WORLD TRADE  
ORGANIZATION   
WT/TPR/M/247 
27 July 2011 
 (11-3761) 
Trade Policy Review Body 
28 and 30 June 2011  
 
 
 
TRADE POLICY REVIEW 
 
NIGERIA 
 
Record of the Meeting 
 
Chairperson:  H.E. Mr. Mario Matus (Chile) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF NIGERIA 5 
III. STATEMENT BY THE DISCUSSANT 7 
IV. STATEMENTS BY MEMBERS 12 V. REPLIES BY THE REPRESENTATIVE OF NIGERIA AND ADDITIONAL COMMENTS 33 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 40 
 
 
   
Note:   Advance written questions by WTO Me mbers and the replies provided by Nigeria are 
reproduced in document WT/TPR/M/247/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/247 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fourth Trade Policy Review of Nige ria was held on 28 and 30 June 2011.  
The Chairperson H.E. Mr. Mario Matus (Chile) we lcomed the delegation of Nigeria headed by 
H.E. Mr. Yonov Frederick Agah, Ambassador, Permanent Representative to the WTO, and the discussant, H.E. Mr. Faizel Ismail (South Africa).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Nigeria was contained in document WT/TPR/G/247 and that of the WTO Secretariat in WT/TPR/S/247. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Nigeria:  Brazil;  United States;  Canada;  
China;  Hong Kong, China;  Australia;  Japan ;  Argentina;  European Union;  and Chile. 
4. The following delegations submitted written questio ns after the two-weeks deadline:  Turkey;  
and India.  
5. The Chairperson noted that he had considered  the reports prepared by Nigeria and the 
Secretariat.  Both reports noted that Nigeria achi eved robust growth during the review period and that 
the growth was broad based.  However, the oil and gas sector was still responsible for over 90% of 
exports and 80% of government re venue.  Both reports stressed that Nigeria's economy needs to 
diversify further. 
6. To be able to diversify and sustain its pr esent level of growth Nigeria's economy required 
significant investment, which in turn would requ ire considerable reforms to create an enabling 
economic environment.  The authorities were aware of these issues, and draft legislation that dealt 
with many of them had been prepared.  However, moving from the planning and policy stage to the 
point of implementing legislative change was slow .  He noted that many Members wished to know 
how Nigeria intended to address these issues. 
7. He was pleased to see that Nigeria's average applied MFN tariff and the number of items on 
the prohibited list had declined considerably duri ng the period under review.  Furthermore, customs 
procedures had also been simplified over the last six years with the introduction of improved systems 
and increased automation.  However, a number of additional duties and taxes on imports and some inconsistencies in taxes charge d on imported goods and domestically produced goods impeded trade.  
Members would be interested in knowing about e fforts Nigeria was making to remove or mitigate 
these impediments. 
8. Both reports noted the difficulties facing the public utilities sector in Nigeria, particularly 
electricity.  The government had started a restructur ing of the sector which included privatization and 
divestment, to make it more efficient. He was sure that Members would be interested in learning more about how the Government of Nigeria had fared in accomplishing this goal. 
9. Overall, this Review provided Members an opportunity to exchange on certain systemic 
issues of interest to all policy makers.  These include: 
 Legislative change:  hastening the process of enacting trade related legislation such 
as the new Customs Bill.  Additionally, in  some cases such as competition policy, 
intellectual property and contingency measures,  draft bills were being considered by 
the National Assembly at the time of the previous review of Nigeria in 2005.  WT/TPR/M/247 
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   Predictability:  making the tariff more predictable as the significant gap between the 
average applied MFN tariff rates and the average bound rates, and the low coverage 
of bindings makes the tariff quite unpredictable. 
 
 National treatment:   
 
- removing inconsistencies in tax es charged on imported goods and 
domestically produced goods.  For example, excise duties are not 
levied on imports only on domestically produced goods; 
 - removing inconsistencies between  the import and export prohibition 
lists.  WT/TPR/M/247 
 Page 5 
 
 
  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF NIGERIA 
10. This fourth Trade Policy Review of Nigeria is taking place at a very auspicious moment in the 
history of the country. The inauguration of Nige ria's fourth democratically elected President, 
H.E. Dr. Goodluck Ebele Jonathan, GCFR, took pl ace exactly one month ago. President Jonathan, 
both during the campaigns and in hi s inauguration address, has pledged a vision of transformation, to 
be achieved in all sectors of the national economy by  harnessing the creative energies of all Nigerians. 
To that end, Mr. President's efforts since his inauguration on 29 May 2011 have been focused on putting together a "team of champions" to drive the transformation agenda, which is based on the 
national consensus  to, inter alia , deepen democracy and the rule of law; build an economy driven 
primarily by the private sector; commitment to zer o tolerance for corruption in all its forms; and 
restructure and staff the public service to ensure  efficiency, effective service delivery and good 
governance.  
11. Already, the planned transformation agenda for Nigeria, under the statesmanship and 
visionary qualities of President Jonathan, is being ma nifested or consummated in the tortuous journey 
to fully and effectively address security concerns in the country, particularly in the Niger Delta 
through the amnesty programme for ex-militants; th e organisation of successful and internationally 
recognised free, fair and credible elections in Apr il this year; as well as the progressive liberalisation, 
privatisation and deregulation of the economy to build a robust private sector and drive the process of 
national industrialisation, with a view to creating wealth and employment. Critical reform measures in 
the area of infrastructure with special emphasis on pow er and energy sectors, to provide uninterrupted 
electricity supply, remain a top priority of the Government. 
12. Since the last Trade Policy Review in 2005, Nige ria has intensified the efforts to implement a 
comprehensive reform agenda to further transfor m the country and the economy. It has also been 
working proactively to improve the economy by creating a conducive environment for doing business.  The Government has taken necessary steps to di versify the productive base away from too much 
reliance on oil as the mainstay of the economy, by en couraging the development of the non-oil sector.  
The various efforts and reform put in place to rest ructure the economy have started yielding results.  
Accordingly, some of the key developments in th e economy over the last six years include the real 
GDP growth rate at an average of 6.5%.  This  performance has been driven mainly by the 
developments in the non-oil sector, which record ed about 8% growth ra te; various government 
policies and the favourable international commodity pr ices prior to the recent financial, fuel and food 
crises. However, other macroeconomic indicators su ch as inflation and youth unemployment remain a 
major challenge. 
13. Nigeria has also recorded improvement in its  economic management. First, the country was 
granted debt relief in 2006, the proceeds from wh ich have been channelled into the funding of 
activities aimed at achieving the Millennium De velopment Goals (MDGs).  Second, economic 
management and governance reforms were steppe d up including the introduction of due process in 
public procurement, oil-based fiscal rule, creation of excess crude oil account, reform of the pension 
system to allow for the accumulation of investible  funds.  Third, the banking reform of 2005 further 
helped to grow the capital market and stimulate private-sector-led growth.  Government is also promoting Public Private Partnerships (PPPs), especia lly in addressing the infrastructural deficit. The 
Infrastructure Concession Regulatory Commission (ICRC) has been established to further promote and facilitate this approach to development. 
14. Notwithstanding these reforms, some challenges continued to plaque the economy, including 
growing unemployment, particularly youth unemplo yment; inadequate funding for critical projects; 
infrastructural constraints; and fiscal management challenges, especially in the coordination of public 
expenditure management across the three tiers of Government.  The overall fragile situation of the 
economy was further exacerbated by external shocks, arising from the fuel, food and financial crises. WT/TPR/M/247 
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  15. The challenge of fiscal management has prompted Government to establish the Nigerian 
Sovereign Investment Authority Act, 2011. This Authority is charged with the responsibility of 
managing three types of funds, namely; future genera tion funds, stabilization fund, and infrastructural 
development funds. 
16. To further intensify efforts aimed at addressing the recovery and sustainable development of 
the national economy, the Government has also in troduced the National Vision 20:2020, with a view 
to providing long-term perspective to developmen t issues. This economic transformation blueprint 
was developed through a highly consultative process and, thus, incorporates the views of different 
stakeholders. The First Implementation Plan of NV 20:2020 (2010-2013) is currently being 
implemented. 
17. I am happy to report that trade and developmen t policy has been assigned a very critical role 
in the NV 20:2020, and the subsequent implementation pl ans.  In that regard, Nigeria plans to review 
its existing trade policy framework, in order to fully ta ke advantage of its partic ipation in international 
trade at both multilateral and regional levels.  I, ther efore, wish to reaffirm Nigeria's commitment to 
the principles of the multilateral trading system.  We  will continue to contri bute and remain engaged 
with other WTO Members, in order to resolv e the current impasse and ensure the successful 
conclusion of the Doha Development Agenda (DDA) negotiations, based on its development 
mandates 
18. Nigeria would welcome and appreciate support a nd assistance from development, partners, in 
order to build the trade capacity necessary to meet our international obligations as well as achieve our 
development objectives.  
19. As part of this review process, Nigeria h as been lucky to receive only 131 advance written 
questions from 12 Members covering issues such as  export and import trade measures, especially 
quantitative restrictions; regional integration in  ECOWAS, including the ongoing EPA negotiations 
with the EU; institutional and structural reforms relating to the business and investment climate as 
well as competition policy and intellectual propert y rights. Other areas covered in the advance 
questions include SPS and technical standards; cust oms valuation; Petroleum Industry Bill (PIB) and 
the Nigerian Oil and Gas Industry Content De velopment Act; public procurement; technical 
assistance and cooperation; the legal framework for trade defense measures; and sectoral issues in 
agriculture, mining and energy, financial services and tourism. 
20. We have responded to all these advance written questions.  We are also ready and willing to 
promptly respond to any additional and/or follow-up questions that may arise in the course of this 
review. We undertake to convey the concerns th at have been expressed by Members to the 
appropriate authorities for necessary attention and acti on. We look forward to useful and constructive 
engagement with other WTO Memb ers at this review meeting.  WT/TPR/M/247 
 Page 7 
 
 
  III. STATEMENT BY THE DISCUSSANT (H .E. MR. FAIZEL ISMAIL (SOUTH 
AFRICA)) 
21. South Africa and Nigeria share many concerns and interests as members of the African 
continent. There is no doubt that for the African contin ent this is a very exciting period. Africa's time 
has come. The work done by African countries themselves through various initiatives including the 
African Peer Review Mechanism championed by th e New Partnership for Africa's Development is 
bearing fruit. The recent Presidential election in Nige ria has been hailed by some observers as; "by far 
the freest and fairest in Nigeria's history". An d as a recent McKinsey St udy has asserted: "African 
economies are on the move".  
22. Nigeria is the touchstone or barometer of this  transformation that is underway on the African 
continent. Nigeria is the most populous country of  Africa and its second largest economy, after South 
Africa.  Nigeria is thus one of the largest lions  of Africa. The population of Nigeria was 160 million 
according to the WTO Report making one in every five Africans a Nigerian. It recorded a growth rate 
averaging 6.4% between 2000-09 and 7.5% for the first half of 2010. The Nigerian lion is on the move! Nigeria was amongst the six Sub-Saharan econom ies that were part of the world's top ten 
fastest growing economies between 2001-10. It has also been included as part of the seven Sub-
Saharan economies that will be amongst the top ten fastest growing economies between 2011-15.  
23. It is for this reason that the well known economis t Jeffrey Sachs predicted in a recent oped in 
the International Herald Tribune that Nigeria in this decade could join the ranks of the leading 
emerging economies known as the BRICS (BRINCS). 
24. In the five years before the global economic cr isis of 2008, about 40% of Africa's economies 
were growing at more than 5%. The IMF expects Sub-Saharan African economies to grow by about 
5.5% in 2011 and 5.8% in 2012. However, grow th rates alone don't necessarily translate into 
structural transformation and equitable human development and services. The GDP per capita of 
Nigeria was a mere 1,118 dollars in 2009. 
25. A 2011 Report on Africa published by Kofi Anan's Africa Progress Panel came to the 
following conclusion: "In order to make the most of  the continents enormous potential and counter the 
risks in the years ahead, African lead ers with the help of their intern ational leaders need to accelerate 
economic diversification and structural transforma tion." It went on to state that, "without such 
transformation, growth will remain inequitable, j obless, volatile and largely inadequate for achieving 
the MDGs by 2015". 
26. I thus move on to discuss these two themes of Economic Diversification and Structural and 
Institutional changes that are required to be made in Nigeria. We will discuss the efforts made to 
move away from Nigeria's dependence on the oil and gas sectors; Industrial and Infrastructure 
Development and the key Services sectors of telecoms  and banking. A large number of structural and 
institutional reforms are required to be made in  Nigeria and the government has begun this arduous 
task. We will discuss some of these changes needed .  In addition we discuss the need for regional 
integration in Africa and the need for Nigeria's main  trade and development partners to support such 
efforts. Finally we will discuss the changing patterns of Nigeria's trade and investment relations, especially with that of the new emerging markets of China and India. 
27. In the course of my presentation I shall be asking a number of questions to stimulate the 
discussion and the Nigerian delegation could respond to these later in the discussion. 
28. What is driving Nigeria's high growth rates?  What is the role of oil? Is the economy 
diversifying? According to the WTO Report, while  Nigeria remains dependant on the oil and gas 
sector, for 90% of its export revenue and 80% of  government revenue, it only represented 17% of WT/TPR/M/247 
Page 8  
 
  GDP. Interestingly Nigeria's high gr owth rates were driven by the non-oil sector, mainly services such 
as wholesale and retail trade and communications resulting in significant improvements in real income and poverty reduction.  
29. There are two important policy responses that the government has developed to this structural 
feature of the Nigerian economy. Firstly, it has turn ed away from the practice of ad hoc use of the 
windfall from high oil prices towards a more prudent management of these excess oil revenues 
through the creation of a Nigeria Sovereign Invest ment Authority that would be subdivided into a 
stabilization fund; a fund for future generations, and a domestic infrastructure fund. Notably the infrastructure fund would be used for investment s in the power sector, water and sewage treatment 
and delivery and road, rail, ports  and airport facilities.  How much progress has been made to 
implement this Authority and these funds?   
30. Secondly, the Nigerian governments Vision 20:2020 official development plan has set out the 
need to develop an industrial diversification stra tegy away from oil and gas, the development of the 
agriculture sector and services, including telecommun ications and banking. We discuss these in turn 
below. 
31. According to the WTO Report whilst Nigeria is a major crude oil producer it still depends on 
imports for its refined oil. This has required it to subsidize its refined oil by about US$4 billion a year. 
This has also discouraged new investments in refi ning. What attempts are being made to facilitate 
investment in the oil refining sector? 
32. Whilst the manufacturing sector grew at a robust 9% during the period under review 
according to the Government Report, its contribu tion to GDP was less than 5%. Which sectors of 
manufacturing are showing the greatest promise and that have been targeted by government for 
inward investment? 
33. One of the most difficult challenges for Nigeria' s infrastructure development is in electricity 
generation, transmission and distribution. Nigeria has made impressive advances to privatize some of 
its parastatals. Accordin g to the McKinsey Report, Nigeria privatized more than 116 enterprises 
between 1999 and 2006.  However, less than half the population has access to electricity, and power 
outages are a frequent occurrence ac cording to the WTO Report.  
34. Nigeria is embarking on a major privatization in  the power sector with the sale to the private 
sector of majority stakes in three thermal generati ng plants and 11 distribution units, concessions to 
the private sector for six hydroelectricity plants  and placing the transmission company under private 
management. A one-stop-shop has been set up in Ni geria for applications for licenses to build and 
operate new electricity generation plants. What prog ress has been made in attracting investments in 
the power sector recently? McKinsey reports that pr ivate sector investment in African infrastructure 
has been growing by 13% per year since 2000.  And China has been increasing its African 
infrastructure investments by 46% per year from 2001- 07. What new investments in infrastructure has 
been coming in recently and how much of this from the emerging developing countries? 
35. According to the WTO Report in 2009 agriculture contributed 41% to the Nigerian economy 
and absorbed over 50% of total employment. Of the 91 million hectares of land available over 78 
million are available for farming but less than half of this is currently being exploited. Nigerian 
agriculture is predominantly made up of small holde rs with 80% of the farms being less than six 
hectares and only 5% of farms are more than 10 hect ares. Interestingly, notwithstanding this situation, 
Nigeria is a major producer of several crops acc ounting for over half the world's production of yams 
and cowpeas, a significant percentage of cashew nuts, cassava, cocoa beans, millet and sorghum. 
However, the production of agriculture is limited by poor mechanization, infrastructure, transport, 
storage conditions and lack of access to adequate fertilizer.   WT/TPR/M/247 
 Page 9 
 
 
  36. The Government has embarked upon a programme to improve food security through 
improved access to extension services, credit facilities and education and health.  In 2003 the Government entered into a four-year agreement with the FAO and China to provide technical 
expertise to implement this programme. In addition,  the government is reported to have increased its 
support for agriculture in the form of rural infrast ructure development, local irrigation and drainage 
programmes, provision of credit to farmers, cr eation of several hundred farm supply shops and 
increased extension services. 
37. The McKinsey Report estimates that Africa has the potential to increase the value of its 
annual agricultural output from US$280 billion toda y to around US$500 billion by 2020 and to 
US$800 billion by 2030.  The African Continent has about 60% of the world's uncultivated arable 
land.  The bulk of these increases in output woul d come from eleven coastal African countries, 
including Nigeria. African farmers could increase revenue by shifting cultivation from lower-value 
crops such as bulk cereals to higher value crops such as fruit and vegetables. 
38. So the question for Nigeria is how could Nige ria capture this opportunity? How is Nigeria 
dealing with the many challenges to improve agri cultural development desc ribed above? Is a Green 
Revolution within our reach in Africa? How can Ni geria contribute and what resources and support is 
required by other development partners and ot her WTO Members to realize this potential? 
39. Nigeria's telecommunications has expanded at an  impressive 32% in the period 2005-09. The 
number of active lines has increased from 1% of the population in 2001 to 63% or 83.3 million by the end of 2010. A number of operators now compete in  the mobile sector for this business with the 
number of operators increasing from four in 2004 to nine in 2009. Investments in the 
telecommunications sector reached US$18 billion in 2009 of which US$12 billion was foreign direct 
investment. Internet use in Nigeria has also increased from 5 million users in 2005 to nearly 
24 million in 2008. 
40. According to the WTO Report Nigeria has no r estrictions on telecommunications services, 
except cross broader supply and consumption abroad  of mobile services. What further reforms is 
Nigeria planning to broaden access of telecommunicati ons to its people, particularly in rural areas? 
41. The Nigerian financial sector has undergone c onsiderable reform and consolidation since 
2005. The number of deposit banks has been re duced from 89 to 24. New financial stability 
requirements have been imposed and audits conducted by regulators. Nigeria also has 
866 microfinance banks, 5 development finance in stitutions, 101 finance companies, 101 primary 
mortgage institutions and 52  insurance companies.  
42. The global economic and financia l crisis and recession had an impact on Nigeria's banking 
industry. Nigeria set up an Asset Management Co rporation of Nigeria (AMCON) to acquire the non-
performing loans of its banks costing it up to US$10 billion. Also the Central Bank of Nigeria 
reversed its previous policy of ba rring foreign takeovers of domestic banks by allowing up to 100% of 
foreign ownership. By March 2011 four foreign bank s were incorporated and operating in Nigeria. 
These included Stanbic/IBTC; Standard Chartere d; City Bank; and Ecobank International. 
43. According to the WTO Report Nigeria bound without limitation cross border supply and 
commercial presence for banking and other fina ncial services (except insurance). Foreign 
corporations or individuals may ow n up to 100% equity in any enterp rise. Thus, considerable progress 
appears to have been made in the banking sector. Has the banking sector become more stable as a result of these reforms? Have the banks resumed th e provision of credit to the corporate sector and the 
development sector? WT/TPR/M/247 
Page 10  
 
  44. It is of concern though that whilst the financ ial sector has grown by 4% a year between 2004 
and 2009 the main demand for financial services is  from the corporate sector. Most Nigerians still 
operate a cash-based economy. What efforts are bei ng made to incorporate more ordinary Nigerians 
into the formal banking sector? 
45. The most impressive reforms have been in reducing Nigeria's tariffs from their Uruguay 
Round bound rates – when only 20% of its tariffs were bound. Nigeria had an average bound rate of 
118% in 2009 according to the WTO Report. The av erage applied tariff was reduced to 29% in 2003 
and to 12% in 2009. In order to harmonize its rates with the ECOWAS Common External Tariff, 
Nigeria has created five bands of tariffs that in clude: 0%; 5%; 10%; 20% and 35%. It is impressive 
that 95% of all Nigeria's tariffs are between 5%  and 20% whilst the most common tariff is 5%. The 
highest band, i.e. the 35% rate is applied to sack ing for packaging, certain iron and steel products, 
motor vehicles and tobacco products. 
46. Nigeria has also begun a raft of structural and institutional reforms. This includes the Public 
Procurement Act of 2007 to reduce corruption, improve transparency and efficiency of the 
government procurement process. Nigeria has not imposed any anti-dumping or countervailing duties 
since 1998. Nigeria's current anti-dumping and counte rvailing law goes back to 1958 and a new bill to 
modernize its laws in this area has been tabled in  the National Assembly. Nigeria is also preparing 
legislation on Safeguards. There is also new legisl ation on Intellectual Property rights protection, on 
plant and animal breeders rights, and geographical indications. 
47. Nigeria currently has no legislation to regulate competition or anti-trust issues. A competition 
bill is also currently under consideration by the National Assembly. Nigeria is also doing a 
considerable amount of work to upgrade its standards setting capacity and customs and trade 
facilitation facilities. Here it has received significan t support from the WTO and development partners 
as Aid for Trade. 
48. Slow regional integration, a lack of connecti ng infrastructure, and insufficient resource and 
production complementarities between countries curren tly limit intra-African trade to 10% of total 
exports. Trade within ASEAN constitutes 60% of ex ports and trade within NAFTA constitutes 56% 
of exports. Intra-regional trade within the EU c ountries constitute over 60% of external trade? In 
sharp contrast the intra-regional percentage in A frica is between 10 and 12%. This is due to the 
composition of most African countries export bask et which is made up mainly of resources and 
commodities. Nigeria's external trad e reflects this structural problem. Over 50% of Nigeria's exports 
go to the EU and the U.S.  Exports to other Afri can countries represent only 7% of total exports by 
value and most of this does not even go to ECOWAS  but to Algeria, Botswana and South Africa.  
49. What efforts are being made by Nigeria to in crease intra-regional trade within Africa? Will 
the bilateral negotiations that Nigeria is currently involved in with the EU in the EPA facilitate or 
impede regional integration in Africa? 
50. What is most interesting about the changing patte rns of Nigeria's trade is that its trade with 
the U.S. and the EU has declined sharply. Imports  into Nigeria from the U.S. have declined from 
15.6% in 2003 to 6% in 2009 and imports from the EU  have fallen from 49% in 2003 to 23% in 2009.   
51. This trend has been observed for Africa as a whole. UNCTAD records that while the EU 
remains Africa's largest trading pa rtner its share of Africa's trade has declined from around 55% in the 
mid-1980s to below 40% in 2008. In sharp contrast  the value of trade between Africa and China 
increased nearly tenfold between 2000 and 2008, to US$93 billion, making China the second largest 
trading partner of Africa after the U.S. By 2010 Ch ina had overtaken the U.S.  to become the largest 
trading partner of Africa.    WT/TPR/M/247 
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  52. On infrastructure investments too McKinsey observes that China's total infrastructure 
commitments in Sub-Saharan Africa have exceeded the World Bank's infrastructure commitments in 
the region. McKinsey also states that China has an MOU with Nige ria to invest up to US$23 billion 
on oil refineries in hopes of future access to the country's vast crude reserves. 
53. As the main drivers of increased demand and hence rising commodity prices, China and 
India, have contributed to higher growth and re venues of African countries, including Nigeria. How 
has Nigeria sought to use this opportunity and leve rage it to increase investments in its infrastructure 
needs, and industrial diversification strategy? 
54. Thus, the experience of Nigeria appears to stre ngthen the findings of the McKinsey Study that 
Africa's economic growth surge was widespread  across countries and sectors and that its roots 
extended far beyond the global commodity boom. In addition Nigeria's experience accords with the 
thesis advance by McKinsey that the main reas ons behind Africa's growth surge were improved 
political and macroeconomic stability and microeco nomic reforms. Although many of these reforms 
are still in progress, the raft of reforms across th e economy, including banking and financial services, 
telecoms, tariff liberalization, privatization, p ublic procurement, customs and trade facilitation, 
competition, regulation of utilities, and Intellectual Property Laws are extremely impressive and have 
no doubt helped to create a conducive environmen t for investment and business confidence.  
55. After reading the Reports of the Government and the WTO on Nigeria's Trade Policy Review 
I have to agree with Jeffrey Sachs that "Nigeria is  onto something historic". In his words, "after a 
sometimes agonizing half-century since independe nce, Nigeria is on the verge of a takeoff". 
56. The challenge for Nigeria is how to transform th is growth process that is still largely driven 
by the capital intensive extractiv e sectors across the whole economy, diversifying economic growth 
and expanding investment in labour - absorbing sectors such as manufacturing, agriculture and 
services that create greater equity and reduces poverty thus making it more sustainable over the long run. As the largest African Lion "on the move" th e world will be watching Nigeria closely over the 
next few years. WT/TPR/M/247 
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  IV. STATEMENTS BY MEMBERS 
BRAZIL 
 
57. Brazil congratulates Nigeria for its strong economic performance during the period under 
review. As mentioned in the Secretariat's Report, despite difficulties in certain areas, Nigeria's GDP 
expanded by approximately 6.4% pe r year between 2005-09 and is estimated to grow even further in 
2010. Moreover, its international trade more than  doubled during 2003-09, the external debt was 
drastically reduced and important steps were made  towards greater diversification of the economy. 
Likewise, in the political domain the recent general elections highlighted the strength of the Nigerian 
democracy, as pointed out by Ambassador Agah in his introductory statement. 
58. The bilateral relationship between Brazil and Nige ria has been characterized by fluidity and 
cordiality, which is a natural consequence of the st rong cultural links binding our countries. Nigeria is 
the main commercial partner of Brazil in Africa. As  highlighted in the Secretariat Report, Brazil is 
among Nigeria's top export destinations. Commerc ial relations between the two countries have 
intensified considerably throughout  the years. Bilateral trade incr eased more than six-fold between 
2002 and 2008, totalling US$8.2 billion in 2008. After that, trade flows regressed somewhat in 2010, 
due to unfavourable world economic circumstances.  
59. The bilateral trade balance has been consiste ntly indicating Brazilian deficits. In 2010, 
Nigeria's surplus equalled US$5.1 billion. Brazil's exports to Nigeria have been concentrated on 
refined fuels, sugar and vegetable oils and wa xes. We have imported especially petroleum from 
Nigeria. However, the increasing interaction betw een the business communities of the two countries is 
likely to translate into a more ba lanced commercial relation in the years to come, accompanied by a 
significant expansion of overall trade flows. The Brazilian Government has be en seeking to encourage 
this trend through the appropr iate bilateral mechanisms.  
60. Brazil also assists Nigeria's e fforts aimed at growth and de velopment through cooperation in 
areas such as energy and agriculture. Regarding energy, the two countries signed in July 2009 a 
Memorandum of Understanding with the objective of promoting bilateral cooperation in petroleum, 
gas, electricity and biofuels. In the area of agricu lture, we have put in place important projects related 
to the production and processing of cassava, tropi cal fruits and vegetables, benefiting from the 
expertise of the Brazilian Agricultural Research Co rporation (EMBRAPA). Taking into consideration 
that agriculture remains a major engine of growth of the Nigerian economy, Brazil is confident that 
these initiatives will not fail to bear fruit in the short and medium term.  
61. We would like to recognize and commend Nige ria for its continued efforts to create an 
enabling business environment. As mentioned by both  Reports, actions have been taken to simplify 
customs procedures, encourage investments, reduc e applied tariffs, improve  transparency, reduce 
corruption and diversify the economy. Brazil suppor ts such initiatives and remains ready to help 
deepen them.  
62. Brazil is committed to the intensification of bila teral commercial relations with Nigeria. Some 
obstacles, though, persist, especially  regarding export prohibitions whic h negatively affect products of 
special interest to Brazil, such as meat. We unde rstand that the Nigerian Government has been 
exploring ways to solve these problems in order to achieve full compliance with the SPS and other 
WTO agreements. We remain co mmitted to deepening the dialogue on these issues, building upon our 
excellent bilateral relations.  
63. Brazil feels encouraged by the Nigerian commi tment to the rules-based multilateral trading 
system and by its active participation in the nego tiations of the Doha Development Round. In this 
respect, as a fellow member of the G-20, Brazil and Nigeria share a common view on the way forward  WT/TPR/M/247 
 Page 13 
 
 
  in agricultural negotiations with a view to levelli ng the playing field. We are persuaded that the 
elimination of the distortions that mar agricultura l trade will unlock the gigantic potential of African 
agriculture and translate it into reality.  
64. We also note the involvement of Nigeria in regional integration and other trading 
arrangements, including the participation in th e negotiations of the Global System of Trade 
Preferences. In this respect,  the comments by the Discussant em phasize the importance of regional 
integration as a conduit for development.  
UNITED STATES 
65. The Government Report of Nigeria helped us better to understand the challenges that Nigeria 
faces as it seeks to participate more effectively in  the global trading system and to use trade as a 
means to spur economic development.  President  Obama's meeting with President Jonathan in 
Washington on June 8 renewed the dialogue between our two governments on a wide range of issues.  
These bilateral discussions complement our coopera tion at the WTO, and will hopefully result in 
stronger trade and economic exchanges between our countries. 
66. In our continuous work with the government and private sector in Nigeria to help them 
address their challenges, we are pleased to note th at total two-way goods trade between the United 
States and Nigeria was valued at $34.6 billion in 2010, a 52% increase over 2009.  We also note that 
Nigeria is among the leading beneficiaries of th e African Growth and Opportunity Act (AGOA).  
During 2010, U.S. imports from Nigeria under AGOA and our Generalized System of Preferences 
totalled $25.2 billion, an increase from $17.2 billion of imports under AGOA and GSP in 2009.  Most 
of Nigeria's exports under AGOA are oil but no n-oil AGOA imports include increasing amounts of 
leather products, cassava, spices, cocoa paste, nuts, and vegetables.   
67. The United States commends the government of Nigeria for its renewed commitment to 
economic reform under the National Economic Empowerment and Deve lopment Strategy 2 
(NEEDS 2).  For our part, the United States conti nues to support Nigeria's economic development and 
reform efforts through bilateral and regiona l assistance programs.  Recently, the Obama 
Administration underscored this commitment, with the announcement of the new African 
Competitiveness and Trade Expansion (ACTE) initia tive.  ACTE will provide $120 million over four 
years to support the four USAID-funded regional tr ade hubs located in Ghana, Senegal, Kenya, and 
Botswana and will help Nigeria and other A frican countries take full advantage of AGOA.  
Ultimately, AGOA serves as a tool for its beneficiari es to expand and diversif y their trade – not only 
with the United States, but also with the rest of the world.  
68. In addition, our two countries consult bilatera lly on a regular basis in accordance with the 
United States-Nigeria Trade and Investment Framew ork Agreement (TIFA).  In the fall of 2011, we 
will hold our seventh meeting since our governments cr eated this forum for senior-level discussions in 
2000. We look forward to the opportunity this mee ting provides for us to discuss a broad range of 
issues of interest to both our countries.  
69. Since Nigeria's last Review in 2005, the Secr etariat Reports that Nigeria's macroeconomic 
fundamentals have improved and its  merchandise exports and imports have increased strongly.  We 
note the Secretariat's attribution of the improvement, in part, to Nigeria's trade reforms, including the reduction of tariffs and the number of  tariff bands and more streamline d customs procedures.  We also 
note the reduction of import bans and other import restrictions.   
70. 
Nevertheless, we are troubl ed by apparent back-tracking on Nige ria's reform efforts.  We urge 
Nigeria to renew its efforts to re form its trade policies to better encourage its economic wellbeing.  
We are concerned by Nigeria's apparent depart ure from the open and market-based approach to WT/TPR/M/247 
Page 14  
 
  development that Nigeria had been following.  Nige ria continues to use rest rictive trade measures, 
non-transparent valuation procedures, and non-transp arent laws and regulations which raise the cost 
of trade and doing business.  Particularly dist urbing are new measures, that I will discuss in a 
moment, that have been enacted that deleteriously affect trade and investment in Nigeria's critically 
important oil and gas industry.  We encourage th e Nigerian government to undertake trade policies 
that support its goals to strengthen its economic well-being, including diversification, increased 
private investment, and a strengthened agricultural sector.  
71. In its Report, the Secretariat advises that in order to achieve its de velopment goals under its 
official development plan, Vision 20:2020, the Government of Nigeria needs further to diversify its economy beyond oil, significantly increase privat e investment, and deepen  reforms focused on 
improving the business and regulatory environments.  We agree with the Secretariat that additional 
legal, structural, and institutional reforms focu sed on improving the regulatory environment should 
improve Nigeria's business environment.  We also recognize that Nigeria fa ces important challenges 
to its business environment for reasons relating to  infrastructure, competition law, financing, 
regulations for utilities, and corruption.  Although  state-owned enterprises are less prevalent in 
Nigeria's economy than they were in 2005, we cont inue to urge Nigeria to privatize infrastructure 
services that can improve the competitiveness of downs tream industries and attract more investment.  
72. The transparency of a country's laws, regulations , procedures, and decisions is essential to the 
stability and predictability of its trade and invest ment regime.  The Jonathan Administration has 
undertaken a number of measures to combat corrup tion and to create a more favourable investment 
environment, including through le gislative measures in the Corrupt Practices and other Related 
Offences Act, and institutional reform in the Corrupt Practices and Other Related Offences 
Commission.  We urge the government to c ontinue to build on these positive developments. 
73. Adequate and effective protection of intellectua l property rights continues to be a major U.S. 
concern.  We are, therefore, pleased that in 2005,  the Nigerian government took steps in the right 
direction when the Nigerian Copyrights Commis sion (NCC) initiated the Strategic Action Against 
Piracy (STRAP) campaign, and in 2006, the Co pyrights Optical Discs Plant Regulations (CODPR) 
were put in place.  The government of Nigeria stat es that it is drafting a National Bill on intellectual 
property protection that w ill proceed on the fast track. During th e course of this review, we invite 
Nigeria's representatives to describe when the gove rnment expects to draft and implement this 
legislation and whether this bill covers all elements of intellectual property, or just certain elements, 
i.e. patents, trademarks, copyrights and designs.  We urge Nigeria to continue its efforts to strengthen 
its protection and enforcement of in tellectual property rights, including revisions to the Copyright Act.  
Strengthening IPR protection and enforcement woul d also improve Nigeria's chances of attracting 
increased investment in key sectors. 
74. While the United States supports Nigeria's broa d efforts to diversify its economy, we are 
deeply troubled by trade restrictive measures that have  recently been enacted in the oil and gas sector.  
The Nigerian Content Act, signed into law this y ear, establishes discrimination against foreign goods 
and services as a central pillar of policy in a critically important sector of Nigeria's economy.  The stringent local sourcing requirements mandated by th is law not only distort trade across a wide range 
of goods and services, but will also increase costs and disrupt production operations in an industry that both Nigeria and the Secretariat have ackno wledged is already operating at well below its 
potential capacity. 
75. The restrictions enacted by this legislation re present a departure from the policies that have 
been ingredients of Nigeria's recent success – fo stering competition, promoting economic efficiency, 
and reducing the role of government in decision-maki ng by private enterprise.  Local investment will 
best be served by a continued focus on improvement  of the business climate and liberalization reform, 
not by imposition of government mandates.  We urge  Nigeria to revisit the Nigerian Content Act in  WT/TPR/M/247 
 Page 15 
 
 
  light of its declared commitment to economic openness,  and to ensure that any legislation in this 
sector is implemented in a manner consistent with Nigeria's WTO commitments.   
76. The United States suggests that Nigeria examin e its tariffs as it looks toward economic 
reform.  In 2009, Nigeria's average applied MFN tariff was 11.9%, down from 28.6% in 2003.  However, the average bound tariff was 118% in 2009 and only 20% of tariff lines are bound.  We, 
therefore, encourage Nigeria to increase its tariff bi ndings beyond the 20% of tariff lines that it agreed 
to bind in the Uruguay Round.  Increased tariff bindings  that are in line with Nigeria's applied rates 
would increase predictability in Nigeria's marketpl ace and encourage more trade and investment. 
77. Nigeria's economy is already benefiting from the steps it has taken since 2005 to liberalize its 
trade regime.  Together with its macroeconomic a nd structural reforms, Nigeria has been able to 
achieve higher growth rates since its last TPR.  The United States applauds these steps and urges 
Nigeria to do more.  Several areas that would be nefit from particular scrutiny are Nigeria's import 
prohibitions, quantitative restrictions and licensing.  The Secretariat's Report identifies several import 
prohibitions and import licensing requirements which, in light of the WTO Agreements, could call into question Nigeria's adherence to its commitment s.  We urge Nigeria's continued commitment to 
the principles of openness and market-based economic re form that have spurred the nation's growth in 
the last five years.  Those principles, along with  the WTO's disciplines, ra ther than discriminatory 
measures or government mandates will best serve Ni geria's efforts to achiev e its long-term economic 
goals. 
78. The United States appreciates Nigeria's activ e participation in the Doha Round.  We 
encourage Nigeria's active participation in the difficu lt task facing Members in assessing next steps in 
the Round, and in trying to determine what is achievable in the coming months.  My Government 
looks forward to working with the government of Nigeria toward bringing the Round to a successful 
conclusion.  
79. In closing, I would like to emphasize that Nigeria is one of our most important trading 
partners in Africa, and the United States appreciates this opportunity to engage in an open discussion 
of Nigeria's trade regime.  We look forward to continuing our dialogue with your Government, both 
here at the WTO and bilaterally.  
CANADA 
80. Canada's trade relations with Nigeria are well est ablished and growing:  in fact, Nigeria has a 
trade surplus with Canada.  Bilateral trade in goo ds between the two countries has more than doubled 
since 2009, reaching 1.9 billion dollars in 2010 and making Nigeria Canada's main bilateral partner 
for trade in goods in Sub-Saharan Africa.  In 2010 , Canadian goods exports to Nigeria, consisting 
essentially of cereals, aerospace products, vehicles,  paper and cardboard, and machines, reached 
222.8 million dollars.  During the same period, Cana dian goods imports from Nigeria, consisting 
mainly of mineral fuels and oil, cocoa and rubbe r, totalled approximately 1.7 billion dollars - an 
increase of 264% over 2009.  Canadian foreign inv estment in Nigeria has remained rather modest, 
totalling 140 million dollars in 2010.  Canada hopes to develop closer investment relations with 
Nigeria in the future. 
81. In the area of development assistance, Canada's bilateral Aid for Trade with Nigeria in 2009 
was $3.4 million dollars - a significant increase ove r 2007 levels.  In additi on, through the Program 
for Building African Capacity to Trade, Canada  contributes $3.2 million dollars to trade related 
technical assistance for ECOWAS – from which Nigeria benefits. This is primarily focused on 
enhancing the competitiveness of agro-industry valu e chains – a sector which is critical to the 
Nigerian economy, requiring enhanced performance and productivity.  WT/TPR/M/247 
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  82. Canada also recognizes Nigeria's constructive e ngagement in the WTO as well as in the Doha 
Round Negotiations, including through its contributions  to the work of the Africa, Caribbean and 
Pacific Group of States (ACP) as well as the African Group, among others.   
83. Canada would like to congratulate Nigeria on the recent efforts that it has made towards 
further diversifying its economy, liberalizing its trade regime and undertaking the necessary policy 
reforms to achieve sustained economic growth.  For instance, the recently unveiled Roadmap for the 
Power Sector, which will privatize a number of pow er plants, distribution units, and the transmission 
company, shows that the Nigerian government recognizes that the current state of the electric grid is 
untenable.  Foreign companies wishing to operate in Nigeria are in many cases forced to provide their 
own power sources, which has been an impediment to the country's ability to attract foreign 
investment to match its growth potential.  This bold program is a step in the right direction and 
Canada looks forward to seeing it yield concrete results in the near future. 
84. Canada would also like to recognize advances that the Nigerian government has made 
towards achieving greater transparency and tackling corruption.  We note Nigeria's active involvement in the Extractive Industries Transpar ency Initiative (EITI) which aims to set a global 
standard for transparency in the oil, gas and mining sectors. Additionally, Canada would like to 
commend Nigeria on the recently-passed Freedom of Info rmation Act.  Greater transparency through 
initiatives such as these will create in creased confidence in foreign investors and markets, which will 
in turn drive greater growth and opportunities for the Nigerian people. 
85. The importance that Nigeria attaches to trade f acilitation is also note worthy.  Measures taken 
to simplify and modernize the customs procedures through the introduction of improved systems and 
increased automation are a welcome development, and Canada looks forward to the expeditious 
implementation of new customs legislation. 
86. While Canada recognizes Nigeria's efforts to wards reforms in key areas, such as the 
regulation and privatization of utilities, there are areas where Canada notes further scope for 
improvements.  As noted in the Secretariat Report,  in order to achieve sustained growth in the 
medium to long term, and to meet the government's ambitious policy objectives set out in Vision 
20:2020, more work needs to be done.  This incl udes further economic diversification away from the 
petroleum sector, increased private investment, strengthening infrastructure capacity - including 
increased efforts to rejuvenate the electric grid - and undertaking the necessary legal, institutional and 
banking reforms.  In this context, Canada is pl eased to see the creation of the Nigerian Sovereign 
Investment Authority and the domestic infrastructure fund, which will be used to fund infrastructure 
projects. 
87. Concerns also remain with respect to Nigeri a's Oil and Gas Industry Content Act (2010) and 
the Petroleum Industry Bill that is currently awaiting passage, particularly their potential impact on market competitiveness.  As noted in the Secret ariat's Report, improvements in all areas of 
infrastructure would bring down the cost of doing business in Nigeria and create greater opportunities 
for increased foreign investments. 
88. Moreover, while Canada notes the significant decrease in average MFN rates during the 
period under review we further encourage Nigeri a to reduce the significant gap between average 
bound and applied rates and to in crease the coverage of its tariff bindings.  As noted in the 
Secretariat's Report, the current tariff regime creates uncertainty and acts as a disincentive to 
investment. 
89. Canada would also encourage Nigeria to bu ild on its recently de veloped policy and law 
governing government procurement, and in this rega rd we would encourage Nigeria to consider the 
benefits of becoming an observer to the WTO Agr eement on Government Procurement as a first step  WT/TPR/M/247 
 Page 17 
 
 
  towards Membership.  In conclusion, Canada would like to express its continued support for Nigeria's 
focus on economic diversification, market liberaliza tion, and sustainable growth and development.   
CHINA 
90. At the outset, I would like to congratulate Nigeria for achieving robust economic growth, 
averaging over 6% in real terms since 2005. It is worth noting that the share of agriculture and 
services in GDP has risen. Howeve r, it seems Nigeria is still str uggling with the so-called Dutch 
Disease. The economy continues to depend on the petrol eum sector, despite the decline of its share in 
GDP from 27% to 16%, making up 90% of exports and 80% of government revenue. This underlines 
the urgency of further diversification of the econom y from oil to make the growth more sustainable. 
In order to realize the objective set in Vision 20:2020,  which aims to make Nigeria one of the world's 
top 20 economies by 2020, the Secretariat Report also  pointed to need of increase in private-sector 
investment, reform of legal and structural framewo rks and improvement of infrastructure. In addition 
to Nigeria's own efforts, we feel the international community also has a role to play, including through 
WTO Aid for Trade programs. 
91. I would also like to commend Nigeria for doublin g its international trade in 2003-09. As a 
result, foreign reserve of Nigeria increased to US $33 billion in 2010, rendering Nigeria an upper hand 
against external risks. Meanwhile, the same concern remains that o il accounts for nearly all the value 
of exports, although agriculture registered strong growth over this period. 
92. The average applied tariff of Nigeria decre ased from 29% in 2003 to 12% in 2009, due to 
alignment with ECOWAS common external tariff. We  welcome those efforts. However, the average 
bound tariff was 118% in 2009 and only 19.2% of tariff lines are bound. In view of this, we asked 
Nigeria in our written questions how it intended to ma ke its tariff structure more predictable. And we 
appreciate the response from Nigeria for its commitme nt to the Doha Round and further liberalization. 
93. Nigeria is a major trading partner of China in  Africa. In 2010, bilateral trade amounted to 
US$7.77 billion, a rise of 20% year on year. Chinese investment in Nigeria is also increasing. As of March this year, direct investment of China in  non-financial sectors h as reached US$1.2 billion. 
Chinese enterprises have also accomp lished a turnover of US$12.2 billion of labour contract in 
Nigeria. 250 projects are under construction, covering areas of railway, road, telecom, electricity and so on. China has provided some assistance to  Nigeria under the framework of South-South 
cooperation, in particular under the Forum of  China-Africa Cooperation. For example, by 
September 2008, China supported 233 students to pursue studies in China by way of government 
scholarship.  In 2009-10, China provided a further 132 scholarships to Nigeria. We take note that the 
Secretariat Report identifies Aid for Trade need s of Nigeria in great length. We call upon 
development donors to make good use of the informa tion and help Nigeria bring about its Vision 
20:2020. 
94. Before concluding, allow me to pay tribute to Ambassador Agah and his colleagues in 
Geneva. Ambassador Agah is a treasure of the multilateral trading system by serving as the current 
Chair of the General Council and former Chairs of various important WTO bodies, including the 
TPRB. We count on his leadership to organize a successful and fruitful MC8 in December. 
HONG KONG, CHINA 
95. Hong Kong, China congratulates Nigeria on its robust economic performance during the 
period under review, including an average GDP growth of over 6% per year in real terms since 2005 and its rapid expansion in trade in recent years.  Nigeria is HKC's major trading partner in Africa and 
we maintain cordial trade relations with Nigeri a.  In 2010, our total bilateral merchandise trade 
totalled US$243 million, with an average annual b ilateral trade growth rate amounting to 8.3% WT/TPR/M/247 
Page 18  
 
  between 2006 and 2010.  We look forward to the con tinuous expansion of our bilateral trade with 
Nigeria.   
96. Regarding the specific aspects of Nigeria's trad e policy, we would like to commend Nigeria's 
efforts in reducing its average applied MFN tariff from 28.6% in 2003 to 11.9% in 2009 through aligning its tariffs with the ECOWAS Common Exte rnal Tariff, and in maintaining a simple tariff 
structure in which all applied rates are ad valorem . 
97. On the other hand, we note that Nigeria has bound almost 20% of its tariff lines and its 
average bound tariff was over 110% in 2009.  And as the Secretariat Report has pointed out, the large gap between the average applied and bound MFN ra tes would somewhat impart unpredictability to 
Nigeria's trade regime.  Besides, about 40% of Nige ria's tariff lines are above the peaks of 15%.  We 
would encourage Nigeria to accelerate its trade libera lization by enlarging its tariff binding coverage 
and narrowing the gap between its bound and applied rates. 
98. In addition to tariffs, we note that imports into  Nigeria are subject to various extra duties and 
taxes such as port development levy, ECOWAS co mmunity levy, Comprehensive Import Supervision 
Scheme charge, and levy on imports of sugar and rice.  We encourage Nigeria to reduce or eliminate 
such extra duties and taxes against imported goods. 
99. Regarding services, we are pleased to note th at Nigeria's services sector as a whole has 
performed well during the period under review, an d its telecommunications and postal services in 
particular recorded rapid growth rate between 2005 and 2009. We commend its efforts in liberalizing 
its telecommunications sector such as removing the foreign equity participation, easing and in some 
cases eliminating barriers to cross border movement of capital and equipment.  We look forward to 
seeing similar initiatives in other services sectors such as maritime transport and financial services.    
100. We appreciate Nigeria's efforts to simplify its customs procedures by introducing improved 
systems and increasing automation, which no doubt help reduce processing time and costs of doing business, and contribute to the economic development of Nigeria.  We are also pleased to note that Nigeria will soon introduce legislation to replace its Customs and Excise Management Act so as to 
bring its customs law in line with international best  practices.  This will assist Nigeria in modernizing 
its customs procedures.  We encourage Nigeri a to keep up its efforts in this regard. 
101. Separately, we commend Nigeria's efforts in conf orming to relevant international standards.  
Relevant international standards set by the ISO, the International Electrotechnical Commission (IEC), 
and the Codex Alimentarius Commission have been  adopted where there is no corresponding local 
standards.  We encourage Nigeria to continue harm onizing its local standards with international ones, 
and engaging in the development of mutual recognitio n agreements, with a view to further facilitating 
free flow of trade. 
102. In a similar vein, while we appreciate the ra tionale behind the adoption of the mandatory 
certification requirement of Standards Organizati on of Nigeria Conformity Assessment Programme 
(SONCAP), we are concerned about the high certif ication costs associated with the certification 
procedures and encourage Nigeria to streamline and simplify such import requirements. 
AUSTRALIA 
103. We note and welcome the steady growth in Nigeria's economy, with an average growth rate 
of 6% per annum since 2005.  Nigeria's economy also appears to be diversifying.  As Africa's leading 
oil producer, Nigeria plays an important role in supplying the world's energy needs which is of great importance to Australia.  It is one of Africa's and indeed the world's most important economies to 
watch.  WT/TPR/M/247 
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  104. Nigeria is Australia's second largest trading pa rtner in Africa and we place a high priority on 
our relationship with Nigeria as a leading African nation and important member of the Commonwealth.  Our two-way trade with Nige ria totalled A$853 million in 2010 of which 
A$797 million were imports of petrol eum products into Australia from Nigeria.  Australia's exports 
included plastic plates, sheets and film, prefabricated buildings and animal oils and fats.  Australia is 
also looking increasingly to resource-rich countries in Africa, such as Nigeria, as partners in mining 
cooperation and investment. 
105. While Nigeria's oil wealth may have insulated it from the effects of the global financial crisis 
it remains vulnerable to volatilities in the local and in ternational environment.  That said, Australia 
welcomes the introduction of the Nigerian Sovereign Investment Authority Bill as a means of 
harnessing some of Nigeria's oil wealth and looks forw ard to Nigeria's management of the initiative in 
a clear and open manner.  In particular, we note th e creation of the Future Generations Fund, and the 
Nigerian Infrastructure Fund and Stabilization Fund as effective means to addressing Nigeria's current and future economic development needs and to pr omote transparency in the oil and gas sector. 
106. Australia congratulates Nigeria's designation in March 2011 as an Extractive Industries 
Transparency Initiative compliant country.  Australia  is a strong supporter of this Initiative, having 
already contributed A$1.45 million and pledged a further A$10 million over three years in March 
2011. 
107. Australia continues to observe closely the passage of Nigeria's Petroleum Industry Bill, which 
it hopes will streamline existing laws and address possibl e conflicts of interest in the state agencies 
involved in investing in the sector and overseeing the industry. 
108. Mindful of Nigeria's efforts to promote local content, including the Nigeria Content Act of 
2010, Australia encourages Nigeria to pursue such po licies in a way which liberalises its international 
trade regime and promotes foreign investment in Nigeria. 
109. Australia views Nigeria as an important part ner in our efforts to strengthen our political, 
economic and trade engagement with Africa.  Nigeria is one of nine priority countries for Australia's 
partnership with the West African Council for Agricu ltural Research and Devel opment.  Australia is 
keenly aware of the significant growth potentia l in the Nigerian agricultural sector, and the 
contribution this could make not only to Nigeria's food security but also that of Africa.  In 2011, 
Nigeria will receive eight long-term Australia Awar ds and 21 short-course awards, 14 of which are in 
mining governance, another sector with significant export potential. 
110. Australia, like Nigeria, continues to be a str ong supporter of the Doha Round.  Conclusion of 
the Round will bring strong development benefits , including in key areas such as agriculture. 
111. In the context of Aid for Trade, Nigeria and its development partners are focussing their 
efforts on trade facilitation and unblocking infrastruct ure bottlenecks in key areas such as transport 
and customs operations.  Nigeria's ec onomy, in our view, would be one of the major beneficiaries of a 
strong outcoming the Doha negotiations on trade facilitation.  
JAPAN 
112. I would like to begin our comments with Nigeria's macroeconomic environment and policies. 
Nigeria has shown high growth performance. It ha s recorded on average 6.4% GDP growth between 
2005 and 2009. The development was driven by non-oil sectors, such as distribution, communications 
and others. As a result, the share of the petroleu m sector in its GDP decreased from 27% in 2003 to 
16% in 2009. This clearly shows the prog ress in diversification of industries.  WT/TPR/M/247 
Page 20  
 
  113. However, when we look at exports and govern ment revenue, oil continues to play a 
significant role. According to the Secretariat's Re port, it represents over 90% of exports, as well as 
over 80% of government revenue. Foreign direct invest ment also remains concentrated in the oil and 
gas sector. To further develop its economy, Nigeria w ill be required to further diversify its industries. 
This can be done through significant increase in inv estment from the private sector to various non-oil 
sectors, together with utilization of petrol eum revenue to develop infrastructure.  
114. The Nigerian Government duly recognizes the necessi ty of the FDI to the diversification of its 
industry, and it led the way for promoting the inwa rd investment with its Vision 20:2020. Recently, it 
published the "Roadmap for Power Sector Reform", in cluding the privatization of some power plants 
and has been actively encouraging foreign in vestors in cooperation with the World Bank. 
115. Japan appreciates such efforts made by the Nigeri an Government to attr act foreign investment 
to non-oil sectors, and expects Nigeria to improve  its investment environment by developing 
infrastructure and establishing appropriate regulatory regimes.  
116. With regard to trade and investment polici es, Japan appreciates that Nigeria has conducted 
and is preparing for trade related reforms under the Vision 20:2020, but has concerns over its 
implementation. As the Secretariat's Report points out, there have been many cases in which although 
draft bills were prepared in 2005, they remain yet to be enacted or implemented. Given the successful 
results of telecommunications reform, Japan hope s that Nigeria will duly implement its planned 
reforms. 
117. As for specific policies, I would like to comment on five points.  Firstly, on tariffs, Japan 
welcomes a substantial reduction of average app lied MFN rates from 28.6% in 2003 to 11.9% in 
2009. It shows a clear sign of Nigeria's active commitm ent to the free trade system. However, in terms 
of bound tariffs, Nigeria still has a great deal of room for improvement. The average bound tariff is 
118%, and it has bound only about 20% of its tariff lines.  This limited coverage of bound rates and the 
large gap between bound and applied casts uncertainty  for exporters to Nigeria. Japan hopes that 
Nigeria will increase predictability for forei gn exporters by improving its commitment.  
118. Secondly, Nigeria maintains two lists of goods whose import are prohibited. According to the 
Secretariat's Report, one list "is used mainly to protect domestic industry". Since import prohibition is 
quite trade distortive, the GATT requires its general elimination. Therefore, any introduction of import prohibitions must be based on substantial gr ounds and be transparent. Japan expects that any 
decisions by Nigeria to list new products will be done in a reasonable, objective and transparent 
manner. Nigeria also has an Export Prohibition Li st, but a bill to repeal it is currently under 
consideration in the National Assembly. Japan  hopes for the early adoption of the bill.  
119. Thirdly, with regard to customs procedures, Japan welcomes that Nigeria is developing 
legislation to simplify customs procedures which is harmonized with international best practices, such 
as the TRIPs agreement, the WTO custom evaluati on agreement and other international agreements 
and guidelines. The draft legislation will simplify and automate its customs procedure.  
120. Fourthly, Japan expects Nigeria to develop more sophisticated regulations to ensure 
intellectual property rights. Apart from legislation, we heard from companies operating in Nigeria that 
court procedures for an injunction take a long tim e, and that indemnification for damages of 
infringement is often insufficient. Therefore, Japan  would like Nigeria to improve legal procedures 
and redress for infringement.   
121. 
Fifthly, according to the Secretariat's Report, Nigeria operates the Export Expansion Grant 
Fund Scheme as a means of diversifying export industr ies. However, export subsidies tend to be trade 
distortive. Therefore Japan expects Nigeria to develop a competitive export industry through non- WT/TPR/M/247 
 Page 21 
 
 
  trade distortive policy measures, such as the devel opment of infrastructure, promotion of private 
investment, etc.  
ARGENTINA 
122. Political and trade relations between Argentina and Nigeria have gradually expanded, and we 
expect that in the light of the recent visit to Arge ntina of the Chancellor of Nigeria and the signing of 
a political consultation memorandum and a technical cooperation agreement, it should be possible to 
broaden the scope of our trade. 
123. The Government of Nigeria also recently partic ipated in the First Argentina and Sub-Saharan 
African Countries Meeting organized in Argentina by the Ministry of Agriculture, Livestock and 
Fisheries entitled "Innovation and Development in Agro-Farming Production" with a view to laying 
the foundations for effective bilateral and re gional cooperation, consolidating strategic 
South-South agreements in the international orga nizations, and opening the way for an increase in 
trade flows. 
124. On this last point, it should be noted that  our imports from Nigeria rose from close to 
US$1 million in 2009 to US$2.5 milli on in 2010, significantly exceeding the level of approximately 
US$1.38 million reached in 2008, the year of the ma ssive international financial and economic crisis 
that severely impacted world trade.  Meanwhile, exports from Argentina to Nigeria remained below 
the pre-crisis level:  in 2007, we exported US$303 m illion, the highest figure ever recorded, while in 
2010, exports only slightly exceeded US$80 million. 
125. Nigeria's economic data are noteworthy in certain areas, for example its GDP increase, the 
astronomic improvement of the capital and financ ial account of the balance of payments, the 
accumulation of external reserves, and the incr ease in agricultural production, thanks, as the 
Secretariat points out, to "better prices, a more st able policy environment and the revaluation of the 
naira." 
126. On the trade front, Nigeria has been taking steps to liberalize its regime.  It has harmonized its 
tariff with the Common External Tariff of the Economic Community of West African States 
(ECOWAS), so that its average MFN tariff has fallen from 29% in 2003 to 12% in 2009.  
Nevertheless, in 2009 its average bound tariff rate was 118% and only 20% of its tariff lines were 
bound.  Moreover, its average tariff on agricultural products is higher than for non-agricultural products.  There are a number of additional import duties, and during the period under review, the 
dispersion of tariff rates increased. 
127. At the same time, Nige ria has undertaken to eliminate quantitative import restrictions and to 
improve its customs procedures.  Th is is being done in the framework  of various programmes that will 
have an impact on the country's economy and development.  Among those mentioned in the 
Secretariat and government reports is Vision 20:2020  together with the firs t national implementation 
plan. 
EUROPEAN UNION 
128. Nigeria with its fast-growing economy is a key player in the region and an important partner 
for the EU. In 2010, Nigeria was our fourth largest trading partner in Africa and the EU was Nigeria's number one trading partner. Our relations are ba sed on the framework called "Nigeria-EU Joint Way 
Forward", agreed in 2009, which sets priorities fo r our cooperation under th e European Development 
Fund until 2013; the latter aims to help Nige ria tackle development challenges and support 
government's initiative to improve governance. In th is framework, we would also highlight that WT/TPR/M/247 
Page 22  
 
  €105 million is aimed specifically to support tr ade and regional integration, to improve the 
competitiveness in the private sector , and to address energy security.  
129. As of 1 January 2008 Nigeria benefits from unila teral preferences granted by the EU to all 
developing countries under the Generalised Syst em of Preferences. Until then, the Cotonou 
Agreement provided preferential market access.  
130. During the previous TPR in 2005, Nigeria's macr oeconomic and structural reform efforts, 
including in the services and energy sectors a nd through the National Economic Empowerment and 
Development Strategy (NEEDS) were acknowledged, and the pursuit of the reforms encouraged. 
Based on current reports, the EU welcomes Nigeria' s positive developments since its last review.  
According to the WTO Secretariat's Report, Nigeria's trade regime has become more liberal during 
the period under review, mainly due to alignment of Nigeria's tariff with Economic Community of 
West African States (ECOWAS) common external tariff (CET), which resulted in decrease of the 
Nigeria's applied MFN tariff. The same report also no tes, however, that more reform is essential, as 
Nigeria continues to use trade rest rictive measures to achieve objectives that could be better served 
with other policies. 
131. We positively acknowledge that the NEEDS stra tegy has been followed by the official 
development plan Vision 20:2020, and its firs t National Implementation Plan for 2010-13. We 
welcome that similarly to NEEDS, trade has once again been included as a priority for the economic 
development. The general, very ambitious objective of the Vision 20:2020 to make Nigeria one of the 
world's top 20 economies by 2020 can be of course commended, however in this context we would like to highlight again the importance of sustainabl e social and economic development and continuing 
with the structural, institutional reforms, keepi ng in mind that for sustainable growth the economy 
needs to be diversified and attractive for investors.  The WTO Secretariat's Report states that since the 
last TPR some diversification has taken place a nd the shares of manufacturing and agriculture in 
exports have risen since then. We appreciate that so me draft legislation, which would help to create 
more predictable trading environment for invest ors, has been adopted or is currently under 
consideration (e.g. public procurement act, enacted in 2007, a draft national IP expected to be 
promulgated in 2011/12). However, we note that th e competition bill has not yet been enacted, that 
inflation is still above 10% (despite subsidised pr ices for oil products) and that productivity indexes 
are still very low. 
132. The WTO Secretariat's Report also underscores positively how liberalisation and competition 
since the last TPR have brought phenomenal grow th in telecommunication services industry, while 
investments in this sector continue to grow.   
133. During the last TPR, the EU and other Member s also raised many concerns regarding 
Nigeria's trade regime, e.g. increase in the level of protection of Nigeria's economy, increase in border protection through tariff and non-tariff measures,  increased number of import bans, difficult 
registration procedures, burdensome customs procedur es, various other duties and charges applied to 
imports, local-content requirements, to name some.  
134. Based on current reports, we must conclude th at many of these concerns remain still valid 
today, compounded, if anything, by  new developments in local content in the gas and oil sectors, 
import regime for cement and announced import subs titution plans. We have addressed these in more 
detail in our advance written questions; nevertheless, I would like to touch upon some of them here.  
135. First, I would like to refer to import bans and sp ecial levies.  Nigeria applies an extensive list 
of import bans, covering wide ra nge of products. The review of the "Tariff Book 2008-2012" in 
November 2008 introduced new protectionist import measures in form of special levies, ranging from 
5% to 100% depending on  the products and sectors, mostly for products which were previously the  WT/TPR/M/247 
 Page 23 
 
 
  subject of import bans. Both the im port bans and the special levies are not only a barrier to regional 
integration as they are inconsistent with ECOWAS trade liberalisation scheme, but also inconsistent 
with GATT Article XI. We follow with interest Nige ria's plans to eliminate import bans and special 
levies and to comply with both WTO and ECOWAS obligations.  
136. The second issue relates to Local Content in Oil and Gas Act. This new law appears to 
impose serious restrictions on the procurement of goods and services in the oil and gas industry. We 
would welcome Nigeria's assessment of this Ac t's compatibility with its WTO obligations in 
particular with reference to Articles III and XI of GATT 1994 and Article 2.1 of TRIMs.  
137. Thirdly, I would like to refer to burdensome cust oms procedures. The lack of transparency in 
customs rules and procedures is a trade barrier for foreign exporters and importers. The long time 
needed for customs clearance and some practices  during the import procedure create additional 
unnecessary costs for imports. We invite Nigeria to provide full transparency of import procedures 
and customs regulations. 
138. Last but not least, we once again encourage Ni geria to continue its steps to improve good 
governance, fight against corruption and enhance th e level of transparency of its policies and 
procedures, including trade policies – all this w ill positively support Nigeria's economy and will allow 
all stakeholders to benefit fully from trade.  
139. In conclusion, we fully support Nigeria's amb ition to leverage its enormous resources into 
sustained economic, including industrial, developm ent. We encourage Nigeria to pursue these 
objectives in an economically sustainable and comp etitive manner, without unwarranted use of trade 
distortive policies. The EU believes that Nigeria's ongoing structural and macroeconomic reforms, 
together with diversification of production can pl ay a key role in ensuring long-term sustainable 
development and improve Nigeria's business environmen t. This is especially important as Nigeria is a 
key member of the ECOWAS, a major player in regional integration in Africa and an important WTO Member, thus an example for all its neighbouring countries.  
CHILE 
140. According to the reports of the Secretariat a nd the Government of Nigeria, the country's 
recent economic performance has been positive:  grow th has been vigorous a nd sustained.  Recently, 
however, there has been an increase in unemployment.  At the same time, the Secretariat report points 
out that in 2009 the volume of trade was more than double what it was at the beginning of the period under review. 
141. In the international trade area, we see the ta riff reduction initiatives and the simplification of 
price bands as positive steps.  The maximum tariff, for example, has fallen from 150% to 35%.  There 
has also been a reduction in the average applied tariff, which has gone from 29% in 2003 to 12% in 
2010. 
142. This contrasts with Nigeria's low level of tariff binding in the WTO.  A better binding 
coverage would help to provide the economic and trade environment with more certainty. 
143. The same can be said for the progress ach ieved in reducing impor t restrictions and 
prohibitions.  The reduction in the number of tariff lines subject to import prohibitions testifies to the efforts made in this area.  While we understand th e legitimate objectives put forward to justify such 
measures, we urge the Government of Nigeria to continue to seek alternative means of achieving 
those objectives that are less trade-restrictive.  At  the same time, we hope that the commitment to 
eliminate quantitative trade restrictions will be maintained. WT/TPR/M/247 
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  144. In the area of trade facilitation, according to th e report of the Government of Nigeria efforts 
have received a boost, as the Nigerian delegati on's active involvement in the trade facilitation 
negotiations would suggest.  The Secretariat report speaks of new customs legislation that is being 
prepared for enactment during 2011.  This legisla tion will bring Nigeria's customs law into line with 
international best practices such as the Revised Kyoto Convention.  In order to improve the trade 
situation, we think that it is important to d eepen the customs reforms, including better risk 
management, to reduce the delays caused by the high  percentage of physical inspection of imported 
goods. 
TURKEY 
145. Since the last review, Nigerian economy achieved solid growth rate of 6%. More importantly, 
the economic growth is broad based with increases in various sectors. This is a positive development 
for Nigeria on the way to diversify its economy  and to address other development challenges. 
Nevertheless, according to the Secretariat's Report, mo re is needed. Therefore we are pleased to learn 
Nigeria's efforts to address the problems through its Vision 20:2020 program of transformation.  
146. For the ambitious objectives of the Vision 20: 2020 to be achieved, the private sector 
investments are needed. In this regard, we agree with  the Secretariat's assessment that this will require 
substantial and far reaching reforms in the economy.  In this regard, we cons ider the recent reduction 
of tariffs due to the alignment with ECOWAS as a usef ul step to ensure a more predictable and liberal 
trade environment for the companies. We hope that Nigeria will continue forward in this path by 
giving priority to establish a more predictable, tran sparent, and simplified regime with regard to its 
tariffs and additional duties.  We believe that th ere are certain administrative steps which could be 
taken up easily to improve the business climate in Nigeria.  
147. Our trade relations with Nigeria which stand at around US$1 billion are steadily increasing. 
We hope to diversify the trade products as natural gas currently constitutes a bout 75% of our imports. 
Supply of construction services is a promising area where we explore for opportunities like railway 
modernisation.  
148. Furthermore, we are also looking forward to response of ECOWAS concerning our recent 
proposal of concluding a free trade agreement betw een Turkey and ECOWAS. After almost a decade, 
in February 2011, we hosted Nigerian President Goodluck Ebele Jonathan. Trade issues were on the 
agenda and were discussed in detail. We are confid ent that the visit will give a new impetus to our 
relations. We consider Nigeria one of the important partners in A frica and we hope to improve our 
relations even further.  
INDIA 
149. We have noted with appreciation that since its  previous Review, Nigeria has made significant 
progress. Given the high oil prices prevailing over the last few years, Nigeria's economic growth has 
been impressive.  Oil and gas contributes almost  95% of Nigeria's exports and account for 85% of 
government revenue and nearly 50% of its GDP. Nige ria has made attempts to diversify its economy 
and has taken initiatives in developing its non-oil sector .  We have noted that Nigeria's international 
trade has almost doubled in 2003-09 with Nigeria's exports rising to almost US$50 billion and imports 
to US$34 billion.   
150. However, despite these positive economic grow th figures, Nigeria still faces economic and 
socio-developmental challenges. It is not unique to Nigeria and these are common problems faced by all major developing countries.  However, these at  times get magnified due to the complexities and 
the scope of their impact on the country. It is obvious from the government report that Nigeria is 
aware of these challenges and is taking steps to address the same.  We would be interested to know  WT/TPR/M/247 
 Page 25 
 
 
  from the delegation of Nigeria its plans in the short-term and the medium-term on the issues of:  
development of its oil sector and specific plans to further develop and expand the role of the non-oil 
sector and its contribution to national GDP;  steps Nigeria proposes to take to address chronic power 
shortages, and tackling the challenges of poverty an d social development;  measures Nigeria proposes 
to take to improve its investment  and trade regime to make it more  transparent and responsive to the 
needs of Nigerians and providing confidence to the international investors and trading partners of 
Nigeria. It would also be useful to know the spec ific measures proposed by Nigeria for making its IPR 
regime robust through strict enforcement. 
151. Nigeria, the most populous country on the African continent, occupies a central position not 
only in West Africa but also has its influence far beyond.  Nigeria is actively involved in regional 
integration in West Africa and has provided stab ility at the times of crisis in its neighbourhood.  
Nigeria has participated in peace, security an d development initiatives of West Africa, these 
contributions have been applauded by the international community.  
152. The fast growing population and rising income  levels in Nigeria offer lucrative market 
opportunity to investors and traders.  We hope that the new government of President Goodluck 
Jonathan will continue to reform Nigeria's ec onomy, investment and trade policies and play a 
leadership role on the African continent. 
153. India and Nigeria enjoy warm, friendly a nd cooperative relations. India established a 
diplomatic mission in Nigeria in November 1958, n early two years before Nigeria's independence. 
Historically, Indian presence in Nigeria was essentia lly economic and began with textiles but has got 
constantly diversified. 
154. India and Nigeria, both multi-cultural, multi- lingual and multi-religious societies, have 
aspirations of improving socio-economic  well-being of their people.  India has also been privileged to 
extend assistance to Nigeria in conduct of elections a nd further deepening of democratic values in the 
country. Prime Minister Dr. Manmohan Singh visite d Nigeria in 2007 which resulted in the Abuja 
Declaration on Strategic Partnership.  
155. Some of the major items traded between the two countries are oil and petroleum, machinery 
and instruments, vehicles, transport equipment a nd pharmaceuticals.  Overall, India is the second 
largest trading partner of Nigeria and third largest crude export destination of Nigeria. 
156. India has collaborated with Nigeria in developm ent of its industry and commercial sector.  
Total Indian investments in Nigeria are estimated  at US$5 billion. Several Indian companies have 
played a major role in the Nigerian economy an d its commercial landscape including in telecom, 
healthcare, oil and petroleum sectors.  India has also increased scholarship slots from 90 to 130 to 
Nigerian nationals for training in India. 
SINGAPORE 
157. Nigeria is an important economic partner of  Singapore in the Sub-Saharan Africa.  Our 
bilateral trade peaked at US$433 million in 20 08, with exports from Nigeria to Singapore 
experiencing a ten-fold increase in  the past year from US$3.3 million to US$33.4 million.  Overall, 
bilateral trade is concentrated mainly in petroleu m products, heating and cooling equipment, and ship 
and boat parts.  
158. Located strategically in the Sub-Saharan Africa, Nigeria's easy access to sea transport 
signifies an immense potential for trade, which has accounted for over 53% of GDP. Hence, it is vital 
that Nigeria develops its economic policies in a direction to best capitalise on the available 
opportunities and resources towards economic growth.  In  this context, we note that Nigeria has made WT/TPR/M/247 
Page 26  
 
  significant economic progress since its last TPR.  International trade doubled during 2003-09, with 
exports rising to nearly US$ 50 billion and imports to US$ 34 billion. This development is coupled 
with an average annual GDP growth of 6.4%.  Notewo rthy is that this stellar performance came not 
only from the traditionally dominant petroleum sector, but also from agriculture activities.  This is a 
testament to the success of the Nigerian government 's pursuit of reforms and diversification of its 
economy.   
159. During the period under review, Nigeria adopted  a more liberal trade regime, reducing its 
average applied MFN tariff from 28.6% in 2003 to 11.9% in 2009.  Customs procedures have also been gradually modernised.  The services sector as a whole has performed well.  Telecommunications 
in particular, has continued its rapid growth a nd benefited from increased competition.  While the 
banking sector was adversely affected by the global  financial crisis in 2008, we wish to commend 
Nigeria for successfully implementing measures to ensu re the smooth flow of credit and liquidity in 
the system.  It is also our belief that the reforms and consolidation in 2006 laid a strong foundation that allowed the banking sector to weather through this crisis.   
160. Even as Nigeria's economy continues to grow  and diversify, there are areas where 
improvements would move Nigeria closer to its goal to be the world's top 20 economies by 2020, 
outlined on the Vision 20:2020 official development pr ogramme.  As highlighted in the Secretariat's 
Report, moves to further diversify Nigeria's eco nomy away from the petroleum sector will be 
necessary to sustain economic growth at the current pace.  Furthermore, we encourage Nigeria to push 
forward with reforms and infrastructural developmen t in the petroleum, agriculture and electricity 
generation sectors to boost their value add to the economy.   
161. Given that tariffs are a key economic policy inst rument, it is essential to create a predictable 
tariff regime that acts as an incentive for trade and i nvestment.  In this regard, we encourage Nigeria 
to reduce the water between the average applied MF N tariff rates and the average bound rates, and to 
increase the coverage of bindings.  Tax inconsiste ncies between imported and domestically produced 
goods, and the scope of the export levy for preship ment inspection should also be reviewed and 
resolved.  To further encourage trade, trade facilita tive measures and customs legislation have to be 
further updated and simplified to reduce transaction co sts at the border.  In this context, we look 
forward to the enactment of new customs legisla tion this year, which will allow for automation and 
modern processing techniques.   
BENIN 
162. During the last trade policy review of Nigeria,  the delegation of Benin referred to a saying 
that was fashionable in business circles and remains every bit as relevant today:  "When Nigeria has a 
cold, Benin sneezes as well". 
163. In fact, this saying would apply to a number of countries of the West African subregion that 
are trying, in the framework of the ECOWAS integra tion process, to join together in building not only 
a community of peoples, but also a viable and flourishing economic and trade area. 
164. In other words, this review of Nigeria's tr ade policy with the aim of further boosting its 
efficiency is of the utmost importance to us, sin ce the economic health and trade performance of this 
important link in our regional integration ch ain are vital to our community as a whole. 
165. We therefore welcome the statement in the Secr etariat report that "Nigeria has benefited from 
several years of robust economic growth, averaging over 6 per cent per year in real terms since 2005".  WT/TPR/M/247 
 Page 27 
 
 
  166. The delegation of Benin also commends the effo rts of the competent Nigerian authorities to 
improve the business climate through a number of bold reforms, including the simplification of customs procedures through the introduction of  improved systems and increased automation. 
167. Generally speaking, Benin woul d like to congratulate Nigeria for all the work accomplished 
and the results achieved since the last trade polic y review, in spite of a difficult economic and 
financial environment both locally and at the internati onal level.  We also wish the sister republic of 
Nigeria every success in the ambitious projects it h as launched in its efforts to pursue its reforms. 
168. If we look at the current situation objectively, we have to acknowledge that much remains to 
be done for Nigeria to achieve the objectives it has set  itself.  According to the report, "to sustain 
economic growth at current rates requires furthe r diversification of the economy away from the 
petroleum sector", and "[t]his will require significant  investment".  Hence the need to stress that 
Nigeria's efforts may not bear all the fruit that the people and Government of the country legitimately 
expect unless they are accompanied by a consider able amount of sensible and efficient support from 
the developing partners, inter alia , in the framework of South-South cooperation. 
169. In the light of the activities that took place at the WTO last week and the already imminent 
review of 18 and 19 July, we would also like to str ess the need to ensure that Nigeria benefits from 
appropriate Aid for Trade to help it to become bette r integrated into the global economy and to engage 
fully in trade as a tool for creating wealth and hence fostering development, poverty reduction and 
regional integration. 
170. In this connection, Aid for Trade should constitu te, among other things, an effective means of 
enabling Nigeria to develop the trade-related capacity and infrastructure it needs to boost its trade.  At 
the same time, we stress the role  of the WTO which, through appr opriate technical cooperation, will 
have to help Nigeria build its human and institu tional capacity, specifically in the area of trade. 
171. The Beninese delegation would li ke to conclude by taking this  opportunity, which is suitable 
from every point of view, to stress how important  it is for us, as developing countries, that the 
Doha Round of negotiations  should be concluded in a manner that takes proper account of the 
development dimension. 
KENYA 
172. Both Nigeria and Kenya have a long standing co rdial trade relations underpinned by our share 
of the African Union trade and economic values e nvisaged in the Lagos Plan of Action and Abuja 
Treaty.  We value this relationship and it has alwa ys been Kenya's desire to see it grow to even a 
much higher level. 
173. Against this background, we have studied the trade policy review Reports on Nigeria 
prepared by the WTO as well as the Government of  Nigeria, and accordingly wishes to make the 
following comments and observations.  On economic e nvironment, we have noted that Nigeria has 
realized a very high economic growth rate of more th an 6% per year in real terms for the last five 
years, led by wholesale and retail trade, communications and agriculture.  This is an impressive 
performance and demonstrates that Nigeria is di versifying her economy away from over-dependency 
on oil and gas as key driver. 
174. Regarding trade instruments, tariffs continue to  remain the main policy instrument and have 
been aligned to ECOWAS Common External Tariff and as a result, the MFN tariff has declined from 
29% in 2003 to 12% in 2009.  This is commendable in  terms of market access particularly for intra-
Africa trade.  However, efforts should be made to eliminate additional duties levied on imports. WT/TPR/M/247 
Page 28  
 
  175. On customs procedures, we have noted that they have been simplified and automated and 
have ultimately enhanced efficiency.  We enc ourage Nigeria to speed up the passing of the new 
Customs Legislation in Parliament to complement  these positive reforms that have been enhanced. 
176. On investment climate, the concentration is not ed to be around oil and gas sector and the 
established export processing zones.  A One-Stop-Inv estment Centre has been set up to facilitate 
investors with interests in the Nigerian market.  Th is is a welcome effort and it may assist the country 
to diversify its economy in order not to overly depend on oil and gas. 
177. Regarding privatization and c oncessioning, considerable success es have been noted in the 
areas such as parastatals, steady cooperation and port management and improved services have been 
realized.  Nigeria being a regional hub for West Afri ca, these reforms particularly those related to port 
management would increasingly facilitate the hinter land trade and we wish to commend Nigeria for 
initiating these reforms. 
178. On agriculture, the sector plays a pivotal role in the Nigerian economy providing more than a 
half of the employment.  Though its growth has been increasing, it is still operating below its full 
potential.  Infrastructure, post-harvest losses and stor age conditions have been cited as being some of 
the inhibiting factors.  Efforts, therefore, shoul d be made to address these challenges to enable the 
sector realize its full potential.  We note the new la nd tenure bill is pending in  Parliament intended to 
address some of these issues and urge for its speedy conclusion in Parliament.   
ZIMBABWE 
179. Nigeria is an active WTO Member. It is also a Member of the various developing country 
groupings in the WTO, namely the African Group; the Africa, Caribbean and Pacific Group; G-33; 
G20 and G90 where we share common interests. We particularly appreciate Nigeria`s positive 
engagement in the ongoing Doha Development Round. 
180. We note from the Secretariat's Report that Nigeri a has benefited from several years of robust 
growth averaging 6% per annum in real term s since 2005, against a challenging political and 
governance environment that prevailed over the pe riod under review. We commend Nigeria for this 
achievement despite the challenges faced, and enc ourage the country to continue with reforms and 
implement national development policies to sustain growth. 
181. We are particularly encouraged by the Nige rian Government`s efforts to diversify the 
economy, notably in sectors such as agriculture whic h has registered strong growth in exports over the 
years. We note, however, that despite the decline in the contribution of the petroleum sector to 
economic growth, oil and gas industries continue to be critical, contributing over 90% of exports and 
80% of government revenue. We further note that th e Government faces challenges in putting in place 
a conducive environment to attract investment in  the critical sectors of the economy to address, inter 
alia, the poor and inadequate infrastructure and the lo w level of mechanization and input use, and the 
need to strengthen the regulatory environment. 
182. We commend the efforts by Nigeria for putting in  place trade laws that are compatible with 
the evolving trading system, notably, through the devel opment of a wide range of bills that include the 
Competition Bill, Protection of Intellectual Propert y Rights Bill, Safeguards and Contingency Trade 
Measures Bill.  
183. My delegation notes that Nigeria has in place an export tax regime on raw materials or 
unprocessed commodities, a measure that aids in  raising revenue for the country. Further 
diversification, including value addition would broaden the revenue base. While the country is 
receiving a substantial amount of Aid for Trade to address its trade priorities, it is clear from the  WT/TPR/M/247 
 Page 29 
 
 
  Secretariat Report that further assistance is require d for the country to strengthen its institutional and 
human capacity in the multilateral trading system  and to meet its obligations under the WTO 
Agreements. Continued and targeted assistan ce would go a long way to address these needs. 
184. We also commend Nigeria for putting in place trade policies that promote South-South 
Cooperation. We trust that it should be possible to see an increase in intr a-African trade and South-
South trade in the coming years. 
ZAMBIA 
185. My delegation is pleased to note from the Reports  presented before us that Nigeria's economy 
had recorded consistent at a GDP growth of not l ess than 6% in the period under review despite the 
onset of the financial crisis.  The Reports also  show that Nigeria is among countries that have 
emerged from the crisis situation with high growth ra tes, in this case an annual growth rate of 7.5% 
was recorded in the first half of 2010. 
186. My delegation is also pleased to note the progr ess made by Nigeria in improving its debt 
position following debt relief from a level of US$20.5 billion to less than US$4 billion over a short 
space of time of 2006-09.  Further, the Reports show  the continued efforts being made by Nigeria in 
creating a vibrant economy through a series of reform measures in sectors such as 
telecommunications, energy and tourism.  Nigeria has also taken measures to improve service delivery to the private sector and the consumers.  These are indeed efforts worth commending.  My 
delegation takes note of the bilateral and regional arrangements to which Nigeria is party as well as 
the efforts made towards meeting its commi tments under the various WTO Agreements.  
187. Like many developing countries and in particul ar African countries, Nigeria is faced with 
many challenges requiring the concerted efforts at  the national, regional and multilateral level to 
ensure that countries like Nigeria contribute and benefit from the global economy.  The Report clearly 
indicates that Nigeria is rich in natural resources, as seen from its vast land resource which has resulted in agriculture accounting for 40% of Nige ria's GDP.  Despite being the tenth largest oil 
producer in the world with proven reserves of about 36 billion barrels of oil, the structure of Nigeria's 
oil and gas industry requires reform in order to rea lize its full potential.  In this regard, we welcome 
the steady implementation by the Nigerian Gove rnment of the Oil and Gas Industry Committee 
Report, including the Petroleum Industry Bill which is  in the final stages of passing into law in the 
National Assembly. Other challenges such as une mployment has been on the increase from 11% 
recorded in 2006 to 21% by 2010;  the hostility in the oil producing area, has had an impact on 
Nigeria's oil industry;  low manufacturing contribut ion to GDP at 5% caused for diversification and 
structural reform of the economy.   
188. Nigeria being an active Member of the African  Group and the ACP in pursuing development 
agenda of the WTO Doha Ministerial mandate requir es the support of all Members to ensure that its 
development efforts at national level are implem ented and complemented by measures undertaken at 
the multilateral level.  It therefore remains importa nt that this august house assist Nigeria to fully 
integrate into the multilateral trading system, and reap the benefit from a stable and predictable 
trading environment. 
189. I wish to state the Nigeria is among Zambia's  important economic part ners, whose relations 
have been consolidated over the past years fo llowing the enhanced promotion efforts undertaken 
through bilateral arrangements.  Zambia has witnessed a growing presence of investment from Nigeria over the past 10 years in sectors such as agriculture, banking and manufacturing.  Companies 
such as a Multi Trex Agro Allied Limited and Da ngote Group of companies, Access Bank and United 
Bank of Africa have invested in Zambia and i nvestment pledges had reached a peak of US$710 
million in 2008 although this fell to  US$442 million by 2010.  There has also been a steady growth in WT/TPR/M/247 
Page 30  
 
  Zambia's exports to Nigeria from a low level of US$21 million recorded in 2005 to US$463 million 
by 2009, composed mainly of refined copper wire s and frozen vegetables. Zambia will continue to 
pursue its bilateral cooperation to further strengthe n ties with Nigeria in areas of mutual interest. 
NEW ZEALAND 
190. Nigeria is a country of increasing trade importan ce to New Zealand.  Our trade with Nigeria 
has grown an average of 9% a year in the last deca de and more than doubled in the last five years 
alone. This makes Nigeria one of the largest trade pa rtners in Africa. As such, New Zealand welcomes 
the opportunity to participate in this trade policy review of Nigeria.  We  also welcome the positive 
steps which Nigeria has taken over the past five year s to implement a more open trade regime.   The 
notable boost to the pace of these reforms which has taken place under President Jonathan deserves 
due recognition. The reforms have included simplif ied customs procedures, anti-corruption measures 
and significant reductions in Nigeria's applied ta riffs. All of these measures have made a positive 
contribution to the growing trade relati onship between New Zealand and Nigeria. 
191. At the same time, we note that some recent de velopments may have the effect of somewhat 
undermining the benefits of Nigeria's move to a more open trade policy stance. In particular, we 
would note that there are Reports that Nigeria is co nsidering restrictions on some imports in order to 
support local industry. In that context New Zealand would make the following points:  firstly, real GDP growth in Nigeria is projected to average over  6% in the next five years, mostly driven by 
increasing consumer demand;  secondly, local industry alone will be insufficient to meet this demand, 
and consequently, continued trade liberalisation will be essential in maintaining Nigeria's strong 
economic growth, growth which its local industry is not  likely to be able to sustain by itself;  and 
thirdly, in many instances local industry relies heavily on imported ingredients and inputs to produce 
its own products. To attempt to restrict these impor ts would therefore harm local production not assist 
it. 
192. New Zealand wishes to emphasise that this concer ns should be seen in light of New Zealand's 
overall positive view of th e advances made in Nigeria's trade po licy in recent years and our sincere 
wish that Nigeria continue the direction of those reforms. 
193. New Zealand and Nigeria are both countries which are committed to the strengthening of the 
multilateral trading system and we work alongside Ni geria in the WTO in support of this aim.  We 
would like in particular to express our appreciati on of the key role which Ambassador Agah, in his 
capacity as the 2011 Chair of the WTO General Council, is playing in leading the WTO and its Members in preparations for the Eighth WTO Minister ial meeting to be held in December this year. 
MEXICO 
194. Trade between Mexico and Nigeria remains limited, and clearly concentrated in the 
gas sector.  However, it has been growing steadily ove r the past ten years, and we hope that it will 
continue to grow and to diversify. 
195. Nigeria is a growing economy, and in spite of  the adverse world economic situation and the 
external shocks to which it has been subjected, it has shown positive signs, sugg esting that the efforts 
and work of the Government and the productive sector have borne fruit, that the country is moving in 
the right direction and is living up to its am bitious objectives under Vision 20:20-20.  This is 
evidenced by some of the actions mentioned ear lier such as the recent liberalization drive and 
economic diversification measures. 
196. According to both the Nigerian government repor t and the Secretariat report, there are still a 
number of pending reforms that are crucial to the future growth of the country's economy.  These  WT/TPR/M/247 
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  include the reforms to its customs legislation which,  together with investment in infrastructure, are 
vital to facilitating trade and attracting investment .  We hope that the delegation of Nigeria will be 
able to provide more information on the implementa tion status of this legislation and of competition 
policy and antitrust laws, all of which we will help  to create a more competitive and safer economic 
environment for investment. 
197. Finally, we wish to acknowledge the government  of Nigeria's efforts to ensure that measures 
are already taken with a view to implementing these crucial reforms, and we are confident that the 
current administration will lead the process to a successful conclusion. 
PAKISTAN 
198. The Nigerian economy has managed to achieve a bala nced growth reflected in the fact that its 
GDP growth averaged 6.2% between 2005-09 with pr ospect of over 6% over the next five years. Its 
progress is anchored in structural reforms lik e NEEDS, Vision 20:2020 and the First National 
Implementation Plan 2010-13. Although having a hi gh dependence on oil, it has also achieved a 
wholesome diversification of its exports mix sin ce the last TPR showing a growth in the non oil 
sector. At the macro-economic level, fiscal prudence has resulted in a reduction of fiscal deficit to 
1.1% in 2008. Its indebtedness also reduced to US$4 billion.  However, like several developing 
countries, Nigeria is also beset by a host of pr oblems including inflation rate over 10%, youth 
unemployment, low productivity and lack of FDI. Its trade regime also reflects burdensome customs procedures and lack of transparency, emphasis on  local content requirements, additional duties 
leading to discrimination in favour of local products , etc. We encourage Nigeria to enlarge its trade 
liberalization measures, which will surely enhan ce its competitiveness and mainstreaming into the 
international regime. 
199. We also commend Nigeria's positive and active enga gement in the negotiations at the WTO to 
keep abreast of the evolving international trade regi me. The central role of Ambassador Agah in the 
forthcoming eighth Ministerial also holds a testimony to this. 
200. Pakistan and Nigeria have longstanding trade rela tions. Pakistan's main exports include rice, 
medical and pharmaceutical products, chemical produc ts, fabrics, machinery and medical equipment 
while our main imports from Nigeria are cotton, ch emical products and leather. However, there is a 
low volume of trade between the two countries and th ere is a visible scope for improvement in trade 
relations.  
SENEGAL 
201. As we all know, Senegal is in the same geographical region as Nigeria, i.e. West Africa, and 
the two countries belong to the same regional integration community, ECOWAS.  In other words, our 
destinies are linked together, as reflected in the close bilateral ties betw een our two countries.  
Senegal congratulates Nigeria for its economic dy namism, supported by wise and independent policy 
choices. 
202. These policy options are reflected, among othe r things, in the considerable economic 
diversification efforts aimed at shedding the count ry's dependence on oil production.  At the same 
time, Nigeria's markets have been opened up throug h a reduction in applied tariffs, which have been 
aligned with the ECOWAS common external tariff.   Senegal welcomes Ni geria's introduction of a 
fifth tariff band in the ECOWAS common external ta riff to give more coherence to the Community 
tariff policy by letting it play its necessary role as an economic policy tool in the context of vulnerability that prevails in the ECOWAS count ries, made up chiefly of LDCs.  Senegal fully 
supports the introduction of this fifth band in the ECOWAS common external tariff. WT/TPR/M/247 
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  203. Nigeria is the largest country in West Africa from an economic and demographic point of 
view.  ECOWAS has everything to gain from seeing its economy take off, in that it would act as a locomotive for the economy of the entire subregi on.  Fortunately, Nigeria fully understands and 
accepts this leadership role, which it exercises every time the stability of the subregion is threatened.  
We are extremely grateful for this. 
204. For all of these reasons, we think that the in ternational community must support Nigeria's 
efforts to achieve its ambitious social project. 
SOUTH AFRICA 
205. South Africa and Nigeria entered into formal di plomatic relations in 1994.  In 1999, at the 
advent of multiparty democratic rule in Nigeri a, the two countries inaugurated the Bi-national 
Commission (South Africa-Nigeria BNC), to meet tw ice a year under the co-chairmanship of Deputy 
Presidents of both countries.   
206. In the same year the two countries signed the follo wing agreements:  1) Bilateral Trade, 2) the 
Reciprocal Promotion and Protection of Investment s, and 3) Avoidance of Double Taxation.  In 
October 2009, South Africa and Nigeria celebrated te n year anniversary of the BNC, appraising what 
both sides achieved in the last ten years of their bilateral economic relations, among others. 
207. Prior to 1999, there were only four South African  companies in Nigeria.  However, within a 
period of 10 years, that is from 1999-2009, the number of South African companies doing business in Nigeria has grown.  South African companies have  become noticeably prominent players in Nigeria 
with over 150 business related projects ranging from te lecommunication, engineering, construction, 
aviation, agriculture, media and entertainment, tour ism, finance, retail, property development, to 
mention but a few. 
208. Nigeria is regarded as West Africa's economic powerhouse, and is one of South Africa's most 
important partners on the African continent sh aring many common goals and objectives towards 
development.  With its large population and natura l resources the country has become South Africa's 
most important trading partner on the continent.  The BNC has been the catalyst for import/export 
growth between the two countries.  Trade relations  between the two economies registered substantial 
growth between 1999 and 2010, increasing in percenta ge terms by almost 20%.  Nigeria is ranked 
ninth as South Africa's export partner.  Overall, it is ranked seventh in terms of South Africa's total 
trade in Africa;  98% of imports from Nigeria are crude  oil.  South Africa's exports into the Nigerian 
market are value added products including teleco mmunication equipment, prefabricated structures, 
and services.  We have also collaborated with Nige ria in terms of providing reciprocal development 
assistance in the fields of education, health and electricity distribution. 
209. South Africa is pleased to note from the Secretariat Report that while Nigeria remains 
dependant on oil and gas sector, for 90% of its e xport revenue and 80% of government revenue, the 
sector only represented 17% of GDP.  It is noted that  Nigeria's high growth rates were driven by the 
non-oil sector, mainly services such as wholesale a nd retail trade and communications, resulting in 
significant improvements in real income and poverty reduction. 
210. We believe that by diversifying its economy and through the governments' Vision 20:2020 
Nigeria would be well on course to achieving its overall objective of reducing poverty, improving 
wealth distribution and becoming one of the top 20 economies in the world by 2020.  WT/TPR/M/247 
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  V. REPLIES BY THE REPRESENTATIVE OF NIGERIA AND ADDITIONAL 
COMMENTS 
211. This review exercise has provided the n eeded opportunity for Members to evaluate 
developments in the Nigerian economy over the la st six years, following the conduct of the third 
Trade Policy Review exercise in 2005.  At today's concluding session, Nigeria will try to directly 
respond to some of the questions and issues that we re raised during the discussions two days ago. To 
ensure clarity and focus, our concluding remarks will be structured around four themes, namely, the 
overall development strategy, horizontal measures, trade policies and practices, and sectoral issues. 
212. With respect to the overall development polic y focus, Members would like to note the 
positive impact that efforts by government have  made, especially in ensuring transparency, 
accountability and the sustained fight against corr uption.  Macroeconomic reform and further 
deregulation of some critical sectors have contri buted to the observed performance of the economy. 
213. Despite the progress made since the last Review, some challenges of sustainable and pro-poor 
development remain, particularly  high dependence on the oil sector , relatively unstable social, 
political and economic environment, including trade a nd investment policy and the need to urgently 
address the huge infrastructure deficit. The overall  focus of policy has been aimed at promoting 
foreign direct investment; improving the competitiveness of the economy; promoting long-term investment; and reducing the cost of doing busin ess among other issues.  These are all necessary for 
the purpose of achieving economic transformation in  line with the National Vision 20:2020. As we 
continue with the various reforms we would ensure that they conform with our obligations in the 
WTO. 
214. Prior to the enthronement of democracy in 1999, Nigeria was under many decades of military 
rule. During that period, the country experienced si gnificant institutional decay and the erosion of rule 
of law. The legislative process was largely by fiat  or military decrees. The legislature was abolished 
and all constitutional provisions thereto were suspended. Since 1999, the reintroduction of the 
legislative arm of government in Nigeria has amount ed to a completely new learning experience both 
in terms of process, skills and expertise. In substa nce, the legislative agenda has been overwhelming, 
particularly as old laws have to be amended while new ones are being put in place. It is this situation 
that has led to the delays in the enactment and im plementation of some of the legislation that were 
raised by Members. It is our hope that as democr acy and the legislative process are being deepened, 
these issues would be addressed in a more timely manner. 
215. The NV 20:2020 recognised that transformati on of Nigeria from a peasant agricultural 
practice to an industrial economy is critical to th e required rapid development of the economy.  In 
pursuit of the NV 20:2020, the country is committed to  (a) increasing crude oil refining capacity; (b) 
increasing the country's oil and gas reserves; and (c) more importantly, diversifying exports to include 
refined petroleum products and derivatives from oil a nd gas.  Within the context of the new Public 
Private Partnership (PPP) framework, the Nige rian government welcomes foreign investors, 
especially in areas that would address the infrastructural deficit. 
216. Nigeria has adopted a holistic and comprehensiv e approach to its development strategy.  
Although trade and development policy is an important  component of that approach, this policy must 
relate very well with other components of the deve lopment strategy, in order for it to have optimal 
impact.  It is in this vein that Nigeria count s on the continued understa nding, cooperation and support 
of Members as well as from development partners in the process of transforming the economy. 
217. 
The core objectives of Nigeria's trade policy ar e to ensure a private sector-led economy, and 
encourage production and distribution of goods a nd services for both domestic and international 
markets, with a view to achieving accelerated econom ic growth and development. These objectives of WT/TPR/M/247 
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  Nigeria's trade policy have endured overtime and are fully reflected in the NV 20:2020. The primary 
focus of the reform agenda has b een to achieve recovery and the revitalization of key sectors of the 
economy, particularly the manufacturing sector.  Government policy, therefore, is not targeted at specific sectors of the economy in terms of a "cherry-picking" strategy. 
218. Nigeria, therefore, continues to make efforts to leverage new investments in infrastructure, 
both from developed countries and the emergi ng economies. Currently, there are ongoing power, 
railways, roads, refineries, petrochemicals, ports  and aviation projects that are being executed in 
partnership with companies from many Members, in cluding the United States, China, the European 
Union, India, Brazil and South Africa. 
219. In 1999, the new democratic government inher ited an opaque and complex tariff structure, 
which was beset with many challenges, especially  tariff peaks, tariff escalation and arbitrary 
deviations from the approved structure.  Efforts have, therefore, focused on the simplification and 
liberalization of the tariff regime. We are happy  to note that Members have generally commended 
these efforts. As already indicated in our respon se to one of the advance written questions, Nigeria 
hopes to significantly increase its level of tariff bindi ng at a lower average rate in the context of the 
ongoing Doha Round negotiations on Non-Agricultural Ma rket Access (NAMA). It is expected that 
the gap between the bound and applied tariff rates will  therefore be significantly narrowed, in order to 
ensure the predictability of tariff regime. We have also clearly indi cated that there are ongoing efforts 
to fully eliminate and tariffy the remaining impor t prohibitions within the context of the ECOWAS 
Common External Tariff (CET). Concerns raised by Members in these areas have been noted and will be addressed once the implementation of the CET is concluded. Moreover, any further changes to the 
tariff regime thereafter would no longer be based  on national policy consid eration but on regional 
priorities. 
220. On customs procedures, Nigeria would like to  assure Members that the ongoing customs 
reforms have fully addressed issues relating to  Nigeria's commitment under the Customs Valuation 
Agreement. The need for transparency of import pr ocedures has also been taken into account, through 
the adoption of international best practices, especi ally simplified and automated clearance system. 
221. Nigeria remains firmly committed to the rea lisation of the goals and objectives of the 
Economic Community of West African States (ECOWAS). To that end, Nigeria has significantly contributed to the giant strides in the integration e fforts witnessed in the sub-region. Efforts have also 
been made to actively participate in bilateral and regional initiatives like the New Partnership for 
Africa Development (NEPAD) and the implementation process of the African common market, in 
order to promote intra-regional trade in Africa. It is important to acknowledge that one of the central 
objectives of the Economic Partnership Agreement ( EPA) negotiations between West Africa and the 
European Union is to deepen and strengthen regional integration. Nigeria, therefore, is committed to 
the conclusion of a successful development-fri endly EPA between West Africa and the EU. 
222. On standards, while we note that Members have appreciated Nigeria's effort to adhere to, and 
apply international standards, the issue of high cer tification costs would be considered in order to 
address the concern expressed, as may be necessary. 
223. The Discussant wanted to know how Nigeria is grappling with challenges in the agricultural 
sector, including support from donors and the efforts being made to take advantage of existing 
opportunities. Members may wish to note that Nige ria has designed plans and programmes to grow 
the agricultural sector at the rate of 10% annually in tune with the continental agreement-
Comprehensive Africa Agriculture Development Progr amme (CAADP). Government  is also investing 
heavily in several projects across th e entire agricultural value chain, such as improving the availability 
and delivery of appropriate inputs, commercial agriculture development programme, enhancing 
storage facilities, creating an enabling environmen t that is conducive for high agricultural growth,  WT/TPR/M/247 
 Page 35 
 
 
  promoting inter-sectoral linkages as well as promoti ng private sector involvement in agriculture. All 
these national efforts are being supported by both b ilateral and multilateral donor agencies. Additional 
financial and technical assistance from the donor comm unity will further enhance performance in this 
sector. 
224. The measures taken by the Central Bank of Nige ria (CBN) in the aftermath of the economic 
and financial crisis have led to stability in th e banking system. Banks have continued to lend to 
customers who meet mandatory prudential requirements. 
225. The microfinance policy of the CBN has been st rengthened to enable them reach those in 
micro enterprises and the informal sector, who ot herwise will not be served by the 24 large deposit 
money banks. A licensing scheme for non-interest ba nking has also been developed, in order to 
expand financial inclusion.  
226. Efforts are on-going to limit the use of cash by introducing electronic platforms through 
which internet Point-of-Sale (POS) and other elect ronic payments are eff ected. The government has 
introduced mandatory e-payment of salaries of em ployees and fees of procurement suppliers. Taxes 
and tariffs are no longer paid by cash/bank drafts  but by direct credit to designated accounts. 
227. Part of the reason for the limited use of the banking system by the general population is the 
difficulty of reliable identity system that can support consumer credit finance.  Nigeria would 
welcome support by Members in overcoming this challenge. USAID, International Finance Corporation (IFC) and other donors, as well as some  export/import banks of Member countries have 
assisted Nigerian commercial banks with loanable funds. More of such assistance would be welcome, 
especially to microfinance banks. 
228. The challenges to the national economy aris ing from the problems and impediments to 
electricity supply have been identified as a major component of the transformation agenda of government. Efforts towards realizing this goal co mmenced in 2005 with the passage of the Electric 
Power Sector Reform Act, under which the monopol y, National Electric Power Authority (NEPA), 
was unbundled into 18 companies, comprising 11 distribution companies, 6 generation companies and 
1 transmission company. Other important initiatives in the sector include the establishment of the 
Nigeria Electricity Regulatory Commission, Bulk Trading Company, Nigeria Electricity Liability 
Management Company and Nigeria Electricity Manage ment Services Plc. These new institutions have 
the respective responsibilities to regulate the sector; carry out contract management and bulk trading; manage extant assets, liabilities and other financia l obligations; and provide  a vehicle to warehouse 
common services hitherto carried out by the Po wer Holding Company of Nigeria (PHCN).  
229. The One-Stop-Shop Inter-Ministerial Committee me ets with prospective investors, at least 
once a month, to assist with clarification of info rmation on the sector. The Committee has been useful 
and productive.  In particular, it has met with nearly  100 investors in the last two years. Although it is 
too early to fully assess the impact of these measur es by government, it is important to note that 
during the period under review, generation has im proved on average from 2,500 to 3,800 MW. Both 
transmission and distribution capacities have expe rienced improvements of about 15% and 17%, 
respectively. As at today, the Bureau of Pub lic Enterprises (BPE) has concluded the Expression of 
Interest (EOI) evaluation, and the shortlisted compan ies have been issued letters to come forward to 
procure the necessary bidding documents for the next stage. 
230. The implementation of the Nigerian Conten t Law on procurement follows the Nigerian 
Petroleum Exchange (NIPEX) electronic procuremen t procedure, which is competitive, transparent 
and of world standard. Invariably, all investors, whet her local or foreign, have equal opportunities. In 
addition, under the Nigeria Investment Promoti on Commission (NIPC) Act of 1995, foreigners are 
allowed 100% ownership of enterprises incorporated in Nigeria; and this is fully reflected in Nigeria's WT/TPR/M/247 
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  Schedule of Commitments under the GATS. Conseque ntly, all foreign oil companies operating in 
Nigeria can fully benefit from the provisions of the Nigerian Content Act. Furthermore, the Nigerian 
Content Development Monitoring Board (NCDMB) is a new institution, which is still consulting with 
all stakeholders on the modalities for ha rmonizing the various policy provisions. 
231. The oil and gas reform is aimed at delinea ting roles and responsibilities of public sector, 
establishments within the sector, thereby enabling each  of them to operate efficiently. The Petroleum 
Industry Bill (PIB), therefore, consolidates the vari ous laws and statutes that govern operations in the 
sector as well as emplace transparency and compe titiveness, which will make it easier to implement 
the deregulation and privatization programme.  In addition, the Bill will enhance value addition and 
further diversify the productive base of the Nige rian economy, expand gas exports and domestic gas 
utilization, as well as institutionalize the process of  environmental impact assessment, remediation 
and community empowerment and participation. So far, the Bill is undergoing review through 
consultations with relevant stake holders and the concerns raised by Members at this review will be 
taken into account.  
232. The telecommunications sector is among those that have continued to benefit from the 
government policy of deregulation during the review  period. Further efforts to broaden access to 
telecommunications are enshrined in the nationa l Rural Telephony Programme, which is aimed at 
providing telecommunications services to the remaining 343 Local Government Areas (LGAs) 
without any form of communication facility. The pr oject is being implemented in phases; and is 
expected to empower 75% of the people living in the rural areas of the country to communicate and 
have access to the internet.  It is expected that  the project would assist Nigeria achieve the World 
Summit on the Information Society (WSIS) objectiv e of connecting every village throughout the 
globe by 2015. 
233. Nigeria is making efforts towards the passage of  the Bill establishing the Intellectual Property 
Commission, which has been submitted to the Nati onal Assembly for passage into law.  The Bill 
specifically, covers measures available to the regist ered intellectual property owners to enforce their 
rights. Such measures include injunction, damage s, delivery up of infringing goods and account of 
profit. In addition to this, the Bill will cover crimin al provisions/penalties against wilful acts of IP 
infringement on commercial skills.  Regarding the efforts being made on the passage of the new IP 
Bill, Nigeria has already drafted a Bill to amend th e current Trademarks, Patents, Industrial Designs, 
and a new Plant Variety Protection Bill. The Bills are before the National Assembly for passage into 
law.  
234. Other measures that government is taking in the enforcement of IP rights include customs and 
police action in seizures, and raids of fake and pirated products in the market; as well as customs 
seizures at the border to stop infringing goods from crossing the borders. Government is also pursuing an effective strategy against fa ke products through registration bodies and judicial/enforcement 
authorities, and through enhanced public enlightenment campaign. 
235. The need to continue to reform the trade po licy of Nigeria has been emphasised during the 
course of this review meeting, especially in areas such as narrowing the gap between applied and 
bound tariff rates; drastic reduction in the list of  items on the import prohibition list; reduction and 
harmonisation of levies and taxes; and customs reform. Let me reiterate that most of these issues are currently receiving attention, including efforts to upda te the country's trade policy in order to meet the 
challenges of the global economic environment in the 21
st Century. 
236. In conclusion, the Nigerian delegation would like to express its deep appreciation for the 
excellent manner in which you have  conducted this review meeting.   The objective assessment and 
relevant analysis provided by the Discussant, incl uding his suggestions on the way forward are highly 
appreciated.  We are grateful to Members, especially  those who have participated in this exercise  WT/TPR/M/247 
 Page 37 
 
 
  throughout its duration. We thank all of you for yo ur constructive views and encouragement. Let me 
assure you that all the issues discussed and con cerns expressed during this fourth Trade Policy 
Review of Nigeria will be duly conveyed to  the appropriate sectoral authorities.  
EUROPEAN UNION 
237. We do have some follow-up questions in diffe rent areas of Nigeria's trade policies and 
measures.  Some of them were addressed today by Ambassador Agah and we have taken good note of 
them.  I would highlight some of the areas where we would seek more information or clarification in writing. 
238. First, we would like to have  more details on the employment and social policy addressed in 
the Vision 20:2020, notably how it addressed the situ ation on labour market. We also have some 
questions concerning ECOWAS polic ies and we would like to clarify a bit further the process of 
consultation in order to ensure compatibility  of other duties and taxes with the ongoing 
implementation of ECOWAS CET, and also have mo re information on the proposed content of the 
fifth band of ECOWAS CET in terms of products .  Also additional information on procedures 
granting preferential tariffs will also be welcome.  
239. On Customs procedures we would like to seek further information on the time of clearing 
goods and determining the country of origin.  We also have additional questions on import 
prohibitions, notably how are the lists reviewed, what  alternatives are put forward and the tendency of 
these policies.   And finally, we would seek so me examples of waivers by sector and products 
benefitting of exemptions.  These questions are quite detailed and technical so we will submit a list in 
writing and we would hope for replies within one month.  
UNITED STATES 
240. In an effort to continue with this discussion I offer a variety of follow-up questions to not only 
further clarify some questions but also seek ways to  further improve the Nigerian trade policy.  The 
first one is regarding the Strategic Action Against Pi racy or STRAP campaign.  In the statement this 
morning, you noted that there are public campaigns in  registration bodies that are taking some actions.  
It would be of great interest if you have other specific examples of positive results yielded by the 
STRAP campaign.  
241. Another question we have is with respect to th e import prohibition list.  Specifically in your 
answer you note that the list of prohibit goods w as drastically reduced from 45 in 2005 to 26 in 2010.  
It would be helpful if you provide the names and th e HS numbers of the 26 items that remain on the 
import prohibition list.  We also enquire if these have been notified to the WTO.  If not, when will 
they be notified and please explain the prohibition  list in light of Nigeria's WTO obligations, 
including Article XI of the GATT.   
242. Another follow-up question with respect to tr ansparency in these import prohibited goods.  
We note that there is nothing currently published with regard to restricted and prohibited goods, so we 
seek clarification in your statement th at the process is transparent.   
243. With respect to SPS measures, the Secretariat Report states that Nigeria currently has a ban 
on all types of meat recognising that Nigeria seeks to ensure in safeguard human, animal, and plant 
life or health for its citizens. Please clarify ho w these food safety and SPS concerns are addressed for 
the domestic poultry, eggs, pork and beef industry, gi ven Nigeria's limited institutional and technical 
capacity for testing and certification facilities.  If the objective of the import restriction on poultry, 
eggs, pork and beef is for food safety concerns, please explain how Nigeria accomplishes this 
objective in light of the WTO national treatment principle.  WT/TPR/M/247 
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  244. We have some questions with respect to the Nigerian Content Act, and I think you once again 
in your statement this morning touched on this ar ea and provided some additional clarification.  
Specifically we would like to ask to explaining gr eater detail the provisions of the Act that applies 
specifically to the use of services, for example,  as provisions on insurance, legal services, and 
financial services.  We also note in your response "that Nigeria Content Act does not discriminate 
against any good or service provider".  If this is correct, could Nigeria please confirm that local or 
"indigenous" services suppliers in foreign service supplie rs are to be treated the same under the Act as 
regards their ability to do business and engage in contracts with oil and gas operators. 
245. And finally we have a follow-up to the EU's question No. 42.  In Nigeria's response it 
introduces the Nigeria Content Development Monitori ng Board, and explains some of its role in 
implementing the Nigerian Content Act.  Could Nigeria please explain section 95 of the Act, which 
expressly permits gifts to the Board (including mone y, land, or other property)?  What is the purpose 
of this provision, and how does it accord with Nigeria' s continuing efforts to achieve transparency in 
government and root out corruption? 
NIGERIA 
246. I would like to thank the EU and the U.S. for the further follow-up questions.  I have noted 
that some of these have very deep sectoral linkages and it will not be possible for us to answer them 
today.  We are willing to respond to them within the agreed one month principle.  I would also like to 
indicate to the U.S. delegation that the list of im port prohibitions is published on the Customs website 
and any changes to it are there, so it is not a hi dden secret as to what actually happens, but we will 
respond to those questions in writing once we receive them. 
DISCUSSANT 
247. I would like to make some very gentle overall re marks.  First, let me say how impressed I am 
by the delegation that has come from Abuja to jo in and reinforce the team of Geneva.  I have 
participated in several TPRs and I know how difficu lt it is for Government departments to coordinate 
with each other and this TPR is a very good opportunity for us and th e Government to interact with 
each other in our own Departments. 
248. Let me also note the frankness and the open and transparent manner in which you have 
answered the questions.  Often is very difficult to answer very specific questions because you have to 
put it in a context, and I think what the head of th e delegation has done in your reply is really provide 
an excellent context for many of the concerns and issues that have been expressed by delegations in 
numerous questions, particularly with regard to the relatively slow legislative process and agenda. 
And I think that putting it in the context that you have of what it must have been a very difficult and 
organizing process of transition from  a military rule and towards an increasingly deepened democratic 
process. 
249. I would also like to say that as far as some of the specific sectors and the questions that have 
arisen about those sectors and the reforms that you are making there, it is clear that Nigeria already 
has a vision and a very active set of policies and progra ms in place to deal with some of these issues 
very, very challenging processes of reform and restructuring.  
250. In the oil sector, as you have indicated, majo r reforms are underway, and there is always a 
need to keep explaining why you have chosen the particular part you have in your own context to 
other foreign investors and so you have began to do th at.  In agriculture, which is a huge challenge for 
Africa as a whole, Nigeria major reforms are underway and from your indications you are making 
efforts in this regard and it is one of those are as where all WTO Members can contribute to enhancing 
the capacity of African agriculture.  Regarding ba nking reforms, clearly you have already made major  WT/TPR/M/247 
 Page 39 
 
 
  reforms given the challenges that have arisen in th e economic and financial cr isis.  But the challenge 
of really bringing in the bank sector is huge and here  all the support that we can provide to help you 
will be important. 
251. Finally let me say that I was deeply impressed with the competence, the good nature and the 
very transparent manner in which you have participated  in this TPR.  I am very hopeful that Nigeria is 
on track to continue with the high growth and to really embark upon the real challenge of deepening 
that growth.  WT/TPR/M/247 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
252. This fourth Trade Policy Review of Nigeri a has given us a better understanding of the 
country's recent economic, including trade, polic y developments and enabled us collectively to 
measure the challenges Nigeria currently faces in  improving its economic prosperity.  Our candid 
discussion has proved more engaging thanks to  the full and open participation of the 
Nigerian delegation, led by H.E Frederick Agah, and by the insightful remarks made by the 
discussant, H.E. Faizel Ismail of South Africa, as well as active participation by numerous delegations. 
253. Members appreciated Nigeria's active participa tion in the WTO and the constructive part it 
was playing in the DDA and noted the important role  being played by Ambassador Agah as Chairman 
of the General Council, in the preparations for the 8
th Ministerial Conference later this year. 
254. On the positive side, Members commended Nigeria on its robust and broad-based economic 
growth during the review period, they welcomed the reduction in the average applied MFN tariff and 
the number of products on the import prohibition list while praising the steps taken to simplify 
customs procedures.  Members also  recognized Nigeria's efforts at diversification of the economy and 
regulatory reform.  However, they also noted that reform would have to co ntinue and the pace of 
reform would have to accelerate if Nigeria was to  meet its own ambitious development objectives. 
255. Some delegations however also stated that cer tain measures taken by Nigeria might not be 
compatible with its WTO commitments, such as impo rt prohibition and restrictions and the Nigerian 
Content Development Act, which discriminates agai nst foreign suppliers of goods and services in the 
oil and gas sector of the economy.  Some delegations  also noted that Nigeria continues to use trade 
restrictive measures to achieve objectives that could be better served with other policies. 
256. The numerous statements, questions and replies voiced in the course of this Review have 
highlighted the fact that there remains room for si gnificant further improvement of Nigeria's trade and 
trade-related policies.  In fact, there are a number of areas where reforms could be both beneficial to Nigeria and would help strengthen its international trade and investment.  The Nigerian authorities 
might give thought to improvements that c ould be made in the following spheres: 
 a) Legislative change:  Some members menti oned the large number of draft bills at 
various stages of development, some of wh ich had already been prepared at the time 
of the last review in 2005.  Although  some legislation has been enacted, many 
important pieces of legislation are still at the draft stage or have been before the National Assembly for some time. Delega tions urged Nigeria to implement its 
planned reforms, in areas such as comp etition policy, contingency measures, the 
petroleum industry, and public utilities.  Such reforms would provide a more conducive economic and investment environment.   
 b) Transparency:  Members stated the lack of transparency in existing laws and 
regulations including those pertaining to customs rules and procedures increase the 
cost of doing business in Nigeria.  Me mbers invited Nigeria to provide full 
transparency of its laws and regulatio ns including import procedures and customs 
regulations. 
 c) Tariff predictability:  While they welcomed  the reduction in the average applied MFN 
tariff from 29% in 2003 to 12% in 2009, so me delegations were concerned that the 
significant gap between the applied MFN tari ffs and the bound rates and the low level 
of tariff bindings created uncertainty and urged Nigeria to make its tariffs more 
predictable.  WT/TPR/M/247 
 Page 41 
 
 
   d) National treatment:  Members noted that some other duties and charges levied on 
imports appeared to be applied in a discriminatory fashion.  They recommended that such discrepancies be eliminated in order that Nigeria fully comply with the WTO 
principle of national treatment. 
 e) Intellectual property rights:  Members not ed that the current law on intellectual 
property was out-dated and, therefore, encouraged Nigeria to implement the new 
National Bill quickly, as well as strengthening protection and enforcement aspects. 
 f) Government procurement:  Members took not e of the new Public Procurement Act 
and urged Nigeria to consider the benef its of becoming an observer to the WTO 
Agreement on Public Procurement as a first step toward full membership. 
 g) Infrastructure:   Several delegations, including the Nigerian, noted the poor state of 
infrastructure generally, particularly electricity while noting progress made in telecommunications.  However, the welcom ed the Government's new Power Sector 
Plan and progress made in privatisation and divestment in power generation, 
distribution and transmission. 
257. This review of Nigeria's trade policy would not  be complete without a mention of its booming 
film industry.  Nollywood, as the movie production cen tre is called, is in close competition with its 
Hollywood (United States) and Bollywood (India) count erparts for first place in terms of volume of 
film production.  This new industry, which has c ontributed to diversifying production in Nigeria, 
emerged in the early 1990s and currently provides di rect or indirect employment for 2 million people, 
according to the sector concerned.  A fine example that could serve as a case study for schools of 
economics and business administration.  Moreover, there are a number of aspects that relate to our 
discussions, including audio-visual services and inte llectual property, amongst others.  This is an 
industry that bears witness to the wealth of creativity in Nigeria. 
258. In conclusion, this Review has confirmed the important role played by Nigeria in the 
multilateral trading system, as evidenced by the la rge number of advance questions and statements 
made.  Once again, I thank the delegation of Nige ria, the discussant and Members for contributing to 
an informative and interesting review.  I also wi sh to express my appreciation to the delegation of 
Nigeria for its oral and written responses during the m eeting.  We look forward to receiving Nigeria's 
outstanding responses within the coming month. 
 
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