Nigeria WT/TPR/S/247 
 Page 23 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures 
1. Imports into Nigeria are governed by the Customs and Excise Management Act (CEMA) 
Cap 45 Law of the Federation of Nigeria 2004, as we ll as earlier legislation and other customs and 
excise notices, decrees, and guidelines set out by the Federal Ministry of Finance.1  Under the 
provisions of the Act, impor ters do not need to be registered.  Import procedures are the same for both 
foreign and domestic importers. 
2. Before any imports can take place, all comme rcial goods importers need to complete and 
submit an import declaration form (form "M") to an "authorised dealer bank."2  In addition to form M, 
the importer must provide:  a detailed description of the goods, including the commercial name, make, 
whether new, used or refurbished and the standards a dopted;  quantity;  unit cost of goods;  total cost 
of the goods;  cost of freight;  mode of transportati on;  shipment details (i.e. full container load, bulk , 
loose or low container load);  any other charges st ated on form M;  country or origin;  country of 
supply;  pro-forma invoice with complete contact details of supplier;  and any other relevant 
documentation, such as that dealing with sanitary  and phytosanitary regulations and standards. 
3. All copies of form M and all supporting documents (these are needed in the case of an audit) 
need to be clearly marked as either "valid" or " not valid" for foreign ex change, depending on whether 
a foreign exchange remittance is involved.  After verifying all the information provided on the form, 
the "authorised dealer bank" is required to submit the completed and approved form to the office of 
the scanning service and risk management providers w ithin five days of approval.  The scanning and 
risk management services have been outsourced to  private sector operators, whose contracts expire 
in 2012, when Customs will assume responsibility fo r these services.  The scanning office reviews the 
documents, and either accepts or rejects them with in a day.  If accepted the documents are forwarded 
to Customs for clearance of goods.  The scanning co mpanies are also required to generate a risk 
assessment report.  Form "M" only becomes valid for importation after having been accepted by the 
scanning service and risk management providers.  The form is valid for six months, or one year for 
plant and machinery, but requests for revalida tion may be made to the Trade and Exchange 
Department of the Central Bank of Nigeria.   
4. The Customs Service assesses duty based on the c. i.f. value of goods.  The authorized bank 
that processed the importer's form M issues the importe r a draft for the sum of the duty, which is then 
deposited into a designated bank.  The designated bank issues the importer a receipt and the goods are 
cleared.  A self-assessment scheme for customs duty was introduced in 2006.  Under the scheme all 
importers or agents are required to prepare an ASYCUDA single goods declaration and conduct a 
self-assessment of customs duty payable, which is to  be paid at a Customs designated bank.  Once the 
duty has been paid, the bank notifies the Nigerian  Customs Service (NCS), which will releases the 
goods on request, after either a scan or physical verification.3  In the event of any discrepancies, the 
importer or the agent must pay any additional dut ies at the designated bank before goods can be 
                                                      
1 http://www.customs.gov.ng. 
2 Form "M" is used to verify foreign exchange requests by importers as well as monitor exports.  
"Authorised Dealer Banks" are banks that have been designated by Customs to conduct import and export 
transactions. 
3 When the importer requests the re lease of goods through the NCS system;  the level of scrutiny is 
determined by the NCS risk management information.  WT/TPR/S/247 Trade Policy Review 
Page 24 
 
 
released.  The authorities stated that at present a bout 90% of imports enter through the self-assessment 
scheme but that there were risk management probl ems both at Customs and at service providers.   
(a) Customs valuation 
5. In the first instance, assessment of duty is  based on the transaction value of the imported 
goods.  According to the authorities, in approxima tely 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.
4  If none of the above is available, the following are 
looked at, in order of preference:  sales value in Nigeria of identical goods; sales value in Nigeria of 
similar goods;  computed value; and, lastly, a r easonable value according to  the customs authorities.5  
Reasonable value is determined at the entry point  on the basis of either the transaction value of 
identical goods or similar goods sold for export to Nigeria at about the same time as the goods being valued.  However, in the absence of a datab ase of values, this process seems arbitrary. 
6. If an importer is not satisfied with the valuati on, an appeal may be lodged with the customs 
area comptroller.  If unsatisfied with the decision of  the area comptroller, the importer has recourse to 
the comptroller-general of customs and finally the c ourts.  The authorities stated that on average seven 
appeals a month are made to the area controller, thre e to five appeals to the comptroller general, and 
approximately three appeals a year are made to the courts. 
(b) Clearance procedures 
7. The authorities stated that 90-95% of consi gnments are physically inspected due to non-
compliance by traders.  In theory, importers are re quired to provide single goods declarations (SGDs) 
and accompanying documents to the designated custom s officer (customs face vet officer), who check 
the details of the SGDs and make sure that all doc uments are in order and the required duty has been 
paid.  The details of the SGDs and the manifest  details are entered in the respective ASYCUDA++ 
modules.  ASYCUDA++, in conjunction with the s canning companies risk as sessment report (RAR), 
analyses the data and determines the channel through  which the consignment is routed.  If scanners 
are available, the consignment is  routed through the green, blue, yellow or red channel.  In the 
absence of scanners green, blue or red lanes are used .  Green and blue lane c onsignments are released 
without examination or inspection, yellow lane c onsignments are scanned befo re being released.  All 
red lane consignments are physi cally examined before released. 
8. The procedures followed at ASYCUDA 2.7 s ites are the same as for ASYCUDA++, except 
that the RARs are not submitted electronically and th e lane is determined at the verification stage 
based on the level of risk advised in the RAR. 
9. Each import transaction must be accompanied by an invoice providing the Form "M" number, 
a description of the goods, the port of destination, and data related to the shipment.  Other required 
supporting documents, in English, include:  the comb ined certificate of value and origin (CCV);  
packing list;  clean on board bill of lading, airway bill, way bill or road way bill;  a manufacturer's 
certificate of production showing the standards to which the goods were produced (ISO, BS, DIN, 
etc.) or, where relevant, the sanitary or phytosan itary certificate along with laboratory test results. 
10. Nigeria abolished pre-shipment inspection in 2006.   
                                                     
 
4 The authorities stated that a database on values is maintained at customs headquarters only for rice 
and motor vehicles. 
5 WTO document G/VAL/N/1/NGA/1, 5 September 2008. Nigeria WT/TPR/S/247 
 Page 25 
 
 
11. New legislation to replace Customs and Excise Management Act is currently being prepared.6  
The new bill is provisionally titled "Nigeria Customs Service Act 2011" and is expected to be enacted 
during the current year.  The legislation is intended to bring Nigeria's customs law into line with international best practices such as the Revi sed Kyoto Convention, WTO Customs Valuation 
Agreement, implementation of the border provisions  of the WTO TRIPS Agreement, and the SAFE 
framework on standards.  The draft legislation allo ws for the use of electronic documents, signatures, 
and payments as well as the application of proper risk management, post clearance audits, and special 
simplified procedures for qualified traders.  Furthermor e, it strengthens the penalty structure to ensure 
an adequate level of deterrence. 
(ii) Tariffs 
(a) Structure 
12. The applied MFN tariff in Nigeria consists of  five bands: duty-free, 5%, 10%, 20%, and 35%.  
All tariffs are applied on an ad valorem  basis.  The 2009 tariff comprised 5,673 lines at the HS ten-
digit level and is based on the HS07 nomenclature. 
(b) Tariff bindings 
13. Nigeria has bound 19.2% of its tariff lines at the HS eight-digit level.  All agricultural lines 
are bound, compared with only 7% of non-agricultural lines (WTO definitions).
7  Final bound tariffs 
range from 40% on aluminium alloys and machinery to 150% on vegetable pr oducts, fats and oils, 
and prepared foods.  The average bound tariff rate was 118.4% in 2009. 
(c) Applied tariff 
14. The average applied MFN tariff in 2009 was 11.9%, significantly lower than the 2003 level of 
28.6%, reflecting increased liberalization.  The reducti on is due to Nigeria aligning its tariffs with the 
ECOWAS Common External Tariff.  The authorities st ated that 70% of the existing tariff has already 
been aligned.  The significant difference (106.5%) between the average applied MFN tariff rates and 
the average bound rates, and the fact that less than  20% of tariff lines are bound, gives the authorities 
considerable scope to raise tariffs, thereby making the tariff quite unpredictable (Table III.1).  Over 
95% of the applied MFN tariff range s from 5% to 20%, while the moda l or most common tariff rate is 
5% (Chart III.1). 
15. As per WTO sectoral definitions, average tariffs on agricultural products are higher than those 
for non-agricultural products.  The respective ra tes in 2009 were 15.6% and 11.4%, both of which 
were significantly lower than the 2003 levels, which were 50.2% and 25.3% respectively.  As 
mentioned, the decline is due to Nigeria aligning its tariff with the ECOWAS common external tariff. 
                                                      
6 The draft legislation has been prepared by the Nigerian authorities with technical assistance from 
USAID. 
7 Agricultural goods comprise HS codes 1-24. WT/TPR/S/247 Trade Policy Review 
Page 26 
 
 
Table III.1 
Structure of MFN tariffs, 2011 
(%) 
  2011 U.R. 
1.   Bound tariff lines (% of all tariff lines) 19.7 n.a 
2.   Duty-free tariff lines (% of all tariff lines) 2.1 0.0 
3.   Non- ad valorem  tariffs (% of all tariff lines)a 0.0 0.0 
4.   Tariff quotas (% of all tariff lines) 0.0 0.0 
5.   Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 0.0 0.0 
6.   Simple average tariff rate 11.9 121.1 
 Agricultural products (W TO definition) 15.6 150.0 
 Non-agricultural products (WTO definition)a 11.4 50.0 
 Agriculture, hunting, forestry and fishing (ISIC 1) 12.9 150.0 
 Mining and quarrying (ISIC 2) 5.3 .. 
 Manufacturing (ISIC 3) 12.0 112.3 
7.   Domestic tariff "spikes" (% of all tariff lines)b 0.0 0.0 
8.   International tariff "peaks" (% of all tariff lines)c 39.9 100.0 
9.   Overall standard devia tion of applied rates 8.0 46.0 
10. "Nuisance" applied rates (% of all tariff lines)d 0.0 0.0 
.. Not available. 
n.a. Not applicable.  
a Excluding petroleum. 
b Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6). 
c International tariff peaks are defined as those exceeding 15%. 
d Nuisance rates are those greater than zero, but less than or equal to 2%. 
Source: WTO Secretariat calculations, based on data provided by the Nigerian au thorities;  and WTO IDB database.  
(2.1)(45.4)
(12.7)(37.0)
(2.9)
0102030405060708090100
05001,0001,5002,0002,5003,0003,5004,000
0 5 10 20 35The figures in brackets correspond to the percentage of total lines. 
WTO Secretariat calculations, based on data provided by the Nigerian authorities.Chart III.1
Breakdown of import duty rates, 2011
Number of tariff lines
Note:
Source :%
Number of lines 
Cumulated percentage (right-hand scale)
 Nigeria WT/TPR/S/247 
 Page 27 
 
 
16. Duty-free rates apply to, inter alia,  medication, agricultural inputs and educational material.  
The 5% rate applies mainly to milk, grains, rice, seeds and nuts, sugar, mine rals and chemicals used 
as industrial raw materials, and to other industrial raw materials.  The high est band, i.e. 35%, is 
applied to, inter alia,  sacking for packaging, certain iron and steel products, motor vehicles, and 
tobacco products.  It would appear that the highest ra te is used to protect certain domestic industries.  
In addition to the import duty, certain products are subject to other taxes and levies which are 
collected at the border (section (V)).  According to  the authorities, the rationale for a low import duty 
on rice and sugar but then also imposing additional le vies on them, was to bring the tariff in line with 
the ECOWAS CET, while protecting local rice and sugar producers. 
(d) Tariff dispersion 
17. Apart from the overall level of the tariff, as refl ected in the average applied MFN tariff rate, 
there are potential efficiency losses depending on th e dispersion of these tariff rates across product 
lines.  The greater the differentials in tariff rate s, especially within groups of similar and thus 
substitutable products, the higher the chance that c onsumer and producer decisions are distorted by 
the tariff structure.  The implication is that very similar goods are often taxed at significantly different 
rates, thereby increasing the complexity of the ta riff structure and thus creating the incentive for 
misclassification and tax evasion.  It would appear that during the period under review, the dispersion 
of tariff rates has decreased;  the proportion of tari ff lines involving domestic and international peaks 
has also declined and the overall standard devia tion of the tariff rates decreased from 22.3% in 2003 
to 8.0% in 2008 (Table III.1), ther eby making the tariff less complex. 
(e) Tariff escalation 
18. In aggregate, Nigeria's tariff structure displa ys mixed escalation:  the average applied MFN 
tariff in 2009 was 10.4% on raw materials;  9.8%  on semi-processed products;  and 13.5% on fully 
processed products (Table III.2).  However, at a more  disaggregated (ISIC two-digit) level, the tariff 
displays positive escalation in most industries.  Fabricated metal products show negative escalation, 
while imports in the agriculture and mining sectors appear to comprise only raw materials 
(Chart III.2).  In industries that display positive escala tion, the effective rate of protection is high and 
may result in inward orientation of production.  On  the other hand, where there is mixed or negative 
escalation, the negative part may result in loss of  competitiveness with resp ect to semi-processed 
products. 
(iii) Duty exemptions and concessions 
19. Nigeria allows for customs duty exemptions a nd concessions in order to attract investment. 
With a view to improving agricultural productivity,  tariff concessions are granted for agricultural 
inputs such as fertilizer, seeds, and machinery.  Furthermore, duty-free imports of plant and 
machinery for the mining sector are also permissi ble.  All goods imported into export processing 
zones are exempt from customs duty and other taxes.   
(iv) Preferential tariffs 
20. As a member of ECOWAS, Nigeria provides tariff preferences to the other ECOWAS 
member states (Chapter II(2)(b)).  Furthermore, Ni geria grants tariff preferences to other countries 
that participate in the Global System of Trade Preferences.   WT/TPR/S/247 Trade Policy Review 
Page 28 
 
 
Table III.2 
Summary analysis of import duty tariff, 2011  
  Import duty 2011 
Analysis No. of linesSimple average 
tariff (%) Range tariff 
(%) Standard 
deviation (%)CV Imports 2009a 
(US$ million)
Total 5,673 11.9 0-35 8.0 0.7 33,906.3 
             
HS 01-24 853 16.2 5-35 7.6 0.5 4,159.7 
HS 25-97 4,820 11.2 0-35 7.9 0.7 29,478.9 
By WTO definitionb             
Agriculture 794 15.6 5-35 8.1 0.5 3,402.1 
Live animals and products thereof 96 18.8 5-20 4.2 0.2 1.0 
Dairy products 33 13.8 5-20 7.4 0.5 300.4 
Coffee and tea, cocoa, sugar, etc. 168 17.1 5-35 7.0 0.4 896.8 
Cut flowers and plants 35 7.6 5-20 5.7 0.8 73.4 
Fruit and vegetables 166 19.5 5-20 2.5 0.1 101.9 
Grains 18 5.8 5-10 1.9 0.3 1,581.3 
Oil seeds, fats, oils and their products 92 17.7 5-35 13.2 0.7 153.2 
Beverages and spirits 62 16.5 5-20 4.9 0.3 151.6 
Tobacco 9 25.0 5- 35 15.0 0.6 76.1 
Other agricultural products 115 6.8 5-20 3.1 0.5 66.3 
Non-agriculture (excl. petroleum) 4,857 11.4 0-35 7.9 0.7 29,981.7 
Fish and fishery products 129 14.5 5-20 5.1 0.3 818.6 
Mineral products, precious stones and 
precious metals 344 10.5 0-20 7.6 0.7 1,581.3 
Metals 652 13.1 5-35 10.2 0.8 3,496.2 
Chemicals and photographic supp lies 901 8.0 0-35 5.9 0.7 4,453.9 
Leather, rubber, footwear and travel 
goods 211 12.9 0-35 7.7 0.6 761.4 
Wood, pulp, paper and furniture 281 12.7 0-20 7.4 0.6 992.9 
Textiles and clothing 848 15.6 0-35 6. 3 0.4 748.2 
Transport equipment 244 10.3 0-35 8.2 0.8 6,718.4 
Non-electric machinery 547 6.5 0-35 5.8 0.9 5,808.7 
Electric machinery 273 10.0 0-20 7.0 0.7 3,663.9 
Non agricultural articles, n.e.s. 427 13.1 0-35 7.8 0.6 938.2 
By ISIC sectorc       
Agriculture, hunting, forestry and fishing 327 12.9 5-20 7.1 0.6 1,296.2 
Mining 104 5.3 5-20 2.1 0.4 83.0 
Manufacturing 5,241 12.0 0-35 8.1 0.7 32,259.4 
By stage of processing       
Raw materials 680 10.4 0-20 6.8 0.6 2,748.4 
Semi-processed products 1,788 9.8 0-35 7.3 0.7 6,991.3 
Fully-processed products 3,205 13.5 0-35 8.3 0.6 23,898.9 
a The total of imports is higher than the sum of sub-items, as  certain imports, to the value of US$267.7 million are not classi fied in 
the Harmonized System. 
b 22 tariff lines on petroleum products are not taken into account.  
c International Standard Industrial Classification (Rev. 2).  Electricity, gas, and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. Source : WTO Secretariat estimates, based on data provided by the Nige rian authorities;  import data from UNSD, Comtrade database. Nigeria WT/TPR/S/247 
 Page 29 
 
 
0.05.010.015.020.025.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2011
Per cent
Source : WTO Secretariat estimates, based on data provided by the Nigerian authorities.
All products
Food, beverages
Textiles, apparel
Wood products
Paper, printing
Chemicals, 
plastics
Non-metallic 
mineral products
Basic metal 
products
Fabricated metal 
products
Other 
manufacturingNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully processed
NOT APPLICABLE
 
(v) Other duties and taxes 
21. Additional duties and taxes that apply to imports  include:  a port development levy of 7% of 
the duties payable;  an ECOWAS community levy of 0.5%8;  a Comprehensive Import Supervision 
Scheme charge of 1% on the f.o.b. value of impor ts;  a national automotive council levy of 20% on 
automotive wheel rims;  a levy of 10% on the import of sugar;  and a 20% levy on the import of rice.  
VAT is applied at 5% on all goods and services ( domestically produced and imported), with the 
exception of goods and services on an exclusion list (Table III.3).  VAT is calculated on the 
duty-inclusive c.i.f. value of imports, and on the sales price of domestically produced goods.  Exports 
are zero-rated.  VAT proceeds are distributed to th e federal, state and local governments in shares of 
35%, 40% and 25% respectively. 
22. Currently, excise duty is applied at a rate of  5% on perfumes and cosmetics, non-alcoholic 
beverages and fruit juices, soaps and detergents , spaghetti and noodles, telephone recharge cards, 
corrugated paper and paper boa rd, and toilet paper and cleansing tissues.  It is applied at a rate of 20% 
on cigarettes and tobacco and alcoholic beverages.9  However, excise duty is levied only on 
domestically produced goods, which puts domestical ly produced goods at a competitive disadvantage 
with similar imported products.  The authorities stated  that they did not have the capacity to collect 
excise duties on imports and instead such taxes were collected in the form of higher import tariffs.  
                                                      
8 This tax is intended to compensate for the major tariff reduction involved in the CET and is 
applicable to industrial and agri-industrial products in specific activities.   
9 Nigeria Customs online information.  Viewed at:  www.customs.gov.ng. WT/TPR/S/247 Trade Policy Review 
Page 30 
 
 
Table III.3 
Goods and services exempt from VAT, 2011 
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 equipment) 
Baby products such as carriages, clothes, and napkins, as well as sanitary towels 
Commercial vehicles and spare parts, tractors, public transpor t passenger vehicles, motorcycles,  tanks and other armoured fight ing 
vehicles, and bicycles 
Agricultural equipment such as for soil prep aration or cultivation, harves ting or threshing, milking and dairy machinery, and p oultry 
keeping machinery 
Veterinary medicine equipment 
Fertilizers and farm tr ansportation equipment 
Services 
Medical and health services 
Services by community banks, people's banks, and mortgage in stitutions (interest earnings on loans by commercial banks and 
premiums paid to insurance companies are not taxable) 
Performances conducted by educationa l institutions as part of learning 
Social services such as orphana ges, 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 sale of domestic or household articles, vehicles, personal eff ects, and residential house rent 
Source : Information provided by the Nigerian authorities.  
(vi) Rules of origin 
23. The country of origin for goods imported into Ni geria 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 ma terials and components used in production.  In 
addition, as a member of ECOWAS, Nigeria applies ECOWAS rules of origin, under which a finished 
product is deemed to come from within 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 35% of the ex-works cost price (excluding taxes).  In case of dispute, appeal s are made in the first instance to the customs 
authorities in the country of importation.  If the dis pute remains unresolved, the issue is referred to the 
ECOWAS Commission. 
(vii) Import prohibitions, restrictions, and licensing 
24. Under Nigeria's current customs legislation, import prohibitions may be imposed to protect 
domestic industries;  reduce balance-of-payments de ficits, as contingency measures,  or on moral or Nigeria WT/TPR/S/247 
 Page 31 
 
 
safety grounds.  Nigeria has two lists of prohi bited goods:  the Import Prohibition List, and the 
Absolute Import Prohibition List.  The Import Prohibition List is used mainly to protect domestic industry (Table AIII.1).
10 
25. Goods on the Absolute Import Prohibition list are banned on, inter alia , security, health, or 
morality grounds.  This include weapons, certain spir its, obscene articles, textile materials containing 
hazardous chemicals, and second- hand clothing (Table AIII.2). 
26. According to the authorities, second-hand cloth es, are banned on health and safety grounds.  
Although a technical regulation could achieve the same objective the authorities stated that they do not have the capacity to apply such a measu re.  The importation of vehicles, drugs, and 
pharmaceutical raw materials, and all containeri zed goods, through Nigeria's land borders, is also 
prohibited.  Considering that Nigeria's sea ports ar e highly congested and the time needed to import a 
standard container is 39 days, ope ning the land borders to containe rized goods could help reduce this 
congestion and the cost of trade.  In addition, te xtile materials and cement may only be imported in 
bulk.
11 
27. Items included or removed from either list,  are notified through government notices and 
decrees.  It appears that the placement or removal of items from the list is at the Ministers' discretion.  
The authorities stated that to add or remove any g ood from the prohibitions list a request needs to be 
made to the Minister of Finance, who after recommendations from the Tariff Technical Committee 
and the Tariff Review Board forwards his decision to the President for approval.  
28. Nigeria abolished its general import licensing system in 1986.  Currently no licensing 
requirements are in place.12  However, a permit is needed for importing bagged cement.13  
Applications to import prohibited goods or restrict ed products need to be made three months in 
advance of intended importation.  The quantity allo cated to each importer, or to be imported from 
each country, is stated in individual permits, but not published.  The quantity is determined on the 
merit of each application.  According to the author ities the President is the only authority that can 
grant a waiver to import prohibited goods. 
(viii) Contingency measures  
(a) Anti-dumping and countervailing measures 
29. There has been no change in the law covering c ontingency measures over the past six years.  
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.14  Goods are considered to have been dum ped 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 
                                                      
10 See Nigeria Customs online information, "Import Prohibition List".  Viewed at 
http://www.customs.gov.ng/ProhibitionList/Import.php;  an d "Goods:  the Importation of which is Absolutely 
Prohibited".  Viewed at:  http://www .customs.gov.ng/ProhititionList/import_2. php.;  and inform ation provided 
by the Nigerian authorities. 
11 Cement imports must not be less than 10,000 tonnes;  and textile products must be imported in 
20 foot containers and must not be less than 130,000 metres.   
12 WTO document G/LIC/N/3/NGA/6, 26 July 2010. 
13 The authorities stated that when there is a supply shortfall, permits to import cement are granted only 
to existing distributers and large users such as construction companies.  Furthermore, the restrictions on the 
import of cement have artificially raised the price of cement in Nigeria to be amongst the highest in the region. 
The high price of cement raises the cost of infrastructure development, which is a priority in Nigeria. 
14 WTO document G/ADP/N/1/NGA/1, 11 May 2007. WT/TPR/S/247 Trade Policy Review 
Page 32 
 
 
potential or established industries in Nigeria, and if the imposition of a special duty does not conflict 
with Nigeria's international agreements.  Nigeri a has not imposed any anti-dumping or countervailing 
duties since 1998.  According to the authorities, a bill on anti-dumping and countervailing measures 
has been prepared, while the bill creating an i nvestigating authority has gone through the second 
reading in the National Assembly.  The new bill pr ovides for the determination of dumping, injury, 
and causal link, establishment of an anti-dumping pane l, limitation and conduct of an investigation, 
and imposition of measures. 
(b) Safeguards actions 
30. According to the authorities Nigeria is in th e process of enacting legislation on safeguard 
measures;  and the delay in promulgating the safegua rds law is also delaying the setting up of an 
investigating authority.  Nigeria has not taken any safeguard measures during the period under review.   
(ix) Other measures 
(a) Countertrade arrangements and buy-back schemes 
31. Countertrade arrangements and buy-back schemes continue to be Government policy.  The 
rationale for these policies is conservation of fore ign exchange earnings.  Therefore, companies and 
individuals are encouraged to undertake industria l projects by sourcing machinery and equipment 
from overseas suppliers, through such arrangements,  on a medium- and long-term basis.  However, 
countertrade arrangements and buy-back schemes ar e not permitted for the importation of consumer 
goods.  The authorities stated that, although official  policy regarding countertrade arrangements and 
buy-back schemes has not changed over the past si x years, such arrangements have not been used 
during the review period.  
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures  
32. All exporters must be registered with the Nigerian Export Promotion Council (NEPC) and 
incorporated or registered in Nigeria.  For regi stration, exporters are required to submit a completed 
application form, copies of a certificate of incorporat ion, form C.O.7 (which shows the particulars of 
directors of the company), and the memorandum and articles of association.15  The registration 
process takes two days after submission of all the required documents.16  E x p o r t e r s  n e e d  t o  r e n e w  
their registration every two years, submitting a curre nt company tax clearance certificate, evidence of 
export performance within the previous two years, and a certified copy of form C.0.7.   
33. Exporters are required to complete and regist er an export proceeds (NXP) form with an 
authorized dealer (commercial or merchant bank) of their choice.17  The processing bank sends a copy 
of the form to the Central Bank of Nigeria (CBN ), as well as to the NCS for inspection purposes and 
the National Maritime Authority.  Other export documents include:  a proforma invoice;  a sales contract, if applicable;  NEPC registration certificate;   relevant sanitary and phytosanitary certificates;  
                                                     
 
15 For co-operative societies, evidence of registration is  required in place of certificate of incorporation.   
16 The cost of the application form is Naira 1000 an d the registration fee is Naira 10,000. Renewals and 
replacements cost Naira 5,000 an d Naira 10,000 respectively. 
17 The objectives of the NXP form ar e that goods to be exported meet with the buyer's expectation;  and 
that proceeds due to the exporter ar e repatriated within 90 days of ship ment of goods and credited to the 
exporters' domestic accoun t maintained with an  authorized dealer. Nigeria WT/TPR/S/247 
 Page 33 
 
 
shipping documents;  and other completed forms as required by the importing country, such as a 
Federal Produce Inspection Service quality certificate. 
34. After shipment of the goods, NCS sends endorsed copies to CBN, NEPC, and the exporter.  
All export proceeds must be repatriated into th e exporter's non-oil domiciliary account, maintained 
with the processing bank, within 180 days of shipme nt.  A currency retention scheme allows exporters 
to retain 100% of their foreign exchange earnings in their non-oil domiciliary accounts.  
(ii) Export taxes, charges, and levies 
35. The export amendment decree of 1992 allows that all raw material or unprocessed 
commodities, whether mineral or agricultural, may be  subject to the payment of an export levy as may 
be prescribed, from time to time, by order of the NEPC  (not currently operational).  In this regard, an 
administrative levy of US$5 per tonne is applied to exports of cocoa, and of US$3 per tonne to 
exports of other raw materials.  Additionally, a 0. 5% levy is imposed on a ll exports in lieu of pre-
shipment inspection.  This effe ctively serves as an export tax because it is payable on all exports 
regardless of whether a pre-shipment inspection is required by the importing country. 
(iii) Export prohibitions and controls 
36. Nigeria's Export Prohibition Act allows for cer tain exports to be prohibited for purposes of 
domestic food security, value-added considerations , preservation of cultural heritage, and protection 
of the environment and wildlife.  Presently expor ts of raw hides and skins, timber (rough or sawn), 
scrap metals, unprocessed rubber latex and rubber lump s, maize, artefacts and antiquities, wildlife 
animals classified as endangered species and their products and all "goods imported", are prohibited.18 
Nigeria's food safety regulations require  export licences for unprocessed food products19, and, in 
certain cases, the Minister for Agriculture is em powered to prescribe grades and standards of quality 
for these products.   The authorities stated that a bill curren tly before the National Assembly would 
repeal export prohibitions.   
(iv) Export incentives 
37. Nigeria operates the Export Expansion Grant Fund Scheme (EEG) with a view to increasing 
exports and diversifying export prod ucts and markets.  To be elig ible under the scheme, an exporter 
must have a minimum annual export turnover of N 5 million, evidence of repatriation of export 
proceeds (provided by the Central Bank of Nigeria);  and evidence that the exported goods were made 
in Nigeria.  The scheme is designed to compensate  exporters for costs incurred due to factors beyond 
their control, such as poor infrastructure, multiple taxes,  high interest rates, and the naira depreciation.  
Applications for the EEG are assessed on a "weight ed eligibility criteria" based on baseline data 
provided by individual applicant companies.  The EE G rate is determined according to the following 
eligibility criteria:  local value added (20%), local content (20%), employment of Nigerian nationals 
(20%), priority sector (10%), export growth ( 25%), and capital investment growth (5%).  The 
maximum EEG rates for different product categories are:  finished goods, 30%;  semi-finished goods, 
15%;  and primary products, 15%;  while the mini mum rates are 15%, 5%, and 5% respectively. 
38. An EEG application must be accompanied by:  a Nigeria exports proceeds form (NXP), bill 
of lading or airway bill, final commercial invoice, single goods declaration (SGD), clean certificate of 
                                                      
18 Nigeria Customs online information http://www.customs.gov.ng/ProhibitionList/export.php. 
19 Export of Nigerian Produce Act, Cap 119, Export produce (Federal Powers) Act 120, 
5 October 1961. WT/TPR/S/247 Trade Policy Review 
Page 34 
 
 
inspection, evidence of repatriation of export pr oceeds from the bank, non-oil export data form from 
Nigerian export promotion council. 
39. EEG claims are paid through a "negotiable duty credit certificate", which importers use to pay 
import duties.  The authorities stated that  the current EEG scheme is being reviewed. 
40. Other incentives in place include the Pioneer Status Scheme, which provides rebates on 
corporate income tax to manufacturing companies exporting at least 50% of their turnover.  The Nigerian Export-Import Bank offers financing, risk -bearing services, and export advisory services to 
the Nigerian export community, in line with government trade policy. 
41. In principle, the Export Development Fund (EDF) assists in financing certain activities of 
private exporting companies.  These activities include participation in training courses, symposia, 
seminars, and workshops;  advertis ing and publicity campaigns in foreign markets;  product design 
and consultancy;  participation in trade missi ons, buyer-oriented activities, overseas trade fairs, 
exhibitions, and sales promotion;  collection of trade information;  organization of export groups;  and 
studies in respect of setting up export-oriented indust ries.  However, due to lack of funds the scheme 
is currently restricted to just assisting Nigerian expor ters to participate in international trade fairs and 
exhibitions that have been coordinated by th e NEPC.  The maximum grant per company for each 
activity is 50% of the total direct costs, up to a maximum of N
200,000.  
(v) Export processing zones (EPZs) 
42. The Nigeria Export Processing Zones Authority Decree, 1992 established the Export 
Processing Zones Authority and thus enabled the setting up of EPZs, free trade zones, export 
processing farms, border free zones and sub-zones.  The Nigerian Export Processing Zone Authority 
(NEPZA) has responsibility for overseeing the devel opment and management of EPZs.  Currently 
25 licences for free zones have been granted and 11 of these zones are operational;  the others are at 
different stages of development.20  At present cumulative employment in the free zones is 9,000, and 
total investment is US$800 million.  In 2009, tota l exports from free zones were US$11 million, and 
generated customs revenue was US$8.5 million.  Incentives provided to firms located in EPZs 
include:  one-stop approval by the EPZ administration;  exemption from federal, state, and local taxes, 
as well as from custom duties;  repatriation of capita l and profits, without an y requirement to open a 
domestic account;  rent-free land during construction of factory space;  availability of services such as 
warehousing, built-up factories, transportation, sanit ation, catering etc.;  unrestricted remittance of 
investors' profits;  100% foreign ownership of enterprises;  and sale of up to 25% of production 
permitted in the domestic market.21  Goods sold in the domestic econom y are subject to all applicable 
import duties, levies, and taxes.  Firms in the fre e zones are allowed to hire foreign managers and 
qualified personnel.   
43. The government abolished Export Processing Factory (free point) scheme in 2005. 
                                                      
20 Three free zones are owned by the federal government , fifteen by state governm ents and seven by the 
private sector. 
21 For free trade zones 100% of the pr oduction can be sold in the domestic market, while sub-zones and 
export processing factories are permitted to sell 60% of their production in the domestic market. Nigeria WT/TPR/S/247 
 Page 35 
 
 
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives  
44. Nigeria provides a myriad of incentives to bus inesses, including tax exemptions and holidays; 
tax rebates, deductions, and concessions; preferen tial financing; and tax deductions for certain 
expenses such as research and development.  These  general incentives apply to industries producing 
for the domestic market or for export (section 2 (IV)).  Additionally, industry-specific incentives are 
provided to the mining, gas, and agriculture sect ors (Table II.2).  The incentives for these sectors 
include tax holidays and rebates as well as acceler ated capital allowances and duty-free imports of 
raw materials and plant and machinery. 
(ii) Government procurement 
45. Nigeria enacted a new Public Procurement Act in 2007.  The Act created the National 
Council on Public Procurement (NCPP) and the Bu reau of Public Procurement (BPP).  The 
responsibilities of the NCPP, as prescribed in the Ac t, include reviewing, amending, and approving 
monetary and prior review thresholds;  setting out policy on public proc urement; approving the 
appointment of the directors of the BPP;  review ing and approving the audited accounts of the BPP;  
and approving or making any changes deemed necessary to improve the procurement process.22   
46. The objectives of the BPP, as set out in the Act, include harmonizing existing government 
policies and practices on public procurement, and ensuring accountability and transparency in the 
procurement process;  establishing pricing standard s and benchmarks;  and ensuring value-for money 
in the procurement and disposal of public assets an d services.  To achieve these objectives the BPP is 
empowered to formulate the general policies and gui delines on public procurement for the approval of 
the NCPP;  disseminate information with respect to  the provisions of the Act; subject to thresholds 
that have been set by the NCPP, certify federa l procurement prior to the award of contract;  
implement procurement policies as set out in the Ac t;  maintain a price and contract database, and 
conduct research on the procurement process;  prep are and update bidding documents;  prevent any 
misuse of the procurement process and where necessa ry apply administrative sanctions;  review the 
procurement and award procedures for all entities;  and submit a procurement audit report to the 
National Assembly twice a year.  The BPP also serves as the secretariat for the NCPP. 
47. The Act applies to the procurement of an y goods, services or works by the Federal 
Government of Nigeria as well as to any entity th at derives at least 35% of the funds used for 
procurement from the Federation's shar e of the Consolidated Revenue Fund.23  Under the Act, all 
procurement must be through an open comp etitive bidding process unless otherwise specified.24  After 
reviewing the bids (procurements above N 1 billion for works and N 100 million for goods, 
consultancy, and non-consultancy ser vices are subject to a prior BPP review) and ensuring that the 
provisions of the Act have not been violated, the BPP issues a "no objection for contract award" based on the "the lowest evaluated responsive bid".
25  Contracts are then forwarded to the Federal Executive 
Council for approval.  Under the Act foreign comp anies incorporated in Nigeria receive national 
treatment.   
                                                      
22 Bureau of Public Procurement online information.  Viewed at:  http://bpp.gov.ng/. 
23 Six state governments have also implemented the Act. 
24 Other methods include the two stage tendering process, the restricted tendering process and direct 
procurement. 
25 The "lowest evaluated responsive bid" is the lo west bid that meets the technical requirements and 
standards stipulated in the tender document. WT/TPR/S/247 Trade Policy Review 
Page 36 
 
 
48. Under the provisions of the Act a tender can be excluded from the bidding process:  if a 
supplier, contractor or consultant has given or pl edged any monetary benefit to an employee in the 
procurement entity so as to influence the procuremen t 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 pr ocurement proceedings;  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 paymen ts;  or where the bidder has been convicted of a 
crime committed in connection with procurement proceedings. 
49. The BPP has no powers to prosecute.  Offenders ar e referred to the Attorney General of the 
Federation for prosecution. 
50. A procuring officer found to be in violation of  the provisions of the Act would be sentenced 
to a minimum prison term of five years, dismissed  from Government, and fined 25% of the value of 
the procurement contract. 
51. In case of a dispute, the bidder may apply for an administrative review in the first instance to 
the accounting officer in the procuring entity.  If the accounting officer fails to reach a mutually 
satisfactory decision, the bidder may apply to the BP P for a review.  Final recourse is to the Federal 
High Court. 
52. According to anecdotal evidence, corruption c ontinues to be a concern in the procurement 
process, with instances of bid-rigging, tenders bein g issued to suit particular bidders, and bribes.  
However, according to the authorities, instances of corruption have declined since the enactment of 
the Public Procurement Act 2007.  
(iii) Standards and quality infrastructure 
(a) Standards, testing, metrology, and certification 
53. Under the provisions of Act 56 of 1971 (as am ended in 1990), the Standards Organization of 
Nigeria (SON) is the sole statutory body responsible for standardizing and regul ating the quality of all 
products, services, systems, materials, and measuremen ts and processes in Nigeria.  It investigates the 
quality of facilities, materials, and products, and has established a quality assurance system including 
the Mandatory Conformity Assessment (MANCAP) of all locally manufactured and processed goods.  
All standards and technical regulations are manda tory.  In the absence of established Nigerian 
standards, international standards set by ISO and the International Electrotechnical Commission 
(IEC), among others, are adopted.  SON is the enquiry point for TBT issues, whilst the Federal 
Ministry of Commerce and Industry is responsible fo r notifications to the WTO.  SON also operates 
four laboratories across the country dealing with food  and chemistry, engineerin g, textiles and leather, 
and metrology.  The laboratories are in conformity with ISO standards.  
54. SON has established a wide range of standard s covering products in the chemical, civil 
engineering, electrical engineering, mechanical engineering, processed food (including local food),  
and textile/leather industries.  The standards adopt ed have been based on the ISO 9000 series (9001, 
9002, 9003) for quality management, ISO 14000 standa rds for environmental management systems, 
ISO 18000 for occupational health and safety sy stems, ISO 22000 for food safety, and ISO 17025 for 
laboratory accreditation.  In total, SON's library of standards consists of over 3,000 Nigerian 
Industrial Standards and over 55,0 00 foreign and international standards.  Products must be assessed 
by SON before receiving ISO certification.  The Nigerian Industrial Standards (NIS) certification 
mark is awarded to manufacturers whose products m eet the NIS requirements.  SON is also actively Nigeria WT/TPR/S/247 
 Page 37 
 
 
involved in inspecting imports for quality assessment at Nigeria's ports and borders.26  The port/border 
inspection scheme involves inspection, examination,  sampling, and laboratory analysis of imported 
goods.  SON has announced guidelines for product quality inspection and provisional release of 
imports within 48 hours.  However, provisionally rel eased goods may not be disposed of or sold until 
the outcome of the laboratory tests and SON's release letter have been issued. 
55. Changes that have taken place during the revi ew period include the implementation of the 
Nigerian Conformity Assessment Programme (SON CAP) in September 2005, which ensures that 
imports comply with Nigerian specifications.  The SONCAP certificate is a mandatory customs clearance document in Nigeria and imports that ar e not accompanied by a certificated will be delayed 
or even denied entry.  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.
27  If the exporter 
cannot furnish a valid test report, SON advises the exporter of a suitable laboratory.  The SON 
country office reviews the test results and if these are satisfactory a product certificate is issued 
against payment of US$648.28  The product certificate is valid fo r three years.  For each subsequent 
shipment the exporter is required to submit a reque st for shipment certification and a final invoice, 
and a SONCAP certificate is issued to the exporter for customs clearance.29  From September 2009, 
SONCAP was extended to cover all prod ucts except those regulated by NAFDAC. 
56. SON is progressing in its enforcement activities through the strict application of its regulatory 
powers in investigating, seizing, and destroying  sub-standard domestically produced and imported 
goods.  However, no data are available with respect to seizures, arrests, and fines for non-conforming 
products during the review period. 
57. SON is a member of the International Organiza tion for Standardization and the International 
Electrotechnical Commission.  It is also affiliate d to the British Standards Institute, The American 
National Standards, the Deutches Institute für No rmung, Japan Industrial Standards Committee, the 
Korean Agency for Techno logy and Standards, the Standardization Administration of China, the 
Ghana Standards Board, the Bureau of Indian Standa rds, and the South African Bureau of Standards. 
(b) Sanitary and phytosanitary measures 
58. SON is a member of the Codex Alimentarius Commission (CAC)30 and a Codex contact point 
for Nigeria.  It is also a member of the World Organization for Animal Health (OIE), and a contracting party to the International Plant Prot ection Convention (IPPC).  Standards for local and 
imported processed food, food products, and pre- packaged water are set by both SON and the 
National Agency for Food and Drug Administration and Control (NAFDAC).
31  SON is responsible 
for the monitoring and control of these products, whil e NAFDAC is responsible for regulation.  In the 
absence of established Nigerian standards, interna tional standards are adopted, such as those set by 
                                                      
26 Importers are required to furnish SON with the name  of the product, country of origin, specification, 
date of manufacture, batch or lot number, applicable standard(s) under which they were produced, and where 
relevant, the shelf life and active ingredients of the product. 
27 Photographs need to show all relevant mark ings such as country of manufacture, etc. 
28 Amendments, reissues and duplicates cost US$50.  If more than one model/product is covered on the 
certificate then there is an extra charge of US$72 per model/product. 
29 A SONCAP certificate costs US$300, while any amendments, or duplicates are US$50. 
30 The National Codex Committee (NCC) is composed of members from government ministries, 
standards agencies, academia and research institutes, private sector and law en forcement agencies. NCC, inter 
alia,  advises the government on food standards and related issues. 
31 NAFDAC is a member of the Technical Committee on Food and Food Products, which is part of 
SON. WT/TPR/S/247 Trade Policy Review 
Page 38 
 
 
the Codex Alimentarius Commission.  SON is the e nquiry point for food standards, NAFDAC is the 
enquiry point on SPS issues and the Federal Minist ry of Commerce and Industry is responsible for 
notifications to the WTO.  
59. Under NAFDAC's food and drug safety regulations32, no processed food, drugs, drug 
products, or packaged waters can be manufactured, im ported, exported, advertised, sold or distributed 
in Nigeria, unless they have been registered with NAFDAC.33  Registration involves the inspection of 
facilities prior to the start of operations;  assessment of food safety and quality;  laboratory analysis and radiation tests, where applicable;  the control of advertisements to ensure that claims are not 
exaggerated; and confirmation of compliance with  labelling requirements.  Export certificates from 
NAFDAC are also required for these products.  Export certificates are issued only if the manufacturer 
of the product maintains the standard requirement s of "good manufacturing practice" and the product 
passes the NAFDAC's laboratory tests.
34   
60. Before drugs, cosmetics, medical devices or f ood products can be imported into Nigeria, a 
certificate of manufacture and free sale is required from the competent regulatory body in the exporting country, and authenticated by the Nigerian Embassy in the country of origin.
35  In addition, 
certain samples must be sent to NAFDAC's laboratories for testing, at least, three months before the 
product arrives in Nigeria.  However, despite r ecognizing testing and certification procedures of the 
competent conformity-assessment bodies in thir d countries, NAFDAC tests all products itself. 
NAFDAC applies the CAC's food additive and contam inant regulations, and pesticide residue and 
mycotoxin standards, in its assessment of food safety.   
61. Under the Agriculture (Control of Importation) Ac t, the Minister of Agriculture is empowered 
to regulate the importation of plants, seeds, oil, artificial fertilizers, and other similar goods.  Fresh 
plants and plant products require certificates issu ed by the authorities of the exporting country, as well 
as phytosanitary certificates issued by Ni geria Agricultural Quarantine Service.36  I n  2 0 0 7 ,  t h e  
Aquatic Resources Quarantine Unit, the Plant Quar antine Unit and the Veterinary Quarantine Unit 
were harmonized into a single regulatory agency , the Nigeria Agricultural Quarantine Service 
(NAQS).  The bill that created the NAQS has been passed by the Na tional Assembly and is awaiting 
Presidential approval.  According to NAFDAC author ities, risk assessments for food safety follow the 
risk-assessment guidelines of the IPPC and the OIE,  and take into consider ation the Codex texts on 
risk analysis.  The Animal Disease Control Act seeks to prevent the introduction and spread of 
diseases among animals in Nigeria;  the importation of animals, animal products, and birds requires a 
licence issued by the veterinary authorities.  Animal hatching eggs or poultry must be examined, 
disinfected, or inoculated and quarantined.  The im portation of any animal product (e.g. semen or egg) 
is prohibited unless a permit has been granted.  Ther e is currently a ban on the importation of all types 
of meat.  Imports of genetically modified prod ucts are also banned, unless for research purposes. 
62. There have been several cases where Nigeria's agricultural exports have been rejected in 
foreign markets due to failure to meet certain SPS requirements.  It is estimated that, between 
July 2001 and May 2002, 80 export consignments were  refused for various reasons.  However, during 
                                                      
32 Decree No. 15, 1993, as amended by Decree No. 20 of 1999. 
33 In theory, food products not registered with NAFDAC are not importable.  However, some products 
enter the country through neighbouring countries without going through the registration process.   
34 With regard to fish and fishery products, further examination is undertaken by the Federal 
Department of Fisheries, and the Federal Ministry of Agriculture and Natural Resources before the issuance of an export certificate. 
35 If there is no Nigerian embassy in the country of origin, any commonwealth country embassy in that 
country can do the authentication. 
36 Plant, Animal and Aquatic Resources Quar antine services were harmonized in 2007. Nigeria WT/TPR/S/247 
 Page 39 
 
 
the period under review, the number of shipments rej ected fell considerably, to about 20 per annum.  
The authorities attribute this to improvements in infrastructure due to technical assistance provided by the FAO. 
(c) Marking, labelling, and packaging 
63. All products require a label indicating the na me of the product, its country of origin, 
specifications, date of manufacture, batch or lot nu mber, and the standard(s) to which it complies.  
The labelling must be in English, 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 applicable, on their packaging.  Information on 
performance life and rating may be required on electrical  appliances, depending on the product.  Food 
products must comply with specific labelling re quirements from NAFDAC, such as:  production batch 
number;  net contents, including essential ingredients in metric weights for solids, semi-solids, and 
aerosols, and metric volume for liquids;  food colour ings and additives and a best-before date.  It is 
mandatory for all products that have been regist ered by NAFDAC to display a NAFDAC registration 
number.   
(iv) Intellectual property rights 
64. Since its previous Trade Policy Review, in 2005,  there have been no changes to Nigeria's 
intellectual property legislation.  Currently, trad e marks are covered under the Trademarks Act of 
1965, while patents and designs are protected under th e Patents and Designs Act of 1970.  Both of 
these Acts are administered by the Ministry of Commerce and Industry through the Trademarks, 
Patents and Design Registry. 
65. Copyrights in Nigeria are protected by the Copyright Act of 1988 (as amended in 1999).  The 
Act is administered by the Nigeria Copyright Comm ission, an agency of the Ministry of Justice. 
66. The Trademark Act allows for registration of trade marks that meet the requirements of 
distinctiveness, for an initial period of seven years, renewable for an indefinite period for a fee.  The 
Act also permits the registration of collective marks and certification marks.  Additionally, as part of 
the goodwill of a business, a registered trade mark ma y be transferred;  it may also be deregistered 
after a five-year period of non-use.  Protection of  services is not covered under the current regime.
37 
Furthermore, at present there is no legislation prot ecting geographical indications in Nigeria, these are 
administered as part of trade marks. 
67. Under the Copyright Act, literary, musical, ar tistic, cinematographic fi lms, sound recordings 
and broadcasts are protected.38  The Act grants exclusive rights for the production, reproduction, 
translation, and publication of a work, public performance, and broa dcast as well as the making of any 
cinematographic film.  In addition, exclusive right s are granted in connection with any adaptation or 
distribution for commercial purposes.  "Moral rights" are not covered under the Act.  Literary, musical 
and artistic works are protected for the duration of th e 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 signa tory of the Universal Copyright Convention, Nigeria 
provides national treatment to all other signatories of the convention. 
68. Inventions that are applicable to industrial  activities may be protected under the Patent and 
Design Act.  However, patents are not granted for inventions or innovations for private use, on a non-
                                                      
37 Since 2005, service names can be regist ered through a minist erial directive.  
38 Computer programs and data compilati on are protected as literary works. WT/TPR/S/247 Trade Policy Review 
Page 40 
 
 
commercial scale, or for scientific research or t eaching purposes.  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 w as granted (whichever is 
later), a mandatory licence needs to  be obtained from the courts to use or keep the patent.  
69. Patent applications must be made by Nigerian  residents.  Foreign technology transfer 
agreements that are effective in Nigeria are re gistered through the National Office for Technology 
Acquisition and Promotion (NOTAP).  
70. The Patents and Designs Act also allows for the registration and protection of industrial 
designs.  Under the provisions of the Act, industrial designs are protected for an initial period of five 
years and may be renewed for tw o additional five-year terms. 
71. In 2006, there was a proposal to place all IPR agencies under one umbrella organization, 
which would be part of the Ministry of Justice.  According to the authorities, such an organization would enable more effective and efficient admini stration and management.  A draft national IP bill 
has been prepared addressing areas that were prev iously not covered, such as plant and animal 
breeders rights and geographical indications, but the issue of setting up an um brella organization has 
not been included.  According to the authorities, the delay in setting up such an  organization is what is 
holding up the promulgation of the bill;  the b ill is expected to be promulgated in 2011/12. 
Enforcement of intellectual property rights 
72. Intellectual property rights infringements and viol ations are dealt with under Nigeria's general 
law of civil procedure.  Courts may award injunc tions, damages (including recovery of profits), 
destruction of infringing goods as well as materials and goods used for their production, and seizure 
and confiscation of counterfeit goods.  However, enfo rcement is a slow process, and most companies 
consider damages awarded to be too small to be an effective deterrent.  At present, most companies 
consider injunctions to be the most effec tive instrument against IPR infringements.  
73. The authorities recognize IPR infringement to be an  issue and have tried to tackle the problem 
in recent years.  In 2005, the Nigerian Copy rights Commission (NCC) initiated the Strategic Action 
against Piracy (STRAP) campaign to combat piracy and create a conducive environment to manage 
the copyright system.  In 2006, the Copyrights Opti cal Discs Plants Regulations were introduced.  
These regulations permit the NCC to take administ rative and enforcement measures against optical 
disc manufacturers and replicating plants engaged in copyrights infringement.  
(v) Privatization 
74. The Public Enterprises (Privatization and Commerc ialization) Act, promulgated in May 1999, 
sets out the legal framework for privatizing an d divesting government shares in public sector 
enterprises (PSEs).  Initially, the Government could retain up to 40% stake in privatized utilities, 
refineries, steel companies and fertilizer companies.   However, this has since been changed and the 
breakdown of shares depends on individual enterprises and transactions. 
75. In July 1999, the Federal Government adopt ed a three-phase privatization programme for 
1999-04, to:  fully divest public shares in banks, cem ent companies, and oil marketing firms listed on 
the Nigerian Stock Exchange, during the first phase;  fully divest state ownership in hotels, vehicle 
assembly plants, and other industrial, agricultu ral and service enterprises operating in competitive 
markets, during the second phase;  and partially divest  shares in major public enterprises in potentially 
competitive subsectors, such as the telecommuni cations company (NITEL), the national power 
company (NEPA), and the oil refineries, during the third phase.   Nigeria WT/TPR/S/247 
 Page 41 
 
 
76. The programme has fallen behind schedule, especi ally with regard to public utilities, where 
the adequate regulatory environment was not in place.39  Other factors that have hampered the 
privatization process include questionable valuations  of companies, large liabilities of some entities, 
and opposition from a unionized labour force in some PSEs. 
77. Investor confidence has also been eroded as th e Government has back-tracked on or rescinded 
some transactions.  For example in 2008, the go vernment rescinded the concessions of steel and iron 
ore mining concerns that had been awarded to an I ndian company.  The Government also annulled the 
sale of Nigerian Telecommunications (NITEL) a nd announced the restructuring of NITEL's  
ownership.  The authorities stated that the buyers of NITEL had been unable to meet  their payment 
obligations. 
78. Currently, transactions are concentrated in th e power sector;  11 distribution companies and 
one thermal generation company are to be sold to core investors.  The Government is to retain 
ownership of the transmission company but award a management contract;  concessions are to be awarded for the six hydro-generation companies.  Furt hermore, there is to be an asset sale of the non-
functioning thermal generation company.  The authorities stated that they have received 
331 expressions of interest for the above transactions and hope to complete them by the end of the 
year.  The authorities also confirmed that as per 2008 accounts, N
162.1 billion had been received as 
proceeds from the privatization process, of which N 102.4 billion had been transferred to the 
Federation account for budgetary support, while the r est had been used to meet transaction costs and 
expenses. 
(vi) Competition policy and price controls 
79. Nigeria has no legislation to regulate competition or anti-trust issues.  At the time of its last 
Review, a competition bill was under consideration by the National Assembly.  However, this has still 
not been enacted.  The draft bill was to create the Federal Competition Commission, which would, 
inter alia :  initiate policy on competition;  protect cons umers by nurturing a competitive environment;  
monitor the abuse of market dominance and me rgers, takeovers, acquisitions, etc.;  advise 
government;  coordinate the activities of sectoral regul ators;  investigate violations;  and initiate the 
resolution of disputes or complaints by issuing clear directives to violators and applying sanctions in the form of fines where necessary.   
80. Under the bill, contracts or agreements deemed to restrict trade or substantially lessen 
competition, such as through:  restricting output or pr oduction;  price fixing;  allocation of territory or 
division of market;  collusive tendering;  and the denial of access to a market or a factor of 
production; were prohibited.  The draft bill also di sallowed arrangements to prevent or deter another 
person from selling a good at a price lower than that specified by the supplier;  and withholding or 
preventing the supply of a good by the supplier.  Certain mergers, takeovers, and acquisitions and 
activities likely to result in a dominant position or to strengthen an already existing dominant position 
were also prohibited in the draft bill. 
                                                     
 
39 According to data provided by the authorities, between 2004 and 2009, 110 transactions were 
initiated.  Of these 32 were concessions and 19 have been annulled or terminated. WT/TPR/S/247 Trade Policy Review 
Page 42 
 
 
81. Under existing law, the Investment and Securiti es Act of 1999 grants powers to the Securities 
and Exchange Commission as well as the Federal Hi gh 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 Fede ral and Inland Revenue Service, which examines the 
tax implications or consequences of such transactions.  
82. There are no price control laws for manuf actured goods or products.  However, the 
government continues to regulate domestic fuel prices.