WT/TPR/G/356 /Rev.1  
17 October  2017 
(17-5574) Page: 1/20 
Trade Policy Review Body  Original: English  
 
 TRADE POLICY REVIEW  
REPORT BY  
NIGERIA  
Revision  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Nigeria  
is attached.  
 
 WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  Table of Contents  
 
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC ENVIRONMENT  ................................ ................................ ..........................  4 
2.1   Growth Performance  ................................ ................................ ................................ .... 4 
2.2   Trade Performance  ................................ ................................ ................................ ...... 5 
2.3   Balance of Payment, Foreign Reserves and Exchange Rate  ................................ ...............  6 
2.4   Government Expenditure, Revenue and Debt  ................................ ................................ .. 6 
3   DIVERSIFICATION AND MODERNIZATION PRIORI TIES  ................................ ..............  7 
3.1   Introduction  ................................ ................................ ................................ ................  7 
3.2   Systemic and Sectoral Initiatives  ................................ ................................ ...................  8 
3.3   Institutional Support for St ructural Transformation ‎ and Sectoral Diversification  .................. 12 
4   TRADE AGREEMENTS AND  ARRANGEMENTS  ................................ ..............................  14 
4.1   Introduction  ................................ ................................ ................................ ............... 14 
4.2   Multilateral Trade  ................................ ................................ ................................ .......14 
4.3   Regional Trade Agreements  ................................ ................................ ......................... 16 
4.3.1    ECOWAS  ................................ ................................ ................................ ................. 16 
4.3.2    Continental Free Trade Area (CFTA)  ................................ ................................ ........... 17 
4.4   Bilateral Trade (Investment) Agreements  ................................ ................................ ......17 
4.5   Preferential Trade Agreements and Arrangements  ................................ .......................... 18 
4.5.1    Economic Partnership Agreement (EPA)  ................................ ................................ ......18 
5   TRADE-RELATED TECHNICAL AS SISTANCE  ................................ ................................  18 
6   MEDIUM -TERM OUTLOOK  ................................ ................................ ..........................  19 
7   CONCLUSION ................................ ................................ ................................ .............  20 
 
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  1  INTRODUCTION  
1.1.  Since the last trade policy review in 2011, there have been significant changes in Nigeria 's 
economic and trade policies and in the political environment also. The country recorded a 
successful transition from one civilian government administration to anot her through a peaceful 
democratic election. The economy was re -based in 2013, following which the country emerged as 
the number one economy in Africa. In 2014, commodity prices collapsed, ending the commodit y 
super -cycle. With a 60 % drop in revenue, the ec onom y entered a recession in 2016. Overall, 
although there are challenges, the foundations for structural transformation of the economy have 
been set with the "Economic Recovery and Growth Plan " (ERGP), a medium -term pla n for the 
period 2017 to 2020. This ERGP was launched by Pr esident Buhari on 5 April 2017.  
1.2.  In the context of the ERGP, the Plan for "Diversification and Growth " by the Federal Ministry 
of Industry, Trade and Investment ( "The MITI Plan ") is being implemented. The MITI Plan is 
focused on i ndustry, trade and investment. In the framework of strong and steady improvements 
in governance, the rule of law and policy reforms, inclusive growth policies are being implemented, 
accompanied by concrete efforts to improve coherence in monetary, fiscal and s tructural ref orm 
policies, including trade. This policy direction places Nigeria and its e conomy in the right direction. 
In concluding Nigeria 's 2017 Article IV Consultations, in March 2017, the Executive Board 
welcomed the authorities ' Economic Re covery a nd Growth Plan (ERGP). It noted the focus on 
economic diversification driven by the private sector, and government initiatives to strengthen 
infrastructure - including the recently adopted power sector recovery plan. However, the Board 
underlined that with out stronger policies these objectives may not be achieved1. Nigeria welcomes 
this advice.  
1.3.  The foundation for domestic stability is based on democratic government, rule of law, 
transparency, responsible and accountable government and domestic policy refor ms for inclusi ve 
growth in a market economy. These principles and policies provide a platform for competitive 
integration into th e regional and global economy. In 2015, the Government of President Goodluck 
Jonathan lost the elec tion and accepted the result s. Mr. Muhammadu Buhari was installed as the 
President of the Federal Republic of Nigeria, on the 29 May 2015 for a 4 -year term. President 
Buhari 's Administration was elected on the platform of change and is committed to good 
governance, the fight against corruption, inclusive growth for poverty alleviation, and, m aintaining 
peace and security. Specifically, areas of commitments include improvements in the socio -
economic situation through access to electricity, water, education, health fa cilities and social  
amenities. A key priority of policy is the creation of jobs and the expansion of employ ment 
opportunities in -country.  
1.4.  In the period under review, a strategic priority in economic policy was structural 
transformation to diversify, industrialize and moderni ze the Nigerian economy in order to urgently 
address the vulnerability of dependen ce on oil revenues for growth. In this context, a number of 
exogenous and endogenous factors shaped the economic landscape and would be important in 
understanding future econ omic policy directions of Nigeria. Currently, the Nigerian economy is in 
economic recession, due, mainly, to the fall in commodity prices especially crude petroleum price 
and depen dence on oil receipts. The economy was also affected by the reduced imports of crude 
oil by some of Nigeria 's major trading partners since 2013 and the expansion of sources of energy 
into other areas such as shale, oil sands, etc. Domestically, the effects of restiveness in the Niger 
Delta, resulting from longstanding neglect and governance questions, resulted in disruptions of 
economic activities including crude oil and gas production. The recent dialogue initiated in 2017 by 
the Vice President of the Federal Republic of Nigeria in the Niger Delta has had positive results 
with reg ard to a gradual return to normalc y and stability in the region.  
1.5.  Notwithstanding the change in the structure of the economy, the oil sector accounts for just 
10% of Nigeria 's GDP, but still plays a central role in the economy; accounting for over 90 % of the 
country 's exports and 80 % of government revenue. This dominant role, coupled with the 
management of oil revenue during periods of windfall, with insufficient savings and low levels of 
investment in infrastructure, had a  negative impact economy -wide. The economy experienced  the 
Dutch disease phenomenon. The oil sector effectively depressed other productive sectors including 
                                                
1 Online information. Viewed at: http://www.imf.org/en/News/Articles/2017/03/30/pr17105 -nigeria -imf-
executive -board -concludes -2017-article -iv-consultation : IMF Executive Board Concludes 2017 Article IV 
Consultation with Nigeria.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  agriculture and manufacturing, thus, exposing the country to volatility in the international oil 
market accompanied by de -industriali zation.  
1.6.  The contraction of the economy registered – 1.5% in 2016 accompanied by an 18.6 % rate of 
inflation. Recession and inflation have combined to create an adverse effect on domestic conditions 
and have compl icated the policy environment. The challenge for economic policy makers in the 
current administration is to restore robust and sustained inclusive growth in the Nigerian economy 
so as to enhance welfare, reduce poverty and accelerate job creation in the context of a 2.8 % 
population growth rate. In this context, the Government has prepared the Economic Recovery and 
Growth Plan (ERGP), a 4 -year Medium Term Plan (2017 -2020).  The strategic goals of the ERGP 
are: (1) restoring growth, (2) investing in people, and (3) building a globally competitive 
economy . Trade is one of the mai n growth enablers of the plan. It is in this context that the 
Federal Ministry of Industry, Trade and Investment is developing and implementing the Plan for 
Diversification and Growth; still work in progress.  
2  ECONOMIC ENVIRONMENT  
2.1  Growth Performance  
2.1.  Nigeria achieved impressive economic growth over the 2010 -2015 period, with an average 
real GDP growth of 4.8 %. The non -oil sector, which grew by 6.2 % per annum on average over this 
period, has been responsible for the growth performance,  accounting for 90 % of total GDP. The oil 
sector, however, contracted as it recorded -4.5% on average per annum over the same period.  
2.2.  Annual real gross domestic output (GDP) of Nigeria increased from about N54.6 trillion in 
2010 to about N67.2 trillion in  2014, with an average growth rate of 5.31 % over the period. On a 
quarterly basis, real GDP growth rate in 2011 was high at 6.89 % recorded in the first quarter , but 
growth performance fell to 3.60 % and 4.69 % achieved in the third and fourth quar ters of the  year 
respectively. In the subsequent years, real GDP growth fluctuated between the first quarter of 
2012 and the fourth quarter of 2015 with a peak of 6.8 % in the fourth quarter of 2013. Following 
the crash in the international oil price, economic growth in the country took a downturn, beginning 
from the third quarter of 2014, plunging into negative growth of -0.36%, -2.06%, -2.24 and -
1.30% in the first, second, third and fourth quarters of 2016 respectively in real terms . The 
Nigerian economy is, however , projected by t he International Monetary Fund (IMF)  to come out of 
the recession in 2017 with a growth rate 0.6 %. 
2.3.  Inflation rate was maintained at single digit between the second quarter of 2013 and fourth 
quarter of 2015 after falling from 14.8 % recorded  in the first quarter of 2010. It rose steadily from 
its lowest rate of 7.8 % in the first quarter of 2014 to reach a level of 18.6 % by the end of 2016. 
The persistent high inflation rate is as a result of a currency crisis based on a shortage of foreign 
exchange, because of the collapse of oil prices. High inflation rates reduced foreign earnings and 
supply constraints led to high interest rates and, as a consequence, increased costs for business.  
A mix of monetary, fiscal and structural reform measures ha ve been taken to address these 
challenges in the immediate, medium and long -term. Implem entation is being intensified. Well 
before the Article IV recommendations of the IMF, it is recognized that bold measures are required 
to ensure robust and sustained gr owth.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  Chart 2.1 Sectoral Contributions to GDP, 2011 -2016 (constant prices)  
23.4 23.9 23.3 22.9 23.1 24.426.1 25.6 24.8 24.9 23.7 22.050.6 50.5 51.9 52.2 53.2 53.6
0102030405060708090100
2011 2012 2013 2014 2015 2016
Services Industry Agriculture%
 
Source:  National Bureau of Statistics . 
2.4.  The rebasing exercise revealed that the services sector was the la rgest component of GDP. In 
2011, the services sector accounted for 50.6 % of GDP, compared to 26.1 % accounted for by 
industry, and 23.4 % accounted for by agriculture. Between 2011 and 2016, services continued to 
increase its share of GDP, and by 2016, its s hare had risen to 53.6 %. The share of agriculture 
remained relatively stable; by 2016 the share had increased to 24.4 %. 
2.5.  By contrast, the contribution of industry to GDP fell by approximately 4 .1 percentage points, 
from 26.1 % in 2011 to 22. 0% in 2016. Howev er, this was not because the size of the industry 
sector declined over this period, but because it grew  less rapidly than services or agriculture. The 
main reason for this was the oil sector, which is included under industry. Over this period, output 
in the oil sector fell by 50 % in nominal terms, and 33 % in real terms. Manufacturing however, 
grew at roughly the same rate as services in nominal terms, at 97 %, and in real terms grew by 
49% of the same period, compared to 25 % for services.  
2.2  Trade Performance  
2.6.  Nigeria 's export was consistently dominated by oil during 2010 -2016. Beginning from a peak 
of about N14.3 trillion in 2011, oil export has continued to fall in the subsequent years, and it was 
about N8.2 trillion in 2015 and N6.1 trillion at the end of thir d quarter of 2016. In the case of non -
oil export, it rose from about N711 billion in 2010 to a maximum of N1.1 trillion in 2013 before 
falling to approximately N660.7 billion in 2015 and N477.5 billion at the third quarter of 2016. 
Unlike export, import is  dominated by non -oil commodities whose value was higher than that of oil 
by almost 450 % in 2015. Thus, import of non -oil commodities rose from about N6.4 trillion in 
2010 to about N9.4 trillion in 2015 despite the slight decrease that occurred in 2012. Ho wever, by 
the third quarter of 2016, non -oil import stood at about N4.98 trillion. Import of refined petroleum 
products however rose initially from about N1.7 trillion in 2010 to about N3.1 trillion in 2012, but 
fell continuously to settle at N1.7 trillion  in 2015 and N1.54 trillion at the end of the third quarter 
of 2016. The instability in import and export is also reflected in total trade which stood at about 
N20.2 trillion in 2010, but fell marginally to about N19.0 trillion in 2015 and 2016 after revol ving 
around N23 trillion and N26 trillion between 2011 and 2014. Between 2010 and 2016, over 70 % of 
Nigeria 's imports consisted of non -oil items, while oil constituted over 90 % of export.  
2.7.  In employment, 20.1 % (or the equivalent of 13.8 million pe ople) in the Nigerian workforce is 
engaged in trading. Specific to Nigerian foreign trade, the National Bureau of Statistics (NBS) 
estimates that exports and imports (distinct from  domestic trade) support 13 % of total trading 
jobs or 1.8 million jobs; representing 2 % of the entire working population.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  2.3  Balance of Payment, Foreign Reserves and Exchange Rate  
2.8.  According to the Central Bank of Nigeria (CBN), following an initial fall from about 
N2.0 trillion in 2010  to N1.6 trillion in 2011, Nigeria 's current account positi on improved to about 
N3.0 trillion in 2013.2 Subsequently, the current account fell to register a deficit of about 
N3.0trillion in 2015 but moved to a surplus of about N136.8 billion at the end of third quarter of 
2016. Capital and financial accounts recor ded a surplus in 2010, 2013 and 2014 (of N0.3 trillion, 
N1.2 trillion and N1.9 trillion respectively), but deficits in 2011, 2012 and 2015,  (of N0.8 trillion, 
N1.9 trillion and N0.2 trillion respectively), with a high deficit and surplus of about N1.9 tril lion 
each in 2012 and 2014 respectively. By the end of the third quarter of 2016, the capital and 
financial account recorded a net balance of about N1.66 trillion. Thus, the Nigerian balance of 
payment position remained in surplus between 2010 and 2014 but  reflected a deficit in 2015. 
However, the balance of payment maintained a surplus of about N1.8 trillion at the end of the 
fourth quarter of 2016.  
2.9.  The instability in Nigeria 's trade and balance of payments is also evident in its foreign 
reserves. Nigeria 's foreign reserves rose from about $32.3 billion in 2010 to $43.8 billion in 2012 
after which it maintained a downward trend at $28.3 billion in 2015 and $23.8 billion at the end of 
the third quarter of 2016. Also, after an initial fall from 7.7 in 2010 to  5.8 in 2012, number of 
months of imports equivalent of foreign reserves reached a peak of 9.5 in 2013. However, the 
number of months of imports equivalent of foreign reserves which fell to 6.5, in 2015, rose to 9.05 
in the third quarter of 2016. Comparing  the level of reserves to imports reveals that in 2010, 
reserves were sufficient to cover 7.7 months of imports. This fell to 5.8 months in 2012, before 
reaching a peak of 9.5 in 2013. Since then the number of months of import cover fell to 6.5 in 
2015, be fore rising again to 9.1 in the third quarter of 2016.  
2.10.   The official exchange rate was N150.66 per dollar in 2010 but rose to N197 per dollar in 
2015. This movement shows the trend of the depreciation of naira (exchange rate) against the 
dollar. The differe nce between exchange rates at the parallel market and the official market 
continued to widen since 2012 when the gap was about 1 %. As at 2015, the exchange rate at the 
bureau de change was higher than the official exchange rate by a record high of about 36 % after 
rising from  N156 per dollar in 2010 to about N267 per dollar in 2015. By the end of 2016, the 
exchange rate had jumped to about N305 and N464 per dollar at official and the parallel markets 
respectively. Currently, the Central Bank of Nigeria (CBN)  has taken steps to intervene in the 
foreign exchange market in order to manage demand that outstr ips the supply of foreign 
exchan ge. The objective remains a market -determined exchange rate.  
2.4  Government Expenditure, Revenue and Debt  
2.11.   During the period 2010 -2016, total government expenditure in Nigeria hovered between 
N4 trillion recorded in 2010 and N5.2 trillion in 2013, before settling at about N3.8 trillion at the 
end of the third quarter of 2016. Actual expenditure reflected a pattern according to which 
recurrent expenditure on personnel and overhead costs were consistently higher than capital 
expenditure, in reality, at odds, perversely, with the fiscal priorit ies of the Federal Government. 
Current figures indicate that personnel costs are 30 % of the budg et and 40 % of revenue .3 This 
situation is being carefully examined with regard to restoring priority focus on capital expendit ure 
and investment for growth. Besides, recurrent expenditure rose marginally from about N3.0 trillion 
in 2010 to about N3.6 trill ion in 2015 after a slight reduction in 2014. This part of the Federal 
Government expenditure stood at about N3.1 trillion  at the end of third quarter of 2016. Following 
an unstable movement between 2010 and 2012, capital expenditure fell from a peak of ab out N1 
trillion in 2013 to N783.1 billion and N818.4 billion in 2014 and 2015 respectively. It fell further to 
about N546.6 billion at the end of the second quarter of 2016. The Economic Management Team is 
providing advice and support to fiscal authorities  in the Federal Ministry of Finance and the Federal 
Ministry of Budget and National Planning for the current pattern to be reversed so that actual 
priority focus is accorded to capital expenditure p articularly in infrastructure. In this context, it is 
notable that the ERGP emphasizes investment in infrastructure, especially in power, roads, rail, 
ports and broadband networks. Capital expenditure will build on ongoing projects and identify new 
                                                
2 Central Bank of Nigeria (20 15). Statistical Bulletin, Central Bank of Nigeria, Federal Republic of 
Nigeria , Abuja and Central Bank of Nigeria (2017). Quarterly Statistical Bulletin, Central Bank of Nigeria, 
Federal Republic of Nigeria  , Abuja . 
3 Federal Ministry of Budget and Nation al Planning, 2017.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  ones to be implemented, in the Plan period from 2017 to 2020 to i mprove the na tional 
infrastructure backbone.  
2.12.   Although revenue was largely unstable during 2010 -2016, the oil sector contributed the 
largest to Federal Government finances during the same period. Oil revenue has continued to 
dwindle since 2011 (when it reac hed its peak of about N8.9 trillion) but settled at N3.1 in 2015 
and N2.0 trillion at the end of third quarter of 2016. However, Federal Government revenue from 
non-oil sources rose from N1.9 trillion in 2010 to about N3.3 trillion in 2014 before falling 
marginally to N3.1 in 2015. By the second quarter of 2016, non -oil revenue fell significantly to 
N1.8 trillion.  
2.13.   Both domestic and external debt outstanding of the federal government of Nigeria increased 
persistently during 2010 -2016, from N4.6 trillion and N689.8 billion in 2010 to about N8.8 trillion 
and N2.1 trillion in 2015 respectively. Further, total Federal Government domestic debt stood at 
N10.6 trillion at the end of second quarter of 2016 while total external debt was N3.2 trillion at the 
same time.  
3  DIVERSIFICATION AND MODERNIZATION PRIORI TIES  
3.1  Introduction  
3.1.  The 2014 collapse of oil prices reflected in the 60% drop in external revenues necessitated 
the imperative for Nigeria to seriously focus on diversification  as an overri ding economic policy 
priorit y. The diversification Plan, which is work in progress, is designed to achieve growth in a 
modernized and integrated 21st Century market economy that is pro -competition, wealth -creating, 
regulated for private and public interests and, re -balanced for insul ation from external and 
domestic shocks . The plan triggers the process of shifting the economy away from a long -standi ng 
dependency on oil receipts. The starting point is stable power suppl y to drive economic activities.  
The "Power Sector Recovery Implemen tation Program ", has been finalized and was adopt ed by the 
Federal Executive Council (FEC)  on 22 March 2017 . The World Bank is providing technical and 
financial support for the Power Sector Plan. In furtherance o f reforms initiated by Government, 
implement ation h as commenced on the Presidential initiative on an Enabling Business 
Environment, which is institutionally critical for partnering with the private sector to leverage 
resources for development in the d iversification of the economy. Implementation has  been 
advanced with the establishment of the "Presidential Enabling Business Environment Council 
(PEBEC) and its permanent Secretariat, the Enabling Business E nvironment Secretariat (EBES). In 
its first phase, the Ease of doing Business Programme, under th is initiative, is being implemented 
on the basis of the "60-day National Action Plan " on the Ease of Doing Business. In summary, the 
key pillars of the Growth and Diversification Plan include the following:  
- The Presidential Enabling Business Environment In itiative;  
 
- Nigerian Industrial Revolution Plan (NIRP);  
 
- Micro - Small and Medium Enterprises (MSMEs) Plan;  
 
- Investment plan for FDI, Portfolio and Domestic Direct Investment (DDI);  
 
- Negotiated trade agreements to enlarge market access for Nigerian expor ters of goods 
and services, including through the construction of Regional, Continental and Global 
value chains; and the,  
 
- Smart Nigerian Digital Economy Project.   
 
3.2.  The Diversification Plan is in the context of the ERGP, which sets both the strategic and  
sectoral dimensions  for diversifying the economy. Sectorally, as described in the ERGP4, the 
challenge is that although the oil sector accounts for only 10 % of Nigeria 's GDP it remains a large 
contributor to export earnings and government revenues. The la rgest contributors are services 
(53.2 % of GDP, including retail and wholesale trade), agriculture (23.1 % of GDP), manufacturing 
                                                
4 Online information. Viewed at: 
http://www.nationalplanning.gov.ng/images/pub/ERGP%20document%20as%20printed.pdf . WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  (9.5% of GDP), construction and real estate (3.9 % and 7.6 % respectively of real GDP) in 2015 . 
Given their historical growth rate s, these sectors have great potential to restore growth and 
diversify the economy,  while generating foreign exchange and increasing the resilience of the 
economy to external shocks, especially in the oil and gas sector. Despite its relatively low 
contribut ion to GDP, solid minerals also have large pot ential for growth. Sectorally, diversification 
efforts and areas of investments by investors – both foreign and domestic – will be channelled  to 
the six priority sectors: agriculture, manufacturing, solid miner als, services, construction and real 
estate, and oil and gas. Services, agriculture and manufacturing are projected to account for 
three -quarters of gr owth over the next four years. Solid minerals have great potential to grow. Oil 
and gas will continue to play a crucial role in Nigeria 's economy, especially through value chain 
development and i ntegration with other sectors.  
3.2  Systemic and Sectoral Initiatives  
3.3.  The goal is structural transformation of the economy for industrialization, diversifica tion and 
moder nization. The macroeconomic context and the development direction have been established 
in the Economic Re covery and Growth Plan (ERGP). The ERGP has three broad strategic objectives 
to achieve the vision of inclusive growth outlined above: (1) restoring g rowth, (2) investing in 
Nigerian human capital, and (3) building a globally competitive economy.  
3.4.  Industrialization is one of the main engines for r e-booting the Nigerian economy.  
Industrialization is based on the Nigerian Industrial Re volution Plan (NIRP).  There are sever al key 
components to the NIRP. The Nigerian Industrial Revolution Plan (NIRP) is designed to accelerate 
the development of indus trial capacity within Nigeria. Specifically, in the immediate, NIRP has the 
objective of developing four industr y groups where Nigeria possesses abundance of primary 
resources. These are agri -business and agro -allied, solid minerals and metals, oil and gas related 
industries, construction, lig ht manufacturing and services. In each of these sectors, the plan is for 
the private sector to lead, including through Private Public Partnerships (PPP) to build sector -
specific value chains, boost local production, and target large -scale institutional invest ors for 
profitable operations.  
3.5.  Manufacturing is central, i n particular for job creation. The plan is to expand the 
manufacturing share of GDP by accelerating the implementation of existing plans, re -activating a 
number of industries that became moribund. To spur competitive and efficient manufacturing are 
the Special Economic  Zones (SEZs) that are being established  largely from the existing base of 
Free Trade and Export Processing Zones already licensed . These are at an advanced stage of 
prepar atory work for implementation. Specifically, the objectives of these SEZs are the fo llowing:  
 Assist in overcoming the infrastructural and logistical disadvantages faced by 
manufacturing and industrial businesses in Nigeria, principally power, water, 
transportation and Information and Communications Technology (ICT);  
 
 Promote the "cluste r" and value chain effects to be gained by locating similar export 
oriented manufacturing businesses within the same locality;  
 
 Improve the utilization of factor endowments and sources of comparative advantage; 
and,  
 
 Create local models of global best pr actices in the provision of hard and soft 
infrastructure and the enabling environment for business.  
 
3.6.  The planning is geared towards the immediate, medium and longer term "dynamic 
objectives " for the integration of Nigeria as a manufacturing destination int o regional and global 
supply chains, improvements in the ease of doing business, structural transformation of the 
economy and upgraded skills and technology.  In the first phase, six locations are in a preparatory 
stage for im mediate implementation namely:  
1. Lekki Free Trade Zone, Lagos state  
2. Ogun -Guangdong Free Trade Zone, Ogun state  
3. Calabar Free Trade Zone, Cross River state  
4. Kano Free Trade Zone, Kano state  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  5. Enyimba Free Trade Zone, Abia s tate 
6. Ibom Deep Sea Port and Ibom City Free Trade Zone, Akwa Ibom stat e 
 
3.7.  The objective is to use the SEZs as a model to overcome the limitations to domestic 
manufacturing and supply constraints in infrastructure, power supply, input costs, low overall 
competitiv eness and hence profitability. The SEZs are designed based on ma rket demand and 
investment attraction to large markets a nd gateways to larger markets.  
3.8.  The starting primary focus is on six Special Economic Zones part of the existing 3 45 Free 
Trade Zones/Industrial Parks licensed across the country and spanning various a ctivities (some 
specialized in nature) which have contributed to job creation and export development. As of date, 
the entire Free Zone scheme has attracted investment value worth over US$100 billion and direct 
employment of over 20,000 workers.  
3.9.  At an overa ll regulatory level, the "National Industrial Policy and Competitiveness Advisory 
Council " (hereafter: "The Council ") was established in March 2017. The Council will drive the 
Nigerian Industrial Revolution Plan and ensure competitiveness, global  best prac tices and 
standards. The Council shall be chaired by the Vice President of the Federal Republic of Nigeria, 
with the Honourable Minister for Industry, Trade and Investment as the Public Sector Vice 
Chairman and Mr. Dangote, a s the Private Sector Chairman. Members are drawn from both the 
public and private sector.  
3.10.   In agriculture, the Federal Government has launched a series of programmes to reduce 
constraints faced by farmers. These include the Growth Enhancement Support (GES) scheme 
launched in 2012 to supp ly subsidized inputs to smallholder farmers; the Commercial Agricultural 
Credit Scheme (CACS), the Anchor Borrowers Programme and the Nigeria Incentive -based 
Risk-sharing System for Agricultural Lending (NIRSAL) aimed at increasing access to agricultural 
financing; and nationwide mapping of soil characteristics and the putting in place of irrigation 
projects to increase agricultural productivity. In terms of progress, 14 million farmers had 
registered  in the GES scheme by mid -2015.  
3.11.   In 2016, the NIRSAL initi ative opened 5,000 hectares of irrigable land for farming to 
prospective investors and will open more in the medium term. The government is also working on 
improving infrastructure to support agricultural expansion and development: roads, storage and 
value  chain establishment to enhance rural farmers ' access to national and international markets.  
The Federal Government is building on the foundation laid by the Agricultural Transformation 
Agenda through the establishment of the Green Alternative or Agricult ure Promotion Policy. This 
aims to enhance productivity by improving access to land, infor mation, knowledge, and inputs. It 
also includes soil fertility, production management, storage, processing, marketing and trade.  
Private sector investment will suppo rt improved access to finance and agribusiness investment.  
The Agriculture Transformation Agenda is designed to realign the Federal Ministry of Agriculture 
and Rural Development to include institutional setting and roles, youth and women, infrastructure, 
climate smart agriculture, research and innovation, food, consu mption and nutrition security. One 
key strategic activity is the integration of the agriculture value chain to improve access to markets, 
which will revitalize the Nigerian Commodity Exchange ( NCX) to fast -track exports, and improve 
inventory management and storage c apacity at the national level. Implementation of the totality of 
these initiatives is designed to address the continuing challenges of the sector, which include 
limited access to fin ancing and inputs for farmers, serious threat of climate change on yield, 
                                                
5 Calabar Free Trade Zone , Cross River sta te; Kano Free Trade Zone, Kano s tate; Maigatari Border Free 
Trade Zone, Jigawa s tate; Banki Border Free Zone, Borno state ; Oluyole Free Trade Zone, Oyo s tate; Sebore 
Farms E xport Processing Zone, Adamawa s tate; Lagos Free Trade Zone, Lagos  state; Airline Services Export 
Processing Zone, Lagos state; OILSS Logistics Free Zone, Lagos state; Tinapa Free Zone & Resort, Cross River 
state; Snake Island Integrated Free Zone, Lagos state; Olokola Free Trade Zone, Ondo/Ogun states; Ibom 
Science & Te chnology Free Zone, Akwa Ibom state; Living Spring Free Trade Zone, Osun state; LADOL Free 
Trade Zone, Lagos state; Specialized Railway Industrial Free Zone, Ogun state; Abuja Technology Village Free 
Zone, FCT; Brass LNG Free Zone, Bayelsa state; Imo Guang dong Free Trade Zone, Imo state; ALSCON Export 
Processing Zone, Akwa Ibom state; Ogun Guangdong Free Trade Zone, Ogun state; Lekki Free Trade Zone, 
Lagos state; Kwara Free Trade Zone, Kwara state; Koko Free Trade Zone, Delta state; Ibom Industrial City 
Free Zone, Akwa Ibom state; Ogidigben Gas Revolution Park, Delta state; NAHCO Free Trade Zone, Lagos 
state; Ogogoro Industrial Park, Lagos state; Centenary Economic City, FCT; Nigeria International Commerce 
City, Lagos state; Badagry Creek Integrated Industri al Park, Lagos state; Maritime Economic City, Lagos state; 
Ondo Industrial City, Ondo state; Enpower Industrial Park, Enugu state.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  limited access of agricultural outputs to the national and international markets, and output price 
instability.  
3.12.   The solid mineral sector remains virtually untapped despite its great potential to contribute 
to Nigeria 's GDP. With 44 known types of minerals of different combinations and proven quantities, 
they continue to be unexplored or under - utilized. Although its overall contribution to GDP growth 
is small, its contribution to GDP doubled from N52 billion in 2010 to N103 billion in 2015. The Plan 
for the solid minerals sector seeks to refocus attention to the solid minerals sector and grow its 
contribution to GDP by at least 8 % annually in the next three years. The Government furthe r aims  
to facilitate the production of coal to fire power plants; produce geological maps of the entire 
country by 2020; integrate artisanal miners into the formal sector; encourage and promote 
mineral processing and value addition industries that strength en backward and forward linkages; 
create an enabling environment to enhance private investment, targeting energy minerals, 
iron/steel and gold/ gemstones; and decrease value leaks/loss by formal izing informal mine 
activities.  
3.13.   The services sector is current ly the largest contributor to the GDP at 53.6 % in 2016. In real 
terms by an average of 4.6 % in the last five years from 2012 -2016 and thus has the potential for 
further growth through attract ion of  significant foreign exchange earnings and job creation. The 
fast growing services sub -sectors driving growth revolve around telecommunication and 
information technology (ICT), banking and financial services, the digital economy, in particular 
e-commerce, creative industries  and entertainment (Nollywood & Music) i ndustry, tourism, etc.6  
Economic activities indicate that diversification is underway and that the economy is becoming 
more services -oriented, especially in information and communication, retail and wholesale trade 
and real estate.7 
3.14.   Modernizing the Nigeri an economy is a vital and urg ent imperative for Government. To this 
end, the "Smart Nigeria Digital Economy " Project is one of the priority areas in the Plan by the 
Ministry of Industry, Trade and Investment (MITI) for "diversification, modernization and g rowth ". 
The project will cut acro ss key sectors of the economy. The Project contains  hard and software 
dimensions. Implementation is being coordinated with the Ministry of Information and 
Communications Technology. The project is being designed and impleme nted within the context of 
the digital economy and the 4th Industrial Revolution. The objectives of the Smart Nigeria Project, 
include:  
- Facilitating broadband coverage for Nigeria in order achieve an economy -wide digital 
platform;  
 
- Diversification and gro wth through an Enabling Environment for Business and 
accelerated trade facilitation;  
 
- Modernization for increased welfare and efficiency gains;  
 
- Faster and deeper regional and global economic integration through connection to 
value chains;  
 
- Investment a ttraction, expansion and retention; and  
 
- expanding employment opportunities in Nigeria.   
 
3.15.   The growth objective of the Smart Digital Nigerian Economy project is to increase the 
contribution of ICT and ICT -enabled activity to GDP by, at least, 10 % and creat e no less than 
5 million new jobs between 2017 and 2026.   
3.16.   Financial services sector 's growth has been significant although it was affected by the 
effects of the 2008 and 2009 global economic and financial crises and hence could have do ne 
better. The finan cial services sector grew by 11.3% by 2015 from 2010 in real terms . The aim of 
the policy is to encourage an increase in the volume of assets and the diversity of financial 
instruments; review the capitalization of financial institutions; encourage lending  to agriculture and 
                                                
6 Nigeria National Bureau of Statistics, 2014 . 
7 African Economic Outlook, 2016 . WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  manufacturing sectors through syndication with development banks and at affordable lending r ates 
and minimum other charges.  
3.17.   Nigeria 's tourism industry struggles with the low level of global awareness of the country 's 
tourist attractions , under -developed infrastructure, security challenges, lack of attractive options 
for domestic vacation, and insufficient investment. Private sector operators seek to attract tourists 
to Nigeria as a major tourism destination in Africa. The objective is to  enhance the contribution of 
tourism to GDP; increase the number of visitors to Nigeria by 10 % a year; increase the volume of 
domestic tourism; and promotes and encourages patronage of local agricultural, creative industry 
and manufactured products by oper ators in the tourism industry and strengthens backward and 
forward linkages.  
3.18.   The entertainment sector is at the core of Nigeria 's creative industries. The sector has a  
huge potential to generate sustained and inclusive growth and contribute to d iversificat ion of the 
economy. Nigeria 's entertainment sector particularly the film industry also known as "Nollywood " 
has witnessed tremendous growth from the 1980 's till date. This sector is ranked second globally 
after Hollywood in terms of number of films produce d. The export potential of Nollywood and the 
Nigerian creative industry are evident. There is scope for significant expansion  of investment in 
this sector. The industry is now the second largest employer of labour after Agriculture in Nigeria. 
In 2014, whe n Nigeria rebased its economy, the creative industries, particularly, "Nollywood " grew 
at 33 % and contributed $6 billion to GDP.8 Despite this rate of growth, the entertainment sector is 
working to improve across a range of areas including technology, bett er protection of the 
intellectual and property rights regime, including copyrights so as to stop the piracy that has 
eroded the profit of the sector. The purpose of Government policy and regulation is to ensure that 
the sector is not encumbered and can con tinue to expand robustly without restrictive trade and 
other measures introduced against exports in the regional and global market. The Government will 
support private sector efforts in this and other sectors of knowledge and enterprise so they can 
expand job creation, wealth and foreign exchange earnings. To this end, the Government is 
working to ensure the stricter enforcement of intellectual property rights regime; and in the 
recently released Economic Recovery and Growth Plan (ERGP), the creative indust ry is one of the 
prioritized service sectors.  
3.19.   The construction sector accounted for 3.9% of real GDP by 2015 , and average annual 
growth rate of 11.4 %, providing almost 1 million formal jobs. The Government is focused on 
addressing a range of constraints su ch as high cost of building houses, land title questions, 
preparation of sites and ser vices, and borrowing. Regardless, the construction sector is a fertile 
area for investment opportuni ties, rapid growth and profit. Foreign and domestic investors are 
being encour aged to invest in this sector. To support the efforts of the private sector, the 
government is working to establish a Family Homes Fund designed as a PPP to reduce the burden 
of construction on households and improve access to social housing. The Government also plans to 
work with State governments to invest in vocational and technical training centres  to develop skills 
for local craft smen and women in this sector. A plan is being implemented to construct 
2,700  housing units in the short -term to cre ate 105,000 direct jobs a year. There are  several 
aspects to this plan. They include, inter alia , gradually increasing housing units by 10,000 housing 
units per annum by 2020 and 20,000 pilot social housing units; to re -capitalizing the Federal 
Mortgage Ba nk of Nigeria from N2.5 billion to N500 billion to respond, in part, to the housing need 
across Nigeria; construct 12 new Federal secretariat complexes in the States where none exists; 
and, complete the renovation of the existing 23 Secretariats. The Const ruction Sector is a prime 
sector  for investment opportunities.  
3.20.   The oil and gas sector is made up of the upstream production of crude oil and natural gas 
(mostly for export) and downstream activities composed of refining and petrochemicals 
production. The challenge facing the sector at both upstream and downstream levels is  being 
tackled . His Excellency  Professor Yemi Osinbajo, Vice President of the Federal Republic of Nigeria is 
directly engaged in dialogue with leaders in the Niger Delta to address and res olve inh erited 
longstanding questions. Progress is being made. The challenges faced by the downstream sector 
are also being addressed with the upgrade of the technology in Nigeria 's four refineries with 
installed capacity of 445,000 bpd, but which are only  operating at 5 % of installed capacity. A 
                                                
8 Online information. Viewed at: http://www.datamaniaconsult.com/nollywood -others -grow-at-33-
contributes -6bn-to-rebased -gdp/#.WQhMLO -rPIU. WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  transformation plan is being implemented to develop gas production and domestic oil refining to 
meet internal deman d, and export refined products.  
3.21.   The investment opportunities in this area are significant.  Therefor e, the G overnment is 
revamping refineries to increase local production cap acity. However, the major investments are 
from the private sector that is undertaking massive investments in this area . For example the  
Dangote Industries Limited has invested and is  building a refinery and petrochemical plant in the 
Lekki Free Trade Zone  with a refining capacity of a bout 650,000 barrels of crude. On current 
estimates, the plant 's daily output will satisfy and exceed Nigeria 's daily consumption requirement 
of 445,0 00 to 550,000 barrels of fuel. The project will be completed in 2018 and is estimated to 
create over 300,000 dir ect and indirect jobs by 2019. The sector remains open for investments in 
the upstream and downstream , including in the construction of modular ref ineries.  
3.22.   On the part of the Government, development projects are being launched in the gas sector 
to increase production; and, improve  the governance of the sector. A ran ge of actions are being 
taken. Policy and regulation are being reviewed, including: th e National Oil Policy; National Gas 
Policy; Downstream Policy; Fiscal Reform Policy; and, the P etroleum Industry Reform Bill. Steady 
efforts are being made to improve the business environment across the board, ranging across gas 
infrastructure development;  promotion of domestic utilization of liquefied petroleum gas (LPG) and 
compressed natural gas (CNG); reduction of gas flaring; implementation of gas commercial 
framework ; and increasing gas to power.  
3.23.   The private sector is cen tral and will partner with the  Government to drive the structural 
transformation ‎ plan for sectoral diversification, industrialization and modernization.  
3.24.   As clearly stated in the ERGP, the Federal Government will promote private -sector 
investment to finance ERGP priorities. In particular, this will include priority investments in 
infrastructural development such as power,  road, port and rail projects. It will also encourage the 
private sector to lead investment in the six sectors expected to drive growth: services, agriculture, 
manufacturing, solid minerals, construction and real esta te, and oil and gas. Projects will also be 
implemented through PPPs.  Privatization will encourage wider participation in infrastructure.  
3.25.   With the objective of achieving structural transformation through diversification, the 
Government, in the immediate to  the medium term, is committed to the development of the 
identified priority sectors above.  
3.3  Institutional S upport for Structural Transformation ‎ and Sectoral Diversification  
3.26.   To formalize and give legal backing to the policy reform initiatives highlighted a bove, the 
National Assembly is considering for enactment a number of bills that are meant to support 
diversification and achieve structural transformation of the economy. These bills include the 
Petroleum Industry Bill (PIB); National Development Bank of N igeria (Establishment Bill); Nigerian 
Ports and Harbors Authority Act (Amendment) Bill; National Road Fund (Establishment) Bill; 
National Transport Commission Bill, 2003 (Amendment) Bill; Warehouse Receipts Act 
(Amendment) Bill; Companies and Allied Matter s Act (CAMA) (Amendment) Bill; Investment and 
Securities Act (ISA); Customs and Excise Management Act; Federal Competition Bill; the National 
Road Authority Bill; the P etroleum Industry Reform Bill; Special Economic Zone Bill, Nigerian 
Metallurgical Bill, Nigeria Tourism Development Corporation Bill; Nigeria Agricultural Quarantine 
Service Bill; and,  the National Bio -safety Bill. The latter provides a regulatory, institutional and 
administrative mechanism for safety measures in the application of modern bio technology in 
Nigeria in order to prevent any adverse effect on human health, animal, plant life and the 
environment.  
3.27.   In terms of public -private infrastructure  financing and management, the G overnment is 
implementing steps to est ablish an infrastructure fu nd. The goal is to raise US$25 billion within 
three years. Energy, water and transport sectors have been the focus of PPP arrangements by th e 
Federal and State G overnments. This is regulated by the Infrastructure Concession Regulatory 
Commission (ICRC), wh ich supervises the PPP sector and coordinates public -sector interests as 
well as those of private -sector partners. The regulations governing PPP procurements and 
contracts in Nigeria are established in the ICRC Act of 2005, the Public Procurement Act of 20 07, 
and the 2008 National Policy on PPP.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  3.28.   In the technology sector, there are bills, being reviewed and awaiting passage by the 
National Assembly. These are the bills for the interception of electronic communications, the 
cybercrime bill, and the postal ref orm bill. There are three  Bills also on Electronic Transactions Bill, 
2015; National Centre for Agricultural Mechanization Act (Amendment) Bill, and the Nigerian 
Communications Satellite Bill which are meant to enhance the productive activities of 
communic ation services as well engender large scale farming.  
3.29.   Of significance is the competition and consumer protection bill, which is being consid ered by 
the National Assembly. The Bill aims to establish the Federal Competition and Consumer Protection 
Commission for the development and promotion of fair, efficient and competitive markets in the 
Nigerian economy, which facilitate access by all citizens to safe products, and secures the 
protection of rights for all consumers in Nigeria and for other related matters.  The substantive 
provisions of the bill also aims at prohibiting restrictive business practices, which prevent, restrict 
or distort competition or constitute an abuse of a dominant position of market power in Nigeria. 
This will contribute to the sustained growth and development of the Nigerian economy. On the 
procedural state -of-play, a t this time, the House of Representatives passed the Bill on 
14 March  2017. It is currently before the Senate, following a Public Hearing and review by a 
Technical sub -commit tee and the Senate Comm ittee on Trade and Investment. It is awaiting 
consideration for a third and final reading and passage by the S enate in March. After passage by 
the Senate, the House and Senate versions will be harmonized in Conference and the harmoni zed 
version adop ted and passed by each House. It is expected that the Bi ll would be enacted this year. 
The bill when enacted by the Parliament and signed into law will establish the Federal Competition 
and Consumer Protection Commission ( "the Commission ") for the purpose of carrying out the 
functions, duties and responsibilities as conferred upon it by virtue of the provisions of th e Act.  
3.30.   To ensure fair competition, domestically, but also in Nigeria 's engagement with its trading 
partners, regionally, contin entally and globally, steps are being taken to prepare domestic 
regulation and law for trade remedies and safeguard the Nigerian economy from trading partners 
that unfairly and illegally dump products – below market p rice – in the Nigerian market. The 
process and substance of related regulation and laws are in accordance with international  
standards and best practices.  
3.31.   Before the close of the Seventh  Assembly, the National Assembly passed 46 trade related 
Bills into Law. Taken together, all these bills will  contribute to structural transformation to diversify 
and m odernize the Nigerian economy. The process of regulatory activities and enactment of bills 
into laws are being undertaken on the basis of transparent stakeholder consultations, in 
accordance with i nternational  standards and best practices. Integral to the initiatives for 
diversification of the economy are stakeholder consult ations in trade policy making. The 
Government shall sustain the consistency of dialogue with interest groups such as exporters,  
importers and consumer groups and encourage the creation of new business groups espe cially in 
services activities. Nigeria is committed to the rule of law for predictability, certain ty and 
accountable government.  
3.32.   As underlined a nd reiterated in the ERGP, the G overnment will remain committed to market 
based solutions and neither seeks nor intends to micro -manage the  economy . As part of the use of 
market instruments for diversification, in 2011, the Nigerian Sovereign Investment Agency (NSIA) 
- independent f rom government - was established to manage and invest in a diversified portfolio of 
medium to long term revenue of the three tier s of Government. Its mandate and functions include, 
inter alia , to prepare for the depletion of Nigeria 's hydrocarbon resources , attract foreign 
investment, and invest in critical infrastructure with focus on the goals of economic diversification, 
growth and employment. The NSIA operates, pursuant to the NSIA Act and in accordance with the 
Santiago Principles.9 
3.33.   The Nigeria Infrast ructures Fund (NIF) managed by the NSIA invests in domestic 
infrastructure projects in order to stimulate the growth and diversification of the Nigerian 
economy, attract foreign investment and create jobs for Nigerians. Priority areas for investment 
includ e healthcare, transportation, energy and power, water resources and agriculture. Other 
areas include: communications, aviation, rail, waste and sewage, gas pipelines, ports, industria l 
parks, mining and refining. The NSIA has invested and made investments in the areas of 
                                                
9 The Santiago Principles are the set of 24 guidelines that assign "best practices" for the operations of 
Sovereign Wealth Funds, globally.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  agriculture, real estate development, infrastructure development (roads, bridges, power, etc.). For 
instance, in 2017, the NSIA plans to invest US$760 million  in the construction of the Second Niger 
Bridge Project under a Public Private Par tnership (PPP) arrangement; and, invest in Nigeria 's 
commodity exchange through a pre-privatization arrangement. As work in progress, there are 
inter-agency exchanges on the scope for investing directly in a National Single Window Project to 
improve the te chnology platform of the customs to increase revenue coll ection and enhance 
efficiency. The fund is also focused on investments in Industrialization Projects to stimulate 
economic and social growth. The activities of the NSIA will improve Nigerian economy by 
positioning it on the path of competitiveness and diversification.  
4  TRADE AGREEMENTS AND  ARRANGEMENTS  
4.1  Introduction  
4.1.  This section reviews aspects of Nigeria 's WTO membership. It also reviews Nigeria 's 
involvement in regional trade arra ngements and agreemen ts at two inter-related levels: (a) as a 
founding member of the Economic Community of West African States (ECOWAS); and (b) as a 
leading participant in the on -going negotiations to establish a  Continental Fre e Trade Area (CFTA) 
in Africa. At the third lev el, Nigeria 's bilateral trade agreements are updated. Finally, preferential 
trade agreements and arrangements are briefly examined and updated.  
4.2.  Nigeria 's current trade policy regime was approved in 2002 . This trade policy is in the process 
of a fundamental  re-work and consultation. The draft new trade policy will build on several 
foundational and constant aspects of the 2002 policy . However, fundamentally, it will reflect 21st 
Century realities. The new tra de policy is work in progress.  
4.3.  The 2002 trade polic y was governed by multilateral, regional, preferential and bilateral trade 
agreements to which Nigeria is signatory. Nigeria reaffirms  its commitments and obligations to the 
rules-based global economy and the Multilateral Trading System, as a foundation me mber of the 
World Trade Organization (WTO).  
4.4.  The 2002 Nigerian Trade Policy Regime was designed to integrate the country into the global 
trading system with a view to maximizing the advantages  of globalization. The goals of tha t trade 
policy were threefold.  First, to maximize the benefits from trade, create jobs and engender 
economic growth and inclusive development while safeguarding the Nigerian economy from unfair 
trading practices, protecting Nigerian consumers, and the environment  from unsustainable 
practices. Second, to enhance Nigeria 's competitiveness in the global trading environment, 
through the creation of an enabling environment that supports diversification of exported products 
through removal of all encumbr ances to production and trade. Third, t o deepen and expand the 
nation 's contribution to international trade with the aim of building a fair, transparent and 
equitable trading platform that responds to the demands of domestic stakeholders  and creates 
opportunities for win -win for foreign trade p artners . While these objectives remain valid, since 
2002 the global trading environment has undergone radical transformation that requires dome stic 
trade policy adjustments.  
4.5.  For instance, there have been rapid and continuing changes in technology – with th e so-
called Fourth Industrial Revolution. An internet economy has emerged that requires digital -led 
strategies fo r growth. Production and trade have become bundled together resulting in "trade in 
tasks", which have called for negotiating responses through "value chain construction ". The 
proliferation of FTAs and PTAs ha s both created and diverted trade, hence requiring greater 
national trade policy scrutiny, modelling  and assessments, in order  to design more effective and 
welfare -enhancing trade integration  arrangements . Domestically, demographic pressures have 
increased the demand for jobs. In this context, domestic politics and national governments have 
required sharper scrutiny on trade and other policies, so as to ensure that trade policies improve 
contribution s to welfare and job creation. These adjustments are being made in the update of the 
2002 Trade Policy Regime that will also reflect a  changed global trading order.  
4.2  Multilateral Trade  
4.6.  Nigeria is a founding member of the WTO and has reaffirmed its co mmitment to the 
rules-based MTS, as shown in the country 's participation in WTO activities from the coming i nto WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  force of the Organization. It remains an active participant of the Doha Development Round of 
negotiations,  including on new trade issues. Similarly, Nigeria is  active and prominent in regional 
coalitions , Constituency Groups, including the African Group, the African, Caribbean and Pacific 
(ACP) Group and the G90 , and Cr oss/Inter -Constituency Groups. Nigeria continues to play an 
active role in the negotiations of for agriculture liberalization , Non -agriculture market access 
(NAMA) and the trade -related aspects of the int ellectual property rights (TRIPS ). In cross -
Constituency Groupings in emerging and new issues, for a modernized WTO Trade Agenda, i t is 
engaging, participating, including through Co -Sponsorship in such Groupings as "Friends of E -
Commerce for Development " (FEDs) and "Friends of Investment Facilitation for Development ". 
4.7.  At the institutional and decision -making level of the Organization,  Nigeria has participated , 
actively, including at Ministerial Conference s, where Nigeria has been engaged. Nigeria provided a 
chairperson in the first generation of Chairpersons for the Organization in 1995, chairing the  
Committee on Rules of Origin. In 20 09, Nigeria chaired the Eight WTO Ministerial Conference, the 
highest decision -making body of the Organization. It has chaired several bodies at different times: 
Chair of  Trade in Services (2009), the C hair of the Dispute Settle ment body (DSB) (2010) and t he 
Chair of the General Council (2011). Clearly, the country is fully engaged and supportive of WTO 
institutions, processes and procedures.  
4.8.  Nigeria ratified the Amendment to the TRIPS Agreement and the WTO Trade Facilitation 
Agreement (TFA) on 16 January 2 017. Government efforts to have access to affordable medicines 
under the WTO rules established the self-evident case for the ratification of TRIPS Amendment.  
4.9.  On the ratification of the TFA, the country 's policy priority is to improve the ease of doing 
business, promote competition and diversif y the economy . These priorities provided the rationale 
to ratify the TFA. Thus, the TFA 's implementation is in tandem  with the G overnment 's efforts to 
improve the business environment and achieve significant reduction in the cost of doing business. 
While some of the issues involve institutional reforms, others require huge capital outlay and 
hence the country would benefit from technical as well as financial assistance from development 
partners in some areas including t he building of trade infrastructure and the implementation of 
international trade facilitation standards, procedures and regulations.  The National Committee on 
Trade Facilitation as provided for in the WTO TFA is in place to facilitate the im plementation o f the 
Agreement.  
4.10.   For Nigeria, protection of Intellectual Property Rights (IPRs) is central in the drive to foster 
innovatio n, creativity and development. In the implementation of the TRIPS  agreement as 
envisaged, the Trademarks, Patents and Designs Registr y with the assistance of WIPO embarked 
upon an aggressive institutional reform. This is aimed at implementing the Presidential priority on 
improving the Ease of Doing Business, service delivery, effectively, efficiently and expeditiously.  
4.11.   Specifically, the  Commercial Law Department of the Federal Ministry of Industry, Trade and 
Investment has introduced the online registration system, in collaboration with WIPO, established 
a Technology and Innovation Support Center (TISC) and, set up the Industrial Prop erty 
Automation System (IPAS). This has encouraged trademark registration activities, innovation, 
quality and assurance.  
4.12.   The online registration system encourages the filing of applications using the internet 
platform. This has reduced the timeline between su bmission and first of fice action by seven (7) 
days. The system also enables the applicant to monitor and track his/her application with 
communi cation interface and feedback. The IPAS also has a physical medium for applicants that 
may not use the internet, or have no access, to submit their application at the receiving or front 
office, where it would be captured into the system and processed.  
4.13.   The TISC was targeted at promoting local innovation, re -engine ering and technology 
transfer. The main target groups a re SMEs, Local inventors, Researc h Institutes and Universities. 
Currently, the centre  has registered a pproximately 240 participants. This has Promoted Patenting 
and Innovation. Between 2013 and 2016 the Patent registry recorded a 17% increase in Local 
Patent application.  However, t here is still work to be done.  
4.14.   The Registry search system of the i ndex data base remains manual. WIPO in collaboration 
with the Japan Patent Office (JPO) is currently digiti zing one hundred thousand (100, 000) active WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  files in the r egistry with a view to standardization in a digital data bank to enhance search, ensure 
efficiency and reduce time. This project commenced in March.  
4.15.   There are areas of the implementation of WTO agreements where t here is scope for 
improvement. These include  timely notifications  and implementation of operative provisions of 
some agreements. As part of the new trade policy for Nigeria , an updated i nstitutional 
infrastructure is being structured for the conduct and management of trade policy in the complex 
and rapidly evolving 21st Century global trade policy landscape. This will include better structured 
institutions, greater specialization, enactment of appropriate  domestic laws and  regulations, such 
as for trade remedies and safeguard to counter unfair and il legal competition. To this end, trade 
has been mainstreamed into the recently launched Economic Recovery and Growth Plan 
(2017 -2020) in order to reap the benefit of trade integration.  
4.3  Regional Trade Agreements  
4.16.   Nigeria is currently engaged in two related ne gotiations at the regional level namely, the  
Economic Community of West African States (ECOWAS) and CFTA levels . 
4.3.1   ECOWAS  
4.17.   Nigeria is a founding member ECOWAS and provided the leadership that led t o the 
establishment of ECOWAS. Nigeria is committed to deepeni ng regional integration and to ensuring 
the update of the ECOWAS acquis  to reflect the realities of the 21stCentury economy in a way that 
ensures a win -win and mutual bene fit for all members of ECOWAS.  
4.18.   The ETLS provides added impetus to regional trade. Pro ducts traded under the Scheme 
move freely among the countries in the region. Available information shows that in Nigeria, 
30 enterprises registered in 2015, compared to 34 in 2014. To date , a total of 1, 735 (one 
thousand seven hundred and thirty -five enter prises) have registered since the commencement of 
the implementation of the Scheme in 1990. From the perspective of Nigerian entrepreneurs, the 
Scheme is affected by a number of challenges including lack of monitoring, evaluation and 
reporting on the Schem e; cumbersome application forms; delay s in processing and issuing 
approvals; among others10. These challenges, especially cumbersome processing and approval 
procedure contributed to low trade perfor mance at intra -regional level. Nigeria will work with other  
ECOWAS Members to improve on several aspects of trade integration in the region, including, but 
not limited to trade facilitation . Nigeria shall continue to provide the necessary leadership in 
deepening ECOWAS integratio n, including through the ETLS. Howe ver, in doing so, it shall ensur e 
that the region does not become a dumping ground for products that have unfairly benefited from 
trade distorting domestic subsidies  from third party trading partners . 
4.19.   Also, it is the policy of the Government to work with o ther ECOWAS members to gradually 
bring informal trade into the formal sector, construct ECOWAS value chains that will increase the 
welfare of producers and manufacturers and provi ders of service in the region. A strong and 
rapidly growing ECOWAS is good fo r every one of its individual members. Nigeria is strong when 
ECOWAS is st rong. It is in this context that Nigeria will work for the adoption and strengthening of 
common policies in areas such as monetary policy, competition, investment, safeguards and 
development of a common market; as well as support and facilitate full implementation of 
commitments that have been undertaken, relevant to regional frameworks, such as the removal of 
different forms of trade barriers and prohibitions, on ETLS qualifying good s in line with the 
ECOWAS Protocols, in particular on ECOWAS local conte nt. However, unfairly and illegally dumped 
products in the regional market shall be challenged by trade remedies and be off -set by 
compensating measures. In line with WTO safeguard mea sures, Nigeria is working to establish an 
institutional structure to report and/or investigate cases of trade distortions, including dumping. 
Such WTO -consistent measures in tandem with the ECOWAS Trade Protocols shall be necessary for 
the effecti ve implem entation of the ETLS.  
4.20.   The ECOWAS Common External Tariff (CET) has been negotiated and approved as a step 
towards establishing a customs union am ong the ECOWAS member States. Nigeria began 
implementation of the ECOWAS CET in April 2015 with three accompan ying supplementary 
                                                
10 See WAMI (West Africa Monetary Institute) (2016) WAMZ Trade Integration Report.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  measure s11 to be phased out no later than December 2019 and thus ending the transition period 
prior to the implem entation of ECOWAS CET in 2020.  
4.3.2   Continental Free Trade Area (CFTA)  
4.21.   In January 2012,  Heads of State and Government of the Africa n Union adopted the decision 
to establish Continental Free Trade Area (CFTA) b y the indicative date of 2017. They endorsed the 
Action Plan for Boost ing Intra -Africa Trade (BIAT). Nigeria reaffirms its strong support of the 
decision of  the 18th Ordinary Ses sion of the Assembly of Heads of State and Government of the 
African Union, held in Addis Ababa, Ethiopia, to establish th e Continental Free Trade Area. The 
CFTA negotiation s effectively started in 2016. Nigeria is engaged with other 54  Members of the AU 
in the N egotiating Forum for the CFTA.  
4.22.   The CFTA aims to enhance competitiveness at the industry and enterprise level through 
exploiting opportunities of scale production, continental market access and better allocation of 
resources. The CFTA agenda covers w ide areas of trade issues, which are organized into two 
stages of negotiations: the first phase of the negotiations is on goods and services and the second 
covers investment, competition an d intellectual property rights.  
4.23.   Nigeria considers that the CFTA pro vides the African Union with the opportunity to 
significantly improve the level of intra -African trade, which is currently at 19 %. In Africa, we 
should do better. We believe that the CFTA negotiations provide the Continent with the opportunity 
to undertake  domestic policy and structural reforms; diversify our economies; build our production 
capacities; become competitive and achieve long -term industrialization. The CFTA negotiation is 
not only a strategy for trade integration, but it is also a devel opmental  integration strategy.  
4.24.   Nigeria has a vital strategic inte rest in the CFTA negotiations. Nigeria wants to see a strong 
economically integrated African market, not divided by a p roliferation of different PTAs.  
4.25.   In the CFTA negotiations, the facts show that so me African countries are committed to 
Economic Partnership Agreements (EPAs). CFTA negotiations and implementation would have to 
address this reality and associated challenges in order to prevent trade diversion and or trade 
diversion. This may require cre ation o f appropriate rules of origin. Nigeria is engaged in the CFTA 
negotiations to reduce and eliminate barriers to Nigerian ex porters of goods and services. The 
CFTA matters. Nigeria is pushing for the conclusion of these neg otiations as soon as possibl e. 
4.26.   Similar to the priority attached to trade and economic integration, Nigeria attaches the 
utmost priority to trade integration through the CFTA negotiations. Nigeria is engaged intensively, 
at every level, in the negotiations and analysing  the probable w elfare effects.  
4.4  Bilateral Trade (Investment) Agreements  
4.27.   Nigeria has signed a substantial number of Bilateral Trade Agreements (BTAs) and 
memoranda of understanding (MOUs),  with many countries,  aimed at creating enhanced market 
access, attracting a positive  inflow of foreign direct investment and encouraging industrialization. 
The Government will continue to utilize these agreements to secure favourable market access 
conditions for products that are of interest to Nigeria and also to promote and protect Nige ria's 
trade and investment interests in other countries and protecting foreign investment in Nigeria.  
4.28.   In order to optimally benefit from these agreements,  the new trade policy infrastructure 
under establishment will set -up a review process for existing agr eements with a view to their 
modernization , update , including the construction of value chains that link trade and investment . It 
will create a platform to channel Nigerian trade and investment to its external partners within the 
context of MOUs, BTAs and BITs. The new infrastructure will create a strengthened negotiating and 
implementation capacity so as to mutually optimize net benefits from these agreements.  
                                                
11 These are the Import Adjustment Tax (IAT), National List (NL) and Import Prohibition List.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  4.5  Preferential Trade Agreements and Arrangements  
4.29.   Nigeria is a signatory and beneficiary of a number  of Preferential Trade Agreements (PTAs), 
including the Generalized System of Preferences (GSP), Global System of Trade Preferences 
(GSTP) and United States Africa Growth and Opportunity Act (AGOA). Nigeria 's exports enjoy 
preferential access to the USA ma rket under AGOA, which provides for eligible countries to qualify 
for duty free and quota free access to the US market for a range of products including agricultural 
and textile products. In the eight y ears that remain under the extended AGOA preference sc heme, 
Nigeria is consulting with stakeholders on improving its utilization rate under AGOA.  
4.5.1   Economic Partnership Agreement (EPA)  
4.30.   Nigeria values and accords the highest premium to its economic and trading relationship 
with the European Uni on (EU) and all it s individual m ember State s. However, Nigeria has 
communicated to the EU that it shall neither sign nor ratify the ECOWAS European Union Economic 
Partnership Agreement (the EPA) , in its present form . In this circumstance, appropriate measures 
including rule s of origin are required in the implementation of ECOWAS CET in order to eliminate 
trade diversion and or trade deflection. Nigeria is in conversation with the EU at several levels, 
with the European Commission  and several of its individual member States. Nigeria remains in 
contact and is in exploratory contacts at several levels.  
4.31.   Nigeria 's policy for deepening market penetration under preferential trade and non -
preferential agreements and arrangements is founded on the principle of mutually beneficial trad e 
between Nigeria and her trading partners. The direction of trade policy for the Nigerian 
Government in the on-going trade policy review  process is to strengthen the capacity of Nigerian 
firms and exporters to take advantage of market opportunities offere d by such agreements and 
arrangements. It commits itself to work in close cooperation and collaboration with the private 
sector to ensure their active participation and benefit in all negotiations that would promote free 
and mutually beneficial trade.  
4.32.   As being codified in the new trade policy regime being developed, at this stage, it is the 
policy of the Nigerian Government to negotiate integrated tr ade and investment agreements. This 
is consistent with the updated economic and trade policy priority of gove rnment to expand 
employment opportuniti es and create jobs in -country. As a practical policy consequence and to 
give effect to this policy, access to the Nigerian market shall be based, inter alia , on carefully 
designed value chains that result from negotia ted integrated trade and investment agreements 
that will ensure that production hubs in regional and global value chains are also located within 
Nigeria so as to create jobs in -country to address, inter alia , a youth bulge that carries significant 
opportun ity and risk.  
5  TRADE -RELATED TECHNICAL AS SISTANCE  
5.1.  Since 1995, Nigeria has  continued to benefit from WTO Trade Related Technical Assistance 
(TRTA) programmes. A substantial number of Nigeria Government officials have been trained in 
various WTO activities ra nging from Regional Trade Policy Courses, Advanced Trade Policy 
Courses, Geneva -based Courses, Internship Programmes, National and Regional workshops and 
the newly introduced on -line courses. These have served to increase the knowledge , capacity  and 
unders tanding of WTO Agreements in Nigeria.  
5.2.  However, an increased supply for trade -related technical assistance and capacity -building 
shall be required based on training demands to improve understanding and develop expertise and 
skill-sets in response to the cha nging global trade policy landscape, expanded negotiations for  
trade agreements and the emerging new infrastructure for the conduct and management of trade 
policy  and negotiations.  
5.3.  Specifically, trade capacity development is needed to address supply -side c onstraints and 
reduce trade costs. Some of this assistance would not be provided by the WTO, but by other 
development partners. For classical WTO training, demand remains for the standard description of 
the rules -based Multilateral Trading System and the a ccompanying balance of rights and 
obligations for Government Ministries, Departments and Agencies (MDAs), Parliamentarians, the 
private sector and civil society.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  6  MEDIUM -TERM OUTLOOK  
6.1.  The last six years have recorded significant changes in the global economi c and trade policy 
landscape, as it affects other countries, including Nigeria. Exogenous and endogenous factors have 
impacted on the domestic economy. External factors include the 2014 collapse of oil prices, the 
global economic slowdown, and market volat ility (at the start of 2016) and, insecurity caused by 
trans-border terrorism. More recently, from 2016, radical changes were triggered in the global 
economic and trade policy environment, reflected in the opposite pulls and pressures for trade 
integration , on the one hand and, on the other, economic nationalism, anti -globalizatio n and 
resurgent protectionism. These developments require careful analysis, improved understanding 
and accompanying adjustments.  
6.2.  Domestically, policy reforms are being pursued on t he basis of the 3 -point Agenda of the 
Administration of President Muhammadu Buhari to fight corruption, insecurity and unemployment 
through robust economic growth. Significant progress is being registered on this 3-point Agenda.  
6.3.  Strategically, the macroeco nomic context for the implementation of these objectives is taking 
place within the framework of the Medium -Term Economic Recovery and Growth Plan , for the 
period 2017 -2020, whi ch was launched in March 2017. The ERGP is the development instrument 
for the s tructural transformation of the Nigerian economy for diversification, indust rialization and 
modernization. It is within this framework that a new trade policy regime for Nigeria is being 
updated and prepared to reflect fundamentally changed circumstances, such as the rapid changes 
occasioned by technology and the urgent necessity to become more competitive, plug into value 
chains and create jobs for a rapidly expanding domestic population.  
6.4.  In the African Continent, Nigeria has engaged intensively in the neg otiations for the 
Continental Free Trade Area (CFTA) and ECOWAS trade integration, the purpose of which is to 
expand market access for Nigerian exporters and to use trade as an engine for growth, while 
safeguarding the Nigerian economy from "dumped " produc ts from trading partners that u se trade 
distorting subsidies. Trade policy and associated negotiations shall be used to drive growth, 
ambitiously and aggressively.  
6.5.  The implementation of the ERGP, the envisaged conclusion of the negotiations for the 
Contine ntal Free Trade Area (CFTA) and its implementation, the implementation of the United 
Nations Sustainable Development Goals (SDGs) and, scope for Nigeria 's bilateral negotiations , 
shall be the main drivers of both the economic policy reform, in general, and  trade policy reform, 
in particular.  
6.6.  The ERGP identified industrial and trade policies as growth enablers. The industrial strategy is 
informed by the great need to transform and diversify the Nigerian economy. In doing so, 
however, the G overnment will neither "micro -manage the economy " nor will it "run businesses " 
nor "select winners ". "Rather, the role of the G overnment, inter alia , is to establish an 
environment in which market -determined public - private partnerships are established, with the 
goal of hav ing the market efficiently allocate finite resources to achieve greater productivity, 
competitiveness and growth ". 
6.7.  As an integral part of the diversification plan and strategy, a "zero oil initiative " was launc hed 
by the government in 2016. The objective i s to boost the supply of foreign exchange from non -oil 
sectors. This initiative has five main components: (1) develop the export sector based on export 
policies for the 11 major products that generate US$30 billion in foreign exchange per annum. The 
identi fied products are cotton, rice, leather, gold, soya, sugar, cocoa, petrochemicals and fertilizer, 
palm oil, rubber, and cement; (2) seek and develop new markets by reviewing all trade and 
investment agreements to prioritize Nigerian exports to target marke ts and activate networks 
through value chains to access markets; (3) Enhance domestic sourcing by launching the first 
National Export Aggregator, with facilities and traders for export off -take and intensity; involving 
identification and engagement of the top 500 leading local and global corporations for exports; (4) 
Reform export incentives and funding with a view to boosting exports and providing last -mile 
financing to export projects; and (5) incorporate States, zones and competencies into export 
develop ment by commencing export projects and investment tracking in each State as part of the 
One-State -One-Product scheme.  WT/TPR/G/356 /Rev.1  • Nigeria  
 
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  7  CONCLUSION  
7.1.  This report has presented recent developments in Nigeria and the challenges currently facing 
the economy especially the economi c recession. While this is a challenging period for the economy, 
it is also presents a historic opportunity for domestic policy and structural reforms in an econom y 
abundant with opportunities. Trade policy remain s central as an engine for growth and for d riving 
sustainable and inclusive development aspiration of the country . Hence, Nigeria remains 
committed to the WTO process  and the rules -based Multilateral Trading System . 
7.2.  The major challenges facing the economy include inherited weak institutional struct ure 
coupled with exogenous and endogenous shocks and their attendant unwelcome effects on 
economic management. Government efforts in getting the economy out of the recession and in 
putting it  on a sustainable growth pa th as contained in the Economic Recove ry and Growth Plan , 
2017-2020 (ERGP) , assigned an important role to trade and trade policy. As a growth enabler, 
trade policy is expected to reflect the development priority of the country and has been 
mainstreamed into the domestic plan for development na mely, the ERGP.  
7.3.  Nigeria welcomes development partnerships - technical and financial cooperation - in the 
implement ation of different programmes. These development partnerships and support would 
contribute to leveraging enhanced competencies in several area s including trade policy 
development and advocacy; trade rules and development; competitiveness of supply capacity; 
trade infrastructure and services; legal and regulatory framework for trade policy -making and 
implementation; and, trade facil itation in goo ds and services. The ultimate goals of trade policy 
and opening are development, welfare and prosperity.  
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