Index of "1996 Country Commercial Guides"
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U.S. Department of State  
Nigeria Country Commercial Guide  
Office of the Coordinator for Business Affairs  
  
  
  
                         FY 1996  
  
  
  
This Country Commercial Guide (CCG) presents a comprehensive look at   
Nigeria's commercial environment through economic,  political and market 
analyses.    
 
The CCGs were established by recommendation of the Trade Promotion   
Coordinating Committee (TPCC), a multi-agency task force, to consolidate  
various reporting documents prepared for the U.S. business community.   
Country Commercial Guides are prepared annually at U.S. Embassies  
through the combined efforts of several U.S. governement agencies.  
 
 
     TABLE OF CONTENTS  
 
I.   EXECUTIVE SUMMARY  
     -    Commercial Environment  
     -    Major Business Opportunities  
     -    Embassy Assistance  
 
II.  ECONOMIC TRENDS AND OUTLOOK  
     -    Agriculture  
     -    Manufacturing  
     -    Oil Sector  
     -    Banking Sector  
     -    External Sector  
     -    Trade with the United States  
     -    Infrastructure  
  
III.  POLITICAL ENVIRONMENT  
 
IV.   MARKETING U.S. PRODUCTS AND SERVICES  
 
V.    LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT  
     -    Best Prospects in Non-Agricultural Goods  
     -    Best Prospects in Agricultural Goods  
 
VI.   TRADE REGULATIONS AND STANDARDS  
     -    Tariffs and Import Taxes  
     -    Customs Valuation  
     -    Import Licenses  
     -    Export Control  
     -    Import/Export Documentation  
     -    Temporary Entry  
     -    Labeling and Marking Requirements  
     -    Prohibited Imports  
     -    Standards  
     -    Free Trade Zones/Warehouses  
     -    Special Import Provisions  
     -    Membership of World Bodies  
  
VII.   INVESTMENT CLIMATE  
     -    General Climate  
     -    Conversion and Transfer Policies  
     -    Expropriation and Compensation  
     -    Dispute Settlement  
     -    Performance Requirements/Incentives  
     -    Right to Private Ownership and Establishment  
     -    Capital Outflow Policy as It Affects Repatriation  
     -    Protection of Intellectual Property Rights  
     -    Regulatory System - Laws and Procedures  
     -    OPIC and Other Investment Insurance Programs  
     -    Foreign Trade Zones  
     -    Tariffs and Duties  
     -    Commercialization and Privatization  
     -    Major Foreign Investors  
     -    Political Violence  
     -    Labor  
 
VII.   TRADE AND PROJECT FINANCING  
     -    Brief Description of Banking System  
     -    Foreign Exchange Controls Affecting Trading  
     -    General Financing Availability  
     -    How to Finance Exports/Methods of Payments  
     -    Bilateral, Multilateral and Local Export Funding  
     -    Nigerian Banks with Correspondent U.S. Banking   
     Arrangements  
  
IX.   BUSINESS TRAVEL  
     -    Language  
     -    Business Customs  
     -    Accommodations  
     -    Transportation  
     -    Holidays  
     -    Climate  
     -    Medical Considerations  
     -    Safety  
  
X.   APPENDICES  
  
     A.   COUNTRY DATA  
  
     B.   DOMESTIC ECONOMY   
  
     C.   TRADE  
  
     E.   U.S. AND COUNTRY CONTACTS  
  
     F.   MARKET RESEARCH FIRMS  
  
     G.   TRADE EVENT SCHEDULE  
  
  
CHAPTER I:  EXECUTIVE SUMMARY  
  
  
In conjunction with his 1995 budget announcement, Nigerian head of State   
General Sani Abacha abandoned the tightly regulated economic policies   
enacted in 1994.  Under a new policy of "guided deregulation," the   
Government of Nigeria (GON) has reopened the autonomous foreign exchange   
market, loosened controls on foreign investment and reduced tariffs and   
bans on some imports.     
 
Under the new foreign exchange (forex) policy, the official exchange   
rate of Naira 22 to the dollar has been retained for official government   
transactions.  Meanwhile, private companies can now source forex on the   
autonomous market, and can once again hold domiciliary accounts in   
private banks, with account holders having unfettered use of the funds.   
Bureaux de Change are again functioning, albeit with a limitation of   
$2,500 per sale.  As a result of these policies, GON officials project a  
real Gross Domestic Product (GDP) growth rate of over 2 percent in 1995,  
led by expansion in the agriculture sector and a recovery in the   
manufacturing sector.  
  
Nigerian economic performance continued to decline in 1994 due to fiscal  
expansion and the disruption of economic activity caused by a nine-week  
oil workers strike.  Nigerian GDP grew by only 1.3 percent in real terms  
in 1994, compared with a 2.3 percent rise in 1993.  Official end-  
December 1994 figures showed 1994 inflation down slightly to 57.0   
percent, compared with 57.2 percent in 1993.  
 
Representing 38.7 percent of GDP, the agricultural sector saw its growth   
decline slightly to 4.1 percent in 1994, compared with 4.6 percent   
growth in 1993.  The manufacturing sector, on the other hand, contracted   
5.0 percent during 1994 after decreasing 4.2 percent in 1993.  The   
bottom line was a further reduction in Nigeria's manufacturing capacity   
utilization rate to 30.4 percent in 1994, down from 37.2 percent in   
1993.  
  
The oil sector contracted by 6.0 percent in 1994, after a 2.6 percent  
drop in 1993.  Petroleum revenue dropped by 1.2 percent as a result of  
two factors:  a 10.0 percent decline in the average realized price for  
Nigerian crude and a fall in export volume during the nine-week oil  
workers strike.  Although a paltry 4.7 percent of GDP, non-oil revenue  
increased by 36 percent.    
  
The external sector of the Nigerian economy remained under pressure in  
1994 due to a decline in the volume of crude oil exports and a   
deterioration in the country's terms of trade.  Oil and non-oil exports   
fell $500 million from 1993, reflecting the fall in the export price of   
oil.  Nigeria's external debt service payments climbed to over 40   
percent of exports and the spread between the official (Naira 22 to the   
dollar) and autonomous rates widened.    
  
Foreign direct investment, largely in the petroleum sector, increased to   
$1.9 billion from $1.3 billion in 1993, despite the abysmal business   
climate.  
  
Nigeria has been ruled since 1985 by military governments.  After an   
annulled election in June 1993, the return to democratically-elected   
civilian government was indefinitely postponed.  In the interim, Nigeria   
is ruled by a military council headed by General Sani Abacha.    
  
  
COMMERCIAL ENVIRONMENT  
  
Nigeria is Africa's most populous nation and the United States' fifth   
largest oil supplier.  It offers investors a low-cost labor pool,   
abundant natural resources, and the largest domestic market in sub-  
Saharan Africa.  These advantages must be weighed against inadequate   
infrastructure, confusing and inconsistent regulations, and endemic   
corruption.  
  
In light of GON's attempt to make an economic about-face in 1995,    
Nigeria-watchers have expressed guarded optimism about the nation's   
economic prospects.  The recent repeal of the Enterprises Promotion   
Decree of 1989 allows foreigners to take a greater ownership share in   
Nigerian firms.  However, rules on foreign investment, dividend   
remittance, and ownership structure remain unclear, pending the release   
of government guidelines.  
  
Although "downplaying" its privatization program, the GON has said that   
it will endeavor to lease enterprises, such as all sugar, paper, steel,   
fertilizer, petrochemical and oil refineries, as well as the national   
carrier, Nigeria Airways, to both local and foreign companies.  The GON   
has also committed to pursuing full commercialization of the Nigerian   
Telecom-munications, electric, postal and transport (airports and   
railways) companies.  
  
The U.S. recorded a smaller trade deficit with Nigeria in 1994 of $3.9   
billion, down from $4.4 in 1993, largely due to reduced U.S. crude oil   
imports.  Total U.S. exports to Nigeria, led by machinery parts and   
wheat, fell to $509 million in 1994, from $890 million in 1993.  
  
Nigeria was the fifth largest supplier of crude to the U.S. in 1994   
(behind Saudi Arabia, Canada, Venezuela and Mexico), with crude sales   
dropping to $4.2 billion from close to $5 billion in 1993.  Total U.S.   
imports from Nigeria fell to $4.4 billion from $5.3 billion.  
  
  
MAJOR BUSINESS OPPORTUNITIES  
  
Leading trade prospects for U.S. business are:  oil and gas machinery,   
computers, software and peripherals, telecomumunications equipment,   
automotive parts and accessories, construction equipment, dairy   
products, wheat, rice, and wine and spirits.  
  
  
EMBASSY ASSISTANCE  
  
American Embassy Lagos Economic, Commercial and Agriculture staff stand   
ready to provide assistance to American businesses in Nigeria.  However,   
due to the growing problem of advance fee fraud (known as 419 scams) and   
other forms of extortion, we warn business persons contemplating   
business deals in Nigeria to first check with their U.S. Department of   
Commerce District Office before providing any information, making any   
financial commitments or traveling to Nigeria.  
  
Country Commercial Guides are available on the National Trade Data Bank   
on CD-ROM or through the INTERNET.  Please contact STAT-USA AT 1-800-  
STAT-USA for more information.  To locate Country Commercial Guides via   
the INTERNET, please use the following worldwide WEB address:  WWW.STST-  
USA.GOV.  CCGS can also be ordered in hard copy or on diskette from the   
National Technical Information Service (NTIS) at 1-80-533-NTIS.   
  
  
  
  
  
CHAPTER II:  ECONOMIC TRENDS AND OUTLOOK  
  
  
As a result of new "liberalizing" policies, GON officials project a real   
Gross Domestic Product (GDP) growth rate of over 2.0 percent in 1995,   
led by expansion in the agriculture sector and a recovery in the   
manufacturing sector.  By opening up the economy and limiting government   
spending, the GON hopes to reverse the declining growth trend and   
negotiate a Medium-term Economic adjustment program with the   
International Monetary Fund, followed by some form of external debt   
relief and a resumption of concessional financing in 1995 and 1996.   
  
Nigerian economic performance continued to decline in 1994 due to fiscal   
expansion and the disruption of economic activity caused by a nine-week   
oil workers strike.  Nigerian GDP grew by only 1.3 percent in real terms   
in 1994, compared with a 2.3 percent rise in 1993.  Official end-  
December 1994 figures showed 1994 inflation down slightly to 57.0   
percent, compared with 57.2 percent in 1993.    
  
  
AGRICULTURE  
  
Representing 38.7 percent of GDP, growth in the agricultural sector   
declined slightly to 4.1 percent in 1994, compared with 4.6 percent   
growth in 1993.  Crop production rose by 4.2 percent, compared with 6.2   
percent in 1993, with all the major staples recording increases except   
wheat, which declined by 30.3 percent as a result of the lifting of the   
import ban.  Maize, sorghum and beans recorded modest output increases   
of 2.0, 3.0, and 6.0 percent, respectively.   
  
Nigeria's major cash crops, soybeans, palm oil, groundnut, cocoa and   
rubber, also recorded appreciable output increases.  Crop increases were   
attributed to favorable weather conditions and increases in the supply   
and distribution of fertilizers and other inputs, as well as an   
improvement in farmgate prices.    
  
The improvement in the world market prices of Nigeria's major   
agricultural export items, observed in 1993, continued in 1994.  The   
price of cocoa, the leading export commodity, rose by 21.8 percent in   
1994 to $1,385.8 a ton.  The prices of coffee, groundnut oil, palm oil   
and cotton, in dollar terms, also improved.  
  
In January 1995, the GON announced a revision of the tariff structure   
which provides for a narrower range of customs duties with fewer   
exemptions and import prohibitions.  Commodities removed from the import   
prohibition list include day old chicks, poultry parent stock, sparkling   
wines and champagne, jute bags, fruits and fruit juices.  The long   
standing ban on rice was also lifted in March 1995, although an import   
duty of 100 percent makes imports prohibitively expensive.  Although   
there are currently no prohibitions on wheat, a shortage of foreign   
exchange in 1994 led to reduced wheat imports.  With liberalization of   
the forex regime, we expect wheat imports to increase this year.  
  
  
MANUFACTURING  
  
The manufacturing sector, on the other hand, contracted 5.0 percent   
after decreasing 4.2 percent in 1993.  Nevertheless, the manufacturing   
sector's share of GDP, remained below 10 percent.  The bottom line was a   
further reduction in Nigeria's manufacturing capacity utilization rate   
to 30.4 percent in 1994, down from 37.2 percent in 1993.  This decline   
is attributed to the high cost of production, a shortage of foreign   
exchange for imports, smuggling, and political instability.   
  
  
OIL SECTOR  
  
The oil sector contracted by 6.0 percent in 1994, after a 2.6 percent   
drop in 1993.  Petroleum revenue declined by 1.2 percent as a result of   
a 10.0 percent decline in the average realized price for Nigerian crude   
and the fall in export volume during the nine-week oil workers strike.    
Although a paltry 4.7 percent of GDP, non-oil revenue increased by 36   
percent.  
  
  
BANKING SECTOR  
  
With the adoption of the structural adjustment program (SAP) in 1986 the   
licensing of new banks was liberalized and more non-bank financial   
institutions were created.  In accordance with this policy stance, the   
number of banks (commercial and merchant) rose sharply from 40 in 1985   
to 120 at the end of 1993.  Following the liquidation of four banks in   
1994, the number of banks in Nigeria fell to 116, both government and   
private-sector controlled.  From eight in 1990, the number of banks   
adjudged technically insolvent rose steadily to 24 in 1993 and 34 in   
1994.  
  
The banking sector, which was already under considerable strain in 1994,   
faced additional instability due to the GON's fixing of interest and   
foreign exchange rates.  In relation to the 57.2 percent 1994 annual   
inflation rate, real deposit and lending rates were significantly   
negative.  As a result, banks found it unprofitable to lend at the   
official interest rate ceiling of 21 percent, and de facto breaches of   
the relevant guidelines were common.  These factors, plus poor   
management and insider abuse, led to reports of a number of distressed   
banks.  Furthermore, instability in the fixed 22 Naira to the dollar   
exchange rate in 1994 put excessive pressure on the limited supply of   
foreign exchange.  (As a result, the parallel market premium reached   
over 274 percent in 1994.)  
  
With minor modifications, the fixed interest rate regime of 1994 has   
been continued in 1995.  Banks and other institutions are allowed a   
maximum spread of 7 1/2 percent between their deposit and lending rates,   
subject to a maximum lending rate of 21 percent.  
  
  
EXTERNAL SECTOR  
  
The external sector of the Nigerian economy remained under pressure in   
1994 due to a decline in the volume of crude oil exports and a   
deterioration in the country's terms of trade.  Oil and non-oil exports   
fell $500 million from 1993, reflecting a fall in the export price of   
oil.  Nigeria's external debt service payments climbed to over 40   
percent of exports and the spread between the official (Naira 22 to the   
dollar) and parallel rate widened.  
  
In 1994, oil export revenues accounted for 97 percent of total exports.    
The portion of exports sent to Nigeria's largest customer, the United   
States, continued to fall in 1994 to 45.7 percent (from 46.5 percent in   
1993).  In contrast, Nigeria's second largest customer, France, doubled   
its share of oil imports, taking 12.8 percent.    
  
Foreign direct investment, largely in the petroleum sector, increased to   
$1.9 billion from $1.3 billion in 1993, despite the abysmal business   
climate.  
  
  
TRADE WITH THE UNITED STATES  
  
The U.S. recorded a smaller trade deficit with Nigeria in 1994 of $3.9   
billion, down from $4.4 billion in 1993, largely due to reduced U.S.   
crude oil imports.  Total U.S. exports to Nigeria, led by machinery   
parts and wheat, fell to $509 million in 1994, from $890 million in   
1993.  
  
Nigeria was the fifth largest supplier of crude to the U.S. in 1994   
(behind Saudi Arabia, Canada, Venezuela and Mexico), with crude sales   
dropping to $4.2 billion, from close to $5 billion in 1993.  Total U.S.   
imports from Nigeria fell to $4.4 billion, from $5.3 billion in 1993.  
  
  
INFRASTRUCTURE  
  
Nigeria is Africa's most populous nation and the United States' fifth   
largest oil supplier.  It offers investors a low-cost labor pool,   
abundant natural resources, and the largest domestic market in sub-  
Saharan Africa.  These advantages must be weighed against inadequate   
infrastructure, confusing and inconsistent regulations, and endemic   
corruption.    
  
Nigeria's transport and communications networks constitute an important   
aspect of the country's development program.  The current economic   
recession has reduced shipping traffic at Nigeria's principal ports,   
including Lagos (Apapa and Tin Can Island), Warri, Sapele, Port Harcourt   
and Calabar.  Of the 167,800 kilometers of roads, more than 34,300   
kilometers are paved.  Nigeria also has about 3,500 kilometers of   
railroad tracks.  The State-owned airline, Nigeria Airways, has   
experienced prolonged financial and managerial difficulties.  It is one   
of the public enterprises tentatively slated for contract-leasing   
arrangements by the GON.  There are 15 airports, run by the Nigeria   
Airport Authority (NAA).    
  
  
CHAPTER III:  POLITICAL ENVIRONMENT  
  
  
Nigeria maintains a federal system of government with 30 states, the   
Federal Capital Territory, home of the new capital Abuja, and nearly 600   
local government areas, (LGA's).  On November 17, 1993, the head of the   
Interim National Government was replaced by the Defense Minister.  The   
new Head of State, General Sani Abacha, abolished the country's   
democratic institutions, including local governments, (elected in   
December 1990), state governments and assemblies, (elected in December   
1991), the National Assembly, (elected in July 1992), and the two   
political parties, (the NRC, or National Republican Convention and the   
SDP, or Social Democratic Party), both of which had been previously   
established with government support.  Currently, the Nigerian government   
is military-dominated and known as the Provisional Ruling Council,   
(PRC), which replaced the Interim National Government.  State governors   
have been replaced by military officers, who are known as   
"Administrator."  The PRC convened a National Constitutional Conference   
to determine the means and a timetable for a transition to civilian   
rule, and on June 27 the Constitutional Conference handed over its draft   
constitution to Head of State Sani Abacha, with the hope that democratic   
elections will be held sometime in the future.   
  
  
CHAPTER IV:    MARKETING U.S. PRODUCTS AND SERVICES  
  
Currently there are no restrictions placed on foreign investment in   
Nigeria.  The Nigerian Enterprises Promotion Decree of 1989, which   
provided for a single schedule of 40 enterprises to be reserved for 100   
percent Nigerian ownership, was repealed in the 1995 budget.   
  
Personal ties and patience are key to successful business activity in   
Nigeria.  FCS Nigeria believes that the best way for U.S. manufacturers   
and suppliers to penetrate the Nigerian market is through the Department   
of Commerce's Agent/Distributor service or CSS program.  Both aim to   
identify reputable and capable agents/distributors.  The U.S. Embassy in   
Lagos keeps a data base of potential agents/distributors but cautions   
that U.S. firms wishing to export to the Nigerian market should fully   
investigate the financial, technical, and marketing reputation of all   
candidates under consideration.    
  
Some U.S. firms prefer an exclusive agent/distributor relationship.    
Many foreign manufacturers and suppliers, however, appoint more than one   
agent/distributor so as to accommodate Nigeria's geographical size and   
ethnic complexities.  In Nigeria's complicated environment, all relevant   
terms and conditions of such arrangements must be carefully delineated.    
U.S. firms interested in the Nigerian market are strongly advised to   
seek the assistance of experienced commercial lawyers.  Enforcement of   
international property rights remains a problem in Nigeria despite   
official pronouncements and existing copyright laws.   
  
Principles governing agency and distribution are largely based on   
Nigerian case law established over many years.  Key issues include:    
geographical area of representation, duration of the agreement and the   
conditions under which it can be cancelled or revised, specific   
assignments, right to refuse orders, payment limitations of authority,   
restraints after termination to solicit sales from previous customers,   
restraints on the use of registered logos, company product or brand   
names and trademarks.  
  
Apart from Nigerian government-owned enterprises, there are three forms   
of business recognized under the Allied Matters Act of 1990:  companies,   
partnerships, and sole proprietorships.  As foreign firms cannot operate   
through a branch office, potential U.S. manufacturers and suppliers must   
establish a place of business and incorporate within Nigeria in order to   
conduct business.  According to the 1990 Act, establishment of a joint   
venture by itself is not sufficient to constitute a legal entity.  A   
foreign firm can only participate as a shareholder in a local company   
incorporated for the purpose of the joint venture.  
  
The government of Nigeria buys products and services through a tender's   
board comprised of favored firms with representatives in Nigeria.    
Imports into Nigeria valued at more than $1,000, and all containerized   
imports regardless of value, are subject to pre-shipment inspection at   
the point of export.  Related expenses are borne by the exporter. The   
following firm has been appointed by the Nigerian government as its U.S.   
pre-inspection agent:    
  
Intertek Services International  
3741 Red Bluff Road  
Houston, Texas  77503  
  
Attn:  Ms. Susan Finchum  
  
Tel:  (713) 475-2082  
Fax:  (713) 475-2083  
  
If, upon inspection, no irregularities in price, quantity or quality are   
found, a clean Report of Findings and an Import Duty Report (IDR) is   
issued, which is mandatory to clear imports through customs.  The IDR   
stipulates the required amount of duty, based upon the CIF value of the   
imported goods.  A large number of IDRs are reportedly challenged by   
Nigeria Customs Service (NCS) at the port of entry and debit notes are   
issued.  This increases the price paid by the consignee and ultimately   
the consumer.  The Nigerian Customs Service collects import and excise   
duties through six so-called "first generation" banks, listed below.  
  
First Bank of Nigeria PLC  
Afribank  
Union Bank of Nigeria PLC  
Universal Trust Bank  
United Bank for Africa PLC  
FSB International Bank    
  
The use of letter of credit for all imports valued more than $1,000 was   
made compulsory by the Nigerian government in 1994.  Therefore, U.S.   
suppliers are advised to ship on the basis of an irrevocable letter of   
credit confirmed by a U.S. or a major international bank.  (Please see   
Banking Section.)  
  
Advertising plays a significant role in marketing products and services   
in the Nigerian market.  However, due to limited communication links,   
especially in heavily populated rural areas, advertising strategies by   
U.S. firms should put emphasis on "below-the-line advertisements" (sales   
promotions including gifts and discounts.)  Agents and distributors of   
foreign suppliers and manufacturers usually expect promotional support   
such as subsidies and brochures to participate in trade shows.  
  
The Nigerian Association of Chambers of Commerce, Industry, Mines and   
Agriculture publishes an annual directory of trade shows in Nigeria.    
However, Nigeria's international trade fairs are not recommended by FCS   
Nigeria for the promotion of highly specialized, technical products due   
to their emphasis on "general" products.  Although a visit by a non-  
exhibiting U.S. exporter to an international Nigerian trade fair can   
help identify a potential agent or distributor, it is not required to   
penetrate the Nigerian market.  
  
The Manufacturers Association of Nigeria (MAN) publishes a journal   
entitled "WHO MAKES WHAT" which reports on developments and   
opportunities in various sectors and provides commentary on the Nigerian   
economy.  Additionally, it is an important source of information on the   
Nigerian market, and a useful medium in which to advertise products and   
services to the trade.  Inquiries regarding the journal may be directed   
to:  
  
The Manufacturers Association of Nigeria  
72 Obafemi Awolowo Way, Ikeja  
Lagos, Nigeria  
Tel: (234-1) 266-0756, 266-8992, 266-8985  
  
There are a number of business magazines published in Nigeria which may   
be of use to U.S. manufacturers and suppliers:  
  
The Nigerian Economist  
Through Sahel Publishing and Printing Co. Ltd.  
71 Oregun Road  
P.M.B. 21268, Ikeja  
Lagos, Nigeria  
  
Tel:  (234-1) 496-5411, 496-5979  
Fax:  (234-1) 269-3532  
  
  
The Businessman Journal  
White House  
23 Falomo Close, Ikeja  
P.O. Box 72269, Victoria Island  
Lagos, Nigeria  
  
Tel/Fax:  (234-1) 523-299  
  
Marketing  
10 Awofeso Street  
Honesty House, Palmgrove  
P.O. Box 256, Oshodi  
Lagos, Nigeria  
  
Tel:  (234-1) 821-0082  
  
African Technical Review of Business and Technology is another   
publication which U.S. firms may wish to consult or to consider as an   
advertising medium.  This monthly magazine, with a circulation of   
25,000, is an excellent source of information regarding technological   
development in African markets. This publication has a representative in   
the United States to facilitate inquiries from American businesses.  
  
African Technical Review of   
  Business and Technology  
Through Mercury Airfreight Anthill Ltd.  
2323 Randolph Avenue  
Avenel, NJ 07001  
  
  
Tel:  (908) 396-9555  
Fax:  (908) 396-1492  
  
  
MEDIA  
  
  
Federal Government Press:  
  
News Agency of Nigeria (NAN) is the government's voice for news and   
option media in Nigeria.  
  
NEW NIGERIAN  
DAILY TIMES  
ABUJA TIMES  
WEST AFRICA MAGAZINE  
  
State Government Press:  
  
SKETCH (Ibadan)  
HERALD (Ilorin)  
TRIUMPH (Kano)  
NIGERIAN STANDARD (Jos)  
CHRONICLE (Calabar)  
TIDE (Port Harcourt)  
STAR (Enugu)  
AMBASSADOR (Umuahia)  
  
  
Independent Publications:  
  
VANGUARD (Lagos Daily)  
CHAMPION (Daily, pro-Eastern Nigeria)  
THE INDEPENDENT (Weekly, pro-business)  
SUNRAY (Daily, Eastern, partly American-owned)  
THE DEMOCRAT (Daily, Northern Islamic, pro-government)  
THE WEEKLY BUSINESS TIMES (Weekly, pro-business)  
THIS DAY (Daily, pro-business)  
TEMPO (Weekly magazine)  
TELL (Weekly magazine)  
NEWSWATCH (Weekly magazine)  
  
  
CHAPTER V: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT  
  
  
PART I:  BEST PROSPECTS IN NON-AGRICULTURAL GOODS  
  
No.     Code            Sector Description  
  
1       OGM             Oil and Gas Machinery  
  
2       CPT             Computers, Software and Peripherals  
  
3       TEL             Telecommunications Equipment  
  
4       APS             Automotive Parts and Accessories  
  
5       CON             Construction Equipment  
  
  
1 - A)  Rank of Sector:   1  
  
    B)  Name of Sector:   Oil and Gasfield Machinery  
  
    C)  3 Letter ITA Industry Sector Code:  OGM  
  
                                      1994     1995    1996  
  
    D)  Total Market Size             
        (in $ millions)                400      400     450  
  
    E)  Total Local Production         -0-      -0-     -0-  
  
    F)  Total Exports                  -0-      -0-     -0-  
  
    G)  Total Imports                  400      400     450  
  
    H)  Imports from U.S.              200      220     250  
  
    I)  Exchange Rates  
        $1 = Naira                      22       82      85  
  
  
NOTE:  The above statistics are unofficial estimates.  
  
  
COMMENTS  
  
The oil and gasfield machinery sector is ranked number one because   
petroleum production is the primary activity of the Nigerian economy.    
Therefore, in spite of overall deteriorating economic conditions, trade   
and industry observers believe the oil and gasfield sector offers the   
most consistent opportunities for marketing essential production   
equipment in the near term.  As in the past, drilling equipment appears   
to hold the most promise for U.S. exporters with total sales in this   
subsector projected to exceed $200 million in 1996.  
  
It should be noted that in 1994, the exchange rate for the Nigerian   
currency, the Naira, was set by the Government at 22 Naira to one U.S.   
dollar.  The GON retained the official rate for government transactions   
in 1995, while the exchange rate on the informal market has risen to 81   
Naira to one U.S. Dollar.   
  
  
  
2  - A)  Rank of Sector:  2  
  
     B)  Name of Sector:  Computers, Software and Peripherals  
  
     C)  3 Letter ITA Industry Sector Code:  CPT  
  
                                    1994      1995     1996  
  
     D)  Total Market Size          
         (in $ millions)              60        65       80  
  
     E)   Total Local Production     -0-       -0-      -0-  
       
     F)   Total Exports              -0-       -0-      -0-  
  
     G)   Total Imports               60        65       80  
  
     H)   Imports from U.S.           30        32       35  
  
     I)   Exchange Rates  
          $1 = Naira                  22        82       85  
  
  
NOTE:  The above statistics are unofficial estimates.  
  
  
COMMENTS  
  
Computers, software and peripherals is ranked number two since it is   
viewed as one of the sectors expected to enjoy sustained market   
activity.  The lack of foreign exchange is the primary obstacle to   
growth in this sector.  Micro-and mini-computers and state-of-the-art   
printers represent the best sales opportunities and are projected to   
account for the bulk of the imports in this import-dependent sector.    
Increased imports for this sub-sector in 1994 were due mostly to higher   
cost of imports due to further devaluation of the Naira, by over 60%.  
  
U.S. suppliers will continue to face aggressive competition from   
European and Asian companies, but equipment of U.S. origin is generally   
regarded to be superior.  
  
  
3 - A) Rank of Sector:  3  
     
    B) Name of Sector:  Telecommunications Equipment  
     
    C) 3 Letter ITA Industry Sector Code:  TEL  
  
                                   1994       1995      1996  
         
    D) Total Market Size  
       (in $ millions)              100         80       100  
  
    E) Total Local Production       -0-        -0-       -0-  
    F) Total Exports                -0-        -0-       -0-  
    G) Total Imports                100         80       100  
    H) Imports from U.S.             30         20        25  
    I) Exchange Rates  
       $1 = Naira                    22         82        85  
  
  
NOTE:  The above statistics are unofficial estimates.  
  
  
COMMENTS  
  
In 1993, Nigeria embarked on a privatization of the telecommunications   
sector and since then various sub-sectors of this sector have been   
privatized as part of the GON's move to modernize the telecommunications   
sector.    
  
There is ongoing replacement of Nigeria's outdated telecommunication   
infrastructure through both multilateral and GON funding.  
  
Although this market is dominated by German firms, U.S.   
telecommunications equipment are competitive.  Estimated sales for U.S.   
telecommunications products in 1996 are $30 million.   
  
  
4 - A)  Rank of Sector:  4  
  
    B)  Name of Sector:  Automotive Parts and Accessories  
  
    C)  3 Letter ITA Industry Sector Code:  APS  
  
                                   1994        1995     1996  
  
    D)  Total Market Size                                     
        (in $ millions)             250         375      400  
          
    E)  Total Local Production       92          95      110  
  
    F)  Total Exports                 4           6       10  
  
    G)  Total Imports               188         260      280  
  
    H)  Imports from U.S.           6.2           7        8  
  
    I)  Exchange Rates  
        $1 = Naira                   22          82       85  
  
NOTE:  The above statistics are unofficial estimates.  
  
  
COMMENTS  
  
More than 80 percent of automobiles imported into Nigeria in the last   
three years were used.  The continued devaluation of Nigeria's currency,   
the Naira, from 22 Naira to $1 in 1994 to 81 Naira to $1 presently has   
made new automobiles costly.   This has created a "maintenance" culture,   
generating demand for spare parts and accessories.  
  
Available official statistics show that U.S. products account for over   
50% of this market.  However, a large volume of imports of automotive   
spare parts and accessories from the U.S. are bought "off the shelves"   
at retail prices and brought to Nigeria as accompanied air freight.    
These transactions, annually estimated to be between $3 to 4 million,   
are not recorded in U.S. trade figures.  (This therefore accounts for a   
low import figure on the table).  
  
A recent nation-wide survey revealed that local production has increased   
by over 700% to raise the total market to over $350 million in 1995.    
Estimated sales in 1996 are $400 million, with the U.S. share put at $80   
million.  
  
  
5 - A)  Rank of Sector:  5    
  
    B)  Name of Sector:  Construction Equipment  
  
    C)  3 Letter ITA Industry Sector Code:  CON  
  
                                     1994    1995      1996  
  
    D)  Total Market Size          
        (in $ millions)                70      75        90  
  
    E)  Total Local Production         12      15  
  
    F)  Total Exports                   4       6         5  
  
    G)  Total Imports                  58      60        70  
  
    H)  Imports from U.S.              40      45        48  
  
    I)  Exchange Rates  
        $1 = Naira                     22      82        85  
   
  
NOTE:  The above statistics are unofficial estimates.  
  
  
COMMENTS  
  
Construction equipment is another essential sector likely to grow in   
1995 and 1996.  
  
Increases in imports for earth moving and road building machineries are   
anticipated due to the Government's emphasis on road maintenance and   
reconstruction.  U.S. exporters will continue to face stiff competition   
from European well-established suppliers.  
  
  
PART II:  BEST PROSPECTS IN AGRICULTURAL GOODS  
  
  
No.  Code    Sector Description  
  
1         Dairy                  
  
2         Wheat                  
  
3         Rice                   
  
4         Wines and Spirits  
  
  
1.  A)  Rank of Sector      N/A  
  
    B)  Name of Sector      DAIRY  
  
    C)  PS&D - NI3028  
  
  
                                 1994     1995       1996  
    D)  Total Market Size       
        (in Volume MT)  
      
    E)  Total Local Productio   66,799    67,130    67,530  
  
    F)  Total Exports              -0-       -0-       -0-  
  
    G)  Total Imports          267,196   268,520   270,000  
  
    H)  Imports from U.S.       12,524    13,295    15,000  
  
    I)  Exchange Rates  
        USD 1 = Naira               22        80        85  
  
  
Note:  The above statistics are unofficial estimates.  
  
  
COMMENTS   
  
About 75% of total dairy products consumption in Nigeria is imported.    
The dairy products market in Nigeria is dominated by products from the   
EEC, and the U.S. share of the market remains insignificant.  Freight   
costs from the U.S. are about $300 a ton more than from the EEC.    
However, U.S. Dairy products are making determined inroads into the   
Nigerian market.  
  
  
2.  A)  Rank of Sector :   N/A  
  
    B)  Name of Sector :   WHEAT  
  
    C)  PS&D Commodity Heading - NI 1931102  
  
  
  
                               1994       1995       1996  
  
  
    D)  Total Market Size        810       835       1050  
        (in 1,000 MT)  
  
    E)  Total Local Production    30        35         50  
  
    F)  Total Exports:            30       -0-        -0-  
  
    G)  Total Imports:           780       800       1000  
  
    H)  Imports from U.S.        780       800       1000  
  
    I)  Exchange Rates  
        USD 1 = Naira             22        80         85  
  
Note:  The above statistics are unofficial estimates.  
  
  
COMMENTS  
  
Nigeria's wheat imports were down significantly in 1994 because of   
difficulties in obtaining necessary foreign exchange due to tight   
monetary controls.  However, with the reintroduction of a liberalized   
foreign exchange policy, the import level is expected to increase   
slightly in 1995.  
  
  
3.   A)  Rank of Sector:   N/A  
       
     B)  Name of Sector:   Rice  
  
     C)  PSD Commodity Heading : NI 1931102  
  
  
                                    1994      1995      1996  
  
     D)  Total Market Size  
         (in 1,000MT)              1,183     2,850     3,125  
  
     E.  Total Local production      833     2,500     2,725  
  
     F.  Total Exports               -0-       -0-       -0-  
  
     G.  Total Imports               350       350       400  
  
     H.  Imports from U.S.            NA        40        NA  
  
     I.  Exchange Rate  
         USD 1=Naira                  22        80        85  
  
  
NOTE:  The above statistics are unofficial estimates.  
  
  
COMMENTS  
  
The eight year import ban on rice imports was lifted in 1995. However,   
imports remain restricted due to the current 100 percent duty.  An   
estimated 350,000 metric tons of Asian rice are expected to be smuggled   
into Nigeria in 1995 as a result.  
  
  
4 -  A)  Rank of Sector   N/A  
  
     B)  Name of Sector : Wines and Spirits  
  
     C)  PS&D Commodity Heading - N/A  
  
  
                                   1994      1995       1996  
  
     D)  Total Market Size  
         (in 1,000 cases  
         of 12 x 70 cl)           3,400     3,400      3,800  
  
     E)  Total Local Production   3,000     3,000      3,100  
  
     F)  Total Exports              300       300        300  
  
     G)  Total Imports              700       700      1,000  
  
     H)  Imports from U.S.          110       110        250  
  
     I)  Exchange Rates  
         USD 1 = Naira               22        80         85  
  
  
NOTE:  The above statistics are unofficial estimates.  
  
  
COMMENTS               
     
Unofficial estimates indicate that wines comprise one third of U.S.   
consumer- oriented export values to Nigeria.  Importers complain of high   
landing costs on wines imported from the U.S.  Overall, the importation   
of wines and spirits is declining due to a shortage of foreign exchange.    
Massive product adulteration has since resulted.  The importation of   
sparkling wines is expected to increase in 1995 now that the relevant   
import ban has been lifted.  
  
  
CHAPTER VI:  TRADE REGULATIONS AND STANDARDS  
  
  
TARIFFS AND IMPORT TAXES  
  
Nigeria established a new tariff structure on March 1, 1995.  Under the   
new structure, import taxes ranging from 5-60 percent are levied on   
imported goods.  This new tariff structure is expected to be reviewed   
after seven years.   
  
The 1995 Budget stipulated that payment for all import duties must be   
made through the six selected banks listed below.     
  
First Bank Of Nigeria Plc,  
Afribank  
Union Bank Of Nigeria Plc  
Universal Trust Bank  
United Bank For Africa Plc  
FSB International Bank  
  
For information on taxes on specific goods contact:  
  
Federal Ministry of Finance  
Federal Secretariat  
Phase I  
Abuja  
Tel: (234-9) 234-0932, 234-0936, 234-0903  
  
In the 1995 Budget, the Nigerian government reduced the list of banned   
items by 4.  (See Prohibited Imports below.)  
  
  
CUSTOMS VALUATION  
  
The Nigerian Customs and Excise Tariff uses the Customs Cooperation   
Council Nomenclature (CCCN).  Duties are either specific or ad valorem,   
depending on the commodity, and are payable upon entry in Naira.  Import   
tariff is non-preferential and applies equally to all countries.  In   
addition, all imported goods must be insured by a local insurance   
company.  
  
A special duty may be imposed on imported goods if the government feels   
that such goods are being dumped or unfairly subsidized thus threatening   
established or potential domestic industries.  
  
Duties previously paid on abandoned, re-exported, damaged, or destroyed   
goods may be refunded.  However a claim must be made before the goods   
leave customs custody.  A destruction certificate must be obtained from   
a customs officer to obtain a refund of duties paid for goods which were   
subsequently destroyed.  
  
Upon presentation of a customs certificate attesting to the landing of   
goods in another country, duties paid on such goods in Nigeria will be   
refunded.  
  
Overpaid duties may be refunded upon application to customs within 12   
months of importation.  Nigeria is a signatory to the United Nations   
International Convention to Facilitate the Importation of Commercial   
Samples and Advertising Material.  Samples of commercial value may be   
imported duty free under the bond.  In practice however, customs   
officials exercise considerable discretion in rejecting requests for   
duty free admission even in cases involving samples or patterns.  
  
In addition, the 1995 Budget stated that "Pattern and Samples, cut,   
mutilated, spoiled or otherwise rendered unmerchantable" shall now   
attract import duties under Schedule 2 Decree No. 1 of 1988.  
  
  
IMPORT LICENSES  
  
Nigeria ceased issuing import licenses for importation of goods in 1986   
when the Structural Adjustment Program was established.  Importers are   
now required to open an irrevocable letter of credit after receipt of an   
approved Form "M" processed through their banks.    
  
  
EXPORT CONTROL  
  
The Nigerian Government prohibits the exportation of the following   
items:  
  
1.  Raw hides and skin.  
  
2.  Timber (whether processed or not) and wood in the rough excluding   
furniture component, gmelina, railway slippers, floor and ceiling tiles,   
doors, windows and pallets.  
  
3.  Raw Palm Kernels.  
  
4.  Unprocessed rubber and rubber lumps.  
  
  
IMPORT/EXPORT DOCUMENTATION  
  
Imports to Nigeria must be covered by a clean report of finding (CFR)   
issued after thorough inspection of the goods by an appointed   
International inspector.  International inspectors are expected to check   
price, quality and quantity of goods in ships coming into the country   
before issuance of CFR.  Imports from the U.S are inspected by Intertek   
Services International with the following address:  
  
Intertek Services International       
3741 Red Bluff Road  
Houston, Texas  77503                 Tel:  (713)-475-2082  
Attn:  Ms. Susan Finchum              Fax:  (713)-475-2083  
  
  
All uncontainerized imports valued $1,000 and below are exempted from   
pre-shipment inspection and issuance of Import Duty Report (IDR) and   
Clean Report of Findings (CFR).  Containerized imports valued $1,000 and   
above are subject to pre-shipment inspection and issuance of IDR and   
CFR.  
  
For Imports valued at $5,000 and above, it is required that a   
declaration be made on  the "Form M" used in processing the letter of   
credit.  
  
Bank certified checks and/or drafts for Import Duty must be issued only   
by the bank which initially processed the Form "M" used for the   
transactions.  This regulation applies to commercial banks and merchant   
banks.  The Central Bank of Nigeria will issue checks for all   
transactions handled on behalf of Government Departments and   
Institution, by Development banks.   
The initial life span of an approved Form "M" is 180 days, but may be   
extended for another one year by the Authorized Dealers.  In the case of   
importation of machinery, plant and equipment the initial life span of   
the Form "M" is one year and the maximum life span is one and a half   
years i.e. (540 days.)     
  
  
  
To claim any goods at Nigerian ports, the following documents must be   
presented to officials of the Customs and Excise Department:  
  
1.  Bill of lading.  
2.  Bill of entry  
3.  Approved Form "M"  
4.  Marine insurance policy (issued by a Nigerian insurance firm.)  
5.  Certificate of quality from the exporting country for (food and   
drugs.)  
6.  Evidence of payment of VAT.  
  
  
TEMPORARY ENTRY  
  
Duties are not waived for "temporarily imported" goods.  
  
  
LABELING AND MARKING REQUIREMENTS  
  
Shippers must ensure that Import Duty Report (IDR) numbers are always   
quoted on the shipping manifests for all import shipments into the   
country before such manifests are submitted to the Nigeria Customs   
Service.  For air-cargo, the airline must ensure that the IDR number for   
the relevant goods being carried is always stated on the air-way bill.  
  
All imports of food, drugs, cosmetics and items such as pesticides must   
be accompanied by a Certificate of Analysis from the manufacturer and   
country where the goods were manufactured.  
  
Certain animal products, plants, seeds, and soils imported into the   
country must be accompanied by Sanitation Certificates from the   
exporters.  The U.S. Department of Agriculture may issue these   
certificates for American exporters.  
  
All items entering the country must be labelled in metric terms   
exclusively.  Products with dual or multi-markings will be confiscated   
or refused entry.  
  
  
PROHIBITED IMPORTS  
  
-  Live or dead poultry, e.g. fowls, ducks, geese, turkeys,    
  excluding day-old chicks and parent stocks.  
  
-  Vegetables, including tomato puree and paste, roots, and tubers,   
fresh or dried, whole or sliced, cut or powdered and sage pitch.  
  
-  Processed wood excluding wood in the rough; furniture and furniture   
products; wooden cabinets for radio and television.  
  
-  Mosquito repellant coils.  
  
-  Textile fabrics of all types, excluding nylon tire cord, multi-  
filament        nylon chafer fabric and tracing cloth; trimmings and   
linings; fishing nets     and mosquito; canvas fabric; textile products   
and articles for technical       uses; transmission or conveyor belt or   
belting of textile material.  
  
-  Domestic articles and wares made of plastic materials            
including babies feeding bottles.  
  
-  Evian and similar waters, soft drinks and beverages, beer and stout,   
malt and barley.  
  
-  Maize and maize products.  
  
-  Vegetable oils excluding linseed and castor oils used as industrial   
raw        materials.  
  
-  Retreaded and used tires.  
  
-  Bentonite and barytes.  
  
-  Fluorescent tubes and glass bulbs.  
  
-  Used vehicle and motor-cycles over eight years old from the date of   
manufacture.  
  
  
STANDARDS  
  
The Nigerian Standard Organization (NSO) is charged with the   
responsibility of ensuring that goods manufactured in Nigeria or brought   
into the country meet international standards.  The Nigerian Standard   
Organization has formulated a national standard requirement for good   
quality based on the ISO 9000 Usage and any product that meets this   
requirement is   
issued the Nigerian Industrial Standard (NIS) certificate.  
  
(NSO) is also charged with the responsibility of issuing patents,   
trademarks and copyrights.  Another standard body is the National Agency   
for Food and Drugs Administration and Control (NAFDAC.)  NAFDAC provides   
testing and certification of imported and domestically produced food,   
drug, cosmetic, medical, water and chemical products.  
  
  
FREE TRADE ZONES/WAREHOUSES  
  
In an effort to attract foreign investment, the Nigerian Government is   
developing an export processing zone near the city of Calabar in Eastern   
Nigeria.  If the zone is completed as planned, it will allow investors   
duty-free importation of raw materials and semi-finished products for   
manufacture and export.  As in other parts of the country, however,   
infrastructure problems are expected to pose serious problems.  
  
  
SPECIAL IMPORT PROVISIONS  
  
None.  
  
  
MEMBERSHIP OF WORLD BODIES  
  
Nigeria is a member of the British Commonwealth, the United Nations and   
several of its affiliated organizations, the World Bank, and the African   
Development Bank.  It is party to several international commodity   
arrangements, including the Organization of Petroleum Exporting   
Countries (OPEC), the International Cocoa Organization, the   
International Cotton Advisory Committee, the International Institute for   
Cotton, the West African Groundnuts Council, and the International Tin   
Council.   
  
Treaties and agreements in force between the United States and Nigeria   
relating to consular matters, aviation, mutual security, economic and   
technical cooperation, extradition, property, and trademarks, were   
concluded originally between the United States and the United Kingdom,   
and were recognized by Nigeria following independence in 1960.  
  
Nigeria is a signatory to the Lome Convention, which provides certain   
exports duty-free entry into the European Union (EU), and is also a   
member of the  
General Agreement on Tariffs and Trade (GATT), requiring a   
nondiscriminatory import tariff.  There have been frequent complaints,   
however, that Nigeria does not always fully meet its obligations under   
such agreements.  
  
Nigeria is a member of the Economic Community of West African States   
(ECOWAS), allowing free movement of people, goods and services within   
the region.    
  
  
  
CHAPTER VII:  INVESTMENT CLIMATE  
  
  
GENERAL CLIMATE  
  
Direct and portfolio investment opportunities are available in Nigeria   
for the potential foreign investor.  In 1995/96, foreign investors are   
faced with a very different operating environment from the past.  This   
is so in two main ways:  first, companies can now source foreign   
exchange from wherever they want; second, companies with foreign   
ownership now have no limitations on the extent of their ownership.    
  
Nigeria's basic infrastructure is extensive, but is inadequate for the   
demands of a large country with a population of nearly 100 million.    
Inadequacies range from crumbling roads and bridges, to erratic   
telephone service, and endemic shortages of water, fuel and electricity.   
Added to these problems are political uncertainty, a deteriorating   
economy, and widespread corruption and fraud, which detract from the   
Nigerian Government's professed interest in attracting foreign   
investment.    
  
  
CONVERSION AND TRANSFER POLICIES  
  
Though the GON retained the official exchange rate of Naira 22 to the   
dollar for official government transactions, the Central Bank of Nigeria   
(CBN) no longer conducts an auction of foreign exchange (forex).  In its   
place, the CBN has introduced a new autonomous foreign exchange market   
(AFEM).  Under the new forex regime, government parastatals, and oil   
production, exploration, and service companies, as well as recipients of   
foreign loans are required to maintain forex accounts (or domiciliary   
accounts) with the CBN.  In addition to a budget amount, the CBN uses   
the dollars to intervene in the market at the prevailing autonomous   
rate.  For all others, forex is available on the autonomous market.    
Domiciliary accounts are allowed, as well as Bureaux de Change, subject   
to a limit of $2,500 per sale.    
  
  
EXPROPRIATION AND COMPENSATION  
  
There have been no expropriatory actions since the late 1970s and none   
is anticipated in the near future.  The GON policy stated in the 1995   
budget is to encourage foreign investment.    
  
  
DISPUTE SETTLEMENT  
  
When they occur, trade and investment disputes often involve the oil and   
oil service companies because of the large U.S. investment in that   
sector.  Other disputes focus on the poor performance of Nigerian   
customs officials or copyright infringement.  Disputes are resolved by   
the courts following local and common law cases.  The administration of   
justice is adversarial in nature.  The court system is hierarchical,   
with the Supreme Court the court of last resort.  Generally,   
jurisdiction of the courts cannot be curtailed by agreement, but courts   
have the statutory duty to stay proceedings of an action which is the   
subject of an arbitration agreement.  The conduct of arbitration is   
regulated by the Arbitration and Conciliation Act of 1990.  
  
  
PERFORMANCE REQUIREMENTS/INCENTIVES   
  
One of the incentives for investment in Nigeria is tax relief, if the   
company is involved in a so-called pioneer business.  Export-oriented   
companies also have inducements under various export inventive schemes,   
such as insurance guarantee, duty draw back, and favorable lending   
facilities.  Companies involved in agriculture and equipment leasing   
also have the benefit of certain tax advantages.  
  
According to the 1995 budget, the manufacture-in-bond program will   
continue in 1995.  Capital allowances are granted to companies that   
wholly engage in the manufacture for export.  Export proceeds are   
retained in domiciliary accounts maintained by the beneficiaries banks   
in Nigeria.  
  
In exchange for stipulated exploration and enhanced recovery   
commitments, oil companies operating in Nigeria under joint venture   
agreements with the Nigerian National Petroleum Corporation (NNPC)   
receive guaranteed after-tax profit margins.  It should be noted,   
however, that the 1995 budget program calls for a revision of the   
Memorandum of Understanding (MOU) that has governed joint ventures with   
NNPC and private sector oil firms, three of them American -- Chevron,   
Mobil and Texaco -- since 1985, which could affect the firms' tax   
benefits.    
  
  
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT  
  
The recent repeal of the Enterprises Promotion Decree of 1989, allows   
foreigners to take a greater ownership share in Nigerian firms.    
However, rules regarding foreign investment, dividend remittance, and   
ownership structure remain unclear, pending the release of government   
guidelines.    
  
Whatever the new guidelines, the Abuja-based Industrial Development   
Coordination Committee (IDCC) will likely continue to play a role in   
granting of approvals necessary for foreign investment in Nigeria.  The   
IDCC's approval is required for the business permit, the expatriate   
quota, approved status, fiscal concessions, and some aspects of   
technology transfer.  Set up as a one-stop agency to facilitate the   
investment process, the IDCC meets once a month in Abuja to review   
applications.   
  
Two other laws that impact on U.S. investment are the Companies Act of   
1990, governing the establishment and operations of companies in   
Nigeria, and the Immigration Act, limiting the number of expatriate   
workers permitted for any one company.  The number of expatriate   
positions approved is dependent on the level of capital investment, with   
additional expatriate positions considered on a case by case basis.    
Slowdowns in the approval of requests to maintain expatriate staff in   
Nigeria have caused problems for some firms in the past.      
  
  
CAPITAL OUTFLOW POLICY AS IT AFFECTS REPATRIATION  
  
To remit dividends and repatriate capital, foreign shareholders must   
obtain an "approved status" from the Industrial Development Coordination   
Committee (IDCC).    
  
  
PROTECTION OF INTELLECTUAL PROPERTY RIGHTS  
  
Though Nigeria participates in many of the international conventions on   
intellectual and industrial property rights (IPR), and despite the   
apparent interest of the government in IPR issues, little has been done   
to stop the widespread production and sales of pirated tapes, videos,   
computer software, and books in Nigeria.  The violation of patents on   
pharmaceuticals is also a major problem.   
  
  
REGULATORY SYSTEM - LAWS AND PROCEDURES  
  
To further assure foreign investors of the safety of their investments,   
the GON has expressed its willingness to enter into Bilateral Investment   
Protection Agreements with foreign countries whose nationals reside in   
Nigeria.  Until now, the list of reserved sectors (a holdover from the   
Enterprises Promotion Decree recently repealed) has been one factor   
preventing the conclusion of a Bilateral Investment Treaty between   
Nigeria and the United States.    
  
  
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS  
  
Prior OPIC and Export Import Bank (Exim) programs continue to be   
honored, but no new programs have been introduced in Nigeria.    
  
  
FOREIGN TRADE ZONES  
  
The GON is developing an Export Processing Zone (EPZ) near the city of   
Calabar in Eastern Nigeria.  If the EPZ is completed as planned, it will   
allow investors duty-free importation of raw materials and semi-finished   
products for manufacture and export.  Additional incentives will   
include:  
  
--   Exemption from local incorporation formalities;  
  
--   Exemption from local corporate taxes, Customs and   
     Excise duties;  
  
--   100 percent foreign ownership permitted;  
  
--   Facilitated remittance of dividends and profits (tax  
     free) and repatriation of tax investment;  
  
--   Facilitated employment of qualified foreign personnel;  
  
--   Deregulated foreign exchange dealings, with products  
     and services permitted to be priced in foreign   
     currencies;  
  
As in other parts of the country, however, infrastructure problems are   
expected to pose serious limitations.  
  
  
TARIFFS AND DUTIES  
  
Effective March 1, 1995, the GON-revised customs and excise tariffs   
(covering the period 1995-2001) provides a narrower range of customs   
duties with fewer exemptions and import prohibitions.  The off-again,   
on-again ban on rice imports was again lifted in March 1995  and   
replaced by a customs duty of 100 percent.  
  
  
  
COMMERCIALIZATION AND PRIVATIZATION  
  
The GON has announced its intention to lease to local and foreign   
investors the following enterprises:  sugar companies, steel mills,   
paper/newsprint manufacturing companies, refineries, petrochemical   
plants, fertilizer manufacturing companies and the national carrier,   
Nigeria Airways.  The leases will potentially be for an initial ten   
years with renewal options.    
  
  
MAJOR FOREIGN INVESTORS  
  
United States, France, Britain, Germany, Japan, Italy and South Africa   
(emerging trade partner)  
  
  
POLITICAL VIOLENCE  
  
Sporadic incidents involving violence, extortion and destruction of   
property have occurred, largely perpetrated against foreign firms by   
local communities in the oil-producing areas in Eastern Nigeria.    
However, incidents of civil strife have decreased from their 1993 and   
1994 levels.  
  
  
LABOR  
  
In addition to a protracted strike by petroleum workers in July and   
August, there were repeated disruptive strikes by teachers, health   
workers, and state employees in 1994.  These not only reflected the   
strife-riddled political climate, but repeated government failure to   
honor commitments to its employees.  
  
Since 1978 Nigeria has had a federally-mandated sole trade union system   
with service and industrial unions grouped under the umbrella of the   
Nigerian Lobber Congress (NLC).  In 1993, the GON attempted to merge   
several NLC constituent unions and reduce the number of NLC affiliates   
from 41 to 29, but withdrew the measure following stringent objections   
from the NLC, the National Lobber Advisory Council and the Employers   
Association.    
Under Nigerian law any employer of 50 or more people in commerce or   
industry must allow blue collar and clerical employees to unionize and   
must institute compulsory dues check-off.  NLC officials estimate that   
about 3.5 million workers belong to its affiliates.  The NLC is headed   
currently by a government-appointed administrator.  
  
For its leadership role in the July-August 1994 petroleum workers   
strike, the GON dismissed the executive of the National Union of   
Petroleum and Natural Gas Workers (NUPENG), an NLC affiliate, at the   
same time as the NLC executive.  In early 1995, NUPENG held branch   
elections and selected candidates for a delegates conference to elect a   
new executive, but the government has yet to announce a date for the   
election, and the union remains under a government administrator.    
  
Under the Trade Unions Amendment Decree if 1978, middle level management   
(called senior staff in Nigeria) are allowed to unionize but are not   
allowed to affiliate with NLC.  These "staff associations" have   
therefore formed the Senior Staff Consultative Association of Nigeria   
(SESCAN).  SESCAN claims 24 affiliates and a membership of 600,000.    
Since the government recognizes only the NLC as a legitimate labor   
center, SESCAN has not been provided government funding, its members do   
not participate in government agencies and delegations and it is not   
allowed to institute dues check off for its members.  
  
In August 1994, the government dismissed the executive of the Petroleum   
and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for its   
participation in the July-August 1994 petroleum workers strike.  As of   
early 1995, PENGASSAN was prepared to hold elections for a new executive   
as promised by the government, but no date for the vote has been   
announced.  The union remains under a government appointed   
administrator.  
  
  
  
CHAPTER VIII.	TRADE AND PROJECT FINANCING  
  
  
  
BRIEF DESCRIPTION OF BANKING SYSTEM  
  
Nigeria operates a fairly open banking system.  There are well over a   
hundred banks in Nigeria and they fall into three categories:   
Commercial, Merchant, Industrial or Development Banks.  Apart from these   
categories, there exists numerous finance houses, mortgage and community   
banks.   
  
The rise in the number of banks in Nigeria was caused by the de-  
regulation of the financial system in 1991.  The Central Bank of Nigeria   
(CBN) is at the apex of the banking system.  The CBN is primarily   
responsible for formulating and monitoring the banking system to ensure   
that operators comply with monetary, credit, and foreign Exchange   
guidelines.  
  
  
FOREIGN EXCHANGE CONTROLS AFFECTING TRADING  
  
In its 1995 budget, Nigeria has adopted a policy of guided de-regulation   
of the foreign exchange market.   Although there exists an official rate   
of 22 Naira to $1, available only to the government, all individuals,   
organizations and enterprises must source their (forex) foreign exchange   
needs from the Autonomous Foreign Exchange Market (AFEM).  The   
prevailing AFEM rate is 80 Naira to $1.  
  
All applications for foreign exchange must be channeled through selected   
banks to the CBN.  Applications must state total amount required, end   
users name, the name of the correspondent bank, CBN intervention sales   
number and date.  All applications must be received by the CBN within 48   
hours after the intervention notice is given.  
  
The CBN will release the forex (in theory) within three working days   
from the date of intervention.  In practice, however,it can take up to   
three weeks.  Banks are not permitted to charge any spread on the CBN   
selling rate of intervention funds, but are allowed normal transaction   
charges and commissions as prescribed by the bankers' tariff.  All banks   
are required to advise, on a daily basis, their autonomous buying and   
selling rates to the CBN's Director of Foreign Operations.  
  
CBN funds are not transferable and such funds cannot be used for inter-  
bank operations in the AFEM.  Any breach of regulation will be subject   
to stiff penalties.  CBN guidelines stipulate that forex sold to end   
user during intervention, which is not utilized within 21 days, will be   
returned to the CBN together with the accrued interest.  
  
Transactions through Bureaux de Changes are permitted but are limited to   
$2,500 (per transaction), with a profit margin of 2.0 percent.  
  
Repatriated non-oil export proceeds and other inflows except interbank   
foreign exchange deals (IFEM), shall be held in Domiciliary Accounts   
maintained with authorized banks in Nigeria.  Two types of Domiciliary   
Accounts exist: Non-oil Exports and Ordinary Domiciliary Accounts.    
Holders of Domiciliary Accounts are allowed access to them and can   
withdraw funds at the autonomous exchange rate, with a three percent   
interest paid on the account.  Domiciliary account holders receive funds   
in convertible currencies only if they wish to transfer money abroad.     
  
  
GENERAL FINANCING AVAILABILITY  
  
Local financing can be obtained through any of the commercial, merchant   
or industrial banks.  To a limited extent, insurance companies, building   
and property development companies, pension funds and other   
institutional investments can also provide financing.  
  
The National Economic Recovery Fund (NERFUND), established in 1989,   
provides loans to small and medium scale fully-owned Nigerian   
Enterprises engaged in manufacturing.  These loans are provided at rates   
lower than prevailing commercial rates.  
  
The Small Scale Enterprises Scheme (SME), established by the CBN, is   
another source of financing for small enterprises. Under this scheme,   
the CBN makes available loans, channeled through selected banks to small   
enterprises, e.g. farmers at a rate lower than prevailing commercial   
rates.  
  
  
HOW TO FINANCE EXPORTS/METHODS OF PAYMENTS  
  
Managed by the CBN, export loans are obtainable through licensed banks   
in Nigeria for the importation of raw materials, spare parts and capital   
equipment.  
  
Method of Payments is either through confirmed irrevocable letters of   
credit, bills for collection, open account or any other internationally-  
accepted payment mode.  Whatever the mode adopted, the proceeds must be   
repatriated within 90 days from the date of shipment of the consignment.    
U.S. exporters are advised to ship goods only on sighting confirmed and   
irrevocable letters of credit.  The preferred method of quoting is   
"CIF".    
  
Also, U.S. firms are advised that fraudulent business practices   
involving bogus financial documents through non-existent banks are   
common.  Independent verification of the legitimacy of transactions is   
recommended.  U.S firms should consult with their international banker   
for document verification.  In addition, several new banks in the   
country have been declared "distressed" by the CBN.  It is therefore   
necessary to approach with caution any export proposals from Nigerian   
banks.  Enquiries on banks channeled through Commerce District Offices   
are encouraged.  
  
  
BILATERAL, MULTILATERAL AND LOCAL EXPORT FUNDING  
  
In the past, the U.S. Export-Import Bank (EXIM) and its insurance   
affiliate, The Foreign Credit Insurance Association FCIA), financed and   
insured a number of projects in Nigeria.  However, in 1992 EXIM Bank   
adopted a more restrictive policy toward public and private sector   
projects in Nigeria.  Since 1992, no new projects have been appraised,   
although existing projects are still being honored.   
  
The African Development Bank (ADB) grants export stimulation loans to   
finance certain operations of exporting companies.  The ADB channels   
these loans through the CBN to the Nigerian Export-Import Bank (NEXIM),   
NERFUND, and licensed exporting banks.  
  
  
The Nigerian Export-Import Bank (NEXIM) became operational in January,   
1991.  NEXIM provides the following export financing facilities:  
  
1)   Rediscounting and Refinancing Facility (RRF)  
  
     This facility is designed to assist banks in providing pre and post   
shipment finance in local currency in support of non-oil exports.  RRF   
enables exporters to have access to the increased/expanded export   
portfolios of local banks at the preferential rate.  
  
2)   Foreign Input Facility (FIF)  
  
     FIF provides the export sector with immediate foreign exchange   
requirements needed for raw material imports, packaging materials and   
capital equipment (used for production of goods for export).  This   
facility is made available and repayable in foreign currency.  
  
3)   Stock Facility  
  
     This facility is made available in local currency and enables   
manufacturers of exportable goods to procure adequate local materials   
(which may be seasonal) needed to keep their production at optimal   
levels particularly during the periods of scarcity.  
  
4)   Export Credit Guarantee Facility (ECGF)  
  
     Export Credit Guarantee Facility is not yet operational but when   
functional will be operated as a guarantee given by NEXIM to banks in   
respect of credit given by them (the banks) to exporters.   
  
  
NIGERIAN BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS  
  
Nigeria International Bank Ltd.  
1, Idowu Taylor Street  
Victoria Island, Lagos  
PMB 12028, Lagos  
  
Attn:  Naveed Riaz, Managing Director  
  
Tel: (234-1)-269 0166-75; 269 0217-24; 617-970  
Fax: (234-1)-618-916  
  
  
U.S. Affiliate: Citibank  
  
  
Nigerian American Merchant Bank Ltd  
10/12 McCarthy Street  
Lagos  
  
Attn:  Osaro Isopan, Managing Director  
  
Tel:  (234-1) 2600-360-9; 260-1080  
Fax:  (234-1)-263-7588  
  
U.S. Affiliate: Bank of Boston, U.S.A.  
  
  
CHAPTER IX:  BUSINESS TRAVEL  
  
  
The following travel warning was issued by the Department of State on   
June 5, 1995.  The text reads:  
  
     "The Department of State warns U.S Citizens of the dangers of   
travel to Nigeria.  Violent crime, practiced by persons in police and   
military uniforms, as well as by ordinary criminals, is an acute   
problem.  Harassment and shake-down of foreigners and Nigerians alike by   
uniformed personnel and others occur frequently throughout the country.  
  
     Business, charity and other scams target foreigners worldwide and   
pose dangers of financial loss and physical harm.  Persons contemplating   
business deals are strongly urged to check with the U.S. Department of   
State or the U.S. Department of Commerce before providing any   
information, making any financial commitments or traveling to Nigeria.    
Under no circumstances should American citizens travel to Nigeria   
without a valid visa.  Invitation to enter Nigeria without a visa is   
normally      indicative of illegal activity."  
  
However, U.S. citizens that wish to travel to Nigeria can apply for a   
visa through the Nigerian Embassy in Washington, D.C. or the Nigerian   
Consulates in New York City, San Francisco or Atlanta. Travelers should   
always obtain the "Consular Sheet" before traveling to any country   
abroad.  
  
The U.S. State Department requires a Yellow Fever shot of all travelers   
to Nigeria.  They also recommend a Cholera shot for travelers arriving   
from an infected area.    
  
  
LANGUAGE  
  
English is the official language of Nigeria, although it is a second   
language for many Nigerians who also speak one of several indigenous   
languages, such as Yoruba, Hausa and Ibo.  Business travelers will find   
that most government officials and business people speak English well.   
  
  
BUSINESS CUSTOMS  
  
Business establishments and government offices are generally open from   
7:30 a.m. to 4:00 p.m., Monday through Friday, with offices closed for   
lunch from 1:00-2:00 p.m.  Many government offices and businesses hold   
staff meetings on Monday and Friday mornings, sometimes making it   
difficult to see people at those times.  In the Muslim north, all   
establishments close at 1:00 p.m. on Friday.  
  
Business appointments must generally be made through personal calls or   
hand-delivered messages, since the telephone/fax system is unreliable   
and the mail is slow.  Visitors should make their contacts well before   
departure from the United States.  International telexes and cables are   
fairly reliable.  Cables should have a Private Mail Bag (PMB) or Post   
Office Box (PO Box) as well as street address.  Important documents or   
correspondence should be sent via reputable courier, such as DHL.  
  
Business visitors should be well dressed.  Casual dress in many cases   
conveys a casual attitude, especially to European-trained Nigerians.    
Titles should be used, particularly the honorific titles of traditional   
leaders.  Company representatives should be flexible in business   
dealings and able to make decisions on contractual matters without   
lengthy referral to their home offices.  In Nigeria, important business   
is conducted face to face.  No worthwhile transactions can be completed   
quickly or impersonally.  Follow-up visits are common.  
  
The Nigerian currency is the Naira, which is divided into 100 kobo   
coins. The Government of Nigeria has a dual foreign exchange system:    
Naira 22 to the dollar for official government transactions, and the   
parallel autonomous rate, which at this writing was Naira 81 to the   
dollar.  Credit cards are neither widely accepted nor recommended in   
Nigeria.  Instead, travelers checks are advised.  
  
  
ACCOMMODATIONS  
  
Major cities in Nigeria have hotels which experienced travelers to this   
part of the globe would generally agree are adequate.  Business, 5-star   
or deluxe hotels of U.S. or European standard should not be expected,   
however.  
  
Accommodation reservations must be made well in advance.  Hotels demand   
an advance cash deposit at the time of booking for the entire period   
being reserved.  Some hotels require a deposit to cover meals as well.    
A continental breakfast is often included in the room rate.  Tipping is   
optional, as most hotels have a 10 percent service charge, but staff   
personnel expect gratuities, nevertheless.  
  
Air conditioning and the assurance of hot water are often a problem in   
hotels, in addition to the frequent breakdown of elevators.  Few hotels   
have working smoke detectors, and emergency exits are often sealed.    
Telephone service is erratic, often making contact even within the hotel   
difficult, as well as creating obstacles to confirming or changing   
onward reservations.  Room laundry service is usually offered.  
  
The Central Bank of Nigeria has embarked on strict enforcement of   
directives that foreign visitors to Nigeria must pay for hotel   
accommodations in hard foreign currency.  Hotels may only accept payment   
in Naira if there is documented evidence that the foreign guest obtained   
the Nigerian currency at an approved or designated bank at the official   
government rate.  In the past, foreigners, including visiting business   
representatives often paid their hotel bills with Naira purchased on the   
informal market.  
  
  
TRANSPORTATION  
  
Taxi service is available in Lagos and most other urban areas, but it is   
often unreliable, and occasionally unsafe.  If taxis are utilized, fares   
should be negotiated in advance, particularly to and from the airports.  
  
Cars with drivers are also available for hire through hotels and car   
rental agents, and use of those services is a highly recommended   
alternative.  Airport facilities in Lagos are congested, so long delays   
are often experienced.  Domestic airline schedules are unreliable.   
Flights may be cancelled at a moment's notice and airline reservations   
may not be honored due to frequent overbooking.  Travelers should arrive   
at the airport at least 4 hours prior to scheduled departure.  
  
  
HOLIDAYS  
  
Holidays falling on Saturdays are likely to be observed on the preceding   
Friday, while those falling on Sunday are likely to be observed on the   
following Monday.  
  
The Muslim holidays of Eid-El-Fitri and Eid-El-Kabir are usually   
celebrated for two consecutive work days.  Their dates, as well as the   
date of Eid-El-Malud, vary and are announced by the Ministry of Internal   
Affairs.  
  
January 1           New Year's  
March 2             Eid-El-Fitri  
April 14            Good Friday  
April 17            Easter Monday  
May 1               Workers Day  
May 9               Eid-El-Kabir  
August 8            Eid-El-Maulud  
October 1           Nigerian National Day  
December 25         Christmas Day  
December 26         Boxing Day  
  
  
CLIMATE  
  
Although Nigeria lies within the tropics, its climate varies   
considerably from north to south.  Temperatures range from 80-90 degrees   
F in the south and from 65-100 degrees F in the north.  The south is   
humid throughout the year, while the north is humid from May until   
October.  There are two rainy seasons in the south, March-July and   
September-November, and one in the north, April-October.  The dry season   
in the north is usually made dusty by Saharan winds called the   
Harmattan.  Rainfall varies from 150 inches a year on the coast to 25   
inches or less in the far northern regions of the country.  
  
  
MEDICAL CONSIDERATIONS  
  
A number of infectious diseases are prevalent in Nigeria.  Untreated   
water and ice and peeled fruits and raw vegetables should be avoided.    
Inoculation for yellow fever is required.  Visitors can be turned back   
at the port of entry if their yellow fever immunization is not current.    
Regular use of malaria suppressants is strongly recommended.    
Vaccinations for cholera, typhoid, tetanus, and gamma globulin shots for   
hepatitis are also strongly suggested.  Visitors should consult their   
physician, or local health authorities about the current inoculations   
recommended and required prior to a visit to Nigeria.  
  
Medical facilities are available in Nigeria, but in practice foreign   
business visitors normally restrict themselves to private clinics,   
available in large urban areas.  Many common household medicines are   
locally available, but the business traveler should carry an ample   
supply of any special medications required.  
  
  
SAFETY  
  
Most U.S. citizens who travel to Nigeria do so without incident.    
However, a major new development in the past few years is the fraudulent   
business scheme that targets foreigners, including a significant number   
of U.S. citizens.  Those not familiar with doing business in Nigeria   
should not respond to unsolicited offers.  These are usually both   
fraudulent and illegal and could involve situations which potentially   
violate both Nigerian and U.S. law.  
  
In some cases, victims have been subjected to extortion and in extreme   
cases to bodily harm.  Nigerian police may not always inform U.S   
authorities of an American citizen in distress and victims may not   
always have the opportunity to communicate for assistance since they may   
be sequestered under highly controlled conditions.  The most common form   
of Nigerian fraudulent business schemes, the advance fee fraud, involves   
an offer to transfer large sums of money with promises of commissions   
after upfront payments are made by the potential victim.  Alleged   
contracts frequently invoke the authority of a Ministry or officer of   
the Nigerian Government and may even name a government official.    
Sophisticated forged documents may also be provided using government   
letterheads from the Federal Ministry of Justice, the Central Bank of   
Nigeria (CBN), the Nigerian National Petroleum Corporation (NNPC) and   
others, along with a variety of official looking stamps and seals.  U.S.   
citizens should not be lured to Nigeria to pursue such offers.  Before   
planning a trip to Nigeria, first-time business travelers should consult   
with their nearest U.S. Department of Commerce District Office.  Upon   
entry into Nigeria, U.S. citizens should immediately register with the   
American Citizens Services Division of the Consular Section at the U.S.   
Embassy in Lagos.  
  
American Embassy  
2 Eleke Crescent  
Victoria Island  
Lagos, Nigeria  
Tel:  (234-1) 261-0078  
Fax:  (234-1) 261-2218  
  
  
  
CHAPTER X:  APPENDICES   
  
  
  
APPENDIX A - COUNTRY DATA  
  
  
Population (1994 Figures):  95.2 million  
-- Population growth rate:   2.1 percent  
  
Religions:  Islam, Christianity, Animist  
  
Government System:  While based on a federal structure, Nigeria's   
government has been under control of the military since 1983.  
  
Languages:  English is Nigeria's official language, but over 250   
distinct languages are spoken in the country.  
  
Work week:  Monday through Friday.  Many stores and businesses are open   
on Saturdays as well.  
  
  
APPENDIX B - DOMESTIC ECONOMY  
  
($ millions except where indicated)   
  
                                   1994    1995     1996  
                                   ----    ----     ----  
GDP ($ billion)                    40.1    41.3     42.0  
Per Capita GDP  ($)                42.1    41.8     41.2  
Population (m)                     95.2    98.0    102.0  
Inflation  (%)                     57.0    75.0     85.0  
Unemployment (%)                    4.0     4.2      4.5  
Foreign Exchange  
- Reserves ($) --                1658.8  2045.1   2100.0  
Average Exch.Rate  
--Official (Naira/$)                22.0   22.0     22.0  
--Parallel Market (N/$)             52.0   84.0     87.0  
Foreign Debt ($ billions)           29.4   29.2     29.1  
Debt Service Ratio  
-(as % of Export Revenue)           40.9   41.7     40.0  
U.S. Economic Assistance            21.0   17.0     15.0  
  
  
APPENDIX C - TRADE  
  
                                   1994    1995     1996  
                                   ----    ----     ----  
Total Country Export ($ billion)    9.4     9.6      9.7  
Total Country Imports                .5     6.7      6.8  
Imports from U.S                    0.5     0.8      0.9  
Export to U.S                       4.4      .5      4.6  
U.S. Share of Imports (%)           7.7    10.6     13.2  
  
Note:  1994 GDP at Current Market Prices.  GDP growth rate in 1995 is   
projected at 1.3 percent.  
  
  
  
APPENDIX E - U.S. AND COUNTRY CONTACTS  
  
There are three primary sources of general information on doing business   
in Nigeria which may offer additional contacts.  These are the Nigerian-  
American Chamber of Commerce, The World Trade Center of Nigeria, a   
member of the World Trade Centers Association, and the Lagos Chamber of   
Commerce and Industry.  These organizations, listed below, publish   
newsletters.  
  
  
Nigerian-American Chamber of Commerce  
Marble House  
1 Kingsway Road, Ikoyi  
Lagos, Nigeria  
ATTN:  Dr. Imo Itsueli, President  
  
Tel:  (234-1) 269-2088  
Fax:  (234-1) 269-3041  
  
  
World Trade Center of Nigeria  
Western House (9th Floor)  
8-10 Broad Street  
P.O. Box 4466  
Lagos, Nigeria  
  
ATTN:  Mr. John Adeyemi Adeleke  
       Executive Director  
  
Tel:  (234-1) 263-5276  
Fax:  (234-1) 683-981  
  
  
Lagos Chamber of Commerce & Industry  
Commerce House (1st Floor)  
1, Idowu Taylor Street, V/I  
P.O. Box 109  
Lagos, Nigeria  
  
ATTN:  Mr. Adekunle Olumide  
       Executive Director  
  
Tel:  (234-1) 613-898, 613-911, 610-533  
Telex:  21368 CHACOMNG  
  
  
U.S. EMBASSY TRADE PERSONNEL  
  
ECONOMIC SECTION, U.S. DEPARTMENT OF STATE  
  
Mr. Herbert Yarvin  
Ms. Patricia Haslach  
Mr. Mark Strege  
  
  
FOREIGN AGRICULTURAL SERVICE  
  
Mr. Fred Kessel  
  
  
THE COMMERCIAL SERVICE  
  
Mr. August Maffry  
  
  
U.S. Embassy Mailing Address from the United States:  
  
U.S. Embassy-Lagos  
Washington, D.C. 20521-8300  
  
  
Street address:  
  
U.S. American Embassy  
2 Eleke Crescent, Victoria Island  
P.O. Box 554, Lagos  
NIGERIA  
  
Tel:  (234-1) 261-0078  
Fax:  (234-1) 261-9856  
  
  
U.S. DEPARTMENT OF COMMERCE  
  
Ms. Debra Rogers  
International Economic Policy - Office of Africa  
Room 3317, HCHB  
14th & Constitution Avenue, N.W.  
Washington, D.C. 20230  
  
Tel:  (202) 482-4227  
Fax:  (202) 482-5198  
  
  
APPENDIX F -  MARKET RESEARCH FIRMS  
  
A considerable variety of market research on various sectors and   
commercial topics relevant to the Nigerian market is available through   
the U.S. Department of Commerce District Offices and the widely   
available CD-ROM known as the National Trade Data Bank (NTDB), also   
available at the more than 70 Department of Commerce District Offices   
located throughout the United States.  
  
Future industry sector market research for Nigeria may include such   
topics as:  
  
     Polution Control Equipment (POL)  
     Automotive Chemicals/Additive (APS)  
     Printing/Graphic Art Equipment (PGA)  
     Post Production Equipment (TEL)  
     Welding Equipment (MTL)  
  
  
APPENDIX G - TRADE EVENT SCHEDULE  
  
The following international trade exhibitions, named after the cities in   
Nigeria in which they take place, are general industrial trade fairs   
which reflect numerous sectors in the Nigerian market.  These events   
attract buyers, traders, agents and distributors from throughout Central   
and West Africa.  They offer U.S. manufacturers which are already   
selling to the Nigerian market opportunities to promote and further   
expand sales of U.S. origin products and equipment.  These trade events   
are held annually and foreign manufacturers, exporters and their agents   
and distributors are welcome to participate.  
  
  
LAGOS International Trade Fair (November)  
ENUGU International Trade Fair (April)  
KADUNA International Trade Fair (February)  
  
Information regarding any of these three international Nigerian trade   
events may be obtained from:  
  
Nigerian Association of Chambers of Commerce, Industry, Mines and   
Agriculture (NACCIMA)  
15A Ikorodu Road, Maryland  
P.M.B. 12816  
Lagos, Nigeria  
  
ATTN:  Mr. Lawrence O. Adekunle  
       Director General  
  
Tel:  (234-1) 496-4727  
Fax:  (234-1) 496-4737  
  
  
The following International Buyer Programs, in which FCS Nigeria   
provisionally intends to participate, are approved by the Department of   
Commerce for FY96.   
  
  
1.  Event Name:            Automotive Aftermarket  
  
    Date of Event:         October 24, 1995  
  
    Industry Theme:        Automotive Products and Services  
  
    Event Location:        Las Vegas, Nevada  
  
  
2.  Event Name:            COMDEX/FALL  
  
    Date of Event:         November 13, 1995  
  
    Industry Theme:        Information Technology  
                           (Computer & Allied products)  
  
    Event Location:        Las Vegas, Nevada  
  
  
  
3.  Event Name:            NAB'96  
  
    Date of Event:         April 15, 1996  
  
    Industry Theme:        Broadcasting  
  
    Event Location:        Las Vegas, Nevada\  
  
  
4.  Event Name:            SUPERCOMM '96  
  
    Date of Event:         June 24, 1996  
  
    Event Location:        Dallas, TX  
  
    Industry Theme:        Communications/Telecommunications  
  
  
  
Local Trade Event:  FCS Nigeria will hold its annual Computer,   
Telecommunications and Office Equipment Show in May of 1996.  
  
     Event Name:            CTO '96  
  
     Date of event:         May, 1996  
  
     Theme:                 Information Technology  
  
     Event Location:        Lagos  
  
  
In addition to promoting the International Buyer Programs and the local   
trade show, FCS Nigeria encourages local associations to both organize a   
2nd participate in specialized trade shows.  
  
  
COUNTRY GOVERNMENT OFFICES  
  
Federal Ministry of Agriculture,  
Water Resources & Rural Development  
Federal Secretariat  
Area II, Garki  
Abuja  
  
Att:  Hon. Minister Alhami Gambo Jimeta  
        
Tel:  (234-9) 234-1458  
      (234-9) 234-1572/7  
  
  
Federal Ministry of Commerce & Tourism  
Federal Secretariat - Block H  
Garki, Abuja  
  
Attn:  Hon. Minister Read Admiral Isaac Areola  
  
Tel:  (234-9) 234-1884  
  
  
Liaison Office:  
Federal Ministry of Commerce & Tourism  
NTA Building,   
15B Awolowo Road, Ikoyi  
Lagos  
  
Tel:  (234-1) 681-683  
  
  
Federal Ministry of Finance  
Federal Secretariat  
Phase I, 12th floor (Room 1270)  
Ikoyi, Lagos  
  
Attn:  Hon. Minister Anthony Ani  
  
Tel:  (234-1) 681-276,   
Tel:  Abuja - (234-9) 234-0932, 234-0936  
  
  
  
Federal Ministry of Health & Human Services  
Federal Secretariat, Phase II  
Ikoyi, Lagos  
  
Attn:  Hon. Minister Dr. Ikechukwu Madubuike  
       Hon. Minister of State David Sadauki  
  
Tel:  (234-1) 268-4405  
  
  
Federal Ministry of Industries  
Old Secretariat  
Garki, Abuja  
  
Attn:  Hon. Minister Lt. Gen. Muhammadu Haladu  
  
Tel:  (234-9) 234-1690, 234-1543  
  
  
Liaison Office  
Federal Ministry of Youth & Sports Bldg.  
3 Force Road, 2nd floor  
Lagos  
  
Tel:  (234-1) 634-429  
  
  
Federal Ministry of Petroleum & Mineral Resources  
Federal Secretariat  
Phase I, 7th floor  
Ikoyi, Lagos  
  
Attn:  Hon. Minister Chief Dan Etete  
Tel:  (234-1) 269-0045, 269-0098, 615-724 & 685-392  
  
  
Federal Ministry of Communication  
Moloney Street, Obalende  
Opposite Police Headquarters  
Lagos  
  
Attn: Hon. Minister Major General Adeniyi Olanrewaju  
  
Tel:  (234-1) 618-094, 683-170, 663-000  
  
  
Federal Ministry of Education & Youth Development  
Ahmadu Bello Way  
Victoria Island  
Lagos  
  
Attn:  Hon. Minister & Hon. Minister of State  
       Dr. M.R. Liman  
       Mrs. Iyabo Anisulowo  
  
Tel:  (234-1) 616-513, 616-943, 619-214,  
Fax:  (234-1) 619-904  
  
  
Federal Ministry of Mines, Power and Steel  
Federal Secretariat  
Phase I, 3rd floor  
Ikoyi, Lagos  
  
Attn:  Hon. Minister  
       Alhaji Bashir Dalhatu  
  
Tel:  (234-1) 269-0815, 615-461  
  
  
Federal Ministry of Science & Technology  
New Secretariat  
Area II, Garki  
Abuja  
  
Attn:  Hon. Minister Brig. General San Momah  
  
Tel:  (234-9) 523-3397  
  
  
Federal Ministry of Science & Technology  
Lagos Liaison Office      
9 Kofo Abayomi Street  
Victoria Island, Lagos   
  
Tel:  (234-1) 614-663  
  
  
Federal Ministry of Transport & Aviation  
1 Joseph Street, (Room 309), Lagos  
Lagos  
  
Attn:  Hon. Minister for Transport  
       Major General Ibrahim Gumel  
  
Tel:  (234-1) 263-4144, 263-7122, 264-7667, 613-075  
  
  
Federal Ministry of Transport and Aviation  
14 Broad Street  
Lagos     
  
Attn:  Hon. Minister for Aviation  
       Air Commodore Msikak Eduok  
  
Tel:  (234-1) 263-4144. 263-7122, 264-7667, 613075  
  
  
Federal Ministry of Works & Housing  
Tafawa Balewa Square (2nd floor)  
Lagos  
  
Attn:  Hon. Minister Major Gen. Abdul Kareem Adisa  
  
Tel:  (234-1) 266-9666, 263-1926  
  
  
  
U.S. AFFILIATED NIGERIAN BANKS  
  
Nigeria International Bank Limited  
1 Idowu Taylor Street  
Victoria Island, Lagos  
PMB 12028, Lagos  
Tel:  (234-1) 610-704  
  
U.S. Affiliate:  Citibank  
  
  
Nigerian American Merchant Bank Limited  
10/12 McCarthy Street  
Lagos  
Tel:  (234-1) 263-7568  
  
U.S. Affiliate:  First National Bank of Boston   
  
  
COMMERCIAL BANKS  
  
First Bank of Nigeria PLC.  
35 Marina  
P.O. Box 5216, Lagos  
  
Tel:  (234-1) 665-900 to 31 (30 lines)  
Tlx:  21231, 22292, 22293 A/B BANKING  
Cable:  STANEXEC  
  
  
Union Bank of Nigeria PLC.  
40 Marina  
P.M.B. 2027, Lagos  
  
Tel:  (234-1) 266-5439, 266-5441  
Fax:  (234-1) 663-822  
Tlx:  21222 NG  
Cable:  UNION HEAD, LAGOS  
  
  
United Bank for Africa PLC.  
97/105 Broad Street, Lagos  
P.O. Box 2406, Lagos  
  
Tel:  (234-1) 266-7410, 266-7510  
Fax:  (234-1) 266-0844  
Tlx:  MIBANK 21241, 21885, 21486, 21692, 22897 NG   
      UBACEL 21580 NG  
Cable:  MINDOBANK, LAGOS  
  
  
Nigeria International Bank Limited  
Commerce House  
1 Idowu Taylor Street  
Victoria Island, Lagos  
P.O. Box 6391, Lagos  
P.M.B. 12728, Lagos  
  
Tel:  (234-1) 269-0166 to 269-0175, 269-0217 to 269-0225  
Fax:  (234-1) 618-916  
Tlx:  23424 NG  
  
  
Nigerian Export-Import Bank (NEXIM)  
Allied House (4th - 9th Floors)  
1551161, Broad Street  
P.M.B. 80004  
Victoria Island, Lagos  
  
Tel:  (234-1) 264-1041/50  
Fax:  (234-1) 266-7879  
  
  
Nigerian Industrial Development Bank Limited  
NIDB House  
63/71 Broad Street  
P.O. Box 2357, Lagos  
  
Tel:  (234-1) 266-3495, 266-3539, 266-1545  
Fax:  (234-1) 266-5286, 266-6733  
Tlx:  28608, 28611, 21774 NG  
Cable:  NIDBANK, LAGOS  
  
  
World Bank Resident Mission  
Plot PC 10, Engineering Close  
Off Idowu Taylor Street  
Victoria Island, Lagos  
  
Attn:  Mr. Thomas Hutcheson  
       Senior Resident Economist  
       (Mr. Greg-Tai Nzekwu, Abuja)  
  
Tel:  (234-1) 261-6044, 261-6196  
Tel:  Abuja - (234-9) 523-0568  
Fax:  Abuja - (234-9) 523-0569  
Tlx:  Ibrdng 21174  
  
  
International Finance Corporation  
Plot PC 10, Engineering Close  
Off Idowu Taylor Street  
Victoria Island, Lagos  
  
Attn:  Mr. Mohan R. Wikramanayake  
  
Tel:  (234-1) 611-400, 612-081  
Fax:  (234-1) 261-7164  
Telex:  21174  
  
  
The Multilateral Development Bank Office  
14th & Constitution Avenue  
Washington, D.C. 20007  
  
Tel:  202-482-3399  
Fax:  202-482-5179  
  
  
Trade Promotion Coordinating Committee (TPCC)  
U.S. Department of Agriculture  
Foreign Agricultural Service  
Trade Assistance and Promotion Office  
  
Tel:  202-720-7420
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