng/wp -
content/uploads/2016/03/2016 -Nigeria -Agric-Sector -Policy -Roadmap_June -15-2016_Final.pdf . 
2 Import Prohibition List.  Nigeria Customs Service.  Viewed at: 
https://www.customs.gov.ng/ProhibitionList/import.php  (29/09/2016).  
 WT/TPR/S/356 • Nigeria  
 
- 66 - 
 
   Agricultural Credit Guarantee Scheme Fund (ACGSF) administered by the Central Bank 
of Nigeria: up to 75% guarantee for all loans granted by commercial banks for 
agricultural production and processing; and  
 Interest Drawback Pr ogram Fund: 60% repayment of interest paid by those who 
borrow from banks for the purpose of cassava production and processing provided 
such borrowers repay their loans on schedule.  
4.1.2   Fishing  
4.19.   Nigeria has rich offshore waters between the 30 mile territorial l imit and the 200 mile 
Exclusive Economic Zone (EEZ). The country has coastal waters adjacent to its 853  km coastline, 
and a continental shelf varying in width between 2 and 12 miles off the coast from the western to 
the eastern borders; the huge river Nige r delta; and inland waters associated with the major 
rivers, Niger, Benue, etc., their tributaries and flood plains.  
4.20.   These resources together provide a basis for the long -established industrial and artisanal 
capture fisheries, and the more recent aquacultu re industry that is fast growing in content and 
output. In general, Nigerian fisheries can be divided into: marine capture (industrial and 
artisanal); inland capture (mainly artisanal); and aquaculture (commercial and subsistence). 
Freshwater and inshore c apture fishing is carried out by a large fleet of artisanal canoes, as well as 
by inshore shrimping vessels and inshore fishing vessels.  
4.21.   Throughout the 20 12-15 period, artisanal fishing brought in the greate st annual catch, 
along with aquaculture  (Table 4 .7). Aquaculture production takes place at all levels, from simple 
subsistence ponds with low productivity of about 2 kg/m2/year to intensive recirculation 
aquaculture systems and larger commercial farms with much higher productivity. In addition to 
shrimp s, the most commonly cultivated fish are tilapia, Clarias , and carp. Growth in the fishery 
subsector  is driven largely by fish farming, and the continued utilization and/or rehabilitation of 
fish cage structures and dam reservoirs across the country . Other  factors that contributed to 
growth were the decrease in losses and the high demand for catfish.3 
Table 4.7 Estimated output for fisheries, 2012 -15 
('000 tonnes)  
 2012  2013  2014  2015  
Artisanal      
 Coastal a nd brackish water  370,918  418,537  435,384  382,964  
 Inland rivers and lakes  297,836  326,393  324,444  311,903  
Aquaculture  253,898  278,706  313,231  316,727  
Industrial (trawlers)      
 Inshore fish  27,977  37,652  29,237  10,727  
 Inshore shrimp  17,654  22,219  20,715  4,737  
 EEZ 0 0 0 0 
Distant water  128,619  770,802  109,801  183,549  
Source:  Federal Ministry of Agriculture and Rural Development, Fisheries Department.  
4.22.   Nigeria is a net importer of fish and fish products (2% of total imports in 2016). Although 
expor ts increased overall in the 2009 -2016 period , reaching  a high of US$331 million in 2012, they 
dropped significantly over the 2013-2016 period to  US$62 million. Based on data provided to the 
WTO by the authorities, most exports are of frozen shrimp to EU co untries. Exports to the EU must 
be certified by the Federal Department of Fisheries. The Federal Department takes samples from 
each consignment for physical and laboratory analyses in the EU -certified laboratory in the Federal 
Department of Fisheries in La gos.  
                                                
3 Central Bank of Nigeria, Draft Annual Report 2015 , 
https://www.cbn.gov.ng/Out/2016/RSD/Central%20Bank%20of%20Nigeria%20Annual%20Economic%20Repo
rt%20 -%20Draft.pdf .  WT/TPR/S/356 • Nigeria  
 
- 67 - 
 
  Table 4.8 Trade in fish and fish products, 2009 -2016a 
(US$ million)  
 2009  2010  2011  2012  2013  2014  2015  2016b 
Imports  819 998 2,065  1,479  1,242  1,317  1,233  681 
% of total imports (%)  2.4 2.3 3.2 4.1 2.8 2.8 3.5 2.0 
HS 0303 Fish, frozen, excluding fish 
fillets and other fish meat  572 746 1,787  1,231  970 899 935 467 
HS 0305 Fish, dried, salted or in 
brine; smoked fish  172 165 145 182 174 197 154 137 
HS 0302 Fish, fresh or chilled, 
excluding fish fillet s and other fish 
meat 6 0.1 2 3 16 161 91 43 
HS 2301 Flours, meals and pellets, 
of meat or meat offal, of fish or of 
crustaceans  13 43 87 28 27 24 25 26 
HS 1604 Prepared or preserved fish; 
caviar and caviar substitutes 
prepared from fish eggs  19 24 19 26 14 21 11 4 
Exports  337 324 104 331 291 94 96 62 
% of total exports (%)  0.7 0.4 0.1 0.2 0.3 0.1 0.2 0.2 
HS 0306 Crustaceans  337 324 83 330 182 94 68 62 
HS 0303 Fish, frozen, excluding fish 
fillets and other fish meat  0.0 0.0 21 0 86 0 7 0 
Note:  0 refe rs to zero, 0.0 is greater than zero, but rounded to 0.0.  
a Fish and fish products refers to HS Chapter 3, 0508, 0511.91, 1504.10, 1504.20, 1603 -1605 and 
2301.20.  
b Preliminary data.  
Source:  WTO Secretariat calculations, based on UNSD 's Comtrade database; and data provided by the 
Nigerian authorities.  
4.23.   Imports of fish and fish products increased steadily from 2009 to 2015, reaching a peak of 
US$2,065 million in 2011 before falling back sharply (Table 4.8). In 2016, imports totalled 
US$681 million, almost hal f the amount of previous years. The main imports are "fish n.e.s., 
frozen, whole" (HS  0303) and smoked fish (HS 0305).  The simple average applied tariff on fish 
and fish products was 15.4% in 2017.  
4.24.   The Federal Government has exclusive responsibility for ma naging marine resources, and a 
shared responsibility with the states for the inland resources. The institutions involved include: the 
Federal Department of Fisheries (FDF), through the Fisheries Resources Monitoring Control and 
Surveillance (MCS) Unit; the Fish Quality Control and Assurance Service; the Fish Quarantine 
Service; the Lake and Lagoon Fisheries Management Unit; the Nigerian Navy; the National Agency 
for Food and Drug Administration and Control (NAFDAC); the Nigerian Ports Authority; the the 
Inland Water ways Department; and the Departments of Fisheries at state level.  
4.25.   The fisheries sector is regulated by the Exclusive Econo mic Zone Decree No. 28 of 1978; the 
Sea Fisheries Decree No. 71 of 1992; and the Sea Fisheries (Licensing) Regulations of 199 2 which 
regulate fishing licences. Nigeria's policy objective is to achieve self -sufficiency in fish production 
through the provision of appropriate infrastructure to enhance fish production and utili zation by 
the private sector. The strategies adopted inc lude a combination of management measures, mainly 
technical and input controls, and, to some extent, output controls and economic incentives.  
4.1.3   Forestry  
4.26.   Forestry was one of the most developed subsectors within the Nigerian economy from the 
1960s to the earl y 1970s. However, the oil surplus of the 1970s led to the exploitation of round  
logs for export until their ban in 1976. The over -exploitation of wood resources has impacted 
negatively on the development of the forest products industry. This coupled with the old age of 
equipment has resulted in the dwindling of Nigeria's forest industry.  WT/TPR/S/356 • Nigeria  
 
- 68 - 
 
  4.27.   There are five major wood industries in Nigeria:  the saw mill, wood -based panel, furniture, 
safety match and wood treatment industries. Forestry production increased by 4. 6% from 
195.6  million cubic metres in 2013  to 204.5  million cubic metres in 2014. The growth was due to 
increas ed government support to the subsector and efforts to create awareness of the dangers of 
deforestation in the country.4 However, the deforestatio n rate in Nigeria is about 3.5% annually, 
about 350,000 -400,000 hectares of forest land.5 
4.28.   Nigeria is a member of the African Timber Organization (ATO) and the International Tropical 
Timber Organization (ITTO). Tariffs on imports of wood and wood products v ary from 5 -20% with 
5% VAT on all tariff lines in HS chapter 44. An additional charge of 10% is applied to wooden 
boards, pallets, boxes, etc. to promote value -addition. Doors and their frames and thresholds (HS 
4418.20) are subjected to a nominal tariff p rotection of 55%. In 2009, Nigeria experienced a trade 
surplus in wood and wood products (HS 44), but afterwards a trade deficit (except in 2013). The 
main exports are densified wood (HS  4413)  and charcoal (HS 4402). Exports of timber 
(rough/sawn) are proh ibited.  
4.29.   The Federal Department of Forestry under the Federal Ministry of Environment is 
responsible for regulating the forestry sector in Nigeria. Its main objectives are to, inter alia , 
ensure that 25% of the total land area of Nigeria is brought under su stainably managed forest 
cover aimed at producing forest resources (flora and fauna) in perpetuity and fostering 
environmental stability; and to employ sound forest management principles and practices, and 
initiate appropriate forestry development programm es, policy and legislation in partnership with 
relevant stakeholders (national and international).6  
4.30.   The National Forestry Development Committee (NFDC) is the highest technical committee 
that acts in an advisory capacity to the G overnment on all forestry m atters in Nigeria. Membership 
comprises the Federal Director of Forestry as Chairman, States Directors of Forestry, the Executive 
Director of the Forestry Research Institute of Nigeria, the Conservator -General of the National 
Parks Service, and heads of Fo restry Departments in universities. The Forestry Association of 
Nigeria (an NGO) is also a member of the Committee.  
4.31.   A National Forest Policy was approved by the Federal Executive Council in June 2006 and 
ratified/endorsed by the National Economic Council (NEC) in October 2008 to be enforced by all 
states in Nigeria. The major thrust of the policy is geared towards poverty reduction, promotion of 
food security, and environmental and biodiversity conservation , in addition to sustainable 
production of wood an d non -wood products (non -timber forest products). The policy is also to be 
backed up by the enactment of the first ever national forest law. The draft National Forestry Act 
has been forwarded to the Federal Ministry of Justice for fine -tuning. The states a re encouraged to 
use these two forest management tools as models in reviewing their respective state forest policy 
and legislation.  
4.2  Mining and Energy  
4.2.1   Overview  
4.32.   Nigeria is the largest oil producer in Africa and sixth -largest in the world.7 The country holds  
the largest natural gas reserves on the continent, and was the world's fourth -largest exporter of 
liquefied natural gas (LNG) in 2015.8 Nigeria became a member of the Organization of the 
Petroleum Exporting Countries (OPEC) in 1971, more than a decade aft er oil production began in 
the oil -rich Bayelsa State (southern Nigeria) in the 1950s. The main source of Nigeria's oil and gas 
is the southern Niger Delta, the onshore waters and the shallow offshore  waters . 
                                                
4 Central Bank of Nigeria, Draft Annual Report 2015 . Viewed at:  
https://www.cbn.gov.ng/Out/2016/RSD/Central%20Bank%20of%20Nigeria%20Annual%20Economic%
20Report%20 -%20Draft.pdf . 
5 Vanguard , "Why Nigeria must invest heavily in the forest sector – Stakeholders", 9 February 20 16. 
Viewed at: http://www.vanguardngr.com/2016/02/why -nigeria -must-invest -heavily -in-the-forest -sector -
stakeholders/ . 
6 Federal Department  of Forestry online information. Viewed at: 
http://environment.gov.ng/index.php/about -moe/departments -agencies/technical -department/fdf .  
7 Nigerian  National Petroleum Corporation online information. Viewed at: 
http://nnpcgroup.com/NNPCBusiness/UpstreamVentures/OilProduction.aspx  (November 2016).  
8 BP, Statistical Re view of World Energy  – Excel workbook of historical data , 2015.   WT/TPR/S/356 • Nigeria  
 
- 69 - 
 
  4.33.   Nigeria's proven crude oil reserves have been s table since 2012 at around 37 billion barrels 
(Table 4 .9). Nigeria produces only high -value, low sulphur content, light crude oils. With a 
maximum crude oil production capacity of 2.5 million barrels per day (b bl/d), production has 
slowly declined since 20 11 from 1.9 million b bl/d to 1.7 million b bl/d in 2015. Although Nigeria is 
the leading oil producer in Africa, production is affected by sporadic supply disruptions, which have 
resulted in unplanned outages of up to 500,000 b bl/d. Moreover, oil theft lead s to pipeline damage 
that is often severe, causing loss of production, pollution, and forcing companies to shut down  
production. Aging infrastructure and poor maintenance have also resulted in oil spills.  
Table 4.9 Oil reserves, production and exports, 2011 -15 
 2011  2012  2013  2014  2015  
Proven crude oil reserves (billion bbl)  36,247  37,139  37,071  37,448  37,062  
Production ('000 bbl/d)  1,974.8  1,954.1  1,753.7  1,807.0  1,748.2  
Value of petroleum exports (million US$) 88,449  95,131  89,930  77,489  41,818  
Spot crude oil prices ($/bbl) (all crude)  113.65  114.21  111.95       101.35  54.41  
Source:  OPEC (2016), Annual Statistical Bulletin  2016. 
4.34.   Nigeria's economy is highly dependent on oil and natural gas. Since the last review, t he 
economy was benefiting from high oil prices: oil accounted for over 95% of exports  and 80% of 
government revenue and is the main source of foreign exchange. However, with the recent decline 
in oil prices9, Nigeria's economy has been significant ly affected with government revenues  from oil  
plummeting to about 7.8% of GDP in 2015.  
4.35.   According to the IMF, oil and natural gas export revenue of almost US$87 billion in 2014 
accounted for 58% of Nigeria's total government revenue. Nigeria has an Excess Crude Account 
and a Sovereign Wealth Fund which includes savings generated when oil revenues exceed 
budgeted revenues. However, those funds have declined from US$11 billion at the end of 2012 to 
US$2 billion at the end of 2014. Nigeria also held US$34.25 b illion in gross international reserves 
at the end of 2014.10 
4.36.   In 2015, Nigeria's crude oil exports fell by almost half from 2014 levels, primarily due to the 
decline in oil prices. Disaggregation of oil exports by region showed that Europe as a group 
maintai ned its position as the largest importer of Nigeria's crude oil with a share of 48.6% of the 
total, followed by Asia and the Far East  (24.9%); the Americas (15.5%); and African countries 
(10.9%). In value terms, crude oil exports to Europe declined by 11.6 % from US$5,510.9 billion in 
2013 to US$4,873.3 billion in 2 014. Within Europe as a group, t he Netherlands was the biggest 
importer accounting for 13.8% of total import s of Nigeria's crude, followed by Spain (10.1%), 
France (7.0%), Italy (4.6%), the United  Kingdom (4.2%), and Germany (2.0%) .  
4.2.2   Policy  
4.37.   According to the Constitution, the Federal Government owns all minerals, including crude oil 
and natural gas. Under the Petroleum Act of 1969 as amended, production licences may only be 
granted to Nigerian citiz ens. The Petroleum Profit and Tax Act of 2004 regulates the fiscal policy of 
the Nigerian oil and gas sector.  
4.38.   The Nigerian National Petroleum Corporation (NNPC) was created in 1977 to oversee the 
regulation of the country's oil and natural gas industry, w ith secondary responsibilities for 
upstream and downstream developments. The NNPC is divided into 12 strategic business units 
covering the entire spectrum of oil industry operations: exploration and production, gas 
development, refining, distribution, petr ochemicals, engineering, and commercial investments. The 
Department of Petroleum Resources, within the Ministry of Petroleum Resources, is another key 
regulator, focused on general compliance, leases and permits, and environmental standards.11 In 
                                                
9 Average crude oil prices have been on a downward trend since 2012, from US$114.21 per barrel to 
US$54.51 per barrel  in 2015. The fall in crude oil prices was attributed to its global overs upply, coupled with 
global slowdown of economic activities . 
10 International Monetary Fund,  Nigeria  – IMF Country Report No. 15/84 , March 2015, pages 28 -30. 
http://www.imf.org/external/ pubs/ft/scr/2014/cr14103.pdf .  
11 NNPC online information. Viewed at: http://nnpcgroup.com/AboutNNPC/CorporateInfo.aspx . WT/TPR/S/356 • Nigeria  
 
- 70 - 
 
  March 2016 , the NNPC was restructured into seven new divisions : the upstream, downstream, 
refining, gas and power, ventures, finance , and services groups.12  
4.39.   Nigeria's major oil and natural gas projects are conducted through either concessionary 
arrangements (royalty /joint ventures (JV)) or production -sharing contracts (PSCs) between 
international oil companies (IOCs) and the Nigerian National Petroleum Corporation (NNPC), where 
nationals (including NNPC) are majority shareholders. Projects under joint -ventures are pr imarily 
onshore shallow water projects. The rest of the projects are managed through PSCs. PSCs 
typically, but not always, regulate deep water projects and contain more attractive terms than 
joint-venture arrangements.  
4.40.   Under the royalty/JV system, the IOC  bids for the right to explore and produce oil and gas 
for a specified period. Once awarded the bid, the IOC funds all exploration, development and 
operations expenses to the extent of the working interest (equity in the licence). The Government, 
through N NPC, holds 55 -60% interest in JVs with IOCs. If exploration is successful and production 
is initiated, the IOC pays royalties, depreciates its assets and deducts its expenses against 
revenue. Company profits are taxed and the IOC receives a share of produc tion and can book 
reserves.  
4.41.   Under the PSCs arrangement, the IOC bids for the right to explore and produce oil and gas 
for a specified period as a contractor to the NNPC which owns the oil and gas. Once awarded the 
bid, the IOC funds all exploration, develo pment and operations expenses. Under the PSC, assets 
are installed by the IOC but owned by the State. The PSC defines four types of allocation of 
proceeds between the parties: (i) royalty oil (ii) cost oil (iii) tax oil, and (iv) profit oil. For risk 
sharing, the contractor may be more than one IOC, in which case they would have signed a joint 
agreement to regulate their working relationship. If exploration is successful and production is 
initiated, the IOC recovers its costs. After cost recovery and deduct ion of tax oil, profit oil is shared 
among the parties (IOC and NPPC ) according to  a predetermined split based on cumulative 
production. In Nigeria, IOC tax is paid on behalf of the IOC by NNPC through the tax oil. The IOC 
receives a share of production (c ost oil plus profit oil) and can book reserves.  
4.42.   According to the authorities, Nigeria operates one of the highest cost s of extraction among 
oil producing countries in the world, and it is therefore not sustainable in the long  run. As a result, 
in September  2016, the Federal Government developed the National Petroleum Fiscal Policy (NPFP) 
with the aim of establish ing a new fiscal framework to guide the planning and development of 
petroleum activities in a rational and sustainable manner for the socio -economi c development of 
Nigeria. The NPF P covers upstream, midstream and downstream  activities . According to the NPFP, 
both fiscal arrangements, i.e. the royalty/JV and PSC arrangements face several problems that the 
NPFP seeks to address and amend as part of ref orming the legal framework of the sector.  
4.43.   Since 2008, the authorities have started the process to enact new legislation to regulate the 
oil and gas sector. The Petroleum Industry Bill (PIB) was initially proposed with the aim of 
chang ing the organizationa l structure and fiscal terms governing the oil and natural gas industry. 
In December 2015, a new draft of the PIB was introduced, proposing that Nigeria's NNPC be split 
into a national oil company and a Nigeria Petroleum Assets Management Company. The draf t also 
proposed the creation of a Special Investigations Unit to curtail corruption.  
4.44.   IOCs are concerned that proposed changes to fiscal terms may make some projects 
commercially unviable, particularly deep water projects that involve greater capital spend ing. 
Some of the most contentious areas of the various PIB drafts include: the potential renegotiation 
of contracts with IOCs; changes in tax and royalty structures; deregulation of the downstream 
sector; restructuring of NNPC; a concentration of oversight  authority in the Minister of Petroleum 
Resources; and a mandatory contribution by IOCs of 10% of monthly net profits to the Petroleum 
Host Communities Fund. This regulatory uncertainty has resulted in fewer investments in new oil 
and natural gas projects,  and no licensing has occurred since 2007.13 
                                                
12 This Day , "President Approves NNPC’s Restructuring into Seven Units , 20 Companies", 9 March 2016.  
Viewed at: http://www.thisdaylive.com/index.php/2016/03/09/president -approves -nnpcs -restruct uring-into-
seven -units-20-companies/ . 
13 U.S. Energy Information Administration online information. Viewed at: 
https://www.eia.gov/beta/international/analysis.cfm?iso=NGA  [November  2016].  WT/TPR/S/356 • Nigeria  
 
- 71 - 
 
  4.45.   IOCs participating in onshore and shallow water oil projects in the Niger Delta region have 
been affected by the instability in the region. As a result, there has been a general trend for IOCs 
to sell their inter ests in marginal onshore and shallow water oil fields, mostly to Nigerian 
companies and smaller IOCs, and to focus their investments on deep water projects and onshore 
natural gas projects.14 
4.2.3   Petroleum products  
4.46.   Nigeria has four oil refineries : two in Port H arcourt , one in Warri and one in Kaduna, with a 
combined crude oil distillation capacity of 445,000 b bl/d. Despite holding Africa' s largest oil 
reserves, Nigeria imports almost all of its refined petroleum products largely due to low capacity 
utilization r ates and security problems at its refineries. The price of retailed refined petroleum is 
regulated in Nigeria.  
4.47.   In 2015, Nigeria consumed 266,000 b/d of petroleum products, slightly less than the  
275,000  bbl/d in 2014. The refineries operate below full capa city due to technical problems, fires, 
and sabotage, mainly on the crude oil pipelines feeding the refineries. The combined refinery 
utilization rate dropped to 14.4% in 2014 from 22% in 2013. As a result, the country had to  
import petroleum products (156, 000 b bl/d in 2014), even though its refinery capacity exceeds 
domestic demand. Three of the country's four facilities were closed for some time due to 
vandalism and maintenance work.  
4.48.   For several years, the Nigerian Government has planned the construction of new refineries, 
but the lack of financing and government policies on fuel subsidies have caused delays. A Nigerian 
company, the Dangote Group, plans to construct a 500,000 b bl/d refinery near Lagos. The cost 
estimates for the refinery have ranged from U S$9 billion to US$14 billion. Plans for the refinery 
complex include petrochemical and fertilizer plants. The Dangote Group expects the refinery to 
begin operations by late 2017. Once built, this refinery will be the largest in Africa.  
4.49.   One controversial co mponent of the draft PIB was a proposal to privatize the refining sector 
and to liberalize domestic fuel prices by removing subsidies. There was a proposal to the Federal 
Government to privatize the refining sector in late 2013, but the Federal Government did not 
approve it. The country's two main oil workers ' unions had threatened to go on strike if the 
refineries were sold.15 
4.50.   Despite being the largest oil producer in Africa and importing petroleum products, Nigeria 
still suffers from periodic fuel shortage s. The most severe fuel shortage crisis occurred in 2015 
because of a disagreement over payment between fuel importers and marketers and the Nigerian 
Government. Fuel importers ha d been accused of taking advantage of Nigeria's fuel subsidy 
programme and di verting some of the imported petroleum to neighbouring countries.  
4.51.   Nigeria's fuel subsidy programme ha d been surrounded by controversy, allegations of 
corruption and mismanagement while costing the Government billions of dollars. In 2011, fuel 
subsidies cos t the economy US$8 billion, accounting for 30% of the Government's expenditure, 
about 4% of GDP, and 118% of the capital budget.16  
4.52.   The drop in global crude oil prices in recent years allowed Nigeria to slowly phase out its 
contentious fuel subsidy programm e that it began reforming in early 2012. The subsidy was 
completely removed in May 2016 by a decision from the President of Nigeria. This overdue 
decision was taken on the grounds that fuel subsidies caused market distortions, encumbered 
investment in the downstream sector, supported economic inequalities (as rich fuel -importing 
companies were the main beneficiaries), and created a nebulous channel for fraud.  
                                                
14 U.S. Energy Information Administration online information. Viewed at: 
https://www.eia.gov/beta/international/analysis.cfm?iso=NGA  [November 2016].  
15 S&P Global Platts , "Nigerian government did not approve oil refineries privatization plan: report", 3 
January 2014. Viewed at:  http://www.platts.com/latest -news/oil/lagos/nigerian -government -did-not-approve -
oil-refineries -26590820 .   
16 Brookings Institution , "Removal of Fuel Subsidies in Nigeria: An Economic Necessity and a Political 
Dilemma ", 10 January 2012. Viewed at: https://www.brookings.edu/opinions/removal -of-fuel-subsidies -in-
nigeria -an-economic -necessity -and-a-political -dilemma/ .  WT/TPR/S/356 • Nigeria  
 
- 72 - 
 
  4.2.4   Natural gas 
4.53.   Nigeria has the ninth -largest proven gas reserves in the world. A significant amount o f 
Nigeria's gross natural gas production is flared (burned off) because some of Nigeria's oil fields 
lack the infrastructure needed to capture the natural gas produced with oil, known as associated 
gas. In 2014, Nigeria flared 9,687 million tonnes of its a ssociated gas production, or 12% of its 
gross production. Nigeria now ranks as the fifth -largest natural gas flaring country, down from the 
second position it held in 2011, accounting for 8% of the total amount flared globally in 2014 
(Table  4.10). 
Table 4.10 Natural gas production, 2011 -15 
(million standard m3) 
 2011  2012  2013  2014  2015  
Gross production  84,004.0  84,846.0  79,626.0  86,325.2  85,223.2  
Marketed production  41,323.0  42,571.0  38,411.0  43,841.6  45,14 8.1 
Flaring  14,270.0  13,182.0  12,112.0  10,736.8  9,687.3  
Reinjection  22,519.0  20,520.0  21,466.0  22,894.3  21,040.2  
Shrinkage  5,892.0  8,573.0  7,637.0  8,852.6  9,347.6  
Gas export  25,941.0  28,266.0  24,543.0  26,777.7  26,703.5  
Source:  OPEC , Annual Statistical  Bulletin 2016 . 
4.54.   The Nigerian Gas Company (NGC), a subsidiary of NNPC, has a monopoly on the supply of 
gas to the domestic market. It operates a 1,000 km gas gathering, transmission, and distribution 
pipeline network with a capacity of about 56.6 million m3 per day.17  
4.55.   Sporadic natural gas and oil supply disruptions in the onshore Niger Delta region have 
increased in recent years, highlighting the ongoing security and financial risks of operating in the 
volatile area. In 2008, the Government developed a Gas M aster Plan to promote investment in 
pipeline infrastructure and new gas -fired power plants to help reduce gas flaring and provide more 
gas to fuel much -needed electricity generation. However, progress is still limited because security 
risks in the Niger De lta have made it difficult for IOCs to construct infrastructure that would 
support gas commercialization.  
4.56.   Nigeria exports the vast majority of its natural gas in the form of liquefied natural gas 
(LNG), and a small amount is exported via the West African Gas Pipeline (WAGP) to nearby 
countries. The WAGP began commercial operations in 2011 and operates at about one -third of its 
capacity. It was closed during 2012 -2013 for repair.18 
4.57.   Nigeria exported about 26,777 million tonnes of LNG in 2014, accounting for a bout 8% of 
LNG traded globally and ranking Nigeria as the world's fourth -largest LNG exporter, behind Qatar, 
Malaysia, and Australia.19 Trade patterns for Nigerian LNG have changed over the past few years. 
Most notably, Nigeria's LNG exports to Europe have decreased significantly. In 2010, Europe 
imported about 67% of total Nigerian LNG exports, but that share dropped to 23% in 2014. 
Nigeria has increased its LNG exports to Asia, namely Japan, following the Fukushima nuclear 
incident in March 2011. Japan's i mports of Nigerian LNG were almost eight times the 2010 level in 
2014. Japan is the largest importer of Nigerian LNG and imported 26% of the total in 2014, 
followed by South Korea (17%). The United States no longer imports natural gas from Nigeria; 
primari ly as a result of growing US natural gas production.  
4.58.   Nigeria's facility on Bonny Island is its only operating LNG plant. Nigeria LNG Limited 
(NLNG) operates the facilities and its partners include NNPC (49%), Shell (25.6%), Total (15%), 
                                                
17 Nigerian Gas Company online informati on. Viewed at: 
http://nnpcgroup.com/NNPCBusiness/subsidiaries/NGC.aspx .  
18 The pipeline is operated by the West African Gas Pipeline Company Limited (WAPCo), which is owned 
by Chevron West African Gas Pipeline Limited (36.9%), NNPC (24.9%), Shell Overseas Holdings Limited 
(17.9%), Takoradi Power Company Limited (16.3%), Societe Togolaise de Gaz (2%), and Societe BenGaz S.A. 
(2%). 
19 OPEC , Annual Statistical Bulletin 2016 . WT/TPR/S/356 • Nigeria  
 
- 73 - 
 
  and Eni (10.4%). N LNG currently has six liquefaction trains with a production capacity of 22 million 
tonnes per year (1,056 Bcf/y) of LNG and 4 million tonnes per year (80,000 b bl/d) of liquefied 
petroleum gas. A seventh train is planned to increase the facility's LNG capac ity to more than 30 
million tonnes per year (1,440 Bcf/y).  
4.59.    Plans to expand production in LNG are in the process  of being developed . Brass LNG 
Limited, a consortium made up of NNPC, Total, and Eni, is developing the Brass LNG Liquefaction 
Complex. ConocoPh illips was a partner in the consortium but divested from the project in mid -
2014 and transferred its shareholder interest to the other members. The LNG facility is expected to 
have two liquefaction trains with a total capacity of 10 million tonnes per year  (480 Bcf/y). The 
project is in the early engineering phase.  
4.60.   Nigeria and Algeria have proposed plans to construct the Trans -Saharan Gas Pipeline 
(TSGP). The 2,500 -mile pipeline would carry natural gas from oil fields in Nigeria's Delta region to 
Algeria's  Beni Saf export terminal on the Mediterranean Sea and eventually supply natural gas to 
Europe. In 2009, NNPC signed a memorandum of understanding (MOU) with Sonatrach, the 
Algerian national oil company, to proceed with plans to develop the pipeline. Some national and 
international companies have shown interest in the project including Total and Gazprom. However, 
security concerns along the entire pipeline route, increasing costs, and ongoing regulatory and 
political uncertainty in Nigeria have continued to  delay this project.  
4.2.5   Solid minerals  
4.61.   Nigeria is richly endowed with a variety of solid minerals of various categories ranging from 
precious metals to various precious stones and industrial minerals. According to the Nigerian 
Extractive Industries and Transp arency Initiative (NEITI), there are about 40 different kinds of 
untapped solid minerals and precious metals in Nigerian soil yet to be exploited. Limestone 
reserves in the south -west amount to  about 380 million tonnes while iron ore reserves are 
estimated  at over one billion tonnes. The commercial value of solid minerals has been estimated to 
run into hundreds of trillions of dollars, with 70% of the untapped minerals in Northern Nigeria.  
4.62.   As at 2014, the contribution of solid minerals to the economy was 1 % but has the potential 
to increase to at least 5% by 2017 and 10% by 2020 according to the National Bureau of Statistics 
(NBS). The subsector is also capable of creating three million jobs directly and indirectly by the 
year 2017. The Ministry of Mines an d Steel Development identified seven minerals for strategic 
and priority development in its mining sector strategy : iron ore, coal, lead/zinc, bitumen, gold, 
limestone and barite.  
4.63.   Overall, aggregate production of solid minerals increased over the review pe riod. The 
development was attributed to increased production of some principal minerals, especially 
limestone , which reached 21.95 million tonnes in 2015, granite aggregates, laterite, clay, marble 
aggregate, stone aggregate, gold, coal, barites, lead -zinc, iron ore and cassiterite  (Table 4.11 ). 
Table 4.11 Production of solid minerals, 2011 -15 
Commodity  Units  2011  2012  2013  2014  2015  
Aluminium  Tonnes  20,926.98  27,228.17  5,738.53  829.74  700.18  
Gold Kilograms  .. 4.3 6.26 35.09  21.47  
Lead-zinc ore  '000 tonnes  13.53  3.53 15.37  34.91  13.56  
Niobium and tantalum 
concentrate  Niobium content, 
tonnes  125.79  3,233.33  328.05  425.92  571.89  
Steel Tonnes  1.5 1.85 2.0 2.5 2.3 
Tin Tin content, tonnes  436.63  846.05  841.633  381.92  881.30  
Coal Tonnes  48,523  64,348  40,359  385,897  121,952  
Limestone  Million tonnes  8.28 17.66  23.48  26.46  21.95  
Barites  Tonnes  4,988  16,292  18,960  7,113  3,322  
.. Not available.  
Source:   Ministry of Mines and Steel Development . 
4.64.   The Ministry of Min es and Steel Development oversees the industry's activities related to 
mining and metallurgical industries. The administration is carried out by the Mines Inspectorate WT/TPR/S/356 • Nigeria  
 
- 74 - 
 
  Department; Artisanal and Small -Scale Mining Department; and the Mines, Environment and 
Compliance ; and the Mining Cadastral Office.  
4.65.   In 2011, the Federal Government introduced the Nigerian Minerals and Mining Regulation 
(NMMR) to streamline procedures for granting licenc es to investors (both local and foreign) in the 
form of mining titles. T he regulation provided for the transfer of mining titles, subject to the 
approval of the Minister; and for the right to search for, or exploit minerals in Nigeria. Mining titles 
are issued on a first-come-first-served and use-it-or-lose-it basis, and are obtained through the 
Mining Cadastral Office. The different mining titles for investment in Nigeria are:  
 A reconnaissance permit is needed for a preliminary investigation and gives the holder 
the non -exclusive right to enter or traverse land and to take su rface samples. The 
permit is valid for one year, renewable annually. A permit cannot be given for land 
that is already the subject of an exploratory licence, mining lease or water use permit . 
 An exploration licence gives the holder the exclusive right to c arry out a detailed 
exploration of the area (up to 200 km2) subject to the licence. The licence is valid for 
three years, which may be renewed a maximum of two times  for periods of two years 
each. 
 A mining lease may cover a maximum area of 50 km2. It can o nly be granted to the 
holder of the exploration licence or small -scale mining lease covering that area. A 
mining lease is valid for 25 years, renewable every 24 years . 
 A small -scale mining lease applies to areas between 5 acres and 3 km2 and is valid for 
five years, renewable for further periods of five years. Other conditions may be 
imposed by the Artisanal and Small -Scale Mining Department of the Ministry .  
 A quarry lease applies to material obtained by quarrying, such as marble, limestone, 
grave, gypsum,  etc. A quarry lease applies to an area of up to 5 km2 for periods of up 
to five years (renewable).  
 A water use permit is valid for as long as the title granted is.  
4.66.   Mining titles are granted to individuals, companies and co -operatives. Applications for a 
reconnaissance permit and exploration licence are processed within 30 days of receipt of the 
application and fee payment by the Mining Cadastral Office. For small -scale mining lease s, mining 
leases and quarry lease s the process  takes  45 days.  
4.67.   Licences can b e granted through competitive bidding or individual request. Under 
competitive bidding, mineral locations are consolidated into blocks by the Government and such 
blocks are offered for sale to both local and foreign investors who have financial and technic al 
capacities to undertake mining activities, especially for coal. The competitive bidding process 
includes advertisement in the media; due diligence process using  data room; receipt of expression 
of interest (EOI); and preferred investor selection.  
4.68.   The s ector's legislation guarantees the following: security of tenure through mining leases;  
transparent procedures for granting access to mining titles on a first -come -first-serve d, use-it-or-
lose-it basis by the Ministry of Mines and Steel Development; intern ationally competitive mining 
incentives; and comprehensive geoscience data on mineral deposits and their locations in Nigeria.  
4.69.    Foreigners are only authorized to start and carry on a mining business through limited 
liability companies as per section 54 of the Companies and Allied Matters Act (CAMA). The NIPC 
Act No. 16 of 1995 allows for 100% ownership of investment while the Foreign Exchange 
Miscellaneous Act 17 of 1995 guarantees 100% repatriation of capital, profits and dividends. All 
mining companies ar e required under the Minerals and Mining Act of 2007 to sign a Community 
Development Agreement with their host communities so that operating companies also benefit 
them as part of their corporate social responsibility.  
4.70.   Other mining incentives include: def erred royalty payments; capital allowances of up to 
95% of qualifying capital expenditure; exemption from customs and import duties for plant, WT/TPR/S/356 • Nigeria  
 
- 75 - 
 
  machinery and equipment for mining and metallurgical operations; three to five years ' tax holiday 
as applicable; possible capitalization of expenditure on exploration and surveys; resident permits 
in respect of the approved expatriate personnel; exemption  from any tax imposed by any 
enactment for the transfer of external currency out of Nigeria.  
4.71.   In 2014, the Federal  Executive Council submitted the Nigerian Metallurgical Industry Draft 
Bill to the National Assembly. The Bill provides a framework for regulating the operations of all 
metallurgical plants in Nigeria to ensure that metallurgical products and raw materials  
manufactured locally or imported into the country meet the required standards. The Bill also 
provides for the establishment of an inspectorate department that would enforce compliance with 
quality, safety and metallurgical environmental regulations.20  
4.72.   Due to low oil prices, Nigeria is looking to expand the base of its mining sector on the back 
of new finds, such as the nickel deposit in Kaduna State, which the Government estimates could 
generate  US$400 billion in revenue.   
4.2.6   Electricity  
4.73.   Nigeria has one of t he lowest rates of net electricity generation per capita in the world , 
despite  its wealth of oil and gas. Only 45% of Nigerians have access to electricity leaving 
approximately 93 million people without electricity. Power supply averages 3,500 megawatts (M W) 
versus a deficit estimated at 10,000 MW daily. Those with access to electricity face load shedding  
and blackouts, and are also obliged to rely on private generators.  
4.74.   Nigeria's generation capacity was 10,775 MW in 2016, 81%  (8,425 MW) of which was from 
combustible fuel sources , 20% (2,350 MW) from hydro sources , and less than 1% from biomass, 
waste and wind. Net electricity generation falls well below capacity due to poor maintenance of 
electricity facilities, natural gas supply shortages, and an inadequa te (obsolete) transmission and 
distribution network.  
4.75.   A power sector reform  was initiated by the 2005 Electric Power Sector Reform  (EPSR) Act, 
which  required the Federal Government to unbundle the state -owned Power Holding Company of 
Nigeria (PHCN) and priv atize the electricity generation and distribution companies, while 
continuing to own the transmission company.  
4.76.   On 1 November 2013, Nigeria's Federal Government transferred  a total of 15 state -owned 
electricity generation and distribution companies (out of  17) to private operators. Five of the six 
generation companies and ten of the eleven distribution companies were privatized , while the 
remaining two companies were transferred to Nigeria's state -owned Transmission Company, which 
remains under the Federal Government's control. The private companies took physical ownership 
of the generation and distribution infrastructure and responsibility for improving and repairing the 
system.  
4.77.   The Nigeria Electricity Regulatory Commission (NERC) regulates the electricity  industry  and 
issues licences for each of the generation, transmission and distribution functions.21 NERC also sets 
prices for the generation, transmission and distribution of electricity. Under Section 76 of the EPSR 
Act 2005, NERC established a methodolog y for regulating electricity prices called the Multi -Year 
Tariff Order (MYTO). The MYTO provides a 15 -year tariff path for the Nigerian electricity industry 
with limited minor reviews each year in light of changes in a limited number of parameters (such 
as inflation and gas prices). On 1 July 2008 , the Commission issued the Multi -Year Tariff Order 
(MYTO) for the determination of charges and tariffs for electricity generation, transmission and 
retail tariffs over the period from 1 July 2008 to 30 June 2013. According to the authorities, prices 
were last reviewed and increased in February 2016.  
4.78.   Incentives in the power sector include a duty-free tariff on power generation equipment; a 
20% capital allowance for 5 years; a cost-reflective gas pricing mechanism; and a tax holiday for 
manufacturing activities (up to 3 years ' tax holiday renewable for an additional 2 years).  
                                                
20 Central Bank of Nigeria, Annual Report 2014 . 
21 Regulation No. NERC -R-0110A, the Nigerian Electricity Regulatory Commission (NERC). Viewed at: 
http://www.nercng.org/nercdocs/Reg ulation -for-the-Application -for-Licence.pdf .  WT/TPR/S/356 • Nigeria  
 
- 76 - 
 
  4.79.   Nigeria has set ambitious goals to increase generation capacity as large untapped resources  
remain  in power generation, distribution and transmi ssion. The Federal Government's target is to 
achieve up to 75% access to electricity by 2020 by connecting an average of 1.5 million 
households annually through grid extension as well as non -grid solutions using renewable energy 
(solar, wind, and small and  medium hydro). Nigeria plans to increase generation from fossil -fuel 
sources to more than 20,000 MW by 2020 and to increase hydroelectricity generation capacity to 
5,690 MW by 2020, almost tripling capacity from the 2012 level. This includes upgrading cur rent 
hydroelectricity plants and constructing new plants: Gurara II (360 MW), Zungeru (700 MW), and 
Mambilla (3,050 MW). In late 2013, the Nigerian Government announced a US$1.3 billion deal 
with China to build the 700 MW Zungeru hydropower project. The Ex port-Import Bank of China will 
finance 75% of the cost, and the Nigerian Government will finance the remaining amount. The 
project was initially scheduled to be completed in 2017, but construction work has been delayed.  
4.80.   In October 2014, the CBN established  the Nigeria Electricity Market Stabilisation Facility 
(NEMSF) to mitigate the current challenges facing the power and gas sector and fast -track the 
development of a viable and sustainable domestic energy market. Disbursement of funds under 
the Facility wo uld be at a 10% interest rate per year with a tenor of not more than 10 years.   
4.3  Manufacturing  
4.3.1   Overview  
4.81.   The manufacturing sector gain ed importance in Nigeria's economy over the review period. 
Its share of GDP grew from 6% in 2010 to 8.8% in 201 6. The impro ved performance in the 
cement and motor vehicle assembly subsectors accounted, largely, for the growth in the 
manufacturing sector. Other important subsectors include: textile s, apparel and footwear; food 
processing ; and non -metallic mineral products.  
4.82.   Nigeria is a net importer of manufactured goods ( Section 1). In 2014, the authorities 
launched the Nigeria Industrial Revolution Plan (NIRP). In order to enhance the competitiveness of 
Nigerian industrial products, the NIRP has set specific targets to meet by 2020. These include 
increas ing the domestic production of  automotive s by 50% and increasing the production of 
metals, petrochemicals and processed palm oils; and fast track investments in industries such as 
agribusiness, solid minerals, and oil and gas , as well as six others priority industries:  the palm oil, 
textiles, basic metals, automotive, base petrochemicals, and plastics and rubber industries.  
4.83.   The Nigerian manufacturing sector has continued to improve its productivity based on 
various intervention pr ogrammes introduced by the Government. These include the Industry 
Specific Intervention Fund to support manufacturing by N220 billion  and the MSMEs and the 
Textile Intervention Fund by N100 billion. Furthermore, there are  SME-targeting lending 
programmes t hrough non -commercial outlets like the Bank of Industry. The SME Credit Guarantee 
Scheme and the SME Manufacturing Restructuring Fund were established in 2010.  
4.84.   The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) initiates and 
articulate s policy ideas for small and medium enterprises ' growth and development . It promotes 
and facilitates development programmes, instruments , and support services to accelerate the 
development and modernization of micro, small and medium enterprise operations.  
4.85.   The average applied MFN tariff on non -agricultural products (WTO definition) in 2017 was 
12%, higher than the 11.3% level in 2011; and manufactured products (ISIC definition) were 
subject to an average tariff of 13% in 201 7, up from 12% in 2011. Imports o f cement in bags 
(HS2523.2900.22) and motor vehicles over ten  years old (HS8703.1000 -8703.9000) are 
prohibited (Section 3).  
4.86.   In order to encourage manufacturers to export, the Manufacture -in-Bond Scheme is 
designed to encourage manufacturers to import raw m aterial inputs and other intermediate 
products duty -free for the production of finished goods for export, backed by a bond issued  by any 
recognized financial institution. The bond is discharged after evidence of exportation and 
repatriation of foreign exch ange. The Federal Ministry of Finance is in charge of this scheme.  WT/TPR/S/356 • Nigeria  
 
- 77 - 
 
  4.87.   Challenges to the manufacturing sector include poor electricity supply and infrastructure; 
lack of stringent border controls to prevent  smuggling; and poor access to credit.   
4.3.2   Automotive  industry   
4.88.   Nigeria's automotive industry grew during the review period. According to the NIRP, the 
domestic assembly of motor vehicles  is one of t he Government 's priority industries.  
4.89.   In Nigeria, the Stallion Group, which is part of a diversified sub -Saharan  conglomerate , has 
been in a production partnership with Nissan since 2013 and is currently the largest local 
passenger car producer. Stallion also owns a Volkswagen of Nigeria (VON) plant in Lagos and 
assembles cars for Honda (Japan) and Hyundai (Republic  of Korea). The formal retail market is 
dominated by Toyota Nigeria, which accounts for 70% of vehicles imported. For commercial cars, 
Tata Motors has been a strong performer, growing sales by 100% since 2008.  
4.90.   Nigeria imports almost all of its cars, with an average of 50,000 new and 150,000 used 
vehicles entering the market monthly . In 2016, Nigeria imported automotive products (HS 87) of a 
total value of US$1,617 million, around 4.6% of total imports. Demand for commercial vehicles will 
continue to be lar gely met by imports. However rising tariffs , coupled with a depreciated naira, has 
made it more difficult to import. The a uthorities have set a target  to supply around 50% of 
passenger cars from domestic production by 2020.   
4.91.   The National Automotive Design  and Development Council, a government agency under the 
Federal Ministry of Industry, Trade and Investment ( FMITI ), ensures policy implementation in the 
automotive industry.  In order to develop the Nigerian automotive industry, a new policy was 
developed i n 2013 and aims to protect the domestic car assembly sector by taxing imports of 
vehicles. Under the Automotive Industrial Policy Development Plan (2013 -2024) and based on a 
circular of the Ministry of Finance issued in November 2013:  
 imports of fully bui lt units (FBU), i.e. all passenger cars, are subject to a combined 
rate of 70% (35% duty and 35% levy) until 2019, after which it will fall to 55%;  
 imports of commercial automobiles are taxed at 35%;  
 imports of completely knocked down kits (CKD) for dome stic assembly are duty free;  
 imports of semi -knocked down kits (SKD) for domestic assembly are subject to either 
5% or 10%, depending on whether the body parts are painted or glazed;  
 local assembly plants are granted concessionary rates on FBU cars and ve hicles (35% 
and 20% respectively) in numbers equal to their imported CKD/SKD kits ; 
 for the tyre industry: car tyres and lorry/bus tyres are subject to a 20% duty plus 5% 
VAT;  
 importation of machinery and equipment for the automotive assembly industry is duty 
free; and 
 local tyre manufacturing plants are allowed to import tyres at a 5% duty in numbers 
equal to their production for two years from the date of commencement of production.  
4.92.   The revenue from the taxation of imports of these items is intended for the financing of 
schemes targeting the development of the automotive industry, including a supply chain for parts 
through the establishment of industrial parks.   
4.93.   The Federal Government implemented pre -shipment verification of conformity for used 
vehicles imported into Nigeria. As a result, three companies, Quality Assurance Projects Limited, 
Medtech Scientific Limited, and Cotecna Destination Inspection Limited were accredited.22  
                                                
22 Central Bank of Nigeria, Annual Report (2014) . WT/TPR/S/356 • Nigeria  
 
- 78 - 
 
  4.3.3   Cement  
4.94.   Nigeria's cement industry grew during the review period. Nigeria has t he largest demand for 
cement in sub -Saharan Africa and about 95% of the inputs for cement production are sourced 
locally, yet the country's cement consumption remains the lowest in Africa. This can be attributed 
to the high cost of cement as well as supply  inadequacies. Housing and infrastructure needs are 
drivers for the growth of the cement industry in Nigeria. However, the Government remains the 
largest consumer of cement in the country with an estimated 50% of total consumption.   
4.95.   The cement industry is dominated by a few large companies, with smaller firms importing 
and reselling. There are about six manufacturers and seven importers of cement in Nigeria . 
Dangote controls about 60% of the cement market share. Other players in the market include 
Lafarge a nd Holcim. Lafarge WAPCO dominates the south -western markets while Ashaka cement 
controls sales in the north -eastern region of the country. Benue Cement (BCC) and Obajana 
Cement Company have their sales concentrated in the north and central markets, both r ecently 
merged to become part of Dangote Group. The UNICEM cement company and the Cement 
Company of Northern Nigeria (CCNN) are strategically positioned to serve the south -eastern and 
the north -western markets respectively. This scattered location s of the cement factor ies and the 
fragmentation of the cement market in the country are partly due to high haulage costs as a result 
of the lack of durable transport infrastructure , such as rail , and partly due to the varying 
availability of limestone, which is the main raw material in cement production, in different parts of 
the country. Capacities of most of the cement manufacturing companies vary from one company 
to the other.  
4.96.   The nominal tariff protection on cement clinkers (HS2523.1000.00) is 50% in 2017. White  
and aluminous cement are subject to a tariff of 20%, while other cement excluding white is subject 
to 50%. However, imports of cement in bags (HS2523.2900.22) are prohibited. A statistical tax of 
1% is charged on all imports of cement (Section 3).  
4.97.   In 2014 , the Standards Organisation of Nigeria (SON) issued a 60 -day ultimatum to cement 
manufacturers regarding  product labelling and traceability requirements. Primarily, the new 
guidelines mandate the manufacturers to indicate on product bags the manufacturing  and expiry 
dates, product application information , as well as the batch numbers of the product. The move, 
which is expected to enhance traceability in case of product failures, also places a responsibility on 
cement manufacturers to ensure that their prod ucts meet required guidelines , and health and 
safety requirements.  
4.98.   Establishing a cement factory is highly capital intensive and the cost of cement production is 
very high with energy being the major cost factor. As a result of the backward integration pol icy 
on cement production in Nigeria introduced by the Federal Government in 2002, the local 
manufacturing output of cement increased  from 2 million tonnes  in 2002  to 10.5 million tonnes in 
2010. However, stakeholders have highlighted the following as the c auses of the high price of 
Portland cement in Nigeria: a huge cement supply gap (where demand is higher than supply ) 
which  forces the price up; too many middle men in the supply and distribution of cement; unstable 
power supply which leads to overdependenc e on expensive alternat ive fuel which carries about 
50% of the total cost of production; hoarding of cement by marketers to sustain importation; the 
huge cost of transportation of cement from factory to end -users vis-à-vis the poor distribution 
network of some cement companies; the monopoly of importation by a few players; the high tax 
burden on production and importation; and the high capital involved in setting up more factories 
which leads to a cement supply gap.23  
4.4  Services  
4.4.1   Financial services  
4.99.   Financial i nstitutions and insurance companies contributed to 3.5% of overall GDP in 201 6, 
according to the National Bureau of Statistics. Nigeria has a dynamic financial sector in which a 
large number of mainly indigenous  (State)  banks and insurance companies operat e. Many of these 
companies are listed on the Nigerian Stock Exchange (NSE). However, the financial sector is a 
                                                
23 PanAfrican Capital Plc, Nigerian Cement Industry …a review of opportunities and recurrent price hike , 
April 2011 . Viewed at: https://www.panafricancapitalplc.com/downloadi.php?id=3 .  WT/TPR/S/356 • Nigeria  
 
- 79 - 
 
  small employer, having generated 6,053 new formal jobs in 2015, or less than 0.5% of overall 
hiring.  
4.100.   The financial sector in Nigeria is regulated  by the Central Bank of Nigeria (CBN) 
established under the Central Bank of Nigeria Act of 1958, as an autonomous entity responsible for 
monetary, credit, and exchange  rate policies. Its activities are now governed by the CBN Act of 
2007. The CBN's main ob jectives are: ensuring monetary and price stability; issuing legal tender; 
maintaining external reserves; regulating the financial system of the country; and acting as banker 
to the Federal Government.24 
4.101.   Nigeria is largely a cash -dependent economy  and lags behind many African countries in the 
use of financial services. I n 2010, 36.4% of adults, roughly 31 million out of an adult population of 
85 million, were served by formal financial services.25  
4.102.   Nigeria's insurance and asset management subsectors remain un derdeveloped. However, 
given the large unmet needs for savings, there is potential for growth. The NSE has well -developed 
segments for stocks and government bonds, but a limited offering of other instruments. Lagos is 
Nigeria's main financial centre, but m ajor commercial banks also maintain a strong presence in the 
capital, Abuja, to service the public sector; in Port Harcourt, for the oil sector; and in Kano, the 
country's most important northern city.  
4.103.   Under the GATS, Nigeria bound, without limitation, cro ss-border supply and commercial 
presence for banking and other financial services (except insurance). Foreigners, corporations or 
individuals, may own up to 100% equity in any enterprise.26  
4.4.1.1   Banking  
4.104.   The structure of the banking sector remained unchanged dur ing the review period. The 
number of licenced banks stood at 25 at end -December 2015 and comprised 20 commercial banks, 
4 merchant banks and 1 non-interest bank. Two banks, Enterprise and Mainstreet banks , were 
acquired by Heritage and Skye banks, respecti vely, during 2015, while SunTrust Bank Ltd was 
issued a commercial banking licence.  In 2014, the Central Bank of The Gambia took over Keystone 
Bank (Gambia)  due to the inability of the subsidiary to meet the country 's minimum capital 
requirement. The numbe r of bank branches declined  from 5,670 in 2014 to 5,634 at end -
December 2015.27 
4.105.   According to the IMF, banks in general remain adequately capitalized (with the exception 
of two banks). However, rising non-performing loans (NPLs) and reduced creditworthiness of 
borrowers suggest some increase in vulnerabilities in the banking system and could dampen 
private sector credit growth; a doubling of NPLs from the corporate sector could reduce the ability 
of banks to extend credit by 11%.  In July 2016, the CBN ousted the management and board of 
Skye Bank, the country 's eighth -largest lender , for missing minimum capital and liquidity levels.  
4.106.   Bank lending is concentrated in a few, unstable segments of the economy. The oil and gas 
sector, hard hit by the sustained slump i n global fuel prices, accounted for N3.3 trillion 
(US$10.5  bn), or 24.8%, of total bank credit at the end of 2015, according to the CBN. 
Manufacturing held N1.9 trillion, or 13.9%, of outstanding loans with industry suffering from a 
shortage of hard curren cy to pay for necessary imported inputs. Banks moved to restrict credit in 
2015; loans from banks grew by just 4.3% to N13.1 trillion in 2015.  
                                                
24 The Central Governor of the CBN is also involved in policy making as he is a member of the Economic 
Management Team, which is chaired by the Vice President, and he is also a member of the National Economic 
Council which includes the State Governors, the Minister of Finance, and the Minister of National Planning.  
25 National Financial Inclusion Strategy (NFIS) . Viewed at: 
https://www.cbn.gov.ng/Out/2012/publications/reports/dfd/CBN -Summary%20Report%20of -
Financial%20Inclusion%20in%20Nigeria -final.pdf .  
26 WTO document S/D CS/W/NGA, 19 August 2004.  
27 Central Bank of Nigeria, Draft Annual Report 2015 . Viewed at: 
https://www.cbn.gov.ng/Out/2016/RSD/Cen tral%20Bank%20of%20Nigeria%20Annual%20Economic%20Repo
rt%20 -%20Draft.pdf .  WT/TPR/S/356 • Nigeria  
 
- 80 - 
 
  4.107.   All financial institutions require a licence granted by the CBN, which also has the right to 
revoke licences. To  obtain and retain a banking licence, all banks must implement the CBN 
prudential requirements, based on Basel II.  The CBN has also established a committee to plan for 
the implementation of Basel III. In October 2010, the CBN stopped issuing universal bank ing 
licences and reverted to a system of issuing a different licence and different minimum capital 
requirements depending on the type of financial service provided.  
4.108.   Banks are required to regularly provide the CBN with data to show it is meeting these 
requirements. Bank transactions are monitored by the CBN through the enhanced Financial 
Analysis and Su rveillance System (e -FASS). In addition, in 2006 , the CBN issued the Code of 
Corporate Governance for Banks in Nigeria  Post-Consolidation, which built on its  Code of Best 
Practices for Public Companies introduced in 2003 for all public companies, including banks.   
4.109.   Domestic and foreign banks are subject to the same rules in terms of establishment, 
operation and supervision. There are no policy or ownership res trictions on either  the 
establishment foreign banks or the number of branches that foreign banks may open. Foreign 
banks are allowed to raise capital domestically. There is no distinction made between national s and 
foreigners regarding the eligibility crit eria for banking licenc es.  
4.4.1.2   Insurance  
4.110.   Nigeria's insurance market has huge potential for growth; as it has a very low penetration 
rate of below 1%. Only three million Nigerians have insurance policies in a population of about 
175 million. Gross premium inco me amounted to N284 billion in 2014. In 2015, there were 30 
general insurers, 15 life insurers and 13 composite providers licenced by the National Insurance 
Commission (NAICOM). In addition, 2 ,453 agents and 588 brokers were licenced. There are two 
local r einsurers, Africa Re and Continental Re.  
4.111.   NAICOM  is responsible for regulating the insurance subsector in Nigeria. Pursuant to the 
Insurance Act of 2003, insurance companies are classified as either life or general; each insurance 
company must be  registere d with NAICOM. The Act also sets out capitalization requirements for 
insurance companies; qualification requirements for establishing insurance, reinsurance, insurance 
broker or loss adjuster businesses; minimum times for insurance brokers to pay premiums to 
insurance companies; and activities and assets requiring compulsory insurance.  Prices are 
regulated for compulsory insurance.    
4.112.   NAICOM also maintains the Insurance Special Supervisory Fund, to which contributions are 
mandatory at a rate of 1% of annual premiums. As it is not a financially independent regulator like 
the CBN or the Securities and Exchange Commission, NAICOM collects this levy on gross premium 
income, broker commissions and loss adjusters' fees; it also has other sources of income such as 
fees, penalties and investment income.  
4.113.   All imports into Nigeria are to be insured locally by insurance companies registered in 
Nigeria. An insurance broker must obtain approval before entering into a contract with foreign 
insurers. Insurance companies must  invest and hold Nigerian assets, at least equivalent to the 
amount of insurance business transacted in Nigeria.  
4.114.   The minimum capital requirements for insurance companies are N2 billion for life 
insurance, N3 billion for general insurance, N5 billion for c omposite insurance, and N10 billion for 
reinsurance . The establishment of a reinsurance company in Nigeria is subject to approval by 
NAICOM, with the possibility of appeal to the Minister of Finance. Insurers are required by law to 
cede 30% of their busine ss compulsorily to Nigeria Reinsurance Corporation before ceding any 
reinsurance business outside Nigeria, subject to approval from NAICOM.  
4.115.   In 2013, NAICOM announced a moratorium on new licences, to encourage industry 
consolidation. The ten largest insurer s accounted for 47.4% of total assets of the industry making 
Nigeria a fragmented market for insurance. As part of ongoing efforts to reform the subsector, in 
2012, NAICOM adopted International Financial Reporting Standards (IFRS) and in 2013, due to 
high levels of non -payment of premiums, NAICOM issued enforcement guidelines which impose a 
fine of N500,000 per policy on any company that offers cover to a policyholder who has not paid 
the premium in advance. In 2013, guidelines for takaful (Islamic insuranc e) and micro -insurance WT/TPR/S/356 • Nigeria  
 
- 81 - 
 
  were introduced by NAICOM. As part of the National Financial Inclusion Strategy (NFIS), the 
insurance sector has set a target for insurance penetration to grow to 40% by 2020.   
4.4.2   Transport  
4.116.   Nigeria’s transportation matrix is one of the  best in West Africa, highlighting a 
comprehensive system of paved highways, roads, rail ways, airports, seaports and inland 
waterways. The sector contributes about 3% to GDP annually.  
4.117.   In 2015, the Federal Ministry of Transport (FMT) merged with the Ministr y of Aviation and 
as a result has overall responsibility for the transport subsector . It sets policy and oversee s a set 
of regulators including the Nigeria Port Authority (NPA), the Nigerian Railway Corporation (NRC), 
the National Inland Waterways Authorit y (NIWA) , and the Federal Airports Authority of Nigeria 
(FAAN). The subsector's long -term vision and strategy is articulated in the National Transport 
Policy (NTP), which aspires to boost efficiency, transform Nigeria into a regional logistics hub and 
encourage more private sector investment.  
4.118.   In February 2015, eight bills were approved by the Federal Executive Council and are 
currently at the National Assembly. These include: the National Transportation Commission Bill; 
the Nigeria Ports and Harbour Bill; the Nigerian Railway Bill; and National Inland Waterways Bill.   
4.119.   Currently, the Government is revitalizing the railway network to service a large proportion 
of passenger and freight movement. The aviation subsector is also being transformed into a more 
user-friendly and affordable mode of transport. Similarly, the capacity of the inland waterways is 
being built to effectively complement the other modes of transport. To develop transport 
infrastructure and facilitate private sector participation, the Governm ent established the 
Infrastructure Concession Regulatory Commission (ICRC) to manage the selection, development, 
procurement, implementation and monitoring of public -private -partnership (PPP) projects.  
4.120.   Incentives to the transport subsector include:  
 Infras tructure: 20% of the cost of providing basic infrastructure , such as roads, water, 
and electricity, where they do not exist, is tax deductible.  
 Local value added: 10% tax concession for five years. This applies essentially to 
engineering industries, while some finished imported products serve as inputs. This is 
aimed at encouraging local fabrication rather than the mere assembly of completely 
knocked down parts.  
 Shipbuilding, repairs and maintenance of vessels, diving and underwater engineering 
services, and aircraft maintenance and manufacturing are considered pioneer 
products. As a result, they enjoy a 5-7 year tax holiday depending on location.  
4.4.2.1   Road transport  
4.121.   There are about 195,200 k ilometres  of roads in Nigeria: about 34,123 k ilometres  are 
federal road s, which are constructed and maintained by the Ministry of Works; about 
30,500  kilometres  are state roads, which are the responsibility of the state governments; and 
129,577 k ilometres  are local government roads. About 60,000 k ilometres  of roads are paved 
(including 1,194 k ilometres  of expressways).  
4.122.   Road transportation accounts for more than 80% of passenger and freight movement in 
the country. In addition to their importance for transport and trade within Nigeria, several 
important trans -African roads ori ginate in or cross the country, including:  
 the Trans -Sahara Highway from Lagos, through Niger and Algeria to Algiers (the 
Highway is essentially completed but some unpaved sections remain and many 
sections are in poor condition );  
 the Trans -Sahelian Highw ay from Dakar in Senegal to Ndjamena in Chad, passing  
through Mali, Burkina Faso, Niger, Nigeria, and Cameroon (although most of the WT/TPR/S/356 • Nigeria  
 
- 82 - 
 
  route is paved, many sections are in poor condition and are not passable during 
some seasons ); 
 the Trans -West African Coast al Highway, which goes westwards from Lagos to Dakar 
in Senegal crossing 11 countries (most of the route is in poor condition ); and  
 the Lagos -Mombasa Highway (one of the few east -west African links ) which  passes  
eastwards from Lagos, across central Africa to Mombasa in Kenya (slightly more than 
half the route is paved but much of it is in poor condition ). 
4.123.   Most goods are transported by road in Nigeria, with the exception of oil and gas which are 
carried by pipelines. About half of all roads are in poor condi tion and passenger and goods vehicles 
are often overloaded . The Draft National Transport Policy sets the objective of greatly improving 
the quality of road infrastructure based on funding from the Government, road user charges, and 
private sector investmen t. The private  sector investment could be in return for tolling concessions.   
4.124.   Vision 20:2020 also promotes the development of the road network and endorses the 
participation of the private sector in road building, either by means of build-operate -transfer  (BOT) 
or build -operate -own arrangements, as well as rail, water, and air transport infrastructure. In 
May 2009, the Government completed a 25 -year agreement with the Bi -Courtney Consortium to 
rebuild, expand, and operate the Lagos -Ibadan expressway.  
4.4.2.2   Rail transport  
4.125.   The Nigerian Railway Corporation's infrastructure and facilities comprise:  
 3,505 km of narrow gauge rail line and 827 km of narrow gauge sidings and loops;  
 512 km of standard gauge rail line;  
 674 km of branch lines;  
 304 railway stations (280 nar row gauge  and 24 standard gauge) and 273 railway 
outstations;  
 434 railway bridges across the entire track length (371 for narrow gauge and 63 for 
standard gauge).  
4.126.   Rail transport in Nigeria comprises passenger, parcel and freight  transport . Passengers 
include commuters , suburban , and intercity  passengers . Pricing for commuters is flat while for 
suburban and intercity  passengers it  is graduated based on passenger s per kilometre. Parcels are 
charged based on kilogram per distance travel led. Freight is either for dry goods or for petroleum 
products. Charges for dry goods are N7.10 per ton -km and N8.70 per ton -km for petroleum 
products. In 2015, a total of 2,581,046 passengers and 161,696 tonnes of freight were moved by 
rail, including  haulage of several tonnes of cement, petroleum products, inland port containers and 
flour cargos from Lagos to the northern states.  
4.127.   The Nigerian Railway Corporation (NRC) owns, operates and maintains Nigeria's railway 
system. A new legislative framework, the Nigerian Railway Corpor ation Bill , is yet to be enacted. 
The main elements of the new bill include the separation of the operation and regulatory aspects 
of the Nigerian rail sector and the creation of the legislative framework for private and state 
participation in the sector. According to the authorities, the railway sector suffers from 
underinvestment and poor maintenance.  
4.128.   During the period under review, NRC undertook several rehabilitation projects of rail lines. 
These included rehabilitation of the Lagos to Kano Western line  (1,124  km); rehabilitation of the 
Port Harcourt  to Maiduguri Eastern line (1,657  km) within the Port -Harcourt to Gombe segment 
including the branch line from Kafanchan  to Kaduna; and the rehabilitation of sidings and loop 
lines along the Western line, inc luding connection to key industrial locations within Lagos Port 
Complex (Apapa ), 74 stations and branch lines between Lagos and Kano. The railway rolling stock 
was also upgraded with the inauguration of two diesel multiple units (DMUs) train sets and eleve n WT/TPR/S/356 • Nigeria  
 
- 83 - 
 
  68-seater air conditioned passenger coaches. This was aimed at improving the existing rail 
infrastructure.  
4.129.   Other modernization efforts include d the construction of the first standard gauge railway 
from Abuja to Kaduna, which spans 186  km, with nine stat ions and a design speed of 150  km/h. 
Similarly, the Government signed a contract with China Railway Construction Corporation Limited 
worth US$12.1 billion for the construction of a 1,402 km one -way mileage coastal railway line that 
will transverse 10 state s of Nigeria with a design speed of 150 km/h, including the construction of 
22 railway stations , spanning  from Lagos to Kalaba.  
4.4.2.3   Air transport  
4.130.   In 2015, the Federal Ministry of Aviation merged with the Federal Ministry of Transport. 
The Federal Ministry of T ransport regulates air travel and aviation services in Nigeria. The ministry 
is responsible for formulation and management of the Government's aviation policies and is 
directly responsible for overseeing air transportation, airport development, maintenance , and 
provision of aviation infrastructural services and other needs.  
4.131.   The Nigerian Civil Aviation Authority (NCAA) provides services related to aviation safety 
and economic regulation. It was established by the Civil  Aviation Act of  2006 which is currently  
under review. The Act provides for a 5% levy on air tickets, charter and cargo sales, which is paid 
to the NCAA and funds its activities as well as those of the Nigerian Airspace Management Agency 
(NAMA), the Nigerian Meteorological Agency, the Nigerian C ollege of Aviation Technology and the 
Accident Investigation  and Prevention Bureau.28 The NCAA also collects other fees for licences  and 
certificates, and other charges related to civil aviation.  
4.132.   Under the Federal Airports Authority of Nigeria Act  of 2004,  the Federal Airports Authority 
(FAAN ) is responsible for the maintenance of existing facilities and the construction of new ones, 
carrying out all economic activities in the airport (itself, through an agent or in partnership), and 
providing security and other airport -related services. The FAAN continues to pursue a policy of 
public -private partnerships through concession agreements with airport service providers. The 
Nigerian Airspace Management Agency (NAMA) was established to meet international requirem ents 
for safe and economic air navigation.  
4.133.   There are 22 airports government -managed by FAAN and 6 airports owned by the states. 
Out of the 22, 4 are international airports29, 7 are major domestic airports30, and 11 are "other" 
domestic airports. Nigeria does  not have its own national carrier. There are 20 international 
airlines operating in Nigeria. All nine domestic airlines operating in Nigeria are privately owned.  
4.134.   Passenger traffic , both domestic and international , continued to grow over the review 
period , reaching a total of 7,529,535 passengers in 2015, with about 70% of the passengers 
taking domestic flights. Aircraft movement increased over the review period by 12.2% from 
128,614 in 2011 to 144,347 in 2015. Cargo movement at designated airports was hig hest in 2014, 
with 76,593 thousand kilograms loaded , but fell in 2015 to reach 43,380 thousand kilograms 
(Table 4 .12).  
                                                
28 Civil Aviation Act, 2006. Viewed at: http://www.ncaa.gov.ng/regulations/ncaa -regulation s/civil -
aviation -act-2006/  (February 2017).   
29 The international airports are: Murtala Muhammed International Airport, Lagos; Njamdi Azikwe 
International Airport, Abuja; Mallam Aminu Kano International Airport; and Port Harcourt International Airport.  
30 The major domestic airports are: Kaduna Airport; Enugu Airport; Margaret Ekpo International Airport, 
Calabar; Maiduguri Airport; Sultan Saddik Abubakar Airport, Sokoto; Yakubu Gowon Airport, Jos; and Yola 
Airport.  WT/TPR/S/356 • Nigeria  
 
- 84 - 
 
  Table 4.12 Air traffic data, 2011 -16 
(Number)  
 2011  2012  2013  2014  2015  Provisional  
2016  
Total aircraft 
movements 
(arrivals)  128,614  112,352  118,320  129,187  144,347  107,123  
Domestic  108,332  88,113  95,907  106,158  122,788  85,543  
International  20,282  24,239  22,413  23,029  21,559  21,559  
Passenger traffic  
Domestic  5,540,097  4,876,814  5,038,219  5,626,882  5,320,213  5,168,447  
International  1,779,536  2,109,761  2,267,182  2,213,393  2,209,322  2,043,854  
Cargo (000 
kg) (loaded)  38,399  40,547  53,848  76,593  43,380  68,248  
Source:  Federal Airports Authority of Nigeria.   
4.135.   During the period under review, co mpetition and service delivery in the domestic airline 
industry improved with the commencement of local flight operations by new entrants , namely: 
Azman Air, Discovery Air, and Air Peace , while others were at various stages of obtaining the Air 
Operators' Certifica te (AOC). Nigeria also retained the United States Federal Aviation 
Administration (FAA) Category 1 (CAT -1) status in 2014.  The retention of the CAT -1 status 
enhanced the safety rating of the country's aviation industry, thereby improving patronage  of 
facilities by airlines and travellers.  
4.136.   To further strengthen the counter -terrorism capacity in Nigeria's airports, the Government 
deployed hi -tech screening equipment at all airports. The country's Accident Investigation and 
Prevention Bureau (AIPB) b ecame the first in Africa to commission a hangar equipped to quickly 
down load, extract, decode and analys e aircraft accident data from the cockpit voice recorders 
(CVR) and flight data recorders (FDR), also known as black boxes.  
4.137.   The remodelling and upgrad ing of various airports across the country and the provision of 
safety and security infrastructure were intensified in 2014. New terminals in Lagos, Abuja, Kano 
Port Harcourt, and Enugu are under a bilateral arrangement with a loan from the Chinese 
Governm ent. According to the authorities, both the Lagos and Abuja terminals are expected to be 
completed by the second quarter of 2017, to be followed by Port Harcourt, Enugu, and Kano. The 
Abuja airport closed from 8 March to 19 April 2017 for maintenance opera tions.  
4.138.   Nigeria is a signatory to the Yamoussoukro Convention, and provides up to the fifth 
freedom rights among African countries. Nigeria is a category II member of the ICAO, that is, it 
provides navigational facilities at its international airports to co mply with the ICAO Standards and 
Recommended Practices. Cabotage is not allowed in Nigeria.   
4.4.2.4   Maritime transport  
4.139.   Nigeria boasts 825 kilometres of coastline connected to an extensive network of inland 
rivers that includes the River Niger, West Africa's lar gest river and the eleventh -largest in the 
world. Nigeria has 6 main seaports31, 22 oil terminals, and 62 private jetties, handling about 77 
million tonnes of cargo. Nigeria has one dry port, the Inland Container Nigeria Limited (ICNL) 
Bonded Terminal in Ka duna. Due to high utilization rates, six new deep port projects are in the 
pipeline.  The most advanced is Lagos' new seaport at Lekki, which is expected to be operational 
by 2018.  
4.140.   The Nigerian Ports Authority Act, CAP 126 LFN of 2004 is the main law regulating ports in 
Nigeria. The Nigerian Ports Authority (NPA) owns all ports and equipment in the ports and plays 
the role of landlord. Under the landlord system the existing port terminals are leased to a private 
company with concession periods of 10 or 25 years. The NPA is responsible for planning and 
development, regulatory tasks (such as safety, security, and protection of the environment), and 
nautical management. In order to improve the regulatory environment of the sector, the Nigerian 
                                                
31 Lagos Port Complex, Tin Can Island Port Complex, Calabar Port, Onne Port Complex, Rivers Port , and 
Delta Port Complex.  WT/TPR/S/356 • Nigeria  
 
- 85 - 
 
  Shippers' Counci l was appointed as an economic port regulator by the Federal Government  in 
2015. 
4.141.   Significant improvement and expansion of port infrastructure as well as increase d cargo 
throughput and revenue was a result of the transfer of cargo operations at eight major ports and 
oil terminals to private operators through concessions in 2006. These private operators are 
responsible for terminal operations, employment of port labour, land -based investment, 
maintenance of infrastructure and equipment, and insurance of conce ssion assets.  
4.142.   Domestic shipping lines have exclusive rights to carry at least 40% of Nigerian sea -borne 
trade, according to the Coastal and Inland Cabotage Act of 2003. Half of Nigeria's oil exports must 
be carried by vessels flying the Nigerian flag.  
4.143.   Since 2012, the Nigerian maritime subsector has witnessed increased activities and facility 
upgrade. Measures to improve the operational efficiency of the ports were undertaken with the 
introduction of the Pre-Arrival Assessment Report by the Nigerian Customs  Service, which replaced 
the Risk Assessment Report (RAR) used in the inspection of cargo imports. The change was aimed 
at reducing the average turnaround time in clearing goods at the ports. The 24 -hour cargo 
clearance service received a boost with the re placement of the RAR with the PAAR and the take -
over of its implementation by Nigeria Customs Service in 2014. Consequently, the Government 
stopped the operation of the three companies  that operat ed the scheme: Quality Assurance 
Projects Limited, Medtech S cientific Limited and Cotecna Destination Inspection Limited .  
Table 4.13 Performance  of ports , 2009 -15 
  2009  2010  2011  2012  2014  2015  
Number of vessels  No. 4,721  4,881  5,232  4,837  5,541  5,014  
Cargo throug hput  Tonnes  65,775,509  76,744,727  83,461,697  77,092,625  84,951,927  77,387,638  
Turnaround time  Days 6.55 5.38 5.48 8.86 5.05 5.01 
Waiting time of 
vessels  Days 2.12 1.15 1.67 1.78 1.51 1.40 
Note:  Excludes crude oil.  
Source:  Information provided by the Ni gerian Ports Authority.  
4.144.   Although container dwell times have fallen from 35 days to between 22 and 25 days, they 
are still amongst the highest in West Africa. According to the Nigerian Ports Authority (NPA) , the 
average waiting time of vessels (pre -berth) d eclined to 1.40 days with the average turnaround 
time also reduced to 5.01 days in 2015  (Table 4.13) . The cargo throughput handled at Nigerian 
ports (excluding crude oil terminals) has generally increased. These improvements were largely 
due to the various  measures implemented by the NPA to improve port service efficiency and 
effectiveness. These include : the deployment of a Virtual Private Network (VPN) that connects all 
the ports with the Head Office to enable secure data communication/information managem ent; the 
issuance of the electronic Ship Entry Notice (e -SEN) to eliminate unnecessary delays of vessels 
and reduce high demurrage; and aggressive channel management and wreck removal from the 
waterways.  
4.145.   Nigeria is signatory to a number of bilateral and r egional conventions and agreements in 
the maritime subsector , includ ing the African Union Revised Charter on Maritime Transport (2010), 
and is a member of the Association of African Maritime Administrations (AAMA) established in 
2013. Nigeria has also rati fied several conventions under the International Maritime Organization 
especially in the area of merchant shipping.   
4.4.3   Telecommunications  
4.146.   Nigeria has Africa' s largest mobile market, with about 154 million subscribers and a 
penetration rate of 110% in 2016. The Nigerian telecommunications subsector continued to grow 
during the review period. Prior to the liberalization of the Nigerian telecom industry, there were 
only about 400,000 lines with a teledensity of just 0.4% in 1999. As in many African countries, 
subscriptions of fixed lines are declining; in 2011, there were 719,406 subscribers of fixed lines in 
Nigeria and in 2016, it dwindled to 154,513  (Table 4.14).  WT/TPR/S/356 • Nigeria  
 
- 86 - 
 
  Table 4.14 Telecommunications data, 2011 -16 
(Numbe r unless otherwise stated)  
 2011  2012  2013  2014  2015  2016  
Fixed lines    719,406  418,166  360,537  183,290  187,155  154,513  
Mobile lines  95,167,308  112,777,785  127,246,092  138,960,320  150,830,089  154,342,168  
National carriers  2 2 2 2 2 2 
Active licensed 
fixed-line 
operators  7 5 5 6 6 5 
Licensed mobile 
operators  4 4 4 
 4 4 4 
 
Teledensity  68.49  80.85  91.95  99.39  107.87  110.38  
Source: Nigerian Communications Commission .  
4.147.   In an effort to streamline oversight, in 2011 the Government moved all of Nigeria's 
telecom regulators and related entities under the newly formed Federal Ministry of Communication 
Technology (FMCT). FMCT serves as the policy coordination and development body for the 
country's communications strategies. Agencies within the ambit of the FMCT  include the National 
Information Technology Development Agency, which has a broad mandate to facilitate the 
expansion of ICT in Nigeria; Nigerian Communications Satellite, an independent state -owned 
company that manages NigComSat -1R (a Nigerian geostation ary communications satellite ); and 
Galaxy Backbone, a state -owned ICT provider.  
4.148.   The Nigerian Communications Commission (NCC) is an independent agency responsible for 
regulating the sector; granting licences across the mobile, fixed -line and internet segmen ts; fixing 
and collecting associated fees; approving charges set by licence holders; monitoring and enforcing 
the terms and conditions of licences; setting and enforcing technical specifications and standards; 
and advising the Minister on policy.  
4.149.   In Niger ia, all telecommunications service operators are required to apply to the NCC for 
relevant licences by obtaining an application form and complying with the requirements therein. 
Operators require two licences in order to operate a mobile service. First, an  operational licence 
which is processed and granted administratively; and a spectrum licence, which is granted 
following an auction, selection process, public tender invitation or competitive bidding process. The 
licence fee structure was established in 20 07.32 
4.150.   Tariffs and charges are set by licence holders on the basis of ceilings determined by the 
NCC; the tariffs are subject to approval by the NCC. Between 2013 and early 2016, the NCC 
applied a price floor on voice and data tariffs in a bid to prevent the  dominant operators from 
squeezing competitors. According to the NCC Act, tariffs should be fair and non -discriminatory; 
cost-oriente d; void of cross -subsidization; and attractive to investors, taking into account 
regulations and recommendations of interna tional organizations of which Nigeria is a member. The 
tariffs should not contain discounts that unreasonably prejudice competitive opportunities of other 
providers. Operators are allowed to manage their own infrastructure. However, all network 
services or  facilities providers are obliged to allow interconnection with their communication 
systems for licensees that so request . All interconnection agreements are to be agreed upon 
between the relevant operators and registered with the NCC, with the latter acti ng as an arbiter in 
the event of any anti -competitive practice. Interconnection rates were last set in 2013 by the NCC 
for mobile and fixed voice services and SMS terminations irrespective of the originating network.  
4.151.   The mobile market comprises four GSM op erators who hold virtually the entire telecoms 
subscriber base. MTN, a subsidiary of South Africa's MTN Group, remains the dominant player for 
mobile telecommunications services, with 60.6 million active mobile -phone subscriptions in 
January 2016. It is fo llowed by Nigerian -owned Globacom 's Glo Mobile (33.2 million), India -based 
Airtel (33.2 million) and the fast -growing Etisalat (22 million), a UAE -based telecoms provider that 
only entered the market in 2008, further boosting competition. Growth in the mob ile market has 
increased competition and contributed to better service quality and reduced tariffs. This also 
reflects the population's continued preference for mobile services, increasingly as a means for 
consuming television and video content.  
                                                
32 Nigerian Communication Commission, Licence Fees and Pricing . Viewed at:  
http://www.ncc.gov.ng/licensing -regulatory/licensing/fees -pricing#individual -license .  WT/TPR/S/356 • Nigeria  
 
- 87 - 
 
  4.152.   In April 2 013, the NCC launched the Strategic Management Plan (SMP ) which is set to run 
to 2017. The SMP includes provisions aimed at boosting access to telecoms services in rural and 
urban areas; attracting additional investment to the subsector ; and streamlining t he in dustry's 
regulatory framework. More specifically, the NCC plans to make market -based investments in 
telecom, with the goal of focusing on private sector -led development.  
4.153.   Mobile -number portability, which was introduced in April 2013, made the use of m ultiple 
handsets and subscriptions by individual users less necessary as they have the option of migrating 
to other operators. Network reception is notoriously poor, and three of the four main mobile 
operators were fined a combined total of N647.5 million (US$4.2  million) by the NCC in February 
2014 and barred from selling SIM cards for not meeting the required standard. Moreover, Nigeria 's 
National Assembly is currently considering the imposition of a new 9% tax on telecoms services 
(including voice calls,  SMS and data among others) that will be borne by mobile users.  
4.154.   Nigeria accounts for 29% of all internet usage in Africa, and most Nigerians access the 
internet via their mobile handsets. As 3G becomes more widely available, this share is likely to 
increas e. The number of active mobile GSM Internet subscriptions reached 95.8 million in January 
2016, up from 81.9 million in 2015, according to the NCC.  
4.4.4   Postal services  
4.155.   The Nigerian Postal Service (NIPOST) is responsible for Nigeria's postal services. Law 41 o f 
1992 gave NIPOST the status of  a government parastatal with the following basic functions: to 
develop, promote, and provide adequate and coordinated postal services at reasonable rates; to 
maintain an efficient system of collection, sorting and delivery of mail nationwide; to provide 
various types of mail services to meet the needs of different categories of mailers; to establish and 
maintain postal facilities; and to represent Nigeria in relations with other postal administrations 
and international bodie s. 
4.156.   As regulator and operator, NIPOST registers courier companies and provides guidelines for 
their operations. In order to create an independent postal regulatory commission, a new bill, the 
Postal Sector Bill is currently in the National Assembly which se eks to separate the two functions of 
regulator and operator.  
4.157.   Nigeria has over 300 registered courier companies operating in the country. There are no 
restrictions for foreign investment in the sector. Prices for postal services are regulated by 
NIPOST.  
4.4.5   Entertainment  
4.158.   The Nigerian entertainment industry  became a significant services sector after the rebasing 
exercise of 2014. For the first time, entertainment was classified as a distinct sector separate from 
"other services". In 2016, the entertainment subs ector was worth around N853.9 billion 
(US$5.1  billion) and contributed to 1.4% of GDP, thus confirming Nigeria's status as one of the 
world's leading film production centres.  
4.159.   Nigeria has the third -largest film industry next to Hollywood, the US film indust ry and 
Bollywood, India’s film industry. In terms of volume, its output of 40 films a week is higher than 
the leading two but most are low budget productions. Nollywood, as it is known in Nigeria,  
employs an estimated 200,000 people directly as actors, pro ducers, distributors and promoters. 
However, piracy prevents the industry from generating more revenue. Most films are sold as DVDs 
at the roadside, either at market stalls, from wheelbarrows or by hawkers at traffic lights.  
4.160.   The music industry is not as s uccessful as the film industry but nevertheless exports its 
products internationally, including to neighbouring Hausa communities and to the region. The 
market for Nigerian music is large, especially at domestic and continent -wide levels. However, 
piracy, and poor distribution and marketing have prevented the industry from expanding. 
Capturing a higher share of the growing  international market for live performances and 
establishing better platforms to  showcase and distribute Nigerian music should help devel op 
exports.  WT/TPR/S/356 • Nigeria  
 
- 88 - 
 
  4.161.   The Federal Ministry of Information and Culture is the main regulator of the entertainment 
industry. In 2014, the Entertainment and Creative Services Department was created to coordinate 
activities in the industry. Other regulatory bodies incl ude: the Copyright Commission, the Nigeria 
Film and Video Censor Board, the Nigerian Film Co rporation, and the Performing Musicians 
Association (PMAN).  The National Film and Video Censor Board is a regulatory agency for the 
censorship of film and video pro duction for viewing. There are proposals to create a Nigerian Film 
Institute which would: (i) provide studio facilities; (ii) improve standards through training and 
capacity building; (iii) create a hub for core industry skills; and (iv) lease film equipme nt.  
4.162.   According to the National Broadcasting Act No.  38 of 1992, television is required to air 
local programmes promoting Nigerian culture during specific times. The Nigerian State is required 
to produce at least 80% of its programmes with local content.33 Broadcasters are also encouraged 
to use their indigenous languages and wear their traditional attires.  
4.163.   The World Bank is assisting the Government through the Growth and Employment (GEM) 
project to support the entertainment industry, along with other indust ries.34 Nigeria has already 
started to develop exports of entertainment services for both film and music but much of the 
potential revenue from these exports is lost due to piracy. Capturing a higher  proportion of lost 
export revenues for the film industry , through combating piracy and developing better formal 
distribution systems, should catalyse the investment needed to upgrade production and enable the 
industry to become even more dominant in the African and diaspora markets.  
4.164.   In recognition of the subsec tor's importance, the Government, in 2013, announced a 
N3 billion cash injection to develop Nollywood and created a US$200 million Stimulation Loan 
Facility, which is being provided for intervention in the entertainment industry under the Nigerian 
Creative  and Entertainment Industry Stimulation Loan Scheme (NCEILS). The loan is intended to 
attract investment in the development of content and infrastructure in the media and 
entertainment subsector, as well as to improve production, distribution, marketing an d exhibition 
standards. The categories eligible for funding support include production, distribution and 
exhibition of films , television, radio and fashion, and the creation of distribution 
infrastructure/platforms.  
4.165.   According to the authorities, the enter tainment subsector has improved in terms of quality 
over the years, however it face many challenges. These include lack of enforcement of intellectual 
property rights, piracy, low DVD production, distribution bottlenecks, lack of digital platform s, 
inadequ ate publicity, poor packaging and marketing, an inadequate number of cinema houses, 
informal operations, few copyright products, as well as the small number of Nigerian film -making 
schools.  
4.4.6   Tourism  
4.166.   The Nigerian tourism industry has perhaps a greater poten tial than any other single 
industry, due to its multiplier effects on economic growth and job creation. The direct contribution 
of travel and tourism to GDP in 2015 was N1,560.2 billion (1.7% of GDP). In 2015, Nigeria 
attracted around 6 million tourists, a lmost double the number of visitors in 2011.35 This primarily 
reflects the economic activity generated by industries such as hotels, travel agents, airlines and 
other passenger transportation services (excluding commuter services). It also includes the 
activities of the restaurant and leisure industries.36 However the sector is underdeveloped and 
faces numerous challenges from poor infrastructure, undeveloped facilities, and , in some areas , 
security concerns.  
                                                
33 Cultural Policy of Nigeria (1988), Article 8.3, page 15.  
34 United Nations  Africa Renewal , "Nigeria’s film industry: a potential gold mine?", May 2013 . Viewed at:   
http://www.un.org/africarenewal/magazine/may -2013/nigeria%E2%80%99s -film-industry -potential -gold-
mine.  
35 UN World Tourism Organ ization, Niger ia: Country -specific: Basic indicators . Viewed at:  http://www.e -
unwto.org/doi/suppl/10.5555/unwtotfb0566010020112015201611 .  
36 World Travel and Tourism Council, Travel & Tourism Economic Impact 2015: Nigeria . Viewed at: 
https://www.wttc.org/ -
/media/files/reports/economic%20impact%20research/countries%20 2015/nigeria2015.pdf .  WT/TPR/S/356 • Nigeria  
 
- 89 - 
 
  4.167.   The Federal Government of Nigeria has prioritized  tourism as one of its key drivers of 
growth and diversification. The recognition of tourism potential is highlighted in the various 
development strategies of the country, as well as in the National Tourism Policy (NTP) and through 
the establishment of the Nigerian Tourism Development Corporation (NTDC) by Act 81 of 1992. In 
order to facilitate the entry of tourists into Nigeria, as at 2016 a tourist visa c ould be obtained 
upon arrival at the airport.  
4.168.   The main tourist attractions in Nigeria are adventure, historic, eco -adventure, beach, 
religious, and conference tourism. The prevalence of several natural and historic tourist sites add 
to the subsector's potential such as the Sukur World Heritage site at Adamawa and Osun Oshogbo 
Sacred Grove which are includ ed in UNESCO 's World Heritage List.  
4.169.   The Ministry of Information and Culture is responsible for policy and, through the Nigerian 
Tourism Development Corporation (NTDC), for promoting and regulating tourism in Nigeria. The 
NTDC is responsible for the regist ration and classification of enterprises engaged in tourism as well 
as advising state and local government, and the private sector on tourism development. Tour 
operators are the major suppliers. The Federation of Tourism Associations of Nigeria (FTAN) is t he 
umbrella group for several tourist -related industries and works closely with the NTDC on 
development of the sector.     
 WT/TPR/S/356 • Nigeria  
 
- 90 - 
 
  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by product group, 2010 -16 
 2010  2011  2012  2013  2014  2015 2016a 
Total (US$ billion)  86.6 125.6  143.2  90.6 102.9  49.8 33.7 
 (Per cent of total)  
Total primary products  93.2 97.4 97.1 96.5 93.5 91.4 99.0 
  Agriculture  5.0 7.9 12.6 8.3 2.3 3.2 2.3 
    Food 3.3 1.8 5.4 5.1 1.9 2.9 2.2 
    Agricultural raw mate rial 1.6 6.1 7.3 3.2 0.4 0.3 0.2 
  Mining  88.2 89.4 84.5 88.3 91.2 88.2 96.7 
    Ores and other minerals  0.6 0.1 0.1 0.1 0.0 0.1 0.0 
    Non-ferrous metals  0.5 0.2 0.4 0.5 0.3 0.3 0.1 
    Fuels 87.1 89.1 84.0 87.6 90.9 87.9 96.5 
          3330 - Petroleum oils and oils, crude  70.4 71.7 69.2 82.8 72.9 71.0 82.0 
          3431 - Natural gas, liquefied  3.3 4.7 3.9 2.0 8.5 11.0 11.7 
3449 - Gaseous hydrocarbons in the 
gaseous state, n.e.s.  0.0 0.0 0.0 0.0 0.0 0.5 0.9 
          3421 - Propane, liquefied  0.1 0.6 0.1 0.0 2.1 2.9 0.5 
3442 - Gaseous hydrocarbons, liquefied, 
n.e.s.  0.2 0.0 0.0 0.1 0.6 0.3 0.4 
          3425 - Butanes, liquefied  1.8 0.0 0.0 0.0 0.1 0.6 0.4 
Manufactures  6.7 2.5 2.9 3.4 6.5 8.6 1.0 
  Iron and steel  0.1 0.0 0.0 0.0 0.0 0.0 0.0 
  Chemicals  0.6 0.2 0.2 0.4 0.1 0.2 0.5 
  Other semi -manufactures  3.8 0.9 0.9 1.2 0.8 0.7 0.4 
  Machinery and transport equipment  1.2 1.2 1.3 0.9 2.8 7.4 0.0 
  Textiles and  clothing  0.3 0.1 0.2 0.2 0.7 0.0 0.1 
  Other consumer goods  0.8 0.2 0.2 0.7 2.0 0.3 0.0 
Other  0.1 0.1 0.0 0.1 0.0 0.0 0.0 
a Preliminary data.  
Source:  UNSD Comtrade database, SITC Rev.3; and data provided by Nigeria's National Bureau of Statistics 
(NBS).  WT/TPR/S/356 • Nigeria  
 
- 91 - 
 
  Table A1. 2 Merchandise imports by product group,  2010 -16 
 2010  2011  2012  2013  2014  2015  2016a 
Total (US$ billion)  44.2 64.0 35.9 44.6 46.5 34.8 34.9 
 (Per cent of total)  
Total primary products  13.4 45.9 28.0 42.6 35.9 38.0 44.1 
  Agriculture  11.0 34.8 23.5 20.6 17.7 17.7 14.1 
    Food 10.3 30.6 22.7 17.8 17.0 16.9 13.3 
          0411 - Durum wheat, unmilled  0.1 0.1 0.2 0.1 0.1 2.3 3.1 
0611 - Sugars, beet or cane, raw, in 
solid form, not containing added 
flavouring or colouring matter  0.8 2.1 2.4 1.9 1.8 1.7 2.2 
          0342 - Fish, frozen  1.7 2.8 3.4 2.2 1.9 2.7 1.3 
0224 - Whey; products consisting of 
natural milk constituents, n.e.s.  0.0 0.0 0.0 0.0 0.0 1.3 1.0 
    Agricultural raw material  0.8 4.2 0.8 2.8 0.7 0.8 0.8 
  Mining  2.4 11.1 4.5 22.0 18.2 20.3 30.0 
    Ores and other minerals  0.3 0.2 0.4 0.4 0.5 0.5 0.5 
    Non-ferrous metals  0.8 1.0 1.7 1.4 1.3 1.3 0.9 
6842 - Aluminium and aluminium 
alloys, worked  0.5 0.7 1.2 1.0 0.9 0.8 0.6 
    Fuels 1.3 9.9 2.4 20.2 16.3 18.5 28.6 
          334 - Petroleum oils and oils obtained 
from bitum inous minerals (other than 
crude)  0.8 9.1 1.5 19.3 15.3 18.0 28.1 
Manufactures  86.5 54.1 72.0 57.3 64.1 62.0 55.9 
  Iron and steel  2.7 2.4 4.4 3.5 4.3 4.2 2.3 
  Chemicals  10.8 7.9 12.0 12.2 12.5 12.9 12.5 
  Other semi -manufactures  15.2 7.5 8.5 7.6 8.2 7.8 6.0 
  Machinery and transport equipment  50.1 31.6 42.5 29.8 34.9 32.7 31.2 
    Power generating machines  1.6 1.4 2.3 2.0 2.6 2.0 3.0 
    Other non -electrical machinery  12.3 8.7 10.9 9.9 13.1 13.1 12.5 
Office machines & telecommunication 
equipment  6.8 3.9 5.7 3.6 4.0 4.8 4.0 
    Other electrical machines  6.2 4.4 3.6 3.2 3.3 3.8 2.8 
    Automotive products  20.0 9.7 15.9 5.3 6.5 4.8 3.9 
    Other transport equipment  3.2 3.5 4.2 5.7 5.5 4.2 5.1 
  Textiles  2.5 0.9 1.0 1.0 1.0 0.8 0.7 
  Clothing  0.2 0.3 0.2 0.2 0.2 0.3 0.3 
  Other consumer goods  5.1 3.4 3.3 3.1 3.1 3.3 2.9 
Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
a Preliminary data.  
Source:  UNSD Comtrade database, SITC Rev.3; and data provided by Nigeria's National Bureau of Statistics 
(NBS).  WT/TPR/S/356 • Nigeria  
 
- 92 - 
 
  Table A1. 3 Merchandise exports by destination, 2010 -16 
 2010  2011  2012  2013  2014  2015  2016a 
Total (US$ billion)  86.6 125.6  143.2  90.6 102.9  49.8 33.7 
 (Per cent of total)  
Americas  46.9 39.7 30.4 20.5 13.7 13.6 19.4 
  United States  34.4 22.5 16.9 8.5 3.8 3.6 12.1 
  Other America  12.6 17.1 13.6 12.1 9.9 10.0 7.3 
          Canada  2.9 1.2 1.5 1.8 0.2 1.1 2.7 
          Brazil  7.0 8.4 7.5 9.5 8.1 6.6 2.4 
          Argentina  0.1 0.0 0.1 0.0 0.2 0.9 0.8 
Europe  23.5 29.5 36.4 43.5 43.5 40.9 36.6 
  EU-28 22.4 28.5 35.6 42.2 41.1 38.8 35.8 
          Spain  3.3 5.9 5.5 7.0 9.3 9.5 9.2 
          Netherlands  4.5 2.1 7.0 10.5 10.2 11.8 7.8 
          France  4.0 5.9 4.2 5.9 5.7 5.3 6.3 
          United Kingdom  1.5 6.2 6.3 5.1 5.1 4.3 3.5 
          Italy 3.5 5.1 6.1 7.0 4.4 2.3 2.1 
          Sweden  0.1 0.0 0.7 1.4 1.4 0.9 2.0 
          Germany  0.6 1.0 1.5 2.3 1.7 2.0 1.8 
          Portugal  2.2 1.5 0.8 1.0 1.7 0.8 1.3 
  EFTA 0.2 0.6 0.2 0.5 0.1 0.6 0.0 
  Other Europe  0.9 0.4 0.6 0.7 2.3 1.5 0.7 
Commonwealth of Independent 
States (CIS)  0.0 0.1 0.0 0.2 0.1 0.0 0.0 
Africa  11.9 10.4 9.9 12.3 11.8 14.5 14.6 
          South Africa  2.1 2.1 3.3 4.8 5.0 5.5 5.5 
          Côte d'Ivoire  1.5 1.4 1.8 2.6 2.3 3.4 2.6 
          Cameroon  0.6 0.3 0.7 1.7 1.3 1.0 1.5 
          Senegal  0.2 0.4 0.7 0.7 0.6 1.3 1.4 
          Ghana  0.5 0.7 0.9 1.5 0.9 1.1 1.3 
Middle East  0.3 0.2 0.1 0.7 0.4 0.8 1.3 
Asia 17.1 19.9 22.7 21.5 27.3 28.4 27.5 
  China  1.7 2.0 5.6 1.2 1.6 1.6 1.4 
  Japan  0.5 0.3 0.5 0.5 3.2 3.5 1.3 
  Other Asia  15.0 17.5 16.6 19.8 22.6 23.3 24.7 
          India 10.5 10.2 11.1 12.6 14.6 17.3 18.0 
          Indonesia  1.1 0.7 1.1 2.3 3.9 2.4 3.9 
          Singapore  0.2 0.3 1.0 0.7 0.4 0.8 1.2 
Other  0.3 0.2 0.4 1.3 3.2 1.8 0.6 
        
Memo:         
ECOWAS  2.4 2.8 3.9 5.3 5.1 6.3 6.8 
a Preliminary data.  
Source:  UNSD Comtrade database, SITC Rev.3; and data provided by Nigeria's National Bureau of Statistics 
(NBS).  WT/TPR/S/356 • Nigeria  
 
- 93 - 
 
  Table A1. 4 Merchandise imports by origin, 2010 -16 
 2010 2011  2012  2013  2014  2015  2016a 
Total (US$ billion)  44.2 64.0 35.9 44.6 46.5 34.8 34.9 
 (Per cent of total)  
Americas  29.4 34.0 25.2 13.0 14.5 13.0 12.2 
  United States  17.9 18.0 13.6 8.7 10.4 8.7 8.0 
  Other America  11.5 16.0 11.5 4.3 4.1 4.3 4.2 
          Brazil  3.3 5.5 8.0 2.8 2.5 2.6 2.9 
          Canada  0.0 0.0 0.0 0.6 0.8 0.7 0.8 
Europe  24.4 27.9 26.5 34.0 37.0 36.7 45.8 
  EU-28 21.8 24.5 23.3 31.1 33.5 34.2 43.4 
          Belgium  3.9 3.1 3.7 4.9 7.2 7.5 12.1 
          Netherlands  0.8 2.4 1.4 5.4 6.1 6.2 11.7 
          United Kingdom  2.8 2.7 6.6 5.2 3.9 4.2 4.1 
          France  5.8 4.5 2.1 2.8 2.5 2.3 3.9 
          Germany  0.5 4.7 2.7 3.5 3.8 3.1 3.1 
          Spain  0.7 1.5 0.9 2.1 1.7 2.1 1.7 
          Italy 4.5 2.8 2.1 1.7 2.2 2.4 1.4 
          Latvia  0.1 0.1 0.1 0.9 1.5 2.0 1.3 
          Ireland  0.4 1.3 1.1 0.9 1.1 1.0 1.0 
  EFTA 1.4 1.2 1.9 1.8 2.3 1.7 1.8 
          Norway  0.7 0.6 0.6 1.1 1.3 0.9 1.2 
  Other Europe  1.1 2.2 1.4 1.1 1.2 0.8 0.7 
Commonwealth of Independent States 
(CIS)  0.6 0.7 1.5 1.2 1.6 1.4 1.5 
          Russian Federation  0.2 0.3 0.7 0.5 0.9 0.9 1.2 
Africa  6.4 4.5 4.4 8.1 3.8 6.3 4.1 
          South Africa  1.1 1.2 2.0 1.9 2.0 1.8 1.5 
Middle East  6.7 2.8 2.8 2.5 3.2 3.3 3.5 
          United Arab Emirates  4.1 1.2 1.9 1.2 1.6 1.5 1.8 
Asia 32.0 29.5 39.4 35.6 39.9 39.3 32.6 
  China  16.6 14.8 21.5 21.7 21.9 23.4 19.7 
  Japan  2.6 4.5 2.7 1.3 1.7 1.3 1.5 
  Other Asia  12.9 10.2 15.2 12.6 16.2 14.5 11.4 
          India 5.4 3.9 8.0 4.7 6.0 6.1 5.1 
          Korea, Republic of  1.3 1.0 1.5 3.0 3.7 1.7 1.1 
          Malaysia  0.6 0.4 0.4 0.6 0.6 0.7 1.0 
          Indonesia  0.0 0.0 0.1 0.9 1.4 1.3 1.0 
          Thailand  0.0 0.0 0.6 0.5 1.7 2.0 0.7 
Other  0.4 0.6 0.2 5.5 0.0 0.0 0.3 
Memo:         
ECOWAS  0.4 1.2 0.4 4.9 0.6 3.2 1.2 
a Preliminary data.  
Source:  UNSD Comtrade database, SITC Rev.3; and data provided by Nigeria's National Bureau of Statistics 
(NBS).  
 WT/TPR/S/356  • Nigeria  
 
- 94 - 
 
  Table A2. 1 Nigeria's Involvement in Dispute Settlement Cases - as Third P arty 
Subject  Respondent/ 
complainant/ 
appellant  Request for 
consultation 
received  Status  WTO 
document 
series  
United States – Import 
Prohibition of Certain Shrimp 
and Shrimp Products  U.S./India, Malaysia, 
Pakistan and Thailand  8 Oct 1996  Compliance 
proceed ings 
completed without 
finding of non -
compliance on 
21 November 2001  WT/DS58  
Australia – Certain measures 
concerning trademarks and 
other plain packaging 
requirements applicable to 
tobacco products and 
packaging  Australia/Ukraine  13 Mar 2012  Authority fo r panel 
lapsed on 30 May 
2016 WT/DS434  
Australia – Certain measures 
concerning trademarks, 
geographical indications and 
other plain packaging 
requirements applicable to 
tobacco products and 
packaging  Australia/Honduras  4 Apr 2012  Panel composed on 
5 May 2 014 WT/DS435  
Australia – Certain measures 
concerning trademarks, 
geographical indications and 
other plain packaging 
requirements applicable to 
tobacco products and 
packaging  Australia/Dominican 
Republic  18 Jul 2012  Panel composed on 
5 May 2014  WT/DS441  
Australia – Certain measures 
concerning trademarks, 
geographical indications and 
other plain packaging 
requirements applicable to 
tobacco products and 
packaging  Australia/Cuba  3 May 2013  Panel composed on 
5 May 2014  WT/DS458  
Australia – Certain measures 
concerning trademarks, 
geographical indications and 
other plain packaging 
requirements applicable to 
tobacco products and 
packaging  Australia/Indonesia  20 Sep 2013  Panel composed on 
5 May 2014  WT/DS467  
Source:  WTO Secretariat  WT/TPR/S/356 • Nigeria  
 
- 95 - 
 
  Table A2. 2 Selected notifications to the WTO, July 2010 to December 2015  
WTO Agreement  Description of 
requirement  Most recent notification  Date  Period 
covered by 
notification  
Technical Barrier to 
Trade (TBT) 
Agreement  Notification is being 
circulated in acc ordance with 
Article 10.6  G/TBT/N/NGA/2  
G/TBT/N/NGA/3  
G/TBT/N/NGA/4  14/12/2015  
14/12/2015  
14/12/2015   
Sanitary and 
Phytosanitary (SPS) 
Agreement  Regular notifications  G/SPS/N/NGA/1  
G/SPS/N/NGA/2  
G/SPS/N/NGA/3  
G/SPS/N/NGA/4  
G/SPS/N/NGA/5  
G/SPS/N/NGA/6  
G/SPS/N/NGA/7  
G/SPS/N/NGA/8  
G/SPS/N/NGA/9  
G/SPS/N/NGA/10  
G/SPS/N/NGA/11  
G/SPS/N/NGA/12  
G/SPS/N/NGA/13  
G/SPS/N/NGA/14  
G/SPS/N/NGA/15  
G/SPS/N/NGA/16  
G/SPS/N/NGA/17  02/09/2015  
02/09/2015  
02/09/2015  
02/09/2015  
08/09/2015  
16/09/2015  
16/09/2015  
16/09/2015  
16/09/2015  
16/09/2015  
23/09/2015  
23/09/2015  
23/09/2015  
23/09/2015  
30/09/2015  
30/09/2015  
30/09/2015   
Trade Facilitation 
Agreement  Notification of category A 
commitments under the 
Agreement on Trade 
Facilitation – Communication 
from Nigeria  WT/PCTF/N/NGA/1  10/11/201 4  
Working Party on 
State Trading 
Enterprises  New, Full and Updated 
Notifications Pursuant to 
Article XVII:4(a) of the GATT 
1994 and Paragraph 1 of the 
Understanding on the 
Interpretation of Article XVII  G/STR/N/9/NGA  
G/STR/N/10/NGA  
G/STR/N/11/NGA  
G/STR/ N/14/NGA  
 
 12/09/2012  
12/09/2012  
12/09/2012  
12/09/2012  
  
Committee on 
Market Access  Schedule XLIII – Invocation 
of paragraph 5 of article 
XXVIII  G/MA/326  07/01/2015   
Committee on Anti -
dumping  Practices  Under Article 16.4 of the 
WTO Agreement on 
Implemen tation of Article VI 
of the GATT 1994, Members 
shall submit, on a semi -
annual basis, reports of any 
anti-dumping actions taken 
within the preceding six 
months.  G/ADP/N/202  
G/ADP/N/202/Add.1/Rev.1  
G/ADP/N/230  
G/ADP/N/230/Add.1  
G/ADP/N/223  
G/ADP/N/223/Add.1  
G/ADP/N/216  
G/ADP/N/216/Add.1/Rev.1  01/07/2010  
24/11/2011  
14/06/2012  
12/10/2012  
21/12/2011  
20/04/2012  
29/06/2011  
25/07/2012   
Committee on 
Import Licensing  Replies to questionnaire on 
import licensing procedures 
Notification under Article 7.3 
of the Agreem ent on Import 
Licensing Procedures  G/LIC/N/3/NGA/7  17/01/2012   
Committee on 
Agriculture  Under Article 18.2 of the 
Agreement on Agriculture, 
Nigeria has notified the 
Committee on Agriculture 
that it did not provide 
domestic support for the 
reporting period  2011.  G/AG/N/NGA/15  16/01/2012  Reporting 
period 2011  
 Under Articles 10 and 18.2 of 
the Agreement on 
Agriculture, Nigeria has 
notified the Committee on 
Agriculture that it did not 
grant any export subsidies 
for the reporting period 2011.  G/AG/N/NGA/16  16/01/2012   
Source:  WTO Secretariat  WT/TPR/S/356  • Nigeria  
 
- 96 - 
 
  Table A3. 1 Nigeria's applied MFN tariff summary, 2017  
 Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty-free 
lines  
(%)b 
Total  5,924  12.7 0-70 0.7 2.7 
HS 01 -24 1,078  17.0 5-70 0.7 0.0 
HS 25 -97 4,846  11.8 0-70 0.7 3.3 
By WTO category       
WTO agricultural products  914 16.6 5-70 0.7 0.0 
Animals and products thereof  117 24.1 5-35 0.5 0.0 
Dairy products  35 15.0 5-35 0.7 0.0 
Fruit, vegetables, and plants  233 17.6 5-35 0.4 0.0 
Coffee, tea, and cocoa and cocoa 
preparations  66 14.2 5-35 0.6 0.0 
Cereals and preparations  119 15.3 5-70 0.8 0.0 
Oils seeds, fats, oil and their products  97 11.6 5-35 0.7 0.0 
Sugars and confectionary  20 13.3 5-35 0.7 0.0 
Beverages, spirits and t obacco  80 28.1 5-70 0.8 0.0 
Cotton  7 5.0 5 0.0 0.0 
Other agricultural products, n.e.s.  140 9.5 5-20 0.6 0.0 
WTO non -agricultural products  5,010  12.0 0-70 0.7 3.2 
Fish and fishery products  234 15.4 5-20 0.3 0.0 
Minerals and metals  1,002  12.0 0-55 0.7 3.6 
Chemicals and photographic supplies  930 7.8 0-35 0.8 4.0 
Wood, pulp, paper and furniture  291 11.5 0-40 0.6 4.8 
Textiles  611 16.3 0-45 0.4 0.3 
Clothing  218 20.0 20 0.0 0.0 
Leather, rubber, footwear and travel 
goods  200 12.8 0-20 0.5 1.0 
Non-electri c machinery  563 6.8 0-20 0.7 4.4 
Electric machinery  276 11.7 0-45 0.7 1.1 
Transport equipment  228 16.8 0-70 1.0 13.6 
Non-agricultural products, n.e.s.  433 14.2 0-20 0.5 2.1 
Petroleum  24 7.5 0-10 0.4 8.3 
By ISIC sectorc      
ISIC 1 – Agriculture, hunt ing and fishing  424 11.9 5-35 0.6 0.0 
ISIC 2 – Mining and quarrying  103 5.1 0-10 0.2 1.0 
ISIC 3 – Manufacturing  5,396  13.0 0-70 0.7 3.0 
By stage of processing       
First stage of processing  817 10.6 0-70 0.7 0.2 
Semi-processed products  1,836  10.2 0-70 0.7 2.1 
Fully processed products  3,271  14.7 0-70 0.7 3.7 
a Coefficient of variation.  
b  Share of duty -free in the total number of tariff lines of the product group.  
c International Standard Industrial Classification (Rev.2).  Electricity, gas and water are excluded 
(1 tariff line).  
Note:  The 2017 tariff schedule is based on HS12 nomenclature consisting of 5,924 tariff lines (at the 10 -
digit tariff line level).  
Source:  WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NC S). 
 WT/TPR/S/356 • Nigeria  
 
- 97 - 
 
  Table A3. 2 Products on which Nigeria's customs duty rates differ from ECOWAS CET  
  No. of TLs  
(at the 10 -digit level)  Tariff rates 2017  
HS2 Product descriptions  Total   
of which:  
products on which 
Nigeria's customs 
duty rat es differ from 
ECOWAS CET  Simple 
average 
(%) Range 
(%) 
01 Live animals  38 24 8.3 5-10 
02 Meat and edible meat offal  66 16 31.4 20-35 
04 Dairy produce  46 13 16.5 5-35 
07 Edible vegetables and certain roots and tubers  78 1 18.5 5-35 
09 Coffee, tea, maté  and spices  72 34 14.8 5-20 
10 Cereals  30 4 11.3 5-70 
11 Products of the milling industry  38 6 14.1 5-70 
12 Oil seeds and oleaginous fruits  54 2 5.5 5-10 
15 Animal or vegetable fats and oils and their 
cleavage products  59 17 14.8 5-35 
16 Preparation s of meat, of fish or of crustaceans  44 2 24.1 20-35 
17 Sugars and sugar confectionery  20 1 13.3 5-35 
19 Preparations of cereals, flour, starch or milk  25 10 19.0 5-35 
20 Preparations of vegetables, fruit, nuts or other 
parts of plants  79 23 18.0 5-35 
21 Miscellaneous edible preparations  27 4 15.2 5-35 
22 Beverages, spirits and vinegar  31 24 43.1 5-70 
24 Tobacco and manufactured tobacco substitutes  11 6 32.3 5-70 
25 Salt; sulphur; earths and stone; plastering 
materials, lime and cement  71 5 7.7 5-50 
27 Mineral fuels, mineral oils and products of their 
distillation  61 2 5.9 0-10 
28 Inorganic chemicals  167 2 5.1 5-20 
29 Organic chemicals  343 1 5.0 5-10 
32 Tanning or dyeing extracts  58 19 10.2 5-20 
33 Essential oils and resinoids  33 23 16.1 5-20 
34 Soap, organic surface -active agents, washing 
preparations, etc.  30 7 23.0 5-35 
35 Albuminoidal substances  15 3 8.7 0-20 
36 Explosives; pyrotechnic products  9 1 13.3 5-20 
37 Photographic or cinematographic goods  34 3 17.1 5-20 
38 Miscellaneous chemi cal products  106 6 9.3 0-20 
39 Plastics and articles thereof  143 20 10.4 0-20 
40 Rubber and articles thereof  92 3 11.1 0-20 
42 Articles of leather; saddlery and harness es 33 4 17.3 10-20 
44 Wood and articles of wood; wood charcoal  78 1 11.7 5-20 
46 Manufactures of straw, of esparto or of other 
plaiting materials  12 1 20.0 20 
48 Paper and paperboard  127 8 11.3 0-40 
52 Cotton  136 20 16.7 5-45 
53 Other vegetable textile fibres  24 4 9.6 5-20 
54 Man-made filaments  73 38 13.5 5-20 
55 Man-made staple fibres  110 25 14.0 5-20 
58 Special woven fabrics; tufted textile fabrics  39 1 19.6 5-20 
62 Articles of apparel and clothing accessories, not 
knitted or crocheted  112 1 20.0 20 
63 Other made -up textile articles; sets  54 7 19.4 0-20 
64 Footwear, gaiters and the like; parts of such 
articles  50 21 15.0 10-20 WT/TPR/S/356  • Nigeria  
 
- 98 - 
 
    No. of TLs  
(at the 10 -digit level)  Tariff rates 2017  
HS2 Product descriptions  Total   
of which:  
products on which 
Nigeria's customs 
duty rat es differ from 
ECOWAS CET  Simple 
average 
(%) Range 
(%) 
68 Articles of stone, plaster, cement, asbestos, mica 
or similar materials  52 2 16.4 5-20 
72 Iron and steel  178 36 9.7 0-45 
73 Articles of iron or steel  159 23 16.2 5-55 
74 Copper and articles the reof 52 2 11.6 5-20 
76 Aluminium and articles thereof  47 7 13.0 0-20 
84 Nuclear reactors, boilers, machinery and 
mechanical appliances  544 30 6.5 0-20 
85 Electrical machinery and equipment and parts 
thereof  297 21 12.1 0-40 
87 Vehicles other than railw ay or tramway rolling 
stock  174 117 20.3 0-70 
90 Optical, photographic, cinematographic, 
measuring, or surgical instruments and apparatus  149 1 8.2 0-20 
91 Clocks and watches and parts thereof  49 1 19.4 10-20 
93 Arms and ammunition  60 2 14.8 10-20 
94 Furniture; bedding, mattresses, etc.  44 6 18.0 5-20 
96 Miscellaneous manufactured articles  53 2 19.3 5-20 
Source:  WTO Secretariat calculations, based on data provided by the Nigeria Customs Service (NCS).  WT/TPR/S/356 • Nigeria  
 
- 99 - 
 
  Table A3. 3 Goods and  services exempt from VAT, 2016  
Goods  
Medical and pharmaceutical products  
Basic food items such as peas, beans, yam, cassava, maize, rice, wheat, milk, and fish  
Infant food items  
Books, newspapers, and magazines  
Educational materials (laboratory equi pment)  
Baby products such as carriages, clothes, and napkins, as well as sanitary towels  
Commercial vehicles and spare parts, tractors, public transport passenger vehicles, motorcycles, tanks 
and other armoured fighting vehicles, and bicycles  
Agricultur al equipment such as for soil preparation or cultivation, harvesting or threshing, milking and 
dairy machinery, and poultry keeping machinery  
Veterinary medicine equipment  
Fertilizers and farm transportation equipment  
Services  
Medical and health servic es 
Services by community banks, people's banks, and mortgage institutions (interest earnings on loans by 
commercial banks and premiums paid to insurance companies are not taxable)  
Performances conducted by educational institutions as part of learning  
Social services such as orphanages, charities, and fire fighting  
Pure postal services  
Religious services  
Non-commercial cultural services  
Overseas air transportation  
Public telephone and telegram services (excluding business or commercial services)  
Other goods and services  
Salt 
Water  
Salary or wages from employment  
Director's emoluments  
Hobby activities   
Private transactions such as sales of domestic or household articles, vehicles, personal effects, and 
residential house rents  
Source:  Informati on provided by the Nigerian authorities.  WT/TPR/S/356  • Nigeria  
 
- 100 - 
 
  Table A3. 4 Import Prohibition List, 2017  
Product  HS code  
Live or dead birds including frozen poultry  0105.1100 -0105.9900, 0106.3100 -
0106.3900, 0207.1100 -0207.3600 and 
0210.9900  
Pork, b eef 0201.1000 -0204.5000, 0206.1000 -
0206.9000, 0210.1000 -0210.2000  
Mosquito repellent coils  3808.9110.91  
Retreaded and used pneumatic tyres, but excluding used 
trucks tyres for retreading sized 11.00 x 20 and above  4012.2010.00  
Motor vehicles over ten -years olda 8703.1000 -8703.9000  
Birds eggs, excluding hatching eggs  0407.0000  
Cement in bags  2523.2900.22  
Refined vegetable oils and fats (but excluding linseed, castor 
and olive oils; crude vegetable oil s are however not banned 
from importation)  1507.100 0-1516.2000.29  
Cane or beet sugar and chemically pure sucrose, in solid form 
containing added flavouring or coloured matter, in retail packs  1701.91.1000 -1701.99.9000  
Cocoa butter, powder and cakes  1802. -1803.2000, 1805.0000, 1806.1000 -
1806.2000 and 1804 .0000  
Waters, including mineral waters and aerated waters 
containing added sugar or sweetening matter or flavoured, ice 
snow, other non -alcoholic beverages (but excluding energy or 
health drinks liquid dietary supplements e.g. power horse, red 
ginseng, et c.) and beer and stout (bottled, canned or 
otherwise packed)  2202.1000 -2202.9000, 2202.1000 -
2202.9000.99, 2202.9000.91 
2203.0010.00 -2203.0090.00  
 
Used compressors, used air conditioners, and used 
fridges/freezers  8414.3000, 8415.1000.11 -8415.9000.99, 
8418.1000.11 -8418.6900  
Cassava 0714.1000  
Toothpicks  3926.9000, 4421.9000  
Noodles (including spaghetti)  1902.1100 -1902.3000  
Fruit juice in retail packsb 2009.110012 -2009.110013, 2009.9000.99  
All types of footwear and bags including suitcases of leather 
and plastics (but excluding safety shoes used in oil industries, 
hospitals, firefighting and factories, sports shoes, canvass 
shoes all completely knocked down (CKD) blanks and parts)  6401.1000.11 -6405.9000.99 and 
4202.1100.10 -4202.9900.99  
Hollow glass bott les of a capacity exceeding 150  ml 
(0.15  litres) of a kind used for packaging of beverages by 
breweries and other beverage and drink companies  7010.9021.29 and 7010.9031.00  
Used motor vehicles above fifteen (15) years from the year of 
manufacture  8703.10. 00-8703.90.0000  
Furniture (but excluding baby walkers, laboratory cabinets 
such as microscope tables, fume cupboards, laboratory 
benches (9403), stadium chairs, height adjustment devices, 
base sledges, seat frames and control mechanisms, arm 
guides and he ad guides. Also excluded are: skeletal parts of 
furniture such as blanks, unholstered or unfinished part of 
metal, plastics, veneer, chair shells, etc.)  9401.1000.00 -9401.9000.99 and 
9403.1000 -9404.9000  
Medicaments falling under Headings 3003 and 3004 as 
indicated below:  
- Paracetamol tablets and syrups  
- Cotrimoxazole tablets syrups  
- Metronidazole tablets and syrups  
- Chloroquine tablets and syrups  
- Haematinic formulations; ferrous sulphate and ferrous 
gluconate tablets, folic acid tablets, vitamin  B complex 
tablet s (except modified released formulations).  
- Multivitamin tablets, capsules and syrups (except 
special formulations)  
- Aspirin tablets (except modified released formulation s 
and soluble aspirin)  Chapter 3003 and 3004  WT/TPR/S/356 • Nigeria  
 
- 101 - 
 
  Product  HS code  
- Magnesium trisilicate tablets and suspe nsions  
- Piperazine tablets and syrups  
-  Levamisole tables and syrups  
- Clotrimazole cream  
- Ointments – Penicillin/gentamycin  
- Pyrantelpamoate tablets and syrups  
- Intravenous fluids (dextrose, normal saline, etc.)  
Waste pharm aceuticals  3006.9200  
Sanitary wares of plastics and domestic articles and wares of 
plastics (but excluding baby feeding bottles 3924.9020.00) 
and flushing cisterns and waterless toilets  3922.1000 -3922.9000, 3924.1000 -
3924.9000.00  
Corrugated paper and pap er boards  and cartons, boxes and 
cases made from corrugated paper and paper boards, toilet 
paper, cleaning or facial tissue (excluding baby diapers and 
incontinence pads for adult use 4818.4000.41 and exercise 
books – H.S. Code 4820.2000)  4808.1000, 4819. 1000, 4818.1000 -
4818.9000  
Telephone re -charge cards and vouchers  4911.9900.91  
Textile fabrics of all types and articles thereof and yarn falling 
under the following H.S. Codes remain under import 
prohibition:   
African print (printed fabrics) e.g. Nigeri a wax, 
Hollandaise, English wax, Ankara and similar fabrics  
 5208.5110 -5208.5900, 5209.5100 -
5209.5900, 5212.5100, 5212.5100, 
5212.2500, 5407.4400, 5407.5400, 
5407.7400, 5407.8400, 5407.9400, 
5408.2400, 5408.3400, 5513.4100 -
5513.4900, 5514.4100 -5514.4900, 
5516.1400, 5516.2400, 5516.3400, and 
5514.4900.00  
Lace fabrics, georges and other embroide red fabrics  
 5801.2100 -5801.9000, 5802.1100 -
5802.3000 and 5805.0000.00  
Carpets and rugs of all types  5701.1000 -5705.0000  
Made -up garments and other textile arti cles (but excluding 
the following:  made -up lining articles H.S. Code 
6117.8000 -6117.9000 and 6217.1000, 6217.9000, 
Industrial gloves HS Code 6116.1000.11 -6116.9900.99 
6116.1000.11; 6116.9200.92; 6116.9900.98, moulding 
cups Lycra HS Code 6212.9000, rags HS  Code 
6310.1000.11, 6310.9000.91, jute bags HS Code 
6305.1000, brassieres, pants, ties, insecticides treated 
mosquito nets (ITNs) and (LLITNs) HS Code 6304.9100.92, 
6304.9200.94, 6304.9300.96, 6304.9900.98)  6101.2000 -6310.9000.99  
Soaps and detergents  3401.1100 -3402.9000  
Ballpoint pens  9608.1000  
a The importation of any vehicle through land borders is prohibited.  
b Fruit juice may be imported in concentrates or drums only.  
Source : Nigeria Customs Service online information. Available at:  
http://www.customs.gov.ng/ProhibitionList/import.php ; and information provided by the Nigerian 
authorities.  WT/TPR/S/356  • Nigeria  
 
- 102 - 
 
  Table A3. 5 Absolute Import Prohibition  List, September 2016  
Produc t 
Air pistols  
Airmail photographic printing paper  
All counterfeit/pirated materials or articles including base or counterfeit coin of any country  
Beads composed of inflammable celluloid or other similar substances  
Blank invoices  
Coupons for foreig n football pools or other betting arrangements  
Cowries  
Exhausted tea or tea mixed with other substances. For the purposes of this item, "exhausted tea" means 
any tea which has been deprived of its proper quality, strength, or virtue by steeping, infusi on, decoction or 
other means  
Implements appertaining to the reloading of cartridges  
Indecent or obscene prints, painting, books, cards, engraving or any indecent or obscene articles  
Matches made with white phosphorous  
Manilas  
Materials of any descr iption with a design which, considering the purpose for which any such material is 
intended to be used, is likely in the opinion of the president to create a breach of the peace or to offend the 
religious views of any class of persons in Nigeria  
Second -hand clothing  
Piece goods and all other textiles including wearing apparel, hardware of all kinds' crockery and china or 
earthenware goods bearing inscriptions (whether in Roman or Arabic characters) from the Koran or from 
the traditions and commentaries on the Koran  
Meat, vegetables or other provisions declared by a health officer to be unfit for human consumption  
Pistols disguised in any form  
Silver or metal alloy coins not being legal tender in Nigeria  
Nuclear industrial waste and other toxic was te  
Spirits, other than:  
- Alcoholic bitters, liqueurs, cordials and mixtures admitted as such in his discretion by the 
Comptroller -General and which are not deemed to be injurious spirits within the meaning of any 
enactment or law relating to liquor or liquor licensing  
- Brandy, i.e. a spirit distilled in grape -growing countries from fermented grape juice and from no 
other materials and stored in wood for a period of three years  
- Drugs and medicinal spirits admitted as such in his discretion by the Comp troller -General  
- Gin, i.e. spirit -produced by distillation from a mixed mash of cereal grains only saccharified by the 
diastase of malt and flavoured by redistillation with juniper berries and other vegetable ingredients 
and of a brand which has been noti fied as an approved brand by notice in the Gazette and in 
containers labelled with the name and address of the owner of the brand;  or produced by distillation 
at least three times in a pot -still from mixed mash or barley, rye and maize saccharified by dia stase 
of malt , and then rectified by re -distillation in a pot still after the addition of juniper berries and other 
vegetable materials  
- Methylated or denatured spirit, i.e.:  
 mineralized methylated spirit mixed as follows:  to every 90 parts by volume of spirits 9.5 parts 
by volume of wood naphtha and one -half of one part by volume of crude pyridine and to every 
455 litres of the mixture 1.7  litres of mineral naphtha or petroleum oil and not less than 0.7 
grams by weight of powdered aniline dye (methyl  violet) and so in proportion for any quantity 
less than 455 litres;  and  
 industrial methylated spirit imported under licence from the Comptroller -General and mixed as 
follows:  to every 95  parts by volume of spirits 5 five parts by volume of wood naphtha and  
also one -half of one part by volume of the mixture;  and spirits denatured for a particular 
purpose in such manner as the Comptroller -General in any special circumstance may permit.  
- Perfumed spirits  
- Rum, i.e. a spirit distilled direct ly from sugar -cane products in sugar -cane growing countries;  and 
stored in wood for a period of three years  
- Spirits imported for medical or scientific purposes, subject to such conditions as the Comptroller -
General may prescribe  
- Spirits totally unfit for use as potabl e spirits admitted to entry as such at the discretion of the 
Comptroller -General  
- Whisky, i.e. a spirit obtained by distillation from a mash or cereal grains saccharified by diastase of 
malt;  and stored in wood for a period of three years  
- Containing mo re than forty -eight and one -half per centum of pure alcohol by volume except 
denatured, medicated and perfumed spirits, and such other spirits which the Comptroller -General, in 
his discretion, may allow to be imported subject to such conditions as he may s ee fit to impose.  WT/TPR/S/356 • Nigeria  
 
- 103 - 
 
  Produc t 
Weapons of any description which in the opinion of the Comptroller -General are designed for the discharge 
of any noxious liquid, gas or other similar substance and any ammunition containing or in the opinion of the 
Comptroller -General ad apted to contain any noxious liquid, gas or other similar substances  
Source:  Nigeria Customs Service online information. Viewed at: 
https://www.customs.gov.ng/ProhibitionList/import  _2.php . WT/TPR/S/356  • Nigeria  
 
- 104 - 
 
  Table A3. 6 List of Imported Goods and Services not entitled to  foreign exchange in the 
Nigerian Foreign Exchange Markets  
No. Item  
1.  Rice 
2.  Cement  
3.  Margarine  
4.  Palm kernel/palm oil products/vegetable oils  
5.  Meat and p rocessed meat products  
6.  Vegetables and processed vegetable products  
7.  Poultry – chicken, eggs, turkey  
8.  Private airplanes/jets  
9.  Indian incense  
10.  Tinned fish in sauce (geisha)/sardines  
11.  Cold rolled steel sheets  
12.  Galvanised steel sheets  
13.  Roofing sheets  
14.  Wheelbarrows  
15.  Head pans  
16.  Metal boxes and containers  
17.  Enamelware  
18.  Steel drums  
19.  Steel pipes  
20.  Wire rods (deformed or not deformed)  
21.  Iron rods and reinforcing bars  
22.  Wire mesh  
23.  Steel nails  
24.  Security and razor wire  
25.  Wood particle boards and panels  
26.  Wood fib re boards and panels  
27.  Plywood boards and panels  
28.  Wooden doors  
29.  Furniture  
30.  Toothpicks  
31.  Glass and glassware  
32.  Kitchen utensils  
33.  Tableware  
34.  Tiles – vitrified and ceramic  
35.  Textiles  
36.  Woven fabrics  
37.  Clothes  
38.  Plastic and rubber products, cello phane wrappers  
39.  Soap and cosmetics  
40.  Tomatoes/tomato pastes  
41.  Euro bond/foreign currency bond/share purchases  
Source:  Central Bank of Nigeria, 23 June 2015 . 
 
 
__________