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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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