Page 1

eBizguides Nigeria has been produced during a 10 months stay Abuja and Lagos  and the regions of  Nigeria. This guide was possible thanks to the hard work in N i g e r i a

o f :


Melanie Hardiman: an English woman with passion, enthusiasm



Stephanie Lagattu: a French lady who made the d i ff e r e n c e


Jeff Moreau: another French guy full of energy to dynamise

ever ything



Marc Layola Otin: a Catalan with extensive African knowledge


N i g e r i a’s


LawrencePierre: the best of what France and Brittany can do together to bring trust and confidence In





Frederic Van De Vyver: a delighted Belgian guy with a great team



I n

M a d r i d

Pascal Belda : it is a privilege to publish a book aboutNigeria. Elisa L. Fuentes : a great spanish artistic touch to design the u





- eBizguide Kenya. - eBizguide Tanzania. 2003/04 - eBizguide Ethiopia. 2004/05 - eBizguide Algeria. 2004/05 - eBizguide Ghana. 2004/05

In Nigeria: - Marc Layola - Lawrence Pierre - Stephanie Lagattu

- eBizguide Mozambique. 2004/05 - eBizguide Egypt. 2005/06

ENERGY ³ TOURISM ³ AGRICULTURE ³ FINANCE ³ INDUSTRY In Nigeria: - Melanie Hardiman - Jeff Moreau

In Madrid: - Frederic Van De Vyver - Pascal Belda - Elisa L. Fuentes



- eBizguide Nigeria. 2005/06 - eBizguide Libya. 2005/06


- Libya - Kenya - Kenya - Kenya - Kenya



CREDITS PRODUCTION Producer: Pascal Belda Regional Project Direction: Frederic van de Vyver Local Project Directors: Stephanie Lagattu - Melanie Rose Hardiman Associate Production: Lawrence Pierre - Jean Franรงois Moreau Research and Market Development : Nicholas Bruneau

Advertising Agencies: MediaPlus, General Manager: Mrs. Promise Ndupu, Lagos Garkida Press Limited, Managing Director: Alhaji Sani A.Garkida, Abuja

EDITION Written and edited by: eBizguides Economic section written by: Adetokunbo Ogunmokun, Deloitte & Touche Art Direction: Elisa L. Fuentes Photographs: All pictures by eBizguides. NLNG collaboration

ACKNOWLEDGEMENTS We would like to thank the following people for their collaboration and support: H.E. Chief Olusegun Obasanjo, President of the Federal Republic of Nigeria - Chief Ufot Ekaette, Secretary to the Government of the Federation - Nasir Ahmad el-Rufai, Honourable Minister of the Federal Capital Territory - Prof. Turner T. Isoun, Honourable Minister of Science & Technology - Dr. (Mrs.) Ngozi Okonjo-Iweala, Honourable Minister of Finance - Elder Odion M. Ugbesia, Honourable Minister of Solid Minerals Development - Dr. Edmund Daukoru, Presidential Adviser on Petroleum Affairs and Energy Matters - Chief Cornelius O. Adebayo, Honourable Minister of Communications - Amb. Magaji Muhammed, Honourable Minister of Industry - Amb. Frank Nchita Ogbuewu, Honourable Minister of Culture and Tourism - Amb. A.D. Idris Waziri, Honourable Minister of Commerce - Senator Lawan Gana Guba, Honourable Minister of Co-operation and Integration in Africa - Senator Liyel Imoke, Honourable Minister of Power & Steel - Senator Adeseye Ogunlewe, Honourable Minister of Works - Alhaji Isa Yuguda, Honourable Minister of Aviation - Adamu Bello, Honourable Minister of Agriculture & Rural Development - Dr. Abiye S.P. Sekibo, Honourable Minister of Transport - Chief (Mrs.) Mobolaji Osomo, Honourable Minister of Housing & Urban Development - Amb. Olu Adeniji, Honourable Minister of Foreign Affairs - Amb. Aluko-Olokun, representative of NEPAD - H.E. Donald Duke, Governor of Cross River State - Danjuma Nanpon Sheni, Ag. High Commissioner for Nigeria in Ghana, Dr Olatunje Kolapo. - Mr. Prince Adeyemi - Mr. Remi Adeyeye - Mounib Rammal (Connect on line-Ghana) - Talal Jamarkani (Orascom Engeneering) and our friends: Adi - Bernardo - Laurent - Meenz - Apostolos - Eddy - Nicolas - Avi - Alexandros - Kosma - Nikolas - Amar - Jean-Charles - Luciano - Julian - Fernando - Stefano - Carlos - Dominic - Maria - Marc - Koffi Yam.

We would also like to thank the heads of the following companies, for their sponsorship and support and without whom this eBizguide would not have been possible:

Nigerian Export Promotion Council - Nigerian Telecommunications Ltd - Nigerian Postal Service - Le Meridien Abuja - SETRACO Nigeria Ltd - NASCO Group - Sheraton Abuja Hotel & Towers - Nigerian Export-Import Bank - Corporate Affairs Commission - Abuja Investment and Property Development Company Ltd - The National Economic Reconstruction Fund - National Electric Power Authority - The Federal Ministry of Science & Technology - Federation of Tourism Associations of Nigeria - National Sugar Development Council - Global Industrial Raw Materials Company Ltd - The Federal Ministry of Housing and Urban Development - Bank of Industry Ltd. - Flour Mills of Nigeria Plc. - KLM Royal Dutch Airlines - Nigeria Customs Service - MicroAccess - The Grange Abuja - Eko Hotel and Suites - ADC Airlines - Akintola Williams Deloitte Guardian Trust Insurance Ltd. - UPS Nigeria Ltd. - Aiico Insurance Plc. - Berger Paints Nigeria Plc. - BTI Nigeria - May & Baker Nigeria Plc. - Aero Contractors Company of Nigeria Ltd. - Nigerian Breweries Plc - National Maritime Authority (NMA) - DN Meyer Plc. - Nigerian Ports Authority (NPA) - Office of the Governor Calabar (Cross River State) - Negris Ltd. - Niger Delta Development Commission (NDDC). At eBizguides we are very happy that this initiative has brought the joy of love to our dearest colleage Stephanie Lagattu.

World Investment News Ltd. - Fourth Dollard House, Wellington Quay

Printed by: Im. Grafihumo

Dublin 2 - Ireland

Printed in Spain - EU

Customer Service Tel: + 34 91 345 66 25/ Fax: +34 91 787 38 89 E-mail:

Legal Deposit:

ISBN 84-933978-3-0



Index Did You Know?...........................................................................................................7 Nigeria’s Fact File.........................................................................................................9

General Information......................................................................................11 to 88 Business Resources.....................................................................................................43 Investment & Legal Framework..................................................................................57

The Nigerian Economy................................................................................89 to 252 Agriculture...............................................................................................................99 Energy .....................................................................................................................107 Finance.....................................................................................................................133 Industry & Trade.......................................................................................................157 Transport..................................................................................................................187 Telecommuncations.................................................................................................209 Tourism....................................................................................................................225 Works & Housing ....................................................................................................239

Leisure........................................................................................................253 to 306 The Northern Region................................................................................................259 The Southern Region................................................................................................279 Events and Festivals..................................................................................................296 Basic Vocabulary......................................................................................................305



Did you know...


Did You Know?

* Nigeria is the most populated country in Africa?

* The river Niger is the third biggest river in Africa? With a length of 1,174.6 kilometres, it is considered the life

* With around 140 million inhabitants, Nigeria actually

supporter of West Africa as it provides water to the

counts for one quarter of Sub-Saharan Africa's population

Guinea, Mali, Burkina-Faso, Niger, Benin and Nigeria.

and it is actually estimated that one in every six black people in the world is a Nigerian. In contrast, in terms of sur-

* In 2001, a Nigerian, Mss. Agbani Darego, was declared

face, the country is only 15% of the West African sub-

the most beautiful girl on the planet? Mrs. Darego won


the Miss World beauty pageant making her the first African in 50 years to receive that honour.

* Nigeria is the 8th top net exporter of oil in the world? In 2003, Nigeria exported 1.93 million barrels per day ran-

* Nigeria has a film industry that launches a significant

king it among the top 10 oil exporters in the world.

amount of home videos per year? It has actually been named Nollywood and it has caught the attention of the

* The capital of Nigeria was moved from Lagos to Abuja

Government as a significant foreign exchange earner.

in 1991? Abuja, located in the physical centre of the country, was chosen as new capital not only to decongest

* Famous artists like Sade and Seal are Nigerians?

the heavily populated city of Lagos, but also for his symbolic location in the middle of the country represen-

* Connection Machine, the world's fastest super compu-

ting a centre of unity.

ter in 1989, was developed by a Nigerian? Mr. Phillip Emeagwali, a Nigerian inventor created this computer

* Between 1976 and 1979 current President Chief

that achieved the stunning speed of 3.1 billion calcula-

Olusegun Obasanjo was Head of State and in an unprece-

tions per second. His achievement was widely recognised

dented move, he organised general elections and handed

and Mr. Emeagwali obtained the 1989 Gordon Bell Prize,

over power to a civil government? For this deed, Chief

which can be described as the Noble Prize of the compu-

Olusegun Obasanjo, will go down in history as the first

ting field.

African military leader to voluntarily give way to a democratic process.







Nigeria Fact File Land Area:

923,768 sq. Km


approx. 140 million people

Population Growth Rate: Capital:

2.45% per annum Abuja

Main Cities:

Lagos, Kano, Port Harcourt, Benin City, Enugu, Warri, Zaria, Ibadan, Katsina, Jos, Calabar

Main Ports:

Lagos, Port Harcourt, Onne, Calabar

International Airports: Climate:

Lagos, Abuja, Kano, Port Harcourt Equatorial in the south, tropical in the centre and arid in the north

Lowest Point:

Atlantic Ocean 0 m.

Highest Point:

Chappal Waddi 2,419 metres

GDP per capita: Governing System: Language:

Fiscal Year: Time: Currency:

US$ 800 Federal Republic based on constitutional democracy English (offical) and hundreds of African languages with Hausa, Igbo and Yoruba as the main ones Calendar year GMT +1 Naira (N) US$1 = 132.80 NGN / 1 EUR = 163.60 N




“A man's character cannot be washed off by the rain” Nigerian proverb



which are symbols of the country's cultural heritage.

Nigeria, the West African giant, is a widely unknown

One thing is certain about Nigeria; all the ingredients are

country, in part due to its image abroad, but after the

in place to let the country be master of its own future and

introduction of a democratic process in 1999, Nigeria is

of Africa's. The Lion of Africa is ready to awaken.

ready for a new renaissance. The country, rich in mineral resources and with the largest population in Africa is prepared to take on its role as the most influential country on


the African continent. The first traces of civilisation in Nigeria were found around No dream can be accomplished without hard work and

Jos, in a town called Nok, and this initial culture was

indeed Nigeria needs a lot of effort to obtain the status it

known by this name.

deserves not only in Africa, but also in the rest of the world. The image of an unstable country, where military

Beginning in the 11th century, seven independent Hausa

rulers command, is being washed away by two consecu-

city-states were founded in northern Nigeria - Biram,

tive democratic elections and a third due in 2007. Its role

Daura, Gobir, Kano, Katsina, Rano, and Zaria. Kano and

within Africa can be felt not only by its dominant presence

Katsina competed for the lucrative trans-Saharan trade

in the formation of ECOWAS (Economic Community of

with Kanem-Bornu, and for a time had to pay the cost. In

West African States) but also by intervening in African

the late 15th century, Portuguese navigators became the

conflicts such as those in Liberia, Rwanda and Sudan.

first Europeans to visit Nigeria. They soon began to purchase slaves and agricultural produce from coastal mid-

Once political stability was achieved, the economic deve-

dlemen. After the Portuguese traders, the British, French,

lopment gained maximum attention. Indeed, the Nigerian

and Dutch traders also came. In 1807, Great Britain aban-

government has launched a very aggressive privatisation

doned the slave trade; however, other countries conti-

process and invigorated the production and refining of oil,

nued until about 1875. Meanwhile, many African mid-

the main revenue earner and contributor to the GDP. It

dlemen turned to selling palm products, which were

has also invited foreign investors to improve its infrastruc-

Nigeria's chief export by the middle of the century.

ture and industrial tissue and remodelled the whole public sector through it wide-ranging NEEDS strategy (National

Nigeria attained independence on 1 October 1960, with

Economic Empowerment and Development Strategy),

Abubakar Tafawa Balewa of the Northern People's

touching every sector of the economy.

Congress (NPC) as Prime Minister. Chief (Dr.) Nnamdi Azikiwe of the National Council of Nigeria and the

Nigeria is also a country that offers plenty of untapped

Cameroons (NCNC), which later became the National

opportunities when it comes to tourism. From north to

Convention of Nigerian Citizens, was made governor-

south, visitors can find a wide variety of tourist attrac-

general. In 1963, Nigeria became a republic and Chief (Dr)

tions, such as natural parks or reserves, waterfalls and wil-

Nnamid Azikiwe was made President. The first years of

dlife. Due to the diversity of its traditions, Nigeria also has

independence were characterised by severe conflicts

many fascinating cultural assets. Its rich culture is espe-

within and between regions. This led to a civil war in the

cially reflected in its arts and artefacts (woodcarving, cala-

sixties and the protracted military regime in Nigeria.

bashes, bronze and iron works, pottery to name a few)


GENERAL INFORMATION ABOUT NIGERIA Spurred by the booming petroleum industry in the 1970s,

Olusegun Obasanjo, from the People's Democratic Party

Nigeria became a member of the Organisation of

(PDP).Obasanjo was a former general and Head of State

Petroleum Exporting Countries (OPEC) in 1971 and the

between 1976 and 1979. He was imprisoned under the

Nigerian economy quickly recovered from the effects of

Abacha regime. Despite his military past, this democratic

civil war and made impressive advances. Nonetheless,

President was re-elected for his second term in 2003. The

inflation and high unemployment remained, and the oil

administration has done a lot to try to heal the wounds of

boom led to government corruption and uneven distribu-

the past years, refocusing the entire populace towards a

tion of wealth.

united and stable Nigeria.

After 15 years of an uninterrupted military dictatorship,

One of the steps taken has been to set up of a commis-

Nigeria's third democracy was inaugurated on May 29,

sion for the review of the country's Constitution, as well

1999 with a one time Head of States and Commander in

as another commission to look into the country's local

Chief of the Armed Forces, Retired General Olusegun

government system.

Obasanjo emerging as the democratically elected President. Following the inauguration of the civilian Government in May 1999, the country was readmitted to the Commonwealth.

There is no doubt that Nigeria has had a fair share of political crises since independence, but the country is now on

There has been some progress economically, though

course to use those experiences as a source of strength to

ethnic and religious tensions are still a headache for the

continue the development of this promising West African

government. The new civilian government has taken a


number of positive steps towards addressing the structural and institutional flaws in the Nigerian economy. For example, the government established panels to review all contracts awarded by previous governments, all sales of government properties and governmental budgets. The


government has also shown more transparency in contracting and procurement. Petitions from aggrieved indivi-

The National Flag

duals and groups have inundated the human rights panel set up by the civilian government. President Obasanjo promised that those indicted on charges of official corruption would be prosecuted. In April 2003, President Obasanjo was re-elected as the President of Nigeria.

THE COUNTRY TODAY Nigeria's current administration is that of President

The green represents agriculture and white represents peace.



Nigeria Coat of Arms is an emblem showing the unity of the country and symbolises authority and power. The black shield represents the good soil of Nigeria, the eagle represents Nigeria's strength and the horses represent the dignity and pride of Nigeria. The mark on the shield that looks like the letter "Y" represents the Rivers Niger and Benue, which flow through parts of Nigeria.

President Olusegun Obasanjo with her Majesty Queen Elizabeth and Rt Hon Donald C. Mc Kinnon, The Commonwealth Secretary General.

The flowers symbolise the beauty of Nigeria. They are of the species coctus spectabilis and are found in most parts

Federal Legislature

of Nigeria. Unity and Faith, Peace and Progress is written in the Coat of Arms and is Nigeria's motto.

The Federal Legislature is made up of two houses: 1. The Senate


The Nigerian Senate is made up of 109 members who represent 109 senatorial districts across the country.

The Executive Arm of Government

Three members represent each state while only one represents the Federal Capital Territory (FCT). The Senate is

Nigeria is a federal republic governed by the 1999

headed by a senate president, who is assisted by a deputy.

Constitution of the Federal Republic of Nigeria. A presi-

The Senate President is next in the hierarchy after the

dent, who is popularly elected for a four-year term and is

country's President and Vice President. The Senate

assisted by a cabinet, heads the executive branch. The bicameral legislature consists of a 360-seat House of Representatives and a 109-seat Senate. All legislators are elected for a four-year term. For administrative purposes, the country is divided into 36 states and a Federal Capital Territory. Each state is governed by an Executive Council, which is headed by a Governor. For better governance, there are 774 local governments in Nigeria with the main aim of working hand-in-hand with the masses and people living in rural areas. National Assembly near Aso Rock in Abuja


GENERAL INFORMATION ABOUT NIGERIA President presides at joint sessions of the two houses of

highly promoted and financed by Saudi Goverment.

the legislature. The Administration of the Senate is headed by the Clerk, who is a civil servant.


2. The House of Representatives The House is made up of 360 members elected from 360 federal constituencies nationwide.

It is headed by the

Speaker of the House who is fourth in the hierarchical order of the federal system of government. As in the Senate, he has a Deputy and a Clerk of the House. The National Assembly is vested with the power to make laws for the Federation, as well as amend the Constitution of the Federal Republic.

The Judiciary The Judiciary is the third arm of Government. In Nigeria's young democracy, the Judiciary is positioned to ensure the effective separation of governing powers. It is the

The Federal Secretariat in Abuja

duty of the Judiciary to adjudicate in disputes between the government and individuals or corporate entities in their inter-relationships, in accordance with the law.

Office of the Secretary to the Government of the Federation The Presidency

Sharia Law

Federal Secretariat Shehu Shagari Way Abuja

Sharia comes from the Arabic meaning "the way", and is

Tel: + 234 - (0) - 9 - 5233540

Islamic religious law, based on interpretations of the Muslims in the North have had the option of sorting out

Ministry of Agriculture and Rural Development

disputes in sharia courts, should they choose to do so.

Area 11 Garki Abuja

However, January 2000 saw the adoption of sharia law in

Tel: + 234 - (0) - 9 - 3141931

Koran, and it governs all aspects of life. For many years

the northern state of Zamfara. Essentially this meant that any Muslim in the state, who commits an offence against

Ministry of Aviation

Islamic law, is liable for punishment under sharia. These

Federal Secretariat complex

punishments include amputation for theft, stoning to

Shehu Shagari Way Abuja

death for infidelity, and floggings for a variety of offences

Tel: + 234 - (0) - 9 - 5231063

among others. The majority of Zamfara's population are strict Muslims, so the law is upheld. Seeing its popularity,

Ministry of Commerce

many other northern states soon followed suit. To date 12

Area 1 Secretariat Complex

northern states have introduced sharia law, wich has been

Garki Abuja


GENERAL INFORMATION ABOUT NIGERIA Tel: + 234 - (0) - 9 - 2341884 / 2341351

P.M.B. 14, Garki Abuja Tel: + 234 - (0) - 9 - 2340932 / 2346928

Ministry of Communications Federal Secretariat complex

Ministry of Foreign Affairs

Shehu Shagari Way Abuja

Maputo Street

Tel: + 234 - (0) - 9 - 5237183

Zone 3 Wuse District Abuja Tel: + 234 - (0) - 9 - 5230576

Ministry of Cooperation & Integration Plot 496, IPCR Building, Abogo Largema Street

Ministry of Health

Airport Road, Central District Abuja

New Federal Secretariat complex

Tel: + 234 - (0) - 9 - 5239624

Shehu Shagari Way Abuja Tel: +234 - (0) - 9 - 5234586 / 90

Ministry of Culture and Tourism Bulet Building, Shehu Shagari Way Abuja

Ministry of Housing & Urban Development

Tel: + 234 - (0) - 9 - 2348297

Block D, Mabushi Abuja

Federal Secretariat Complex, Phase II

Tel: + 234 - (0) - 9 - 5211631 / 5211632

Ministry of Defence Ship House, Central Area

Ministry of Industries

Olusegun Obasanjo Way

Area 1 Secretariat Complex

Area 10 Garki Abuja

Garki Abuja

Tel: + 234 - (0) - 9 - 2340534

Tel: + 234 - (0) - 9 - 2341690

Ministry of Education

Ministry of Information

3rd Floor, Federal Secretariat Complex

Radio House, Herbert Macaulay Way

Shehu Shagari Way Abuja

Area 11 Garki Abuja

Tel: + 234 - (0) - 9 - 5232800

Tel: + 234 - (0) - 9 - 2346350 / 1

Ministry of Environment 9th Floor, Federal Secretariat Complex

Ministry of Inter-Governmental Affairs/Special Duties

Shehu Shagari Way Abuja

Block B, Federal Secretariat

Tel: + 234 - (0) - 9 - 5234014

Phase II, Shehu Shagari Way Abuja Tel: + 234 - (0) - 9 - 2349948 / 2349911

Ministry of Federal Capital Territory Area 11 Garki Abuja

Ministry of Internal Affairs

Tel: + 234 - (0) - 9 - 3141295

Area 1 Secretariat Complex Garki Abuja

Ministry of Finance Central Area Ahmadu Bello Way


Tel: + 234 - (0) - 9 - 2346884 / 2349128


Ministry of Water Resources

Federal Secretariat complex

Old Fed. Secretariat, Area 1

Shehu Shagari Way, Maitama Abuja

PMB 159, Garki Abuja

Tel: + 234 - (0) - 9 - 5235194

Tel: + 234 - (0) - 9 - 2342372

Ministry of Labour & Productivity

Ministry of Women and Youth

2nd Floor, Federal Secretariat Complex

New Federal Secretariat complex

Shehu Shagari Way Abuja

Shehu Shagari Way Abuja

Tel: + 234 - (0) - 9 - 5235980

Tel: + 234 - (0) - 9 - 5237115

Ministry of Police Affairs

Ministry of Works

8th Floor, Federal Secretariat Complex

Mabushi District Abuja

Shehu Shagari Way Abuja

Tel: + 234 - (0) - 9 - 5211631

Tel: + 234 - (0) - 9 - 5230549

GEOGRAPHY Ministry of Power & Steel 4th Floor, Federal Secretariat Complex Shehu Shagari Way Abuja


Tel: + 234 - (0) - 9 - 5237064

Ministry of Science & Technology

Nigeria is located within the West African Sub Region,

9th Floor, Federal Secretariat Complex

slightly north of the Equator. The Atlantic Ocean washes

Shehu Shagari Way Abuja

its entire southern coast while the fast encroaching arid

Tel: + 234 - (0) - 9 - 5233397

zone south of the Sahara Desert borders its northern part.

Ministry of Solid Minerals

It lies roughly between latitudes 4 degrees north and 14

5th Floor, Federal Secretariat Complex

degrees north and between longitudes 3 degrees east and

Shehu Shagari Way Abuja

15 degrees east, encompassing a vast geographical area

Tel: + 234 - (0) - 9 - 5235830

of contrasting terrain, climatic conditions and vegetation belts.

Ministry of Sports & Social Development 1st Floor, Federal Secretariat Complex

The surface area of the country is approximately 923 800

Shehu Shagari Way Abuja

sq. km; thus Nigeria occupies around 15% of West Africa.

Tel: + 234 - (0) - 9 - 5235905

With over one hundred and forty million people, Nigeria is the most populous African nation. It is bordered by the

Ministry of Transport

Republic of Cameroon to the east, Niger and Chad to the

Bukar Dipcharima House

north and the Benin Republic to the west. The southern

Central Area PMB 336 Abuja

boundary is formed by the 800 km Atlantic coastline,

Tel: + 234 - (0) - 9 - 2347451 / 2

which includes the eastern part of the Gulf of Guinea. The Niger River flows across the country from the north-


GENERAL INFORMATION ABOUT NIGERIA west to the south, and is Africa's third longest river. The other large river in Nigeria, the Benue River, crosses the country from Cameroon, and spills out into the Niger near Lokoja.

Topography Nigeria exhibits a great variety of relief features encompassing uplands of 600m to 1300m on the Jos Plateau, the central, northern and the eastern highlands down to the lowlands of less than 20m in the coastal areas, which

Nigeria is endowed with vast mineral resources

can extend as far as 60km inland from the shoreline. Covering an average distance of some 1120 km from

with significant agricultural, mineral, marine and forest

south to north, Nigeria displays physiographic regions of

resources. Its multiple vegetation zones, plentiful rain,

varying relief, nature and spatial distribution. The nature

surface water and underground water resources, and

of its geological structure gives Nigeria two broad relief

moderate climatic extremes allow for the production of

regions: high plateaus in the central and northern parts

diverse food and cash crops. Over 60 per cent of the

and lowlands in the southern parts of the country. population is involved in the production of the food crops

Natural Resources

such as cassava, maize, rice, yam, various beans and legumes, soya, sorghum, ginger, onions, tomatoes,

In addition to its huge population, Nigeria is endowed

melons and vegetables. The main cash crops are cocoa,

Physical map of Nigeria


Rainforest in Cross River State

cotton, groundnuts, palm oil and rubber. Extractions from


these for export and local industrial use include cocoa powder and butter, rubber crumb, vegetable oils, cotton

Nigeria has two broad types of vegetation, namely, the

fibre and yarn. The rain forests have been well exploited

forest (vegetation types in which trees are the dominant

for timber and wood products of exotic as well as popular

species) and savannah (grassland area with no forest


cover). There is however, also the mountain vegetation of

Oil and gas, due to their value, are the most important

the isolated high plateau regions in the central and far

minerals. They are exploited and produced in the Niger

eastern parts of Nigeria.

Delta basin and offshore on the continental shelf and in the deep-sea territorial waters. Nigeria is one of the major


players in the global production and exportation of crude oil and natural gas. Nevertheless, there are significant

Because of its location, just north of the equator, Nigeria

non-oil mineral deposits on land many of which have

enjoys a truly tropical climate, characterised by the hot

been identified and mined, including coal, iron ore,

and wet conditions associated with the Inter-Tropical

gypsum, kaolin, phosphates, lime -stone, marble, colum-

Convergence Zone (ITCZ) north and south of the equator.

bine, barite and gold.

The country experiences consistently high temperatures all year round. Since temperature varies only slightly throughout the year, rainfall distribution, over space and time


GENERAL INFORMATION ABOUT NIGERIA becomes the single most important factor in differentiating the seasons and climatic regions. Rainfall occurrence and distribution are however dependent on the two air masses that prevail over the country: the Tropical Maritime and the Tropical Continental.

The former is

associated with the moisture-laden southwest winds which blow from the Atlantic Ocean bringing with it the rainy season, while the latter is associated with the dry and dusty northeast winds which blow from the Sahara Desert known as "harmattan" or sirocco in Europe. Four seasons in the south, and two in the north of the country, characterise the seasonal pattern of climatic conditions in Nigeria. In the north the rainy season is roughly

The rest of the ethnic groups who do not fall into these

between May and September, with the remainder of the

three predominant groups are spread throughout the

year being dry. In the south there are two rainy seasons,

country and each has a distinctive culture and language.

from March to July, then September to October. This

Other predominant groups are the Fulani, the Kanuri, the

results in a higher annual total rainfall occurrence and dis-

Nupe, and the Tiv in the north, the Efik/Ibibio, the Ijaw,

tribution in the south than in the north, a difference of up

and the Ekoi in the east, and the Edo and the

to 3500mm per annum.

Urhobo/Isoko in the west. With so many different groups, religions and economic interests (especially the division of revenue originated from oil), once in a while turmoil arises

PEOPLE AND CULTURE Ethnic map of Nigeria Although there are no official statistics about Nigeria's population, it is estimated that the country has almost 140 million people. The geography of Nigeria has been shaped by the influence of its two main rivers, the Niger and the Benue, which cut a "Y" incision across the country. Similarly, the people of Nigeria have been as influenced by these two rivers. Sociologists have counted above 250 ethnic groups within the country boundaries. Three main distinct groups are recognised to form the majority of the Nigerian population. Those groups are the Yoruba (southwest), the Hausa (north), and the Igbo (southeast). These three groups not only have different cultures, but also form three totally different language groups.


Fulani girl

in the form of clashes between ethnic groups, but the

Most of the ethnic groups in Nigeria receive their name

federal government does its best to ensure the security

from the language they speak. Hausa is actually spoken

and the peace.

not only in Nigeria but also in Chad, Ghana, Mali and Niger. The Hausa in Nigeria are mainly located north of

The Hausa

the rivers Niger and Benue. The Hausa were the first West-African ethnic group known to use written language with documents dating from 1000 AD. The Hausa have an economy based on agriculture although they are skilled traders and craftspeople. The Hausa have also built centenary cities like Kano (one of the first cities known in West Africa), Sokoto and Zaria. The Hausa are Muslims and therefore have always appreciated Islamic education. Their influential position in religious, political, business and cultural institutions has helped them to push forward the installation of sharia law in some of the northern states of the federation. 0Hausa man


GENERAL INFORMATION ABOUT NIGERIA The Fulani The Fulani, also known as Peul, Peulh, Fulah, Fulfulde or Fulbe, are considered to be part of the Hausa ethnic group. It is said they originally come from Senegal where they are related to the Tukolor. This semi-nomadic group can be found from Senegal to Northern Cameroon, mainly as herders of cattle, goats and sheep. In Nigeria they established themselves in small kingdoms or emirates. The Fulani have also embraced the Islamic religion like the Hausas. In fact, in the nineteenth century, a Fulani jihad, commanded by Usman dan Fodio, overran most of the Hausa territory. Due to its proximity to the Hausa, they are counted as part of that ethnic group. Igbo man, Victor, the best driver in Abuja.

The Yoruba

the sacred city of Ife-Ife, birthplace of its spiritual leader and founder Oduduwa. The Yoruba are easily recognised

The Yoruba are the second largest ethnic group in Nigeria

by the traditional scars they have on the sides of their face

and are located mainly in southwestern Nigeria. The

indicating to which tribe they actually belong and also by

Yoruba came to be known by this denomination around

their widely known generosity to strangers. The Yoruba

the nineteenth century as before they were many sepa-

are known for their high sophistication in bronze work.

rate kingdoms. Although spread widely in several smaller groups, all Yoruba have accepted that their origin lies in

Most Yoruba are Christian. Due to their location close to the coast, they had contact with Europeans who inculca ted their religion and their educational system. This earlier contact seemed to have given them a certain advantage and today, Yoruba are considered to be the best-educated people in Nigeria. Many of them have become lawyers, doctors, engineers and writers. In fact, one of the most prestigious universities in Nigeria is located in Ibadan, considered the capital of the Yoruba.

The Igbo The Igbo live in the southestern part of Nigeria and their language is also called Igbo. This ethnic group is the third largest in Nigeria and is known particularly for its entrepreneur spirit and ability in trade. They are also notorious Yoruba man

for their skill in imitating products of any kind; they are so cunning at it that the term "Igbo-made" is widely used to


GENERAL INFORMATION ABOUT NIGERIA depict imitations. The Igbo have a long history. According

and it is widely understood. There is also the Pidgin

to archaeological studies it seems they have been esta-

English (broken English), which is spoken and understood

blished in the area since the dawn of history. However,

by almost all Nigerians.

they mostly maintained their traditions orally so little is recorded about them before the arrival of the Europeans.


While the other main ethnic groups of Nigeria have strong

Three primary religions exist in Nigeria: Islam, Christianity

forms of government with kings, emirs and other rulers,

and Animism. Islam appears to be the most prominent

the Igbo reach decisions through consultation among the

with close to 50% of the population being Muslim.

elders of every group, making it a rather straightforward

Christians constitute about 35% of Nigerians, while the

form of democracy. The Igbo, like the Yoruba, are mainly

remaining are those with indigenous religious beliefs or


traditionalists. The division between Islam and Christianity is also a geographical one, with the concentration of

Wide areas of Igbo land are rich in oil and the Igbo felt

Muslims residing in the northern states, whilst the

that the wealth derived from it was not being fairly

Christians occupy the southern states. Despite opposition

divided. To make matters worse, the early years of

from Christians and human rights groups, many of the

Nigerian independence were characterised by political ins-

northern states have implemented the Islamic law, popu-

tability and corruption. The Igbo feared control by the

larly known as sharia. This has led to sectarian riots in

Northerners. May 30, 1967 was the turning point when

some of the northern states, in protest of the new law by

the secession of the Eastern Region and the formation of

the minority Christians.These clashes have cost hundreds

the Republic of Biafra were proclaimed. For three years,

of lives.

Nigeria found itself involved in its most bitter episode as the conflict left between 1 and 3 million dead and 3 million refugees. After the war, the federal government


proclaimed a policy of "no conquerors- no defeated" to ensure the unity in the country once more. Currently the Igbo have flourished again in every city of the federation

Before you Arrive

with their favourite activity, trade. Before entering Nigeria, make sure that all your vaccinations are up to date. Your family doctor can best advise


you on which vaccinations are recommended, however it is essential that you have the Yellow Fever vaccination, as

Nigeria can be described as a multi-lingual country. Apart

you may be asked to present the certificate of vaccination

from the 3 major languages, there are many other sub-

upon arrival in Nigeria.

ethnic languages and scores of other dialects that exist within the major and sub-ethnic languages. The three

Also worth considering are vaccinations/boosters for

main indigenous languages are spoken by the three pre-

typhoid, tetanus, hepatitis A & B and cholera. If you are

dominant ethnic groups in Nigeria. They are the Yoruba

looking to travel extensively throughout the country, then

in the southwest, the Hausa in the north and the Igbo in

immunisation against meningitis is also a worthy precau-

the southeast. However, the official language is English

tion. All travellers should visit their personal physician or a


GENERAL INFORMATION ABOUT NIGERIA travel health clinic 4-8 weeks before departure. Malaria will be your major health concern when visiting Nigeria, as it is a risk all year round. Malaria protection is strongly advised and mosquito protection measures (nets and repellents) are important at all times, as they are the most effective measure against Malaria. There are a variety of options available, and it is worth discussing which option is best for you with your doctor. The choice will be dependent upon your length of stay, how soon you need to travel, your medical condition etc. Some antimalaria drugs like Lariam (Mefloquine) only need to be taken once a week, but many people have reported neuropsychiatric side effects.

Doxycycline is an antibiotic

prophylaxis that is taken daily, and only needs to be started 1 day before you travel. It is also widely available in the pharmacies locally, and can also protect you against traveller's diarrhoea.

However, in few cases it can

The National Mosque in Abuja


Christ Cathedral in Lagos

GENERAL INFORMATION ABOUT NIGERIA increase your skin's sensitivity to the sun. A new drug, Malarone, can also be started the day before you travel,


and is currently recommended by many doctors, as it does not have the side effects of the others. It is, however, the

Nigeria operates a right-hand side driving system, under a

most expensive option.

Federal Highway Code. To drive in Nigeria, one has to obtain a driving license. A foreigner may be required to

On Arrival

produce an international driver's license if they drive themselves, however the majority of car hire companies

It is strongly recommended that you have your accommo-

insist you also hire a driver. This is actually a good option,

dation booked before you arrive, and that you arrange

as it can save you time and hassle.

with the hotel to send a driver to collect you from the airport, with your name written on a placard.

Health Services


Private clinics are found in the smallest towns. In major cities, private hospitals offer good facilities in comparison

Any foreigner visiting Nigeria must possess a valid entry

to neighbouring countries. As in many countries, the cost

visa, which is obtainable from a Nigerian Embassy or High

of medical services or hospital care must be paid in cash.

Commission abroad. However, exemptions are granted to

Most places will not accept payment by the patient's pri-

ECOWAS (Economic Community of West African States)

vate health insurance, although there are exceptions to

citizens who have valid passports or ECOWAS Travelling

the rule. Pharmacies (drug stores) plentiful in Nigeria,

Certificates but do not intend to visit for more than three

even in supermarkets, and are open during normal wor-


king hours, although not all are well stocked. Some open even on Sundays. In case of a serious medical emergency,

Requirements for Visa at Nigerian Embassies and High

it is recommended that you contact your embassy.


Emergency calls

1. International passports valid for at least 6 months. 2. Four recent passport photograph.

In the event of an emergency, the visitor may secure help

3. Return tickets.

by dialling whichever is relevant among the following

4. Applicants for transit visas must submit copies of their


onward tickets and visas to their destinations. 5. Evidence of availability of enough maintenance funds

Police - 199

or proof of other satisfactory arrangements for your sup-

Fire Brigade - 999

port while in Nigeria.

Operator - 190

6. Supporting letter from applicant's firm/business asso-

Enquiries - 194

ciates in Nigeria (where applicable).

Speaking clock - 191

7. Letter of invitation from Nigeria (where applicable). 8. Tourists must submit copies of their hotel reservations.



Angola Houan Boumedienne, No. 120

Tourist and temporary visitors can bring in any items,

Caixa Postal 479 Luanda

except illicit drugs, ammunition, and pornographic mate-

Tel: + 244 - 2 - 345985 / 340084

rials. Currency declaration may be requested on arrival. Customs duties will be charged on items of commercial


quantities. If they are your personal belongings, it is up to

27, State Circle, Deakin, ACT 2600

you to convince the officials of that.

P.O. Box 241 Civic Square Canberra

Foreigners are free to leave Nigeria with souvenirs. Items

Tel: + 16 - 62 - 2866426 / 2861322

classified as such can be taken out freely with the exception of antiquities for which a license must be obtained.


The license is obtainable from:

Rennweg 25, 103 Vienna P.O. Box 262, Vienna

The Curator,

Tel: + 43 - 1 - 7143254 / 7126685

National Commission of Museum and Monuments, Onikan, Lagos.

Benin Avenue De France, Marina

If you are taking out anything that looks like an antiquity,

B.P. 2019

it is worth also getting a Certificate of Export from the

Cotonou Tel: + 229 - 301503 / 301142

National Museum in Lagos.

Botswana Required Vaccinations

The Mall P.O. Box 274 Gaborone

Foreigners intending to visit Nigeria must have:

Tel: + 267 - 3913561 / 63

* Certificate/evidence of yellow fever vaccination.


* Certificate/evidence of cholera vaccination (only if

Sen-Avenida das Nacoes, Lote 5, Brasilia

coming from a cholera endemic zone).

Tel: + 55 - 61 - 2265616 / 2261717


Burkina Faso 36, Hospital Rd., B.P 132 Ouagadougou Tel: + 226 - 306667 / 3066 68

Cameroon Algeria

(Consulate - General of Nigeria)

BP.629, Alger-Gere

Bokwango, P.M.B. 30 Buea

Algiers 1600

Tel: + 237 - 322528 / 323537

Tel: + 213 - 693278 / 693726




295, Met Calfe Street, Ottawa

173, Ave. Victor Hugo

Ontario, K2P 1R9

75016 Paris 16e

Tel: + 1 - 2360521 / 2360522

Tel: + 33 - 1 - 47046165 / 47048497 (Ext. 224)

Central African Republic


B.P. 1010, Avenue des Martys,

Garba Jahumpa Avenue


New Town Road, Bukau

Tel: + 236 - 611279 / 610744

P.O. Box 630 Banjul Tel: + 220 - 95217 / 95804

Chad B.P. 752, Ave. Charles De Gaulle



Avenue Du President Leon-Mba,

Tel: + 235 - 51 - 522297 / 523515

Quartier-Boulevard Leon-Mba, B.P. 1191

Cote d'Ivoire


35, Boulevard De la Republique

Tel: + 241 - 732914 / 732203

O.I.B.P 1906 Abidjan


Tel: + 225 - 211982 / 212328

Plantanenstrasse 98A 1100 Berlin

Democratic Republic of Congo

Tel: + 49 - 30 - 4828322 / 4772300

141, Boulevard Du 30 Juin, Gombe Kinshasa


Tel: + 243 - 12 - 33342 / 4

Joseph Broz Tito Avenue P.O. Box 154



13, Sharia Gabalaye Zamalek

Tel: + 233 - 1 - 776158 / 9

Cairo Tel: + 20 - 2 - 3420389 / 3417894

Guinea B.P. 54

Equatorial Guinea


4, Passo de los Cocteros

Tel: + 224 - 461314 / 469400

Malabo Tel: + 240 - 9 - 2386 / 3520

Guinea Bissau B.P. 199



P.O. Box 1019

Tel: + 245 - 211876 / 211022

Addis-Ababa Tel: + 251 - 1 - 550644




21, Olof Palme Marg

Tubman Boulevard, Sinkor P.O. Box 366

Vasant Vihar New Delhi


Tel: + 91 - 11 - 6876228 / 6876558

Tel: + 231 - 261148 / 261020



34, Jalan Aipon Coro

Sharra Basir El-Ibrahim Garden City P.O. Box 4417

P.O. Box 3649 Jakarta


Tel: + 62 - 21 - 326686 / 3404903

Tel: + 218 - 21 - 43033 / 43035



Area 603, Lane 3, House 2

Badlabougou East P.O. Box 57

Al-Mutanabi District, Mansour


P.O. Box 5933 Baghdad

Tel: + 223 - 2 - 225771 / 227368

Tel: + 964 - 1 - 5421750

Mauritania Ireland

B.P. 367

56, Leesen Park


Dublin 6

Tel: + 222 - 2 - 52314 / 52304

Tel: + 353 - 1 - 682652 / 604366

Morocco Italy

70, Ave. Omar. Ibn El. Khattab Agdat

Via Orazio, 16/18


00193 Rome

Tel: + 212 - 7 - 71856 / 71857

Tel: + 39 - 6 - 878450 / 876720

Mozambique Japan

22, Ave. Kenneth Kaunda P.O. Box 4693

19-7 Vchora 2-Chome


Shibuya-ku Tokyo

Tel: + 258 - 1 - 490574 / 492457

Tel: + 81 - 3 - 4685531 / 3

Namibia Kenya

P.O. Box 23547 Windhoek

Lanana Road P.O. Box 30516

Tel: + 264 - 61 - 232103 / 5

Nairobi Tel: + 254 - 2 - 565743 / 564116

Netherlands Wagenaarweg 5, 2597 LL


The Hague

Area No. 1 St. 14. Plot 166, Surra P.O. Box 6432, 32039

Tel: + 31 - 70 - 3501703


Fax: + 31 - 70 - 3551110

Tel: + 965 - 5320794 / 5320795





Quarter Niamey Bas, B.P. 11-130

Point FC, Rue 1 & F9


B.P. 3129 Dakar

Tel: + 227 - 732207 / 732410

Tel: + 221 - 246922 / 214397


Sierra Leone

UL Chocimska 18

37, Siaka Stevens Street

00791 Warsaw

P.M.B. 291 Freetown

Tel: + 48 - 22 - 486944 / 485308

Tel: + 232 - 22 - 224202



Rua Femao Mendes Pinto 50 Restelo, 1400

Kilometer 5


P.O. Box 980 Mogadishu

Tel: + 351 - 21 - 3016191 / 3016189

Tel: + 252 - 61 - 562233 / 562529




Calle Seare 23

Tel: + 974 - 732479

Madrid 28002 Tel: + 34 - 91 - 5633144 / 5630911

Republic of Congo 11, Avenue lyavcey B.P. 790



P.O. Box 1538

Tel: + 242 - 833846 / 831316

Khartoum Tel: + 249 - 11 - 79120 / 22

Russian Federation Ul kachalova, 13



Tyrgatan 8, P.O. Box 628, 11427

Tel: + 7 - 095 - 2903785 / 2001246

Stockholm Tel: + 46 - 8 - 246390 / 204575

Saudi Arabia Riyadh 11893, Sulaimaniyah District



1, Rue Richard Wagner, 1211,

Tel: + 966 - 1 - 4823024 / 4823982

Geneva 2 Tel: + 41 - 22 - 7342140 / 7342149

Saudi Arabia (Consulate - General of Nigeria)


19, Al-Oroubah Street 46, Mushrefan District 6

Liberation Office,

P.O. Box 655, Jeddah

3 Bagamayo Road, P.O. Box 9214, B.P. 1767

Tel: + 966 - 2 - 6727662 / 6716865

Dar Es Salaam Tel: + 255 - 22 - 34493 / 34440




311, Boulevard Coreculaire

17, Broads Road, Fairview

B.P. 1189,

P.O. Box 32598 Lusaka


Tel: + 262 - 0 - 229860 / 253177

Tel: + 228 - 213455 / 216025

Zimbabwe Trinidad & Tobago

36, Samora Machel Avenue

3, Maxwell-Philip St., St. Clair, P.M.B. 140.



Tel: + 263 - 4 - 790761 / 790763

Port of Spain Tel: + 1 - 868 - 6282806 / 6224002



33, Nakasero Road, P.O. Box 4338 Kampala


Tel: + 256 - 41 - 233691 / 233692

Algeria United Kingdom

Plot 1398, Cadastral Zone 4

9, Northumberland Avenue

Hon. Justice Mamman Nasir Street

London, WC2N 2BX,

Asokoro District

Tel: + 44 - 207 - 8391244 / 8392037

Tel: + 234 - (0) - 9 - 3142840 / 1

United States of America


2201 M. Street, NW

Oakland Centre, 5th Floor

Washington DC 20037

Plot 2940 Aguiyi Ironsi Street

Tel: + 1 - 202 - 8221500 / 8221513

Maitama Tel: + 234 - (0) - 9 - 4135226

United States of America (Permanent Mission of Nigeria to the United Nations)


828 Second Ave.

Off Gana Street Maitama

New York, NY 10017

Tel: + 234 - (0) - 9 - 4135121

9 Pope John Paul II Street

Tel: + 1 - 212 - 9539130 / 5577465

Belgium Venezuela

Plot 67 Mississippi Street

Av Chivacoa, Qta Blanca Luz


San Roman Caracas

Tel: + 234 - (0) - 9 - 4137930

Tel: + 58 - 212 - 684936 / 634816



Tel: + 234 - (0) - 9 - 4132679

Plot 2579 Yedseram Street Maitama


Tel: + 234 - (0) - 9 - 4138425

19 Ona Crescent Off Lake Chad Crescent



Plot 173, Mississippi Street

Tel: + 234 - (0) - 9 - 4131626

Maitama Tel: + 234 - (0) - 9 - 4134066 / 67

Finland Plot 1547 Iro Dan Musa Street

Burkina Faso


4 Freetown Street

Tel: + 234 - (0) - 9 - 3147256

Off Adetokunbo Ademola Crescent Wuse II


Tel: + 234 - (0) - 9 - 4130491

32, Udi Street Off Aso Drive



3A Bobo Street

Tel: + 234 - (0) - 9 - 5235506 / 5235076

Tel: + 234 - (0) - 9 - 4139910

Gambia Chad

Plot 1304 Yankari Street

10 Mississippi Street

Parakou Crescent

Off Shehu Shagari Way Maitama

Wuse II

Tel: + 234 - (0) - 9 - 4130751

Tel: + 234 - (0) - 9 - 5241224 / 5



Plot 343 Bamako Street

3323 Barada Close

Zone 1 Wuse

Off Amazon Street

Tel: + 234 - (0) - 9 - 2347065

Maitama Tel: + 234 - (0) - 9 - 4130962 / 64

Democratic Republic of Congo


Plot 940 Axores Street

10 Olusegun Obasanjo Way

Off Aminu Kano Cresent


Wuse II

Tel: + 234 - (0) - 9 - 2345184

Tel: + 234 - (0) - 9 - 4131107

Great Britain Egypt

Shehu Shagari Way (North)

Plot 3319, Barada Close


Off Amazon Street

Tel: + 234 - (0) - 9 - 4132010 / 1

Maitama District



Off Usuma Street

Plot 684B, Agadez Crescent


Off Aminu Kano Crescent

Tel: + 234 - (0) - 9 - 4136524

Wuse II Tel: + 234 - (0) - 9 - 5236078

Libya Plot 1591 Mike Okeye Close


Off George Sowemimo,

(Liaison Office Only)

Asosko Extension

Plot 683, A5

Tel: + 234 - (0) - 9 - 3148356

Maitama Tel: + 234 - (0) - 9 - 4138625

Mali Plot 465, Nouakchott Street


Zone 1

Plot 415 Negro Crescent


Off Aminu Kano Crescent

Tel: + 234 - (0) - 9 - 5230494

Maitama Tel: + 234 - (0) - 9 - 4131751

Morocco Plot 1306 Udo Udoma Crescent



Plot 1317 A&B Udo Udoma Crescent

Tel: + 234 -(0) - 9 - 3141961

Zone A4 Asokoro


Tel: + 234 - (0) - 9 - 3143170 / 4

Plot 1738 T.Y. Danjuma Street


Cadastral Zone A4 Asokoro District

Plot 1611, Yusuf Maitama Sule Street

Tel: + 234 - (0) - 9 - 3142741 / 42

Asokoro Tel: + 234 - (0) - 9 - 3142985 / 6

Netherlands Plot 622, 1 Gana Street



Plot 606 Bobo Street

Tel: + 234 - (0) - 9 - 4133789

Maitama. Tel: + 234 - (0) - 9 - 4138898

Niger Republic 7, Sangha Street


Off Mississippi Street

18 Yedseram Street



Tel: + 234 - (0) - 9 - 4136205

Tel: + 234 - (0) - 9 - 4139155

Palestine Korea

Plot 455, Lobito Crescent

Plot 654, Cadastral Zone A5

Wuse II


GENERAL INFORMATION ABOUT NIGERIA Tel: + 234 - (0) - 9 - 4135311

Spain Plot 611 Bobo Close


Off Dana Street

Plot 1805, Samora Machel Street

Tel: + 234 - (0) - 9 - 4137091 / 3

Off Yakubu Gowan Crescent Asokoro Tel: + 234 - (0) - 9 - 3141650 / 51

Sudan Plot 337, Zone AO


Mission Road Central District Area

Plot 16 Lake Chad Crescent

Tel: + 234 - (0) - 9 - 2346266

Corner Kainji Street Maitama Tel: + 234 - (0) - 9 - 4137981

Switzerland Plot 704 Adetokunbo Ademola Crescent


Wuse II

16 Ona Crescent

Tel: + 234 - (0) - 9 - 4131081

Off Lake Chad Maitama


Tel: + 234 - (0) - 9 - 4138283

Plot 2420, Area A6 Off Amazon Street Maitama

Russian Federation

Tel: + 234 - (0) - 9 - 4138334 / 5

Plot 715, Panama Crescent Zone A6 Maitama


Tel: + 234 - (0) - 9 - 4134951

15 Yedseram Street Maitama

Saudi Arabia

Tel: + 234 - (0) - 9 - 4132313

Plot 2666 Volta Close Off Thames Street

Trinidad & Tobago

Off Alvan Ikoku Street Minister's Hill

Plot 1301 Senator Kura Mohammed Street

MaitamaTel: + 234 - (0) - 9 - 4131880

Off Parakou Crescent Off Aminu Kano Crescent

Sierra Leone

Tel: + 234 - (0) - 9 - 5237534

Plot 2858 Danube Street Off Ibrahim Babangida Way



Plot 44, Ontario Crescent

Tel: + 234 - (0) - 9 - 4133877

Off Mississippi Street Minister's Hill

South Africa


Plot 676 Vall Street, Off IBB Highway

Tel: + 234 - (0) - 9 - 4138069




Plot 1273, Parakou Crescent

1A, Murtala Muhammed Drive

Off Nairobi Street

P.O. Box 149

Wuse II


Tel: + 234 - (0) - 9 - 5240088

Tel: + 234 - (0) - 1 - 2691507 / 11

United States of America


9, Mambilla Street

4, Abudu Smith Street, Off Adeola Odeku


Victoria Island

Tel: + 234 - (0) - 9 - 5235857

Tel: + 234 - (0) - 1 - 614411 / 2614385



1361, Hon. Justice Sowemimo Street

Plot 257, Kofo Abayomi Street


P.O. Box 72802

Tel: + 234 - (0) - 9 - 3140902

Victoria Island Tel: + 234 - (0) - 1 - 2610135 / 2610136

Zambia Plot 351 Mission Road

Burkina Faso

Central District

170 Moshood Olugbani Street

Tel: + 234 - (0) - 9 - 2347060

PMB 12605 Victoria Island


Tel: + 234 - (0) - 1 - 2623287

Plot 2908 Euphrates Street Off Aminu Kano Crescent


Wuse II

5, Elsie Femi Pearse Street

Tel: + 234 - (0) - 9 - 4137996

P.O. Box 2476 Victoria Island


Tel: + 234 - (0) - 1 - 2612226



2 Ozumba Mbadiwe Avenue

(Deputy High Commission)

Victoria Island

4 Anifowoshe Street

Tel: + 234 - (0) - 1 - 2613124

Victoria Island Tel: + 234 - (0) - 1 - 2622512



Fabac Centre 3B

Plot 161A, Idejo Street

Ligali Ayorinde Avenue

P.O. Box 70510

Victoria Island

Victoria Island

Tel: + 234 - (0) - 1 - 4616417 / 18

Tel: + 234 - (0) - 1 - 2625471




10 Idowu Taylor

8A, Walter Carrington Crescent

Victoria Island

P.M.B 2322

Tel: + 234 - (0) - 1 - 617910

Victoria Island Tel: + 234 - (0) - 1 - 2610384

Egypt (Commercial Office Only)


34, Kofo Abayomi Street


Victoria Island

12, Walter Carrington Crescent

Tel: + 234 - (0) - 1 - 2612922

P.O. Box 2161 Victoria Island


Tel: + 234 - (0) - 1 - 26214066 / 2619881

1, Oyinkan Abayomi Drive P.M.B 12665



Embassy of Japan

Tel: + 234 - (0) - 1 - 2693428 / 2693696

Plot 24/25, Apese Street Off Ozumba Mbadiwe Avenue


P.O. Box 2111

162, Awolowo Road

Victoria Island Tel: + 234 - (0) - 1 - 2614929

P.O. Box 8073 S.W. Ikoyi


Tel: + 234 - (0) - 1 - 2670829

52, Oyinkan Abayomi Drive, P.O. Box 6464



15, Walter Carrington Crescent

Tel: + 234 - (0) - 1 - 2696951

P.O. Box 728 Victoria Island Tel: +- 234 - (0) - 1 - 2611011

Lebanon Plot 18 Walter Carrington Crescent


Victoria Island

21/23, King George, V. Road

Tel: + 234 - (0) - 1 - 2610129

P.O. Box 889 Onikan

Niger Republic

Tel: + 234 - (0) - 1 - 2630015 / 2630493

113B Eti - Osa Street Dolphin Estate

Great Britain


11, Walter Carrington Crescent

Tel: + 234 - (0) - 1 - 2622215 / 16

Victoria Island Tel: + 234 - (0) - 1 - 2619531 / 2619537

Poland (Liaison Office) 10 Idejo Street




Tel: + 234 - (0) - 1 - 2614684

Plot 976, Oju Olubun Close Victoria Island

Russian Federation

Tel: + 234 - (0) - 1 - 617449

5, Walter Carrington Crescent P.O. Box 2723

United States of America

Victoria Island

2 Walter Carrington Crescent

Tel: + 234 - (0) - 1 - 2613359

Victoria Island Tel: + 234 - (0) - 1 - 2610139

Senegal 14, Kofo Abayomi Road


P.M.B. 2197 Victoria Island Tel: + 234 - (0) - 1 - 2611722

By Air

Sierra Leone

Major International Airports are:

(Liaison Office) Plot 148 Younis Bashorun Street

* Nnamdi Azikiwe International Airport, Abuja (ABV)

Victoria Island

* Murtala Muhammed International Airport, Lagos (LOS)

Tel: + 234 - (0) - 1 - 5558517

* Port Harcourt International Airport, Port Harcourt (PHC) * Aminu Kano International Airport, Kano (KAN)

South Africa 10B Glove Road

Many international airlines operate flights to and from



Tel: + 234 - (0) - 1 - 2692709 / 2615215

Air France Spain

Icon House


Plot 999F, Idejo Street Off Adeola Odeku

21C Kofo Abayomi Street

Victoria Island Lagos

P.O. Box 2738

Tel: + 234 - (0) - 1 - 4610461

Victoria Island

Fax: + 234 - (0) - 1 - 2615979

Tel: + 234 - (0) - 1 - 2614918 / 2616083

Alitalia Switzerland

3rd Floor, Churchgate Towers Plot PC30 Afribank Street

(Trade Office Only)

Victoria Island Lagos

7, Anifowoshe Street

Tel: + 234 - (0) - 1 - 2705709

P.O. Box 536

Fax: + 234 - (0) - 1 - 2705720

Victoria Island Tel: + 234 - (0) - 1 - 2613918 / 2613848


British Airways


5 Oyinkan Abayomi Drive

The Churchgate Building, Plot PC 30

Ikoyi Lagos

Afribank Street, Victoria Island Lagos

Tel: + 234 - (0) - 1 - 2672003 / 8

Tel: + 234 - (0) - 1 - 2617752 / 2618025

Fax: + 234 - (0) - 1 - 2696619

Fax: + 234 - (0) - 1 - 2618480

Ethiopian Airlines

Ghana Airways

No. 4 Idowu Taylor Str. P. O. Box 1602,

128, Awolowo Road,

Victoria Island Lagos

Ikoyi Lagos

Tel: + 234 - (0) - 1 - 7744712

Tel: + 234 - (0) - 1 - 2692658

Fax: + 234 - (0) - 1 - 2631125

Fax: + 234 - (0) - 1 - 2692658

Egypt Air


Elf Building (2nd floor),22B, Idowu Taylor Street

8 Samuel Manuwa Cresent St,

Victoria Island Lagos

Off Ozumba Nbadiwe St, Victoria Island

Tel: + 234 - (0) - 1 - 2613329


Fax: + 234 - (0) - 1 - 2613329

Tel: + 234 - (0) - 1 - 2701450 / 2 Fax: + 234 - (0) - 1 - 2701453


GENERAL INFORMATION ABOUT NIGERIA By Road (Overland) KLM Royal Dutch Airlines The Churchgate Towers, Plot PC 30

Visitors can enter Nigeria by road through these neigh-

Afribank Street, Victoria Island

bouring countries, but do not expect crossing the border

P.O. Box 71779 Lagos

to be quick.

Tel: + 234 - (0) - 1 - 2625100

* Benin Republic * Cameroon

Lufthansa German Airlines

* Niger Republic, and

150 Broad Street P.O. Box 2732 Lagos

* The Republic of Chad

Tel: + 234 - (0) - 1 - 2660222 / 2660088

If you are driving yourself across the border, the docu-

Fax: + 234 - (0) - 1 - 2664459

ments required in addition to the presentation of your valid passport and visa or entry permit are:

Middle East Airlines (MEA)

* International driving permit*

Plot 1682, Sanusi Fafunwa Street, (1st floor)

* International Certificate for Motor Vehicle

Victoria Island Lagos Tel: + 234 - (0) - 1- 2705541 / 2


South African Airways 28 Adetokunbo Ademola Street Victoria Island Lagos


Tel: + 234 - (0) - 1 - 7743573 / 7743197 Fax: + 234 - (0) - 1 - 2625929

Aside from the aforementioned international airports, which also have national traffic, there are also local air-

Virgin Atlantic

ports in various cities throughout Nigeria:

6th Floor, The Ark Towers Block A, Plot 17 Ligali Ayorinde Street

* Calabar Airport, Calabar (CBQ)

Victoria Island Lagos

* Enugu Airport, Enugu (ENU)

Tel: + 234 - (0) - 1 - 3202750 / 4612750 Fax: + 234 - (0) - 1 - 3202745

New domestic terminal at Murtala Mohammed airport Flying is one of the easiest ways to travel in Nigeria


Getting to Nigeria by Road

* New Kaduna Airport, Kaduna (KAD)

Fax: + 234 - (0) - 1 - 4970086

* Makurdi Airport, Makurdi (MDI)


* Imo Airport, Owerri * Siddiq Abubakar, Sokoto (SKO)

Belleview Airlines Ltd.

* Warri Airport, Warri

66B Opebi Road Ikeja Lagos

* Yola Airport, Yola (YOL)

Tel: + 234 - (0) - 1 - 2702700 / 1 Fax + 234 - (0) - 1 - 2707936

Many of the former local carriers have recently been assigned routes out of Nigeria into the West African Sub

Chanchangi Airlines

Region, making regional travel even easier. They all have

Plot A5/6 Kachia Road

ticket offices at the airports as well as at their Head Offices

P.O. Box 679, Kaduna South Kaduna Tel: + 234 - (0) - 62 - 231778 / 236442

Aero Contractors

Fax: + 234 - (0) - 62 - 9231010

Murtala Muhammed Airport


P.M.B.21090 Ikeja Lagos Tel: + 234 - (0) - 1 - 496340 / 4962570


Email: or

44 Ajanaku Street Off Salvation Road Opebi - Ikeja Lagos

ADC Airlines

Phone: + 234 - (0) - 1- 4971491 / 4961960

84 Opebi Road


P.M.B 21751 Ikeja Lagos Tel: + 234 - (0) - 1 - 4962230 / 4962657


Okada are commonly used to move around, would you try one?


cities, but are usually run on fixed schedules. Travel on these buses is considered to be safer, more comfortable,

There are a few railway lines across Nigeria, however,

and often cheaper on the long-haul routes. There is not

most of the time the trains are not working. For up to

however, a single bus company, rather there are innume-


rable small bus companies.






Corporation in Abuja. For cross-country travel the best

However, it you must travel by road (locally or long dis-

option is air then road.

tance), and you are without your own vehicle, then car hire from a reputable company is your safest option.



If necessary, across town transport can be achieved by taxi or okada (cheap city motor bikes), but be sure to nego-

The currency in Nigeria is the naira (N), which is divided

tiate the rate in advance. Okadas are however very acci

into the kobo (K). 100 kobo equal one naira. The currency

dent prone, and are best left to the more experienced

denominations are in N5, N10, N20, N50, N100, N200

Nigerian passenger.

and N500 bills. The coins are hardly used in everyday transactions due to the rate of inflation over the years.

In general, however, transport by road in Nigeria is one of

Nigeria operates a dual exchange rate regime - the official

the fastest in West Africa. At almost any hour of the day

exchange rates, which are determined through the Dutch

it is possible to travel from town to town (or city to city if

Auction System (DAS) and the Bureau de Change rates.

the price is right) by bush-taxi. Buses also link the major

Over the last 2 years the inter-bank exchange rate of


GENERAL INFORMATION ABOUT NIGERIA PAYMENTS & CREDIT CARDS Credit card payment is not very common in Nigeria. Only a few hotels and organisations accept this type of payment. Travellers to Nigeria have to make cash payment for virtually all the services rendered to them. However, credit cards such as Visa have just been introduced recently and will probably be accepted for payment widely in the near future. Naira banknotes

There is also a growing form of debit card payment method known as the "ValuCard". These cards can

dollars to Naira was between N128 to N142 to the dollar.

be used for payment purposes as well as for cash withdrawals.

However, for the traveller coming to

Nigeria, cash is king.

FOREIGN EXCHANGE In Nigeria, US dollars are the preferred currency, although Euros and pounds sterling are accepted in some locations for


exchange. Traveller's cheques are not recommended as they are fairly unusable in Nigeria. * State offices and related companies open officially For changing money, unusually banks are not the

Monday to Friday 8.00am - 4.00pm.

best option, and are actually a last resort. The most

* On Fridays, school and college pupils close at 1.00pm

used methods of currency exchange are in the larger

* Also on Fridays Muslim workers observe the Jumat ser-

hotels, at local private Foreign Exchange bureaus or on the black market.

When changing money, be

sure to correctly calculate the money you expect to receive, and to count it completely before handing over your money. At no time should you feel rushed to complete the transaction. Should you need to have funds wired to you, your best bet is Western Union.

Up until recently they

only paid out in Naira, but now some locations will also pay out in dollars.



Celebrating joy by dancing, this is Nigeria

vice between 1.00pm - 2.00pm. * Higher Education institutions open Monday to Friday


8.00am - 6.30pm. * Most business offices open Monday to Friday 8.00am 5.00/6.00pm.

There are five variable public holidays: the Christian Good Friday and Easter Monday, and the Muslim Eid-el-Fitri, Eid-

* A few Banks operate on Saturday 9.00am - 12.30pm.

el-Kabir and Eid-el-Maulud.

* Some private offices also open on Saturday 9.00am to 2:00pm.

In addition, the following fixed-date public holidays are

* Most of the fast food restaurants also open on Sundays


10.00am - 9.00pm. * Shopping centres open Monday to Friday 8.00pm -

January 1: New Year's Day

6.00pm and Saturday 8.00am - 4.00pm.

May 1: May Day (Workers' Day)

* Local markets open Monday to Saturday 8.00am -

May 27: Children's Day*

7.00pm and occasionally extending into late evenings.

May 29: Democracy Day

* Sunday is mostly observed as a day of rest.

October 1: Independence Day

* Most traditional weddings are between Fridays and

December 25: Christmas Day


December 26: Boxing Day * This public holiday is only observed by pupils and students up to secondary (high) school level.




“When there is a crack in the wall, the lizard has a chance to come in” Nigerian proverb



Industrial & General Ins. Co. Ltd Plot 741, Adeola Hopewell Street Victoria Island, Lagos

African Alliance Insurance Co. Ltd

Tel: + 234 - (0) - 1 - 2622174

112, Broad Street P.O. Box 2276, Lagos

Lake Insurance Co. Ltd

Tel: + 234 - (0) - 1 - 2664373 / 2664398

2 Assumpta Avenue (former CBN Building) P.O. Box 1616, Owerri, lmo State

African Prudential Insurance Ltd

Tel: + 234 - (0) - 83 - 234400 / 231008

29, Marina, Wesley House P.O. Box 2358, Lagos

Nicon Insurance Corporation

Tel: + 234 - (0) - 1 - 2600180 / 2

Nicon Plaza Plot 242, Muhammadu Buhari Way Central Business District, P.M.B. 5029, Abuja

AIICO Insurance Plc

Tel: + 234 - (0) - 9 - 2343626

AIICO Plaza, Plot PC 1 2, Afribank Street Victoria Island, P.O. Box 2577, Lagos

Niger Insurance Co. Plc

Tel: + 234 - (0) - 1 - 2612472 / 2614669

48/50 Odulami Street Lagos

Central Insurance Co. Ltd

Tel: + 234 - (0) - 1 - 4960185 / 4932052

11th Floor, St. Nicholas House Catholic Mission Street, Lagos Island, Lagos

Nigerian French Insurance Co. Ltd

Tel: + 234 - (0) - 1 - 2646794 / 2622396

Plot 203/205 Apapa Oshodi Expressway, Lagos

Cornerstone Insurance Co. Ltd

Tel: + 234 - (0) - 1 - 4524970 / 4526870

136, Lewis Street, Lagos Island, Lagos

The Lion of Africa Insurance Co. Ltd

Tel: + 234 - (0) - 1 -2636140 / 2631832

3 Ayele Street St. Peters House Street, Lagos

Corporate Alliance & General Insurance Co. Ltd

Tel: + 234 - (0) -1 - 2600950 / 9

12 Abiboki Street, off Marina Victoria Island, Lagos


Tel: + 234 - (0) - 1 - 2663334

Crusader Insurance Plc

Linkstride Security System Ltd

23/25, Martins Street

1661 Oyin Jolayemi Street

P.O. Box 2101, Lagos

Victoria Island, Lagos

Tel: + 234 - (0) - 1 - 2661507

Tel: + 234 - (0) - 1 - 2610371


BUSINESS RESOURCES Global Protection Agency

Victoria Island, Lagos

289 Akin Olungbade

Tel: + 234 - (0) - 1 - 2626273 / 76

Victoria Island, Lagos Tel: + 234 - (0) - 803 - 4022989

Afribank Nigeria Plc 94, Broad Street

Auto Tutors Ltd

P.M.B 12021, Lagos

Block A6, Suite 43 & 44 Sura Shopping Complex

Tel: + 234 - (0) - 1 - 2660569 / 2663551

Simpson Street, Lagos Tel: + 234 - (0) - 1 - 3202063 / 7202062

Bond Bank Ltd 3, Akin Adesola Street

Bemil Nig Ltd

Victoria Island, Lagos

1 Bemil Road, Ojodu-Abiodun

Tel: + 234 - (0) - 1 - 2627760 / 9

Ojodu, Lagos Tel: + 234 - (0) - 1 - 7740356

Chartered Bank Plc Plot 1712, Idejo Street

Hallogeen Security Company Ltd

P.O. Box 73069,Victoria, Lagos

59 Sayuyi Adekunlt Road

Tel: + 234 - (0) - 1 - 2620380 / 9

G.R.A. Ikeja, Lagos Tel: + 234 - (0) - 1 - 4742584

First Atlantic Bank Plc 4/6 Adetokunbo Ademola Street

Counters Trust Securities Ltd

Victoria Island, Lagos

Niger House (7th Floor)

Tel: + 234 - (0) - 1 - 2622498 / 4708424

1/5 Odunlami Street, P.M.B. 12913, Lagos Tel: + 234 - (0) - 1 - 2640181 / 2640160

First Bank of Nigeria Samuel Asabia House

Security Solutions Ltd

35, Marina, P.O. Box 5216, Lagos

Foreshore Towers (5th Floor) 2A

Tel: + 234 - (0) - 1 - 2665900

Osborne Road, Ikoyi, Lagos Tel: + 234 - (0) - 1 - 4703449 / 2696211

FSB International Bank Plc 23, Awolowo Road, Ikoyi

Akitorch Securities Ltd

P.M.B. 12512, Lagos

3a, Adebayo Mokuolu, Anthony Village

Tel: + 234 - (0) - 1 - 2690576 / 2690739

P.O. Box 5715, Ikeja, Lagos Tel: + 234 - (0) - 1 - 7741931 / 7755521

Guaranty Trust Bank The Plural House


Plot 1669, Oyin Jolayemi Street P.O. Box 75455, Victoria Island, Lagos Tel: + 234 - (0) - 1 - 2622650 / 64

Access Bank (Nigeria) Plc Plot 1665 Oyin Jolayemi Street



Union Bank of Nigeria Plc

NAL Towers, 20, Marina

Stallion House, 36, Marina

P.M.B. 12735, Lagos

P.M.B. 2027, Lagos

Tel: + 234 - (0) - 1 - 2633294 / 7527

Tel: + 234 - (0) - 1 - 2665439 / 2665441

Platinum Bank Ltd

Universal Trust Bank Plc

Plot 707, Adeola Hopewell Street

Ivie House, 4/6 Ajose Adeogun Street

PMB 80054, Victoria Island, Lagos

Victoria Island, Lagos

Tel: + 234 - (0) - 1 - 2621795 / 7

Tel: + 234 - 1 - 2622035 / 2637849

Standard Trust Bank

Wema Bank Plc

Plot 1662 Oyin Jolayemi Street

Wema Towers, 54, Marina

Victoria Island, Lagos

P.M.B 12862, Tinubu, Lagos

Tel: + 234 - (0) - 1 - 2622372 / 2620322

Tel: + 234 - (0) - 1 - 2668105 / 2668303

United Bank for Africa Plc

Zenith Bank

UBA House, 57

Plot 84, Ajose Adeogun Street

Marina, Lagos

Victoria Island, Lagos

Tel: + 234 - (0) - 1 - 2644651 / 700

Tel: + 234 - (0) - 1 - 2620727 / 2610249 International Conference Center in Abuja


Infoweb Ltd NCWS House (1st Floor), PC 14 Ahmed Onibudo Street Victoria Island, Lagos Tel: + 234 - (0) - 1 - 2623474 / 2624256

Abuja International Conference Center Plot 908, Tafawa Belewa Way


Garki, Abuja

FATB Plaza, Plot 306, Adeola Odeku Street

Tel: + 234 - (0) - 803 - 5875208

Victoria Island, Lagos Tel: + 234 - (0) - 1 - 2623900 / 2623902

ECOWAS Conference Center 60, Yakubu Gowon Crescent

MWEB Nigeria Ltd

Asokoro District, P.M.B. 401, Abuja

Plot 1379, Tiamiyu Savage Street

Tel: + 234 - (0) - 9 - 3147647 / 3147427

Victoria Island, Lagos Tel: + 234 - (0) - 1 - 2701222

Lagos Conference Centre Lagos-Badagry Expressway, Abule-Osun

Tara Systems Ltd

P.M.B. 0199 Festac Town, Lagos

9/F, 6 Broad Street

Tel: + 234 - (0) - 1 - 5890797 / 5890798

Lagos Island, Lagos Tel: + 234 - (0) - 1 - 2600340

Shehu Musa Yar’Adua Conference Centre

Walcom Computer Consultants

1 Memorial Drive

5, Igbore Street


Onike Yaba, Lagos

Tel: + 234 - (0) - 9 - 5240021

Tel: + 234 - (0) - 1 - 7748322

WEB AND IT SPECIALISTS MicroAccess Plot 568, Durban St Wuse II, Abuja Tel: + 234 - (0) - 9 - 5237352 / 3

CYBER CAFE Abytel Plot 57, Zone 4 Corner Shop, Off Ladi Kwali St Wuse Zone 4, Abuja Tel: + 234 - (0) - 9 - 5239873

Virtual Office Twenty -22 Hyperia

Point Plaza, Aminu Kano Cresent

27, Saka Tinubu Street

Wuse II, Abuja

Victoria Island, Lagos

Tel: + 234 - (0) - 9 - 6711639

Tel: + 234 - (0) - 1 - 3201234



KMPG Professional Services

152 Egbeda-Idimu Road, 2nd Floor (Seliat Bus Stop)

22A Gerard Road

Egbeda, Lagos

Ikoyi, Lagos

Tel: + 234 - (0) - 1 - 4816634

Tel: + 234 - (0) - 1 - 2694660 / 4

Cybercity Cafe

Ernst & Young

5b Karimu Koutun Street

Ebani House, 62

Victoria Island, Lagos

Marina, Lagos

Tel: + 234 01-4704700

Tel: + 234 - (0) - 1 - 2661462 / 2662833

Uptown Cybercafe

Phillips Consulting Ltd

6, Awolowo Way, Opposite Gateway Bank

4th Floor, UBA House 57

Ikeja, Lagos

Marina, Lagos

Tel: + 234 - (0) - 1 - 7738419

Tel: + 234 - (0) - 1 - 2665263 / 2643111

Femaks Cyberworld 99A, Obafemi Awolowo Way


Lagos Tel: + 234 - (0) - 1 - 8042795

Strachan Partners P. O. Box 52177


Ikoyi, Lagos Tel: + 234 - (0) - 1 - 2634919

Olaniwun Ajayi & Co Accenture

UBA House 4th Floor Marina

4th Floor, Chartered Bank Building

Lagos Island, Lagos

Plot 1712, Idejo Street, Victoria Island, Lagos

Tel: + 234 - (0) - 1 - 2664824

Tel: + 234 - (0) - 1 - 2626929 / 2672780

TemplarsBarristers & Solicitors Akintola Williams Deloitte & Touche

The Octagon Plaza 4th Floor, 13A, A.J. Marinho Drive

235, Ikorodu Road

Victoria Island, Lagos

Ilupeju, Lagos

Tel: + 234 - (0) - 1 - 2693650

Tel: + 234 - (0) - 1 - 4930720 / 4

Aluko & Oyebode PriceWaterhouseCoopers

35 Moloney Street

252e Muri Okunola Street

Lagos Island, Lagos

Victoria Island, Lagos

Tel: + 234 - (0) - 1 – 2600080

Tel: + 234 - (0) - 1 - 3203100



Jidaw Systems Ltd

16 Akinhanmi Street, Off Western Avenue

12 Eric Moore Street, Wemabod Estate

Surulere, Lagos

Ikeja, Lagos

Tel: + 234 - (0) - 1 - 5454979 / 4807834

Tel: + 234 - (0) - 1 - 4964654

Giwa-Osagie & Co.

Modern Business Machines (Nig) Ltd

4, Lalupon Close, Off Keffi Street

21A, Karimu Kotun Street

P.O. Box 51057, Ikoya, Lagos

Victoria Island, Lagos

Tel: + 234 - (0) - 1 - 2694725 / 2695167

Tel: + 234 - (0) - 1 - 2614941

J.U.K Igwe Chambers

Office Max Ltd

Olatunji House (2nd Floor) Maryland

2/F Mega Plaza, 14, Idowu Martins Street


Victoria Island, Lagos

Tel: + 234 - (0) - 1 - 4970635

Tel: + 234 - (0) - 1 - 7741060

Kusamotu & Kusamotu

Office Mart

29 Ladipo Kasumu Street

9 Sheriff Plaza, Amino Kanu Crescent

Ikeja, Lagos,

Wuse 2, Abuja

Tel: + 234 - (0) - 1 - 4931552 / 5557121

Tel: + 234 - (0) - 9 - 3140580

Mogbeyi Sagay & Co. 6th Floor, 38/40 Strachan Street


Lagos Tel: + 234 - (0) - 1 - 2630369 / 2637573

Hertz Rental Car 12 Keffi Street, S.W.


Ikoyi, Lagos Tel: + 234 - (0) - 1 - 2691144 / 2691099

Xerox HS (Nigeria) Ltd


12/14 Fatai Atere Way, Matori Scheme

36A Femi Okunnu Estate

Oshodi, Lagos

Lagos / Epe Expressway

Tel: + 234 - (0) - 1 - 4526046

Lekki, Lagos Tel: + 234 - (0) - 1 - 4719461 / 7937767

Computer Warehouse Group Octagon Building, 13A A.J Marinho Drive,VI Extention

Avis Lagos


Apapa, Lagos

Tel: + 234 - (0) - 1 - 3200803 / 7744368

Tel: + 234 - (0) - 1 - 5871531 / 5803430



Eko Hotel

Leadmac Property & Development Company Ltd

Victoria Island, Lagos

20 Adetokunbo Ademola Street

Tel: + 234 - (0) - 1 - 2624600 / 19 Ext: 6171 or 6173

Victoria Island, Lagos

Kusram Trading Company

Tel: + 234 - (0) - 1 - 4704417

Oasis Rent-a-Car Rock View Hotel Abuja Tel: + 234 - (0) - 8035880855

UACN Property Development Company Plc Niger House, Odunlami Street, P.O.Box 156 Lagos. Tel: + 234 - (0) - 1 - 2663010

REAL ESTATE Jide Taiwo & Company Ajila House,83 Lagos


Abeokuta Expressway, Lagos Tel: + 234 - (0) - 1 - 4923923 / 4

237B, Muri Okunola Street

Bullseye Marketing Communications & Promotions

Victoria Island, Lagos

680 Port-Harcourt Crescent

Diya, Fatimilehin and Company

Garki, Area 11, Abuja

Tel: + 234 - (0) - 1 - 2623951

Tel: + 234 - (0) - 9 - 3142221

Propland Associates 6 Sudan Street, Zone 6

Garkida Press Ltd

Wuse, Abuja 234

Plot 742, Kade St, Off Aminu Kano Crescent

Tel: + 234 - (0) - 9 - 6712979

Wuse II, Abuja Tel: + 234 - (0) - 9 - 4138636

Knight Frank Nigeria 24 Campbell Street

Media Plus International Ltd


Mrs. Promise Ndupu

Tel: + 234 - (0) - 1 – 2600990

General Manager 117B, Itafaji Road, Off Corporation Drive, Dolphin Estate

Isehanson & Co Limited

P.O. Box 60225, Ikoyi, Lagos

Plot 287 Ajose Adeogun Street

Tel: + 234 - (0) - 1 - 4614101 / 4614102

Victoria Island, Lagos Tel: + 234 - (0) - 1 - 2621332

Media World 2-4 Custom Street, Stock Exchange House, 14th floor Marina, Lagos Tel: + 234 - (0) - 1 - 2642379



Champion Newspapers Ltd Champion House, Isolo Industrial Estate 156/158, Oshodi/Apapa Expressway, Ilasamaja

Nigerian Television Authority

Mushin, Lagos

Area 11

Tel: + 234 - (0) - 1 - 4524421

Garki, Abuja

Newswatch Communications Ltd

Tel: + 234 - (0) - 9 - 2346907

3 Billings Way, Oregun Industrial Estate, Oregun

Voice of Nigeria

P.M.B. 21499, Ikeja, Lagos

Radio House, 6th Floor, Herbert Macaulay Way

Tel: + 234 - (0) - 1 - 4935654

Garki, Abuja Tel: + 234 - (0) - 9 - 2344016 / 7

The Guardian


Rutam House, Isolo Expressway, Isolo PMB 1217, Oshodi, Lagos

Businessday Media Ltd

Tel: + 234 - (0) - 1 - 4524111 / 4529183

Amuwo-Festac Lonk Road Amuwo Odofin, Festac, Lagos Tel: + 234 - (0) - 1 - 3454500 / 3

This Day Newspaper 35 Creek Road Apapa, Lagos

BUSINESS RESOURCES Tel: + 234 - (0) - 1 - 5871432


Vanguard Media Ltd

Cross Marine Services

Vanguard Avenue, Kirikiri,Canal

28 Burma Road, P.O. Box 2614

P.M.B. 1007, Apapa, Lagos

Apapa, Lagos

Tel: + 234 - (0) - 1 - 7742861

Tel: + 234 - (0) - 1 - 5871375

Financial Standard Newspaper 5 Iyalla Street, Alausa

Integrated Oil & Gas (Genesis World Wide)

Ikeja, Lagos

No. 41 Itapeju Street

Tel: + 234 – (0) - 1 - 4934894

Apapa, Lagos Tel: + 234 - (0) - 1 – 5870781

News agencies

Maersk 121 Louis Solomon Close, Off Ahmadu Bello Way

Academy Press Plc

Victoria Island, Lagos

28/32 Ilupeju Industrial Estate

Tel: + 234 - (0) - 1- 2600670

Ilupeju, Lagos Tel: + 234 - (0) - 1 - 4977700

Marca International (Nig) 20 Elias Close

Longman Nigeria Plc

Victoria Island, Lagos

52 Oba Akran Avenue

Tel: + 234 - (0) - 1 - 2620132

Ikeja, Lagos Tel: + 234 - (0) - 1 - 4960527

Mexico Shipping Agency 10 Olomowewe Street

University Press Plc

Mushin, Lagos

PMB 5095, Jericho

Tel: + 234 - (0) - 802-3126835

Ibadan, Oyo State Tel: + 234 - (0) - 2 - 2412313

Panalpina World Transport (NIG) LTD. 4 Creek Road, P.M.B. 12651

Shelter Communications Ltd

Apapa, Lagos

1st Floor, Ruby Block, All Seasons Plaza, Lateef Jakande

Tel: + 234 - (0) - 1 - 5803440

Rd. Ikeja, Lagos

Ship & Shore Shipping Services Nig. Ltd

Tel: + 234 - (0) - 1 - 4925686

24 Adeola Street Victoria Island, Lagos Tel: +234 - (0) – 2613366



Garki General Hospital Tafawa Balewa Way Area 3 Garki,Abuja

The Clothes Clinic

Tel: + 234 - (0) - 9 - 2341487

1/F, Pees Galleria, 2A, Osborne Road Ikoyi, Lagos

Iduna Specialist Hospital 7.Usuma Street off Gana Road

Garment Care

Maitama District, Abuja

Mega Plaza, 14, Idowu Martins

Tel: + 234 - (0) - 9 - 4132864

Victoria Island, Lagos Tel: + 234 - (0) - 1 - 7748107

National Hospital for Women & Children Plot 132,Central Business District (Phase II)


PMB.425 Abuja

112, Awolowo Road

Tel: + 234 - (0) - 9 - 2342686 / 9

Ikoyi, Lagos Tel: + 234 - (0) - 1 - 2692017

Praise Hospital Plot D34, Lagos Crescent off, S.L.Akintola Boulevard Garki II, Box 5666, Abuja

MEDICAL SERVICES Wuse General Hospital Zone 3,Wuse

Aso Hospitals


2B Herbert Macaulay Way

Tel: + 234 - (0) - 9 - 5231209

Zone 6 Wusem P.O. Box 1966 Abuja Tel: + 234 - (0) - 9 - 2340400

Saint Nicholas Hospital 57 Campbell Street

Al-Hassan Hospital & Maternity


Plot 2181,IBB Way Zone 4

Tel: + 234 - (0) - 1 - 2600070 / 9

Wuse, P.O. Box 8163 Abuja Tel: + 234 - (0) - 9 - 5235515 / 5235502

Life Support Medical Centre Box 6389, Ikeja

Asher Hospital & Maternity


Ademola Adetokunbo Crescent

Tel: + 234 - (0) - 1 - 966882

Wuse II, Abuja

National Hospital, Abuja El-Rapheal Hospital & Maternity Home

Plot 132, Central Business District (Phase II)

Block 14,Koforidua Street

Garki, Abuja

Zone 2,Wuse Abuja

Tel: + 234 - (0) - 803 119203 / 803 869645

Tel: + 234 - (0) - 9 - 5230742




31, Bank Anthony Way Ikeja, Lagos Tel: + 234 -(0) - 1- 4978800 / 2

Affa Pharmacy Ltd Plot D32 Garki II, Abuja


Tel: + 234 - (0) - 9 - 2348859

Agape Pharmacy Alpha Dental Clininc

Shop 37,Neigbourhood Centre

Plot 2029,Algiers Street, Near Societe General bank

Zone 3 Wuse, Box 3359, Abuja

Zone 5, Wuse, P.O. Box 9045, Abuja

Tel: + 234 - (0) - 9 - 5235361

Tel: + 234 - (0) - 9 - 5238740

Becan Ltd Dr. Chukwuma Emeka

739,Aminu Kano Crescent

Odontoville Dental Clinic, 1 Afolabi Lesi Street

Wuse II, Abuja

Ilupeji, Lagos Tel: + 234 - (0) - 1 - 4930242

Cure Med 31, Keffi Street

Dr. Bode Karunwi

Ikoyi, Lagos

Schubbs Dental Clinic, 5 Douala Road

Tel: + 234 - (0) - 1 - 2670872 / 4703334

Apapa, Lagos Tel: + 234 - (0) - 1 - 7749680

Chyzob’s 168, Awolowo Road

Garki General Hospital

Ikoyi, Lagos

Tafawa Balewa Way

Tel: + 234 - (0) - 1 - 2694545

Area 3, Abuja Tel: + 234 - (0) - 9 - 2341487

Medville 72, Allen Avenue

Gwagwalada Specialist Hospital

Ikeja, Lagos

Hospital Road

Tel: + 234 - (0) - 1 - 4972615 / 4963790

Gwagwalada,Abuja Tel: + 234 - (0) - 9 - 8821128 / 8821138

Zagbayi Pharmacy Ltd 2,Addis Ababa Crescent

Wuse General Hospital

Wuse II, Abuja

Off Hebert Macaulay Way

Tel: + 234 - (0) - 9 - 5235708

Zone 3 Wuse, Abuja Tel: + 234 - (0) - 9 - 5231209



Mandilas Travel 35 Simpson Street Lagos Island, Lagos

Allstates Group

Tel: + 234 – (0) - 1 - 2630284

Plot 915, Alexandria Crescent Wuse II, Abuja

Travel Marketing Partners (Nigeria) Ltd

Tel: + 234 - (0) - 9 - 4132177

43, Gaborone Street Zone II Wuse Abuja

Emerald Tours

Tel: + 234 - (0) - 9 - 5234304

18B, Old Bukuru Road Jos

Trim – Communications, Travels & Tours

Tel: + 234 - (0) - 73 - 462195

Plot 541, Aminu Kano Crescent Wuse II, PO Box 2904, Garki, Abuja

Halios Travel Agencies Nigeria Ltd.

Tel: + 234 - (0) - 9 - 5232220

9, Amodu Tijani Close, Off Sanusi Fafunwa Street Victoria Island, Lagos Tel: + 234 – (0) - 1- 7744000

Nicon Insurance Corporation Head Quarter in Abuja

BUSINESS RESOURCES POSTAL SERVICES Abek Express Parcel Services 52C, Ikorodu Road Fadeyi, Lagos Tel: + 234 - (0) - 1 - 7741326 / 4714896

Courier Master International Ltd 121, Ikorodu Road, Fadeyi Yaba, Lagos Tel: + 234 - (0) - 1 - 2621211 / 4734963

DHL Isolo Expressway, New Airport Road Junction Isolo, Lagos Tel: + 234 - (0) - 1 - 4527086

FedEx / Red Star Express 70 International Airport Road P.O. Box 5008, International Airport Post Office, Lagos Tel: + 234 - (0) - 1 - 4976617

UPS Nigeria Ltd Plot 16, Oworonsoki Expressway Gbagada, P.O. Box 2780, Ikeja Tel: + 234 - (0) - 1 - 5553012



“The firewood that we gather in our youth is what we will warm ourselves with in old age” Nigerian proverb



- Since its creation, implementation of the ECOWAS protocols on trade has confirmed Nigeria’s status as an economic force in the West African Sub Region.

Embracing of democracy in 1999, Nigeria entered into a

- Demonstrated commitment to private sector develop-

new beginning and remarkable era; Africa’s second lar-

ment and market liberalisation.

gest economy and the most populous black nation has

- Nigeria’s industrious, well-educated workforce is one of

since then been the haven for investors and the abode for

the country’s most valuable assets.

business buoyancy for many reasons such as these below:

- Nigeria offers tax relief granted for a maximum period of five years for companies classified as pioneer industries.

- Nigeria has the largest market in Africa in terms of popu-

Pioneer industries are those considered to be essential for

lation and potentials.

the economic development of the country.

- It has been quite stable politically and economically since

- Small manufacturing companies are granted a tax

the embrace of democracy in 1999.

holiday for five years on the dividends. Small manufactu-

- Apart from its vast supply of resources in oil, gas, and

ring companies are those with annual turnover of less

solid minerals, there are still a lot of resources to be

than N1million.

tapped and explored.

- Nigeria has established an Export Processing Zone (EPZ)

- The country boasts of a stable business climate with a

and companies located in these zones are exempted from

strong presence of multinational corporations and local

tax and enjoy unrestricted remittance of profits and divi-


dends earned through business activities in these zones.

- The current privatisation of major government establis-

- The Nigerian Government has instituted the Nigerian

hments and corporations, with a view to attracting both

Investment Promotion Commission (NIPC) which has esta-

foreign and local investors and stakeholders.

blished a decree that states:

- An ongoing divestiture program that demonstrates Nigeria’s commitment to private sector development. -






* No enterprise shall be nationalised or expropriated by any Government of the Federation; and


* No person who owns, whether wholly or in part, the

Empowerment and Development Strategy (NEEDS) to

capital of any enterprise shall be compelled by law to

reform and strengthen the various sectors of the economy

surrender his interest in the capital to any other persons.

such as agriculture, manufacturing, finance, trade, tourism etc as well as encourage small and medium enter-

Business Customs

prises (SMEs). - English is widely spoken and is the business language.

English is the official language and is used in most busi-

- International airports with international standard status.

ness meetings and transactions. The majority of Nigerian

- Expanding stock markets and well-developed financial

business executives and workers wear business suits


during working hours though some resort to traditional

- Nigeria is a member of the Economic Community of

attire for social functions. Some corporate firms such as

West African States (ECOWAS); a regional economic orga-

banks allow their workers to wear traditional attire or

nisation made up of a thriving market of 250 million

casuals on Fridays. Lightweight summer clothing is advi-

people. ECOWAS allows for the free movement of goods

sable all year round. It is best to take an umbrella, parti-

and people across the borders of its 16 member nations.

cularly in July and August.




In Nigeria, all business enterprises must be registered with Affairs

In accordance with the above mentioned Decrees 16 and

Commission (Registrar of Companies). A foreign investor

17. A foreign investor may freely invest and participate in

that wants to set up business operation in Nigeria has to

the operation of any enterprise in Nigeria either on his

obtain local incorporation of the Nigerian branch or sub-

own or in joint venture with Nigerians. However, a foreign

sidiary. This can be set up as:

investor wishing to establish a company in Nigeria will






also be required to register with the Nigerian Investment Promotion Commission (NIPC).

Private or Public limited liability company Unlimited liability company Company limited by guarantee

The process of incorporation will involve the payment of

Foreign Company (branch or subsidiary of foreign company)

stamp duties, (which essentially is a tax on documents


payable to the Federal Government of Nigeria and filing

Sole Proprietorship

fees payable to the Corporate Affairs Commission (CAC).

Incorporated trustees

Incorporation of a company in Nigeria will require a

Representative office

minimum of two shareholders, an address within Nigeria, principal place of business or registered office, a minimum

The Companies and Allied Matters Act, 1990 (the

of two directors, a company secretary and a minimum

Companies Act) is the principal law regulating the incor-

capital of N10,000.00 (approximately US$138).

poration of businesses in Nigeria and the administration of the Companies Act is under-taken by the Corporate Affairs Commission (CAC). The principal laws regulating foreign investments in Nigeria







Commission Decree No. 16 of 1995 and the Foreign

Nigeria is a member of the British Commonwealth,

Exchange (Monitoring Miscellaneous Provisions) Decree

Organisation of African Unity (OAU—now the African

No. 17 of 1995.

Union), Organisation of African Trade Union Unity

The Central Bank of Nigeria is a Government financial ins-

(OATUU), World Trade Organisation (W.T.O), the United

titution that acts as banker’s bank, issues treasury bills,

Nations (UN) and several of its affiliated organisations, the

fixes bank interest rates, supervise all monetary and fidu-

World Bank, and the African Development Bank. It is party

ciary operations and engages in open market operations

to several international commodity arrangements, inclu-

designed to check inflationary pressures in the country.

ding the Organisation of Petroleum Exporting Countries

Commercial banks both foreign and domestic play a vital

(OPEC), the International Cocoa Organisation, the

role in the development of international trade by underta-


king routine financial transactions and making some

International Institute for Cotton, the West African

foreign exchange to merchants and big traders available.

Groundnut Council, and the International Tin Council.





The banking system is made up of the central bank, the commercial and merchant banks and the other financial

Treaties and agreements relating to consular matters,


aviation, mutual security, economic and technical co-ope-


INVESTMENT & LEGAL FRAMEWORK ration, extradition, property, and trademarks, were con-

tion and development.

cluded originally between the United States and the United Kingdom, and were recognised by Nigeria follo-

In pursuing its goal of regional economic co-operation

wing independence in 1960.

and development, Nigeria has helped to harmonise trade and investment practices for its 16 West African member

Nigeria is a signatory to the Lome Convention, which pro-

countries and ultimately to achieve a full customs union.

vides certain exports duty-free entry into the European

Nigeria also has taken the lead in articulating the views of

Union (EU), and is also a member of the General

developing nations on the need for modification of the

Agreement on Tariffs and Trade (GATT), requiring a non-

existing international economic order.

discriminatory import tariff. There have been frequent complaints, however, that Nigeria does not fully meet its

Investment Incentives in Nigeria

obligations under such agreements. Nigeria has made efforts to provide an enabling environNigeria is also a member of the Economic Community of

ment that is conducive to investment. The growth and

West African States (ECOWAS), allowing free movement

development of industries, the inflow of foreign direct

of people, goods and services within the region

investment (FDI), the shielding of existing investments from unfair competition, and stimulating the expansion of

Nigeria is a member of the World Bank’s Multi-lateral

domestic production capacity have been objectives of the

Investment Guarantee Agency (M.1.G. A) and bilateral

federal government to create incentives for various sec-

Investment Promotion and Protection Agreement (I.P.P.A).

tors of the economy.

These Institutions do provide for political risks covering

In this regard, laws which had hitherto hindered private

adequate protection of foreign investment in Nigeria.

sector investments have been either amended or repealed and a national council on privatisation has been esta-

The instrumentality of the Patents and Design Decree of

blished to oversee orderly divestment to private operators

1970 affords protection and transferability of shares of

in vital areas of the economy such as mining, transporta-

joint owners of a patent or design registered in Nigeria;

tion, electricity, telecommunications, petroleum and gas.

while that of the Trade Mark Act of 1956 affords protec-

In addition, the government’s policy of economic deregu-

tion of the exclusive right of a proprietor of a trade mark.

lation and liberalisation has opened up new windows of opportunity to all investors wishing to invest in the country’s economy.

FOREIGN RELATIONS The Nigerian Investment Promotion Commission (NIPC) Since independence, Nigerian foreign policy has been

has been strengthened to enable a one-stop office for

characterised by a focus on Africa i.e. Africa has been the

easy processing and harmonise the requirements for

centrepiece of the country’s foreign policy. This has

foreign investment.

brought along with is a lot of attachment to several fundamental principles such as African unity and indepen-

A new visa policy has been introduced by the government

dence; peaceful settlement of disputes; the nonalignment

to enable foreign investors to acquire entry visas to

principle and no intentional interference in the internal

Nigeria within 2 days of submission of the required docu-

affairs of other nations; and regional economic co-opera-



INVESTMENT & LEGAL FRAMEWORK Nigeria offers many incentives to business entrepreneurs

ject to tax at 85% but 65.75% in the first five years of

to facilitate investment and attract foreign capital into the

operations. However, oil companies operating under

country. These include:

Production Sharing Contracts are assessed at a 50% PPT

* Tax relief granted for a maximum period of five years for

(Petroleum Profit Tax) rate and a Petroleum Investment

companies classified as pioneer industries. Pioneer indus-

Allowance of 50% on qualifying capital expenditure. For

tries are those considered to be essential for the economic

Joint-Venture operators the Petroleum Investment

development of the country.

Allowance ranges between 5% - 20%.

* Tax incentives for research and development, which

Incentives for gas operations are as follows:

allow a 20% investment tax credit on their capital expen-

* An initial tax holiday period of 5 years renewable for

diture. This encourages companies to invest in research

another 2 years.

and development activities, which boost the economy and

* All gas development projects are taxed under the

enhance development of industrial technology.

Companies Income Tax Act (CITA) and not the Petroleum

* 25% investment tax credit for companies engaged in

Profits Tax Act (PPTA).

manufacturing locally made spare parts, tools and equip-

* All dividends distributed during the period of tax holiday

ment. Taxpayers who purchase locally made tools and

are tax-free.

equipment are similarly entitled to 15% investment tax

* Cost of Capital investment incurred for gas business is

credit on such fixed assets.

recoverable against oil income.

* Industrial plant and machinery brought in to replace old

* The Country’s Annual budgets contain pronouncements

ones are to enjoy a once and for all 95% capital allo-

on new fiscal policies and measures introduced by the

wance. The balance of 5% will be retained till the assets

government for the current fiscal year.

are disposed of. This ensures that such assets will not attract an annual allowance.

Export of Goods and Services

* Tax holiday for five years on the dividends from small manufacturing companies. Small manufacturing compa-

A person may export goods or services from Nigeria if:

nies are those with annual turnover of less than N1million. * To enhance the country’s tourism potential, 25% of the

- Goods and services are not prohibited by law in Nigeria;

income in convertible currencies derived from tourists by

- The payment for the goods or services is made by means of

hotels shall be exempted from tax provided such income

- Letter of credit or any other internationally acceptable

is put in a reserve fund to be utilised within 5 years for the

mode of payment;

building or expansion of new hotels, conference centres

- The amount of the payment made or to be made is such

and new facilities for tourism development.

to represent a fair return for the goods or services; and

* In its determination to improve earnings from non-oil

- Exporters are required to open and maintain a foreign

exports, a 25% Export Expansion Grant (EEG) is allowed

currency domiciliary account.

on all non-oil exports from the country with effect from January 1, 2001. * Companies located in the Export Processing Zone (EPZ) are tax exempt and enjoy unrestricted remittance of profits and dividends earned through business activities in these zones. * Companies engaged in petroleum operations are sub-



However the seller bears the ultimate responsibility for seeing that goods are inspected. Shipping restrictions: The owner or agent of every ship

Export Regulations:

intending to enter any Nigerian port is required to supply certain information concerning the ship and its move-

The following specific documents are required for exports

ments to the Nigerian Port Authority at least two months

to Nigeria.

before departure of the ship for Nigeria. Ships entering

*Sanitary certificate: A sanitary certificate is required to

Nigerian ports are required to pay fifty percent of the cus-

import certain animals, animal products, meat and meat

toms duties payable on the cargo to be unloaded before

products, plants, seeds, soils, and used merchandise.

they will be allowed to berth.

In many cases special import permits guaranteed by appropriate Nigerian agencies are required to import of

Standards and provisions:

the above mentioned commodities. Nigeria is a member of the African Regional Organisation Disinfecting certificate: a disinfecting certificate meeting

for Standardisation; an intergovernmental body designed

the requirements of the Nigerian Ministry of Health must

to harmonise standards of member states and to promote

accompany imports of used clothing.

standardisation in Africa. Additional information concerning ARSO is available from the Secretary General, African

Free sale certificate: The importation of food, drugs, cos-

Regional Organisation for Standardisation, PO. BOX.

metics and pesticides must be accompanied by certificates

57363 Nairobi, Kenya. Tel: 254-224561. Fax: 254-

of free sale stating that the commodities in question are


in free circulation in the country of Export. *Food and drugs: the manufacture, sale and advertising Certificate of analysis: A certificate of analysis is required

of food, drugs and cosmetics are regulated by decree.

to import food, drugs, cosmetics and pesticides from the

Certain drugs are prohibited importation into Nigeria and

manufacturer and the country where the goods were

some permitted imports require special certificate. All


pharmaceuticals and drugs for sale in Nigeria must be registered in accordance with regulations issued by the

Pre-shipment inspection: Imports to Nigeria, regardless of

Ministry of Health.

volume and whether in a container or not, are subject to mandatory pre-shipment inspection to verify the price, the

*Labelling: Pre-packaged goods sold in or imported into

quantity and the quality of the merchandise. The physical

Nigeria require exclusive metric units for content marking.

inspection is intended to determine whether goods con-

All imports with dual labelling in metric and non-metric

form to contractual requirements. The Nigerian govern-

units will be confiscated or refused entry.

ment will send a completed, modified Form M and a copy of the pro forma invoice to the inspection agency. Upon

*Marking: There are no general marking regulations, but

receipt of these documents, the inspection agency will

packages should be marked according to sound shipping

contact the seller to request additional information about

practices, with the consignee’s mark, including port marks

the shipment and to arrange for inspection of the goods.

and they should be numbered to correspond with the


INVESTMENT & LEGAL FRAMEWORK number of packages shown on the invoice.

(ii) diversify their export products and market coverage.

*Packing: No special regulations applied to packing;

- Export Adjustment Fund Scheme: This scheme serves as

however, goods packed in straw will not be admitted

a supplementary export subsidy to compensate exporters

because materials, such as straw, originating from small

for (a) the high cost of local production arising mainly

cereals are prohibited importation. Parcels should be

from infrastructural deficiencies and (b) other negative

packed securely and should have waterproof covers to

factors beyond the control of the exporter.

guard goods against the elements, pilferage and rough

Nigeria Export Import Bank


The Nigerian Export Import Bank (NEXIM) was established as an export credit agency replacing the Nigerian Export

*Retention of Export Proceeds in Foreign Currency: Under

Guarantee and Insurance Corporation and its has statu-

this scheme an exporter of Nigerian commodities is

tory functions include:

obliged to open a foreign currency domiciliary account

- Export credit guarantee and export credit insurance faci-

(D/A) with an authorised bank of their choice in Nigeria


into which 100% of the proceeds of such export may be

- Credit in local currency in support of exports;

credited in foreign currency.

- Domestic credit insurance and reinsurance where such a

*Export Development Fund (EDF or Fund): The EDF is a

facility is likely to assist exports;

special fund set up by the government to provide financial

- Credit insurance in respect of external trade, transit

assistance to private sector exporting companies to cover


a part of their initial expenses in respect to the following

- Investment guarantee and investment insurance facili-

export promotion activities:


- Participation in training courses, symposia, seminars and

- The establishment and management of funds in the

workshops on all aspects of export promotion.

form of mutual export guarantee funds to support

- Export market research.

Nigerian exporters;

- Advertising and publicity campaigns in foreign markets

- Purchase and sale of foreign currency and transmission

including press/radio/television, catalogues, brochures,

of funds to all countries;


- Maintenance of a foreign exchange revolving fund for

- Product design and consultancy.

lending to exporters who need to import foreign inputs to

- Participation in trade missions, buyer-oriented activities,

facilitate export production;

overseas trade fairs, exhibitions and store promotion.

- Maintenance of a trade information system in support of

- Cost of collecting trade information.

export business.

- Organisation of joint export groups and mutual export guarantee associations.

NEXIM facilities include trade finance, project finance, tre-

- Backing up the development of export-oriented indus-

asury operations, export advisory services, market infor-


mation, exporter education services and guarantees to

- Export Expansion Grant Fund Scheme (EEGF): This fund

enhance its functions.

provides cash inducement for exporters that have exported a minimum of N50,000 worth of semi-manufac-

Imports regulations:

tured products. The cash incentive is to enable such exporters to (i) increase the volume and value of export;

Some goods essential for human welfare and economic


INVESTMENT & LEGAL FRAMEWORK development are admitted duty-free. Non- Essential

permit. An increase in expatriate quota and the number of

goods and luxury items are subject to the highest rate of

expatriates approved for a wholly indigenous company is


usually conveyed in a letter from the Federal Ministry of

Prohibited products are: used vehicles and motorcycles

Internal Affairs. An expatriate quota is granted for specific

more than eight years old from the date of the manufac-

jobs and, generally, is for a specific number of years

ture, buses, trucks and lorries more than 10 years-old,

except for one or two key personnel where the quota may

mineral water, soft drinks, beer and stout, maize and

be permanent until reviewed. Capitalisation of N5 million

maize products, vegetable oils, fresh or preserved vegeta-

attracts an automatic quota of two while a capitalisation

bles, meat and meat products, live or dead poultry (except

of N10 million or more attracts four.

a day old chicks and parent stock), eggs in the shell, fertiliser, bentonite and barytes, retreated and used tyres, tex-

Residence Permits

tile fabrics of all types, processed wood, furniture and furniture pieces, fluorescent lightbulbs and kaolin.

When an expatriate quota is granted, application is made

At import level the following documents are required:

through the appropriate Nigerian Embassy or High

Commercial invoice

Commission abroad for resident permits (entry permits).

Packing list.

This is in addition to visa requirements where applicable.

Pro forma invoice

Generally, evidence of academic, professional or technical

Bill of lading

qualification and/or experience is required to be produced. A person (usually the prospective employer) resi-


dent in Nigeria must give a written undertaking to bear all immigration responsibilities in respect to person(s)

Restrictions on Employment of Foreigners

covered by the application. Families

Visa and Work Permits - A non-Nigerian requires the consent of the Ministry of Internal Affairs to do business in

Wives and children of expatriates with entry permits are

Nigeria. The approval is conveyed in a letter styled busi-

also granted entry permits freely on application, but they

ness permit.

require specific permission to work in Nigeria except on a voluntary non-remuneration basis for charity.

Expatriate Quota Visas On application to the Federal Ministry of Internal Affairs, approval can be given to a company proposing to employ

Generally, a foreigner requires a visa to enter Nigeria. The

expatriates for senior management, technical or specialist

only exception relates to citizens of member states of the

posts. Approval will not normally be given to employ

Economic Community of West African States (ECOWAS)

expatriates to do jobs for which there are suitably quali-

who require only entry permits. Commonwealth citizens

fied Nigerians.

can go to the nearest Nigerian Embassy of High Commission to clarify their status.

The expatriate quota approval for a new company with non-Nigerian participation is usually stated in the business



A foreigner may invest and fully participate in the operations of any enterprise in Nigeria. An enterprise in which

The Immigration Department may, on application, grant a

foreign participation is permitted shall after its incorpora-

temporary expatriate quota for a short period. A tempo-

tion or registration be registered with the NIPC.

rary quota is usually for specialists required for, say, three months to install or service a special type of machine or

Application for registration is made through the

equipment. Non residents negotiating one-time contract

Corporate Affairs Commission (CAC) established by the

work in Nigeria should discuss the immigration implica-

Companies and Allied Matters Act of 1990 to regulate the

tions with the prospective employer, particularly where

formation and management of companies in Nigeria.

the non-resident intends to apply for exemption from incorporating a local company under Sections 56-60 of

The registration/incorporation of an enterprise in Nigeria

the Companies and Allied Matters Decree, 1990. In such

shall include the following stages:

a situation, the Nigerian employer may have to apply directly to the Federal Ministry of Internal Affairs for a spe-

Stage A

cial quota for the purpose of the job. 1. Determination of partners/shareholders and their respective percentage shareholdings in the proposed com-


pany. 2. Establishment of the name, initial authorised share capital and main objects of proposed company. 3. Preparation of Joint-Venture Agreement between pros-

The business environment in Nigeria is open to everyone,

pective shareholders. The Joint Venture should specify

irrespective of nationality. A foreigner can set up a busi-

mode of subscription by parties, manner of board compo-

ness enterprise in Nigeria in accordance with the provi-

sition, mutually protective quorum for meetings, specific

sions of any of the following legal instruments:

actions which would necessitate shareholders approval by special or other resolutions. This may not be necessary in

- The Nigerian Investment Promotion Commission (NIPC)

instances where the proposed company will be 100%

Decree No. 16 of 1995

owned by non-resident shareholders.

- The Foreign Exchange (Monitoring and Miscellaneous

4. Preparation of Memorandum and Articles of

Provisions) Decree No. 17 of 1995

Association, incorporating the spirit and intents of the

- The Companies and Allied Matters Act, 1990 (the

Joint-Venture Agreement.

Companies Act)

5. Foreign shareholders may grant a power of attorney to its solicitors in Nigeria, enabling them to act as its agents

According to the Nigerian Enterprise Promotion (Repeal)

in executing incorporation and other statutory documents

Decree No. 7 of 1995, there is no restriction to the limits

pending the grant of business permit (i.e. formal legal

of foreign shareholding in enterprises registered in

status for foreign branch/subsidiary operations) to the

Nigeria. This excludes companies that are engaged in the

foreign shareholder.

production of arms and ammunitions, and those involved

6. Conduction of a search as to the availability of the pro-

in the production of narcotic drugs and psychotropic

posed company name and, if available, reserve the name


with the CAC.


INVESTMENT & LEGAL FRAMEWORK 7. Payment of stamp duties, CAC filing fees and process,

appendices or separately. In order to discourage the dissi-

and conclusion of registration of the company as a legal

pation of administrative energy on speculative applica-


tions, the NIPC favours the applicant who has demonstrated positive intention to commence business as and

Stage B

when approvals are granted. Hence, the requests for evidence of acquisition of business premises and evidence of

1. Obtainment of “Tax Clearance Certificate” for the

having sourced the plant and machinery to be utilised in

newly registered company.

the company’s business;

2. Preparation of Deeds of Sub-Lease/Assignment, as may

- Copies of Deed(s) of Sub-Lease/Agreement evidencing

be appropriate, to reflect firm commitment on the part of

firm commitment to acquire requisite business premises

the newly registered company to acquire business pre-

for the company’s operation. By implication, the ultimate

mises for its proposed operations.

NIPC approvals do incorporate approvals of the industrial site locations indicated in the application;

Stage C

- Copies of training programme or personnel policy of the company, incorporating management succession sche-

1. Preparation and submission of applications to the NIPC

dule for qualified Nigerians;

on the prescribed NIPC application form for the following

- Particulars of names, addresses, nationalities and occu-


pations of the proposed directors of the company;

- Business permit and expatriate quota;

- Job title designations of expatriate quota positions

- Pioneer status and other incentives (where applicable)

required, and the academic and working experience

2. The application to the NIPC should be accompanied

required for the occupants of such positions. It is perti-

with the following documents:

nent to note that expatriate quota on a Permanent Until

- Copies of the duly completed NIPC form;

Reviewed (PUR) status is only accorded to a Managing

- Copies of the treasury receipt for the purchase of NIPC

Director, where the non-resident shareholders own a


majority of the company’s shares, and the authorised

- Copies of the Certificate of Incorporation of the appli-

capital of the company is N5 million and above;

cant company;

- Copies of information brochure on foreign shareholder

- Copies of the Tax Clearance Certificate of the applicant

(if available) as testimony of international expertise and


credibility of the foreign partner in the proposed line of

- Copies of the Memorandum and Articles of Association;


- Copies of treasury receipt as evidence of payments of stamp duties on the authorised share capital of the com-

Stage D

pany as at date of application; - Copies of the Joint-Venture Agreement - unless 100%

1. Having obtained the requisite NIPC approvals and

foreign ownership is envisaged;

Business Permit Certificate, the non-resident shareholder

- Copies of Feasibility Report and Project Implementation

must act with dispatch to import its foreign equity holding

Programme of the company for its proposed business. It is

in the company. To ensure prompt importation of the

advisable that quotations, letters of intent and other such

foreign equity components, the NIPC may grant Business

documentation relating to industrial plant and machinery

Permit but defer approvals for Expatriate Quota and

to be acquired by the company be forwarded either as

Pioneer Status and other applicable investment incentives,


INVESTMENT & LEGAL FRAMEWORK until evidence of capital importation is produced.

indication of resident and non-resident directors). The Business Permit Certificate consequently issued following

2. After obtaining Certificate of Capital Importation from

such application usually reflects the respective names of

the bank, the NIPC is to be notified of this fact with the

the proprietors of the company, as well as the directors

supporting documentation, in order for it to resume pro-

representing each proprietor or co-proprietor.

cessing of pending approvals that might have been deferred on such ground.

Payments of foreign directors’ fees are remittable in the same manner as dividends accruing to the foreign com-

3. As soon as expatriate quota positions are granted and

pany. However, since such fees are taxed at source (5% as

the respective individuals to fill the quota positions are

a withholding tax), each foreign director’s fee is remit-

recruited, the company must embark on steps to obtain

table subject to satisfactory evidence that the taxable

work permits and residency status for the expatriate

amounts on such fees have been paid.

employees and their accompanying spouses and children (if any).

Pioneer Status (Tax Holiday) advantages to a company:

The Difference Between “business permit” and “expatriate quota”:

The Industrial Development (Income Tax Relief) Act of

Business permit, as the name implies, is the permanent

tries. Thus, any company whose products fall within the

authorisation for the local operation of businesses with

categorised industries could be conferred with Pioneer

foreign investments either as branch/subsidiary of a


Nigeria, 1990, declares certain industries as pioneer indus-

foreign company or otherwise. Expatriate quota is the official permit to a company; con-

Where the activities of a company include the production

veying permission for the company to employ individual

of pioneer and non-pioneer products, the tax relief avai-

expatriates to specifically approved job designations, and

lable on conferment of Pioneer Status would be restricted

also specifying the permissible duration of such employ-

to income derived from pioneer products only. Under the

ment. The expatriate quota forms the basis of work per-

current industrial policy, conferment of Pioneer Status

mits for expatriate individuals employed (whose qualifica-

accords a company relief from income tax liability for a

tions must fulfil the criteria established for the particular

period of up to 5 years (tax-holiday status).

quota position). Expatriate quota positions are usually granted for 2-3 years subject to renewal, except in cases

Finally, it should be noted that even if a company’s activi-

where companies qualify for and are granted not more

ties and/or products are classified within pioneer indus-

than one (1) PUR Quota position.

tries, the grant of Pioneer Status is not automatic. The criteria for granting Pioneer Status are related and/or based

The current regulation on the appointment of foreign directors:

on the following considerations: -

The promoters of business ventures in Nigeria are free to

i. The amount of underlying capital investment in a com-

appoint directors of their choice, either foreign or

pany (N5 million and above) must be verifiable by physical

Nigerian, and the directors may be resident or non-resi-

inspection and supported by a report of the Industrial

dent. The application to the NIPC must reflect the names

Inspectorate Division of the Federal Ministry of Industries,

of the proposed Nigerian and foreign directors (with an

before a Pioneer Certificate is granted.



ii. The socio-economic advantages of a company’s activi-


ties to the Nigerian economy as set out in its Feasibility Study is also an important consideration. The Federal Government slashed duties on many raw Without prejudice to these conditions, NIPC is empo-

materials and capital goods such as textile and knitting

wered to confer Pioneer Status and other investment

machinery, non-combed cotton, synthetic filament and

incentives, in any other deserving circumstance as the

yarn, newsprint, and chemicals to as low as five percent in

Council of NIPC may approve.

2000. In slashing tariffs on these items, the government demonstrated a serious desire to expand domestic export-

Minimum Share Capital and Disclosures in Memorandum of Association

led growth. Import duties were also reduced dramatically on a range of consumer products such as refrigerators and vehicles.

The minimum authorised share capital is N10,000 in the case of private companies or N500,000 in the case of

However, the government concurrently sought to protect

public companies. The Memorandum of Association must

domestic agriculture by raising tariffs on a variety of agri-

state inter-alia that the subscribers “shall take amongst

cultural commodities while relieving Value Added Tax

them a total number of shares of a value not less than 25

(VAT) payment obligations on domestic producers.

per cent of the authorised capital and that each subscriber shall write opposite his name the number of shares he

Import Duties- The Nigerian customs traffic is based on

takes.” The law permits and acknowledges the roles of

the Harmonised System (HS)for classification of imports.

attorneys and other relevant professionals in facilitating

Import duties in Nigeria can be categorised as specific

business transactions provided, of course, that this

duties and ad valorem duties are assessed on ad valorem

“agency arrangement is disclosed”.

basis while few are based on weight, volume, unit or measure. Preferential duties for other members of the

Disclosures To Be Published In Company Correspondence and Business Premises

Economic Community of West African States (ECOWAS)

Every company is obliged to disclose on its letterhead

Customs surcharges and indirect taxes: All imports are

papers used in correspondence, the following particulars:

subject to an administrative charge of 1% of the (Free on

(i) Name of the company/enterprise;

Board) FOB value. Excise taxes are assessed on cigarettes,

(ii) Address;

sparkling wine and champagne at the rate of 40%.

(iii) Registration/Incorporation Number;

Imports are subject to value added tax at the rate of 5%.

are determined on a case- by- case basis.

(iv) Names of Directors and Alternate Directors (if any)

Restrictive tariffs are levied on the following goods: Wheat flour, mosquito repellent, motor vehicle above

In addition, the law requires companies/enterprises to

eight years-old (excluding tractors, trucks, trailer/trailer

ensure that the Certificate of Registration be displayed in

heads and buses provided not imported through land bor-

conspicuous positions at their main and branch offices.

ders), used refrigerators, used air-conditioners, used compressors, poultry products and men’s footwear and lea-


INVESTMENT & LEGAL FRAMEWORK ther and plastic bags (excluding ladies’ handbags).

of 30%. There is an additional education tax of 2% on the income of companies. Withholding tax of 5% is chargeable on unearned income. For foreign investors, the


10% withholding tax on dividends is the final tax on dividends. The top personal income tax rate is 25%. However, Nigeria operates a very flexible fiscal regime.

Following revenue from crude oil exportation, tariffs on

This is demonstrated by the recent waiver by the Federal

importation is the second largest earner for the Nigerian

Government of import duties on telecommunications

government. In recent times, however, tariffs in aggre-


gate have reduced and the patterns of reductions for various products are inconsistent. This has resulted in the

The principal statute governing corporate taxation is the

import process having a severe bottleneck effect for com-

Companies Income Tax Act CAP 60 LFN 1990 as

mercial activities. The clearance of goods for private indi-

amended. Under the Act, every registered company is

viduals, for instance, took up to two weeks at the ports,

required to file tax returns made up of audited accounts

currently it is between 4 to 7 days and efforts are geared

and completed self-assessment forms within six (6)

at reducing it further to 48 hours.

months after its financial year-end with the Federal Board of Internal Revenue.

To achieve its set targets, the Federal Government is also re-orientating the Nigeria Customs Service (NCS) for

Newly incorporated companies have up to eighteen (18)

better facilitation of trade clearance at the country’s

months after incorporation or six (6) months after the end

ports. One of the many actions being assumed is the

of the first accounting period to file tax returns.

downsizing of staff and refocusing of customs’ purpose

Foreign companies are liable to pay tax on profits brought

and objectives.

into or accrued or derived from, received in, or attribu table to contracts performed in Nigeria, capital gains tax


accruing on disposals, withholding tax, VAT on nonexempt goods and services, PAYE. Value added tax is chargeable on goods and services at 5%. The Capital

Any company incorporated in Nigeria is allowed to have

Gains Tax rate is 10%, and shares in companies are

access to land rights for the purpose of its activity in any

exempt from capital gains tax. This is a very significant tax

state in the country. It is, however, a requirement that

relief for investors. Stamp duty is chargeable on various

industrial companies comply with regulations on use of

documents at various flat and ad valorem rates, depen-

land for industrial purposes and with environmental regu-

ding on the nature of the instrument, up to a maximum

lations. Land lease is usually for a term of 99 years unless

of 2% of the value involved. There are Pay-As-You-Earn

the company stipulates a shorter duration.

income tax regulations, and various social insurance-type contributions are compulsory.


There is also a tax holiday and tax allowance incentives for investors. For example, tax holidays for up to five years may be granted to investors in the manufacturing and gas

Companies are generally liable to pay an income tax rate

utilisation sectors.

Companies operating in Nigeria’s


INVESTMENT & LEGAL FRAMEWORK export processing zones are exempted from all taxes

machinery is acquired.

including both import and export duties.

The limit on capital allowances is 95% of cost.

Further, import duty relief may be obtained on certain machinery, and there are tax allowances for using local


raw materials in manufacturing, being a labour-incentive (and therefore employment-generating) business, expenditure on training, infrastructure, research and develop-

A foreign investor in an enterprise having Nigerian

ment and in economically disadvantaged areas.

Investment Promotion Commission Decree 1995 No. 16 provision relating to investment shall be guaranteed

Nigeria offers the interested investor Africa’s largest

unconditional transferability of funds through an autho-

domestic market as well as the additional attractions of a

rised dealer, in freely convertible currency of:

low-cost labour pool and abundant natural resources. The Foreign Exchange Decree of 1995 re-established the

- Investment guarantees transfer of capital profits and

foreign exchange market. Foreign companies can source


foreign exchange at the parallel market rate.

a. - Dividends or profits (net of taxes) attributable to the Investment

Companies are allowed to hold domiciliary accounts in

b.- Payments in loan servicing where foreign loan has

private banks. Foreign investors are allowed to bring

been obtained, and

capital into the country without requiring prior govern-

c.- the remittance of proceeds (net of all taxes), and other

ment approval.

obligations in the event of sale or liquidation of the enter-

(a) An investment tax credit of 15% is granted on expend

prise of any interest attributable to the investment.

iture for the replacement of old plant and machinery.

Guarantees against expropriation

(b) An additional 10% investment allowance is granted to

a.- no enterprise shall be nationalised or expropriated by

companies on cost in the year in which the new plant and

any government, and b.- no person who owns, whether wholly or in part, the


capital of any enterprise shall be compelled by law to surrender his interest in the capital to any other person.


There shall be no acquisition of any enterprise, to which



this Decree applies, by the federal government unless the



acquisition is in the national interest or for a public pur-


Grace Period

pose and under a law which makes provision for:


a.- payment of fair and adequate compensation, and b.- a right of access to the courts for the determination of

I) Above seven years II) 5-7 years

Not less than 18 months


the investor’s interest or right and the amount of compen-

III) 2-4years

Not less than 12 months


sation to which he is entitled.

IV) Below 2 years


40% Nil

Any compensation payable under this section shall be paid without undue delay, and authorisation for its repa-


INVESTMENT & LEGAL FRAMEWORK triation in convertible currency shall, where applicable, be



Type of Asset or Expenditure

Buildings (Industrial and non-industrial)

Initial Annual Rate Rate (%) (%) 15


INVESTMENT DIRECTORY Advertising Practitioners Council of Nigeria (APCON) 3, William Carew Street, Anthony Village Lagos Tel: + 234 - (0) - 1 - 4970842

Plant & Machinery: Plant and machinery purchased to replace Old





Bureau of Public Enterprises

plant & machinery (a) Agriculture production plant (b)

NDIC Building (1st Floor) Central Business District P.M.B. 442, Garki Abuja

Other plant





Tel: + 234 - (0) - 9 - 5237397 / 5237405

Centre of Management Development

Plantation equipment (b)

Management Village, Shangisha P.M.B. 21578, Ikeja Lagos Tel: + 234 - (0) - 1 - 4978391

Other ranching and plantation



Mining expenditure



Central Bank of Nigeria Zaria Street, Garki Abuja Tel: + 234 - (0) - 9 - 2343132 / 6

Research and Development Equipment



Corporate Affairs Commission Area 2 Garki Abuja Tel: + 234 - (0) - 9 - 3142917 / 3148060

Housing Estate Expenditure



Chartered Institute of Bankers of Nigeria Furniture & Fittings



Stock Exchange Building, 2-4 Customs Street, Tinubu Lagos Tel: + 234 - (0) - 1 - 2663146 / 2663921

Public Transportation Motor Vehicles



Other Motor Vehicles



Department of Petroleum Resources 7, Kofo Abayomi Street, Victoria Island Lagos Tel: + 234 - (0) - 1 - 2612320 / 2618228


INVESTMENT & LEGAL FRAMEWORK Economic Community of West Africa States (ECOWAS)

Nigerian-American Chamber of Commerce & Industry

60, Yakubu Gowon Cresent, Asokoro Abuja

1, Kingway Road, Ikoyi Lagos

Tel: +234 - (0) - 9 - 2600860 / 8

Tel: + 234 - (0) - 1 - 2692088

6, Island Club Road, Onikan Lagos

Fax: + 234 - (0) - 1 - 2693041

Tel: + 234 - (0) - 1 - 2600720


Federal Mortgage Bank of Nigeria Plot 124, Festival Road, Area 2,

Nigerian-British Chamber of Commerce & Industry

P.M.B. 2273, Garki Abuja

Ground Floor, Ebani House, 149/153

Tel: +234 - (0) - 9 - 2344212 / 2344224

Broad Street Lagos Tel: + 234 - (0) - 1 - 2660298

Federal Ministry of Commerce Garki Area1 Abuja

National Association of Nigeria Travelling Agencies

Tel: + 234 - (0) - 9 - 2341662 / 2341491

52A, Ikorodu Road, Fadeyi, Yaba

Block H, Old Federal Secretariat


Federal Ministry of Culture & Tourism Block H, Old Federal Secretariat

National Maritime Authority

Garki Area1 Abuja

Plot 1970, Michael Okpara Street Abuja

Tel: + 234 - (0) - 9 - 2342727 / 2342742

Tel: + 234 - (0) - 9 - 5237016 / 7

Federal Ministry of Finance

Nigerian Industrial Development Bank

Block 4A, (3rd Floor)

NIDB House, 63/71, Broad Street,

Federal Secretariat Complex Shehu Shagari Way Abuja

P.O. Box 2357 Lagos

Tel: + 234 - (0) - 9 - 5238366 / 5238362

Tel: + 234 - (0) - 1 - 2663470 / 2663495

Franco-Nigerian Chamber of Commerce & Industry

Nigerian Institute of International Affairs

1st Floor, Total House, PC.24

13/15. Kofo Abayomi Street, Victoria Island Lagos

Afribank Street, P.O. Box 70001, Victoria Island Lagos

Tel: + 234 - (0) - 1 - 614309

Tel: + 234 - (0) - 1 - 2621423 / 2621424 Fax: + 234 - (0) - 1 - 2621422

Nigerian Investment Promotion Commission

Industrial Research Council of Nigeria

Plot 1181, Aguiyi Ironsi Street,

Matori Industrial Avenue,

Maritama District, Garki Abuja

P.M.B. 1283, Ikeja Lagos

Tel: + 234 - (0) - 9 - 4134380 / 4134317


INVESTMENT & LEGAL FRAMEWORK Nigerian National Petroleum Corporation

World Trade Centre

Plot 639, Usuma Street, Maitama A5 Abuja

8/10, Broad Street,

Tel: + 234 - (0) - 9 - 5239146 / 5230770

P.O. Box 4466

8th Floor, Western House,


Nigerian Ports Authority

Tel: + 234 - (0) - 1 - 2635276 / 2692072

Plot 126, Olusegun Obansajo Way, Central Business District, Garki Area 10 Abuja


Tel: + 234 - (0) - 9 - 2347920 / 8

Nigerian Tourism Development Corporation

Abuja Chamber of Commerce, Industry, Mines and Agriculture

Block 2, Sefadu Street, Zone 4, Wuse Abuja Tel: + 234 - (0) - 9 - 5230418 / 5230419

Mr. Peter N.C. Okolo - Chief V.N. Uchendu President - Director General

Nigerian University Commission

Abuja International Trade Fair Complex

Plot 430, Aguiyi Ironsi Street,

Kilometer 8, Airport road, P.M.B. 86 Abuja

Maritime District,

Tel: + 234 - (0) - 9 - 2340940

P.M.B. 237 Garki Abuja

Fax: + 234 - (0) - 9 - 2340941 E-mail:

Securities & Exchange Commission


Mandilas House, 96/102, Broad Street Lagos

The Abuja Chamber of Commerce, Industry, Mines and

Tel: + 234 - (0) - 1 - 2661552 / 2662114

Agriculture (ABUCCIMA) was established in August 1986 in an informal way by a group of business men and

The Nigerian Stock Exchange

women whose main objective was to create a forum to

2/4, Customs Street Lagos

discuss matters relating to the commercial and industrial

Tel: + 234 - (0) - 1 - 2660287 / 2660305

development of the Federal Capital Territory. By 1988, the informal group that had started with 9 members was

United States Information Service

transformed into a Chamber of Commerce. Currently

2, Broad Street Lagos

there are almost 400 members and by the year 2009 a

Tel: + 234 - (0) - 1 - 2632504 / 2632577

total of 2,000 members is expected.

World Bank

The Chamber being an umbrella body for the organised

Plot 473, ECOWAS Secretariat Road,

private sector, playing the role of catalyst and facilitator in

P.O. Box 2826, Garki

the industrial and commercial development of the FCT in


particular, and Nigeria in general. It has the aim to har-

Tel: + 234 - (0) - 9 - 2345270 / 4

ness and harmonise economic operations in the FCT. It also plays the role of protecting the interest of its members as well as creating a conducive atmosphere for busi-



the Nigerian economy. These sectors include power (National Electric Power Authority - NEPA), telecommuni-

The Chamber has been in the forefront of exposing the

cations (Nigerian Telecommunication Limited - NITEL),

economic potentials of the territory. It has been organi-

steel (Ajaokuta Steel Company) and petroleum (Nigerian

sing trade fairs, seminars, lectures and talks, providing

National Petroleum Corporation - NNPC, and its subsidia-

trade and business enquiries. It also publishes journals,

ries). All these sectors play a vital role in the Nigerian eco-

periodicals and business directories, where efforts are

nomy as well as in the well being of its citizens. The

made to list genuine business operators, as means of carr-

improvement of these sectors, which privatisation is

ying out its functions.

aimed at would bring about the efficient and effective delivery of services.

The Chamber is also involved in several real estate projects like the construction of a 500 room, 5 star hotel with a

Through its Internet site, the BPE provides detailed infor-

total investment above the US$20 million as well as some

mation on all the enterprises slated for privatisation to

housing construction projects involving 10,000 houses

prospective investors. The enterprises are categorised into

around Abuja.

sectors in each department - industry & manufacturing, infrastructure & networks, natural resources, oil & gas, and services. Information is provided on the status of each

Bureau of Public Enterprise

company, their location, type of business/capacity, facilities, privatisation plan and contact person for more infor-

Dr. Julius Bala


Director General 1, Osun Crescent, off Ibrahim Babangida Way

To ensure a smooth privatisation process with no fai-

Maitama District, P.M.B. 442, Garki Abuja

lures, the management of BPE is focused on a tho-

Tel: + 234 - (0) - 9 - 4134636

rough process of pre-privatisation and a high-level of

Fax: + 234 - (0) - 9 - 4134657

preparedness. This will ensure that the Nigerian pri-


vatisation process becomes successful and a leading


example for other African countries and indeed the world.

The Bureau of Public Enterprises (BPE) is the Secretariat of the National Council on Privatisation (NCP), which is chaired by the Vice President of the Federation. The BPE is

Corporate Affairs Commission of Nigeria

the agency mandated to carryout the comprehensive reform, restructuring and privatisation of public enter-

Mr. Ahmed Almustapha

prises in Nigeria.

Registrar General Plot 565 Ndola Square, Off Michael Okpara Street,

With over 600 state-owned enterprises to be divested,

Wuse Zone 5 Abuja

that is, privatised or commercialised, BPE is in charge of

Tel: + 234 - (0) - 9 - 5241046 / 50

implementing one of the largest and most challenging

Fax: + 234 - (0) - 9 - 5241029 / 50

reform programmes in Africa today. It is also involved in


the design of reforms to improve the most vital sectors in



INVESTMENT & LEGAL FRAMEWORK The Corporate Affairs Commission (CAC) was established

Calabar Free Trade Zone (CFTZ)

by the Companies and Allied Matters Act, 1990. It succeeded the defunct Companies Registry, which was a

Mr. Adebisi A. Opejinmi

department of the Federal Ministry of Commerce. The

General Manager

Commission is responsible for the regulation and supervi-

P.M.B. 1200, Calabar

sion of registration, administration and winding up of

Cross-River State

companies. This responsibility also extends to business

Tel: + 234 - (0) - 87 - 210001

names of individuals, firms, corporations and incorpo-

Fax: + 234 - (0) - 87 - 210010

rated trustees (communal, religious and charitable asso-


ciations). Its ancillary functions include certification of


documents in its custody and registration of alterations and changes.

In 2001, the Calabar Export Processing Zone was officially converted to Calabar Free Trade Zone. With this name

Over 500,000 companies and 1.5 million business names

change came a change in concept as the government

have been registered since 1912. Of these figures,

allowed the investors of the zone not only to dedicate

280,000 companies were registered between 1990 and

themselves to export production but also to any or all of

now. Currently, the Commission registers an average of

the following activities: assembly, distribution, packaging

300 companies a day. The different categories of registra-

and repackaging, warehousing, providing services and

tion include public limited companies (Plc), private limited

maintain a representative office. Moreover, the free zone

companies (Ltd.), unlimited companies (Unltd.), compa-

investors are now able to sell up to 100% of their pro-

nies limited by guarantee (Ltd/Gte), business names and

ducts in the domestic Nigerian market.

incorporated trustees. The Calabar Free Trade Zone currently encompasses an Within the last two years, the Commission reviewed its

area of 152 hectares but is looking to expand by a further

registration processes to enhance prompt and efficient

65 hectares. It is conveniently located adjacent to the

service delivery. Presently, companies, business names

Calabar Free Port and just few minutes from the centre of

and incorporated trustees are registered within 5 days of

Calabar. Today, more than 70 companies are registered in

filling out the applications. The Commission also intro-

the zone and around 25 are operational. The industry sec-

duced a fast-track option on request. With this option, the

tors covered by these companies range from textile manu-

registration is included the same day.

facturing to food processing, steel rolling, computer assembly, pharmaceuticals, etc.

The Commission is set to introduce certificates with security features as a safeguard to fraud and forgeries.

Some of the benefits of the CFTZ :

Furthermore, the Commission will introduce an on-line registration system by the end of the year. This will afford

- All companies within the zone are exempt of all taxes

the public an opportunity to run on-line status inspections

and levies

on Nigerian companies.

- The location close to the Calabar Free Port provides easy access for raw material imports to the zone and export of

The mission of the Corporate Affairs Commission is to

finished goods from it.

become a world-class companies registry.

- Rent free land during the construction of the facility


INVESTMENT & LEGAL FRAMEWORK - Allowance of 100% ownership by foreign investors in

maintaining comprehensive, accurate and timely records

the enterprises located within the zone

of the country’s debts; prudently managing the debt port-

- Uninterrupted source of electricity

folio and ensuring its effective servicing; negotiating on

- Fully serviced sites including potable water and sanita-

debt relief; accessing and advising on new borrowing and


advising the government on national debt strategy and

- The provision of support infrastructure including banks,

borrowing policy.

a fire station, its own telephone exchange, clinic, police station, post office, customs processing, immigration ser-

So far the Debt Management Office has recorded a

vices, warehousing, cargo handling services and a private

number of successes; the country’s actual debt records

security company, within a fenced perimeter.

have been clarified, as have acceptable debt position in commitments to IMF, World Bank and members of the Paris and London clubs have been updated. The office is

Debt Management Office (DMO)

also among those currently spearheading the global plea for debt relief to Nigeria and other third world countries.

Dr. Mansur Muhtar

It is also expected that the office will provide important

Director General

input into macroeconomic management, particularly in

NDIC Building (First Floor)

crafting an overall debt strategy that addresses issues rela-

Plot 447/448, Constitution Avenue, Central Area,

ting to future borrowing and debt restructuring opera-

P.M.B. 532, Garki Abuja


Tel: + 234 - (0) - 9 - 5237401 Fax: + 234 - (0) - 9 - 5237396

The office is also among those currently spearhea-


ding the global plea for debt relief to Nigeria and


other third world countries.

The Debt Management Office (DMO) commenced operation on October 4, 2000. Prior to the establishment of the

Abuja International Conference Centre

DMO, debt management in Nigeria was characterised by several major shortcomings, particularly the diffusion of

Mr. Saleh

debt management responsibilities across the numerous


agencies, both from the CBN and the Ministry of Finance,

Plot 908, Tafawa Belewa Way, Garki Abuja

leading to debt management co-ordination problems.

Tel: + 234 - (0) - 803 - 5875208 Fax: + 234 - (0) - 803 - 5875208

The Office has the vision to build a world-class debt management office capable of making Nigeria’s debt sus-

The International Conference Centre Abuja is 100%

tainable by 2006. Its mission statement is to transform

owned by the federal government of Nigeria and falls

Nigeria’s debt portfolio into an asset for growth and deve-

under the responsibility of the Federal Ministry of Capital

lopment. The broad objectives of establishing the office

Territory. The Centre is capitalising on government efforts

are to rationalise and streamline the management of the

to promote Abuja as the African centre for conferences. It

country’s debt with a view to sharpening strategic focus

has recently hosted quite a lot of international events,

and achieving operational efficiency. Its functions include

among them, CHOGM 2003, where the 53 heads of state


INVESTMENT & LEGAL FRAMEWORK of the Commonwealth met, or the peace talks for the

other measures affecting trade, industry, commerce and

Darfur conflict organised by the African Union.

agriculture as well as represent the opinion of the business community on these matters in particular and the

The Centre is strategically located in Abuja with Le

economy as a whole.

Meridien Hotel just next to it and most of the public buildings of the administrative capital of the country a few

The Chamber has grown impressively from a membership

minutes away. The AICC occupies 80,000 sq./m and has

of 14 in 1888 to about 1,500 today. Since its incorpora-

many facilities including: a major conference room, two

tion, the Chamber has continued to play a significant role

auditoriums, eleven committee rooms, a presidential

in the economic growth of Lagos in particular and Nigeria

liaison office, administrative offices, modern kitchen

in general. This has been done through the promotion

equipment, catering facilities, cafeteria and bars. The

and development of commercial and industrial opportuni-

Centre also has a standby generator to ensure it provides

ties, as its members control about 80% of the industrial

full power at all times.

wealth in the Lagos area, which itself accounts for over 60% of economic activities in Nigeria.

The Centre has the future prospect of earmarking the old wing of the conference centre for the ECOWAS

The Lagos Chamber of Commerce is the central organisa-

Parliament and using the centre for hosting major interna-

tion for collecting, distributing and disseminating business

tional conferences, commonwealth, AU etc. The AICC is

information, especially regulations, tariffs, opportunities

scheduled for concession in the privatisation program of

for trade and other matters affecting home and overseas

the government.

markets. The Chamber is recognised as the official body through

Lagos Chamber of Commerce

which local opinion on commercial and industrial matters can be presented directly to the government or other

Mr Adekunle Olumide

authorities, both national and local. It is frequently con-

Director General

sulted by the government in advance about the prepara-

1, Idowu Taylor Street

tion of new legislation affecting the business community.

Victoria Island Lagos Tel: + 234 - (0) - 1 - 2623665 Fax: + 234 - (0) - 1 - 2705386

Lagos International Trade Fair Complex

E-mail: Website:

Mr. Wole Oshinkunle Director Trade Promotion

The Lagos Chamber of Commerce and Industry, which

Lagos-Badagry Expressway, Abule-Osun

was established in 1888, is the Premier Chamber of

P.M.B. 0199 Festac Town Lagos

Commerce in Nigeria. It was incorporated in 1950 as a

Tel: + 234 - (0) - 1 - 5890797 / 5890798

non-profit organisation, limited by guarantee under the

Fax: + 234 - (0) - 1 - 5890796

Companies Act of 1948. The primary objective of the


Chamber is to promote, support or oppose legislative or



INVESTMENT & LEGAL FRAMEWORK Lagos International Trade Fair Complex was built and

tion, sale and use of foods, drugs, cosmetics, medical

commissioned in 1977. It is strategically located along the

devices, chemicals/detergents and packaged water inclu-

Badagry Expressway, which links Lagos Nigeria, as the

ding all drinks in Nigeria, herein referred to as regulated

economic commercial nerve centre, with the Economic

products. It gives marketing authorisation on regulated

Community of West African States (ECOWAS). The com-

products subsequent to full compliance to stipulated stan-

plex is managed by a board under the supervision of the

dard specifications for safety, quality and efficacy in

Federal Ministry of Commerce. The complex occupies a


land area of 3,086,720 square meters. It is a multi-dimensional outfit built to serve as a venue for the annual Lagos

The Agency’s vision and mission is to safeguard public

International Trade Fair.

health by ensuring that only quality products are manufactured, imported, exported, advertised, distributed, sold

The Lagos International Trade Fair Complex is now a

and used in Nigeria. It has as its current goal the eradica-

national asset in the promotion of trade activities; for

tion of fake drugs and other substandard regulated pro-

example by organising fairs/exhibitions in collaboration

ducts. To this end, the agency formulates regulations and

with the Nigerian Association of Chambers of Commerce,

develops guidelines and standard operating procedures

Industry, Mines and Agriculture and other organisers of

that guide officers and stakeholders in the regulated


sector towards effective regulation. The Agency utilises various effective strategies under a

National Agency for Food and Drug Administration and Control

focused leadership and this has created a favourable environment for genuine investors. As of January 2004, the Agency has carried out 73 the destruction of fake pro-

Dr. (Mrs.) Dora Nkem Akunyili

ducts valued at N6.3 billion (US$45.2 million). As a result,

Director General

there has been a reduction in fake drugs and other subs-

Plot 2032, Olusegun Obasanjo Way

tandard regulated products in circulation, which hitherto

Wuse Zone 7 Abuja

caused unfair competition for genuine investors as well as

Tel: + 234 - (0) - 9 - 5240994 / 6

the loss of lives.

Fax: + 234 - (0) - 9 - 5240994 E-mail:

The Agency welcomes genuine investors to Nigeria.

Website: The National Agency for Food and Drug Administration and Control (NAFDAC) is a parastatal of the Federal

National Space Research and Development Agency

Ministry of Health established by Decree No. 15 of 1993 as amended by Decree 19 of 1999. NAFDAC was esta-

Prof. R.A. Boroffice

blished to remove bureaucratic bottlenecks for effective

Director General / Chief Executive Officer

regulation and control in Nigeria.

Plot 555, Misau Street, off Ahmadu Bello Way Garki II, P.M.B. 437 Abuja

It has the mandate to regulate and control the manufac-

Tel: + 234 - (0) - 9 - 234 2203

ture, importation, exportation, advertisement, distribu-

Fax: + 234 - (0) - 9 - 234 2220




Niger Delta Development Commission (NDDC)

The federal government of Nigeria established the

Honorable Emanuel E. Aguariavwodo

National Space Research and Development Agency in

Managing Director / CEO

1999, with the broad mandate to consolidate all space

167 Aba Road, Port Harcourt

science and technology related activities in order to make

Tel: + 234 - (0) - 84 - 239643

a greater impact on development efforts in Nigeria. Two

Fax: + 234 - (0) - 84 - 236288

years later, in 2001, the National Space Policy and



Programmes was approved enabling the Agency to pursue its objectives. NASRDA’s vision is to make Nigeria

The Niger Delta Development Commission, NDDC, was

build indigenous competence in developing, designing

established by law in the year 2000 to offer a lasting solu-

and building appropriate hardware and software in space

tion to the socio-economic difficulties of the Niger Delta

technology as an essential tool for its socio-economic


development and enhancement of the quality of life of all Nigerians.

The Niger Delta region is comprised of nine of the 36 states of Nigeria with a population of 26.7 million (2002

The initial steps taken by NASRDA have already given

projection by the Nigerian Population Commission).

results. On September 23, 2003 at 07:07 GMT, Nigeria

It has 40 ethnic groups speaking 250 dialects, spread

entered in space history with the launching of NigeriaSat-

across 5,000 communities.

1, a 98-kilogram micro-satellite jointly designed by a team

It is the third largest wetland in the world after Mississippi

of Nigerian engineers and SSTL (Surrey Satellite

and the Pantanal

Technology Ltd.). The applications of the satellite are a

The Niger Delta covers an area of 70,000 sq. km.

great contribution to the Nigerian economy and its

It produces 100 per cent of Nigeria’s crude oil and gas

people. The satellite, with its images and applications


helps in various fields like agriculture surveys, water resources development and management, solid mineral

The Niger Delta accounts for over 90 per cent of revenues

exploration and exploitation, demographic and cadastral

accruing to Nigeria’s federation account.

uses, defence and security, disaster management and

The Niger Delta accounts for oil reserves of about 30

environmental management such as the impact of

billion barrels.

droughts and human use of Lake Chad.

It also accounts for Nigeria’s gas reserve of about 160 tri-

NASRDA is also in charge of fostering bilateral and multi-

llion cubic feet.

lateral co-operation in all aspects of space science and

The region is rich in agricultural resources, including oil

technology in order to ensure that Nigerian scientists and

palm, cassava, rubber, cocoa, coconut and a diversity of

engineers will benefit from global developments in the

aquatic resources.

sector. By following its Policies and Programmes, NASRDA will transform Nigeria from a consumer nation to an active

The irony however is that it is the poorest region in

participant in space technology and allied fields.

Nigeria, due to years of neglect by generations of military governments. The condition of life in the Niger Delta prior to the establishment of NDDC by president Obasanjo is


INVESTMENT & LEGAL FRAMEWORK best captured by Heiner Wolfer, Project Director,

P.M.B. 37, Garki Abuja

Gesellschaft Fur Technische Zussammenarhelt, GTZ, a

Tel: + 234 - (0) - 9 - 3142946 / 48

German firm researching on the Niger Delta. “The grea-

Fax: + 234 - (0) - 9 - 3142943

test problem we have identified in the Niger Delta is


poverty. Seventy per cent of the people in the area are on


the poverty line and the poverty level in the region is well above African standards... Over two million youths are

The Nigeria Export Processing Zone Authority (NEPZA) is

unemployed and they seem to have lost hope, faith and

the government agency that provides one-stop approval

dignity in life, while 40 percent of the people are illite-

to all investors for the establishment of investment in the


Free Zones in Nigeria. The Authority has the mandate to

The Niger Delta is Nigeria’s least developed region. The

license export oriented factories located anywhere within

World Bank puts the per capita income at below US$280

the country’s Customs territory as an Export Processing

despite its high population. Health indicators lag behind

Factory. Meanwhile, the Export Processing Zones (EPZ) by

national average. Infrastructure, including medical care, is

definition are clearly delineated and fenced industrial

also poor and the cost of food is also high despite its fer-

estates within the national customs territories, whose pur-

tile land. Said the World Bank in a recent report: “An

pose is to attract export-oriented industries.

urgent need exists to implement a mechanism to protect the life and health of the region’s inhabitants and its eco-

The Nigeria premier Export Processing Zone is located in

logical system from further deterioration.”

Calabar, Cross River state and it is serviced with a modern and well-equipped seaport and international airport as

Since inception, NDDC has undertaken more than 800

well as good road network linking Calabar to all the other

infrastructure projects and various human development

parts of the country. The Zone has the capacity for 100

programmes. This was done in an effort to bring develop-

companies. Already 22 are operating and another 11 fac-

ment nearer to the people and usher peace and stability

tories are being built. Other Zones are under construction

into the region that provides Nigeria’s much needed

in Kano (Federal) and Jigawa, Bornu, Ogun & Ondo and

foreign exchange.

Lagos (States) and a privately owned area in Lagos. Considering the strategic importance of the Free Zones

NDDC is determined to make a difference in the

and the potential employment provider they are, NEPZA

Niger Delta and in a short span of four years, it has

has set itself the goal to have such areas in at least 18 out

worked hard to win the confidence of the people,

of the 36 states of the federation by the year 2010.

government and the oil industry in the difficult task of developing the Niger Delta.

Facilities within the Zones provide everything a modern factory might need for an efficient manufacturing process (power and water supply, telecommunications, catering,

Nigeria Export Processing Zones Authority

customs and other services, etc). The main incentives in the Zones include: tax, levy and duty holidays; 100% repatriation of foreign capital; unrestricted remittance of

Mrs. Ify F. Umenyi

profits and dividends; no import or export licenses

Managing Director/ Chief Executive

required; rent free land during construction of factory

Plot 211, Shehu Sharari Way, Asokoro

space for six months; 100% foreign ownership of enter-


INVESTMENT & LEGAL FRAMEWORK prises in the Zones and sale of up to 100% of production

various sectors of the Nigerian economy, especially in agri-

permitted in the domestic market upon payment of the

culture, solid minerals and manufacturing. So far, the

standard duty applicable on raw materials used in the

fund has approved 570 projects from which 266 are

manufacturing process.

already being supported. Those projects combined have generated a total amount of 15,269 direct jobs and an extra 57,910 indirect ones.

The National Economic Reconstruction Fund

NERFUND is being funded by the combination of resources from both the public and private sectors as well

Mr Baba Maina Gimba

as from local, bilateral and multilateral sources. So far,

Acting Managing Director / Chief Executive

NERFUND has made a success of engineering the rapid

Plot 2105, Herbert Macaulay Way,Wuse Zone 6

enthronement of a manufacturing regime as an alterna-

P.M.B. 319 Garki Abuja

tive to the preceding era that is characterised by the mer-

Telephone: + 234 - (0) - 9 - 5236900 / 5239104

chandising of imported goods.

Fax: + 234 - (0) - 9 - 5236879 E-mail:

Nigeria Customs Service The National Economic Reconstruction Fund (NERFUND) was established via Decree No. 2 of 1989. The NERFUND

Mr. Jacob Gyang Buba

was mandated to act as a catalyst towards the stimulation


of the rapid rise of real production enterprises in the

Abidjan Street, Wuse Zone 3 Abuja


Tel: + 234 - (0) - 9 - 5234680 Fax: + 234 - (0) - 9 - 5234690

Specifically, it was meant to provide medium to long term


funding as well as correct any observed inadequacies in


the provision of medium to long-term financing to small and medium scale industrial enterprises with special

The Nigeria Customs Service (NCS) was established in

emphasis on the manufacturing, agro-allied sectors and

1891. The powers and functions of the service are spelt

ancillary services.

out in the Customs and Excise Management Act (CEMA) Cap 84 of the Laws of the Federation, 1990.

Projects are being financed under NERFUND through participating commercial, development and merchant banks;

The main function of the service is the collection of cus-

enabling the FUND to reach out to the 36 States of the

toms and excise duties on goods. It is in charge of all trade

federation including the Federal Capital Territory, Abuja.

facilitation and generation of trade statistics for planning

This arrangement of project funding thus falls in line with

purposes as well as the main co-ordinator of anti-smug-

the current privatisation and commercialisation policy

gling operations at the sea ports, airports and border sta-

thrust of the federal government and reduces waste

tions. To achieve this, the service works closely with other

through over bloated overhead costs in project monito-

institutions like the Central Bank of Nigeria, the Nigerian

ring. NERFUND’s work is an on-going effort to ensure the

Ports Authority, the military and the ECOWAS Secretariat.

development of the small and medium enterprises in

The NCS also ensures the security of international trade


INVESTMENT & LEGAL FRAMEWORK supply chain and combats international crime in conjunc-

Committee Decree of 1988, formerly doing the job of

tion with other members of the World Customs

NIPC. It was set up as part of the federal government’s

Organization (WCO).

effort to create an investment friendly environment for accelerated domestic investment and inflow of foreign

The Nigeria Customs Service is going through a deep res-

investments into the national economy outside the oil

tructuring process and currently has three departments


(the revenue department, the corporate services and economic relations department and finally the enforcement,

The Commission has the responsibility of ensuring the

investigations and inspections department) and its work-

realisation of the maximum benefits of the policies of libe-

force counts 17,000 people. In order to assist foreign

ralisation and deregulation of the national economy such

businessmen and investors, the service publishes the lists

as attracting direct foreign investment, assisting in reduc-

of banned items for importation and/or exportation,

tion of social problems, aid transfer of technology, hel-

which vary from year to year depending on government

ping create wealth and developing skills.

fiscal policies. It also publishes concessions to passengers who enter the country.

NIPC’s vision is to become the foremost investment agency and the largest single contributor to Nigerian

A major investment friendly innovation embarked upon by

economic transformation through proactively posi-

the Nigeria Customs Service is the UNCTAD developed

tioning and promoting

software called Automated System for Customs Data (ASYCUDA). Other investment incentives operated by the

Nigeria as the preferred investment destination. Over the

service along side other government agencies include;

next 4 years, NIPC has the intention of attracting between

Export Expansion Grant Scheme, Manufactures-in-bond

US$15 and US$18 billion in foreign direct investment. To

Scheme, Export Free Zones and Oil and Gas Free Zones.

be able to fulfil its mandate by providing up-to-date information on investment potentials of the country and guiding investors effectively through the investment process,

Nigerian Investment Promotion Commission

NIPC is investing in a state-of-the-art Internet site to provide the most accurate and reliable information to potential investors.

Engr. Mustafa Bello Executive Secretary / CEO

The Commission is continually stimulating economic

Plot 1181, Aguiyi Ironsi Street, Maitama

exploitation of the abundant natural resources in the

P.M.B 381, Garki Abuja

country. This is done by providing adequate and up-to-

Tel: + 234 - (0) - 9 - 4138025 / 6

date information and by granting generous incentives and

Fax: + 234 - (0) - 9 - 4134306 / 4134821

conceding special conditions to companies such as pio-


neer status, a regime in which companies are offered tax


concessions between 5 and 7 years.

The Nigerian Investment Promotion Commission (NIPC) was established under Act No. 16 of January 1995, after repelling the Industrial Development Coordination


INVESTMENT & LEGAL FRAMEWORK Raw Materials Research and Development Council

the federation through its network of liaison offices located in all the state capitals. The liaison offices do not only assist in the survey of resources in the state; they also

Alhaji Abubakar Abdullahi

provide raw materials information to industrialists and

Director General / Chief Executive Officer

investors in the states.

Plot 421, Aguiyi Ironsi Street, Maitama Abuja Tel: + 234 - (0) - 9 - 4136035 Fax: + 234 - (0) - 9 - 4136034

Shehu Musa Yar’Adua Centre

E-mail: Website:

Mrs. Hadiza Wali-Oniyangi Head of Administration

The Raw Materials and Research Development Council

One Memorial Drive Abuja

(RMRDC) is a parastatal under the Federal Ministry of

Tel: + 234 - (0) - 9 - 5240021 / 2

Science and Technology. It was established by Decree No.

Fax: + 234 - (0) - 9 - 5240023

39 of 1987 with the mandate to support and expedite


industrial development and self-reliance through optimal

Website: /

utilisation of local raw material inputs for the Nigerian industry.

The Shehu Musa Yar’Adua Centre is a magnificent building located at the heart of Abuja City with state-of-the-

The Council wants to facilitate the emergence of a strong

art facilities including; exhibition hall, research library,

industrial and technological base in Nigeria through the

conference facilities (auditorium, central atrium, meeting

creation of a strong domestic source for necessary raw

rooms, etc) to assist in the success of every occasion. The

materials. This is reflected in its mission statement, which

exhibition, titled “A Life of Service” is a multi-media pre-

is to promote the growth of process technology and

sentation of Yar’Adua’s life against the backdrop of

resource-based industries in Nigeria.

Nigerian history from colonialism to present day democracy.

A decision to invest in resource processing depends on the information of what resources are available. Through the

A major landmark at the centre known as The Unfinished

Raw Materials Information System (RMIS), the Council

Bridge symbolises Shehu Yar’Adua’s life, work and legacy.

provides valuable information to investors, industrialists

It stands as a reminder for the need to continue the

and researchers on available raw materials, their location

struggle for fairness and social harmony in the country.

and reserve estimates, their physio-chemical properties

The axis formed by the beginning and end of the bridge

and their uses. The decisions made on the strength of the

points directly to the National Assembly - symbol of

information provided by the RMRDC are leading to the


establishment of new resource-based industries, which provide new job opportunities and contributes to the

The Shehu Musa Yar ‘Adua Foundation was established

growth of the nation’s Gross Domestic Product.

by the friends, family and associates of Shehu Yar’Adua to continue the enduring legacy of one of Nigeria’s most

The Council provides industrial support service and pro-

worthy leaders. The centre aims at embracing and promo-

motes new resource-based investments in the states of

ting the ideals of General Yar’Adua, his commitment to


INVESTMENT & LEGAL FRAMEWORK national unity, good governance and to building a just,

of the international agreement on free movement.

democratic society for all Nigerians.

- The first practical translation of the vision of the New Partnership for African Development (NEPAD)

It is hoped that the centre will serve to inspire future generations to embrace the leadership qualities so

The vision for Tinapa is bold, exciting and insightful, high-

eloquently demonstrated by Yar’Adua’s life of ser-

lighting the determination of H.E. Governor Donald Duke

vice to the nation.

and the Cross River State Government, under a Public Private Partnership. This is to deliver a project that will ensure high economic growth and prosperity for the


people of Cross River State, and Nigeria at large. The vision builds on the principle that the creation of a trade

Mr Sam Anani

hub will attract investors, traders and business travellers

Commissioner for Trade and Investment

and subsequently domestic, regional and international lei-

New Secretaria Complex, Murtala Mohammed Highway

sure tourists. The mix of components brought together in

P.M.B. 1069, Calabar Cross River State

the phased development of the project creates an ideal

Tel: + 234 - (0) - 87 - 232300 / 232069

environment for trade and business tourism to flourish

Fax: + 234 - (0) - 87 - 234274

and lays the foundation on which to build a successful lei-


sure tourism industry.


Moreover, Tinapa will incorporate a Special Purpose Vehicle (SPV) for investment purposes which will be

Tinapa is set to become a world-class business resort.

granted Free Zone status, providing investors with a

Located on the Calabar River, and contiguous to the

robust platform to capture the latent demand in the

Calabar Free Trade Zone (Calabar FTZ), Tinapa is the rea-

Nigerian and West African states. This unsatisfied demand

lisation of an exciting dream - the first integrated business

will partially be met upon completion of Phase I of Tinapa,

and leisure resort in West Africa.

in November 2006.

Calabar, with its natural potential for tourism, through the unique vision of Tinapa, will transform itself into a global trading hub reminiscent of great international free zones like Hong Kong and Dubai. The complex will provide international standard wholesale emporiums, integrated shopping complexes and product distribution elements supported by business tourism and entertainment facilities. The location of these, in close proximity to a free port on the east-west trading routes, provides exciting opportunities for Tinapa to serve as: - The distribution point to Nigeria and the growing economic hub of West Africa - The ultimate centre for retail and wholesale commercial activities with the ECOWAS sub-region taking advantage


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“It is a pot of water that is already half full that the world would like to help in filling to the brim” Nigerian proverb



only about 2 percent over the span of 20 years. In 1991 to 1994, the political situation deteriorated, economic policy drifted, and Organization of the Petroleum

Traditionally, Nigeria has been an agricultural country,

Exporting Countries (OPEC) imposed restraints on oil pro-

providing for the majority of its own food needs and

duction. As a result, growth slowed steadily. Between

exporting a variety of agricultural goods, notably palm oil,

1995 and 1997, oil production recovered, but oil prices

cocoa beans, and rubber. However, greater economic

fell substantially in 1998 because of the tightening of

opportunities caused a migration to urban areas thereby

OPEC quotas and the political unrest in the oil producing

reducing activity in the country’s agricultural sector. In

Delta region. Consequently, the rate of real GDP growth

addition, abundant oil reserves offered economic oppor-

declined to 1.5% in 1998, from 4.3% in 1996. A modest

tunity as oil prices rose in the early 1970s. By the early

recovery in growth rate was achieved due to a sharp

1990s oil created as much as 98% of export earnings and

increase in oil prices in 1999 and 2000.

was responsible for about four-fifths of government revenues.

In 2001, Nigeria, the West Africa Region’s powerhouse accounted, for 48.7% of the region’s output, making it

After many years of military dictatorship, Nigeria returned

one of the largest economies in Africa(1). Its GDP incre-

to multi-party democracy with the People’s Democratic

ased from US$42.5 billion in 2001 to US$43.4 billion in

Party (PDP) emerging as the ruling party in April 1999.

2002 (2). The real GDP growth was 2.8% in 2000, 3.5%

Since then, the country has embraced democracy which

in 2001 and 3.9% in 20022. However, over the medium

has had a very of positive impact on the country’s eco-

term, GDP average annual growth and GDP per capita are

nomy and its international relations.

projected to grow by 3.5% and 0.5%, respectively (3).

Situated in the tropics, Nigeria offers a good climate for

Gross Domestic Product

tourism all year round. It also has rich cultural goods, including sculpting (including the Nok culture), painting, poetry, drama and music. With its abundant natural resources such as crude oil, coal, limestone, etc, Nigeria offers tremendous opportunities in oil exploration, mining and agriculture.

Economic Growth Nigeria’s Gross Domestic Product (GDP) influenced by rising oil production and prices, increased by more than 30 percent during the 1970s. However, depressed oil prices caused GDP to fall in the 1980s and only in 1988 did it rise again. Although the country’s economy had grown since the oil-price expansion began in 1973, population has also kept pace. Real GDP per capita increased



of depreciation of the naira.





As of December 2000, the inflation rate figure was 6.9%,




and as in December 2001 it had hit 18.9% (5). But, due




to the moderation in the growth of broad money supply,




and with the reduction in the pressure on the demand for




foreign exchange, the inflation rate went back to 12.9% in December 2002. Based on the data obtained from the

Nigeria is traditionally an agricultural economy, and agri-

Federal Office of Statistics, the inflation rate was 13.8% in

culture (including livestock, forestry and fishing) remains

December 2003. Forecasts estimate inflation rate at an

the largest employer of labour, constituting about 37% of

average of 10.6% in 2004, 10.3% in 2005 and 12.9% in


2006 (6) However, the lengthy periods of high inflation

The services sector is the fastest growing sector and

has caused an abrupt decline in real earnings and stan-

accounts for 34% of GDP. The industrial sector has expe-

dard of living.

rienced consistent decline in growth rate, contributing

Source: Federal Office of Statistics, Nigeria

only 29% of GDP. Also, the manufacturing sector has declined in growth rate significantly, contributing 0% of


GDP(4). With a population of over 126 million, Nigeria’s unem-


ployment is still high. About 44% of Nigerians live in absolute poverty, defined as a daily income of $1 per day or less (7).

Nigeria has experienced economic problems over recent years, as well as high level of inflation rates. The rise in

The national minimum wage was set at N125 per month

inflation rates was largely attributed to the increase in the

(US$202) in 1981 and doubled to N250 per month

prices of commodities as well as personal care.

(US$25) in 1991.

In the 1980s, the average inflation rate was 23%. It then rose to more than 50% between 1992 and 1995.

In May 2000, the Federal Government again raised the minimum wage to N7,500 (US$73) and N5,500 (US$53)

Factors that contributed to the increase in rates were per-

as the new minimum wage for federal and state civil ser-

sistent shortages of consumer goods resulting from

vants respectively. However, the wage increment was

foreign exchange scarcity; high levels of monetary expan-

inadequate to meet the prevailing high cost of living. The

sion to fund the federal government’s deficits; periodic

increases in fuel prices imposed by the regime have also

sharp increases in the cost of electricity and oil; and bouts

driven up the cost of living. Even though there was an

Year on Year Inflation Rate Month/Year













December (in%)














THE NIGERIAN ECONOMY increase in minimum wage, Nigeria still offers a relatively

Growth of exports and imports (%)

cheap labour force.


Source: World Bank Group

Current Account Balance to GDP (%)

Source: World Bank Group

In the early 1990s, Nigeria’s annual imports cost about $8.3 billion, and its exports earned about $11.9 billion. Today, with its main export products being oil and related products, cocoa beans and rubber. Oil and related products contribute significantly to the country’s exports.

Source: World Bank Group

Nigeria’s balance of trade is very much influenced by any sharp variations in the world’s oil prices. According to

The main goods imported include machinery, chemicals,

World Bank Group data, total exports rose from about

transport equipment, manufactured goods and food.

US$13 billion in 1999 to US$21 billion in 2000. It fell to

Imports rose from US$11.5 billion in 1999, to an esti-

US$17.9 billion in 2001 due to lower oil prices and crude

mated US$13 billion in 2000, generating a trade surplus

shipments. In an effort to boost export, the Nigerian

of US$1.5 billion in 1999 and US$7 billion in 2000. In

Export Promotion Council (NEPC) has initiated some

2001, imports were at about US$13.6 billion, an increase

export incentive programs which include a duty drawback

of approximately 5% from 2000, creating a trade surplus

program, an export development fund, tax relief and

of US$4.3 billion. However, in 2002, there was a decline

capital assets depreciation allowances, and a foreign

in trade surplus as a result of a 17% decrease in exports

currency retention program. The effectiveness of this pro-

from 2001 and a 14% increase in imports from 2001.

gramme has yet to be quantified. However, the value of exports increased substantially to US$22.1 billion in 2003


from US$14.9 billion in 2002, of which the oil sector contributed 96.7%(8) of the total export.

Nigeria’s foreign trade has been dominated by oil since the world oil price increased in the early 1970s. Since then


THE NIGERIAN ECONOMY oil sector has continued to grow. For instance, the non-oil

Top 10 Market Shares

export accounted for only 1.3% of the total export in 2001. In 2001, Nigeria’s major trading partner was the United States of America (USA), which absorbs approximately 42.1% of Nigeria’s export product (mainly oil). Spain was the second-largest export market, followed by India and France. Other major trading partners were Brazil, Japan,

Source: IMF, Direction of Trade Statistics 2002

China, Britain and a few other countries in the European oil has generally accounted for 90%-95% of total exports

Union. Most of the exports to all these countries included

of goods while cocoa and other agricultural products

oil, agricultural produce and other minerals. Apart from

accounted for the other 5%-10%. Despite government

oil as an export item, both raw materials and finished pro-

plans to diversify the export base, the dominance of the

ducts are also exported to other African countries and Eastern European countries.

Federal Goverment of Nigeria’s investments in selected Public Enterprises Sector


FGN Invest

Formal regional trade within the Economic Community of West African States (ECOWAS) is small, as Nigeria tends to export the same agricultural commodities as the other members, though Nigeria does export fuel to many of

Infrastructure /Utilities


US $28bn

Upstream Petroleum



Downstream Petroleum


US $17bn

Steel/Aluminium /Mining


US $14bn




US $650bn

other sectors along. To do this, it has recently drawn up



US $850bn

a new national trade policy with the aim of keeping up



US $1.4bn



US $1.8bn

Vehicle Assembly


US $1.7bn







Oil Marketing






Transportation/ Aviation


US $1.9bn

Commercial/Merchant Banks








About US $70 bn

these countries. To foster trade as well as growth in trade, the Federal believes it should continuously push the

with global trends in international commerce while providing detailed guidelines for importers and exporters.

PRIVATIZATION PROCESS In order to stabilise the economy and position it for sustainable growth, in 1988 the Federal Government of Nigeria (FGN) adopted a privatisation scheme as a key element of the structural adjustment programme. During that time, government’s shareholding in banks, cement companies, oil marketing companies and hotels were


THE NIGERIAN ECONOMY divested mainly through offers for sale on the Nigerian

Federal Government, its government offices and other

Stock Exchange. Of the 95 state-owned enterprises

agencies in Public Enterprises active or dominant in at

(SOEs), 75 were privatised and the remaining 20 were not,

least 13 key sectors. The cumulative value of investment

due to their poor financial position. However, the privati-

to be transferred from the public sector is in excess of

sation programme came to a halt in 1993.

US$100 billion. A mere sample of some sectors and esti-

In 1998, the military government then launched a new

mated values of government’s investment is summarised

privatisation programme with the aim of privatising the

in the table below:



The cumulative value of FGN investment by way of equity,

Telecommunications (NITEL), National Electric Power

loans and other transfers to these 62 enterprises is esti-

Authority (NEPA) and Nigerian National Petroleum

mated at nearly US$70 billion.






Corporation (NNPC) but sales did not commence until 1999.

N/A - Not available

The Bureau of Public Enterprises (BPE) and the National

Source: Federal Ministry of Finance, Other

Council on Privatisation (NCP) were established to oversee

Government Records

the divestiture of these State Owned Enterprises (SOEs). Most of these SOEs were inefficient, heavily dependent on

The procedure for divestiture is as follows:

the national treasury, overstaffed, but did have the potential to be profitable. To achieve the divestiture, the privatisation programme

Advertisement for Expressions of Interest (EOI)

has been launched in three stages under the guidance of the Bureau of Public Enterprises (BPE). The three stages

Prospective Core/Strategic Investors express their interest


in response to an advertisement, which is usually placed in

* PHASE 1: the sale of commercial and merchant banks;

UN Development Business, and local and international

and the sale of cement plants already quoted on the stock

media and a period of not less than thirty days is given for


responses. For the very small transactions, where interna-

* PHASE 2: the sale of hotels, and motor and vehicle

tional investor interest is unlikely, the focus of advertise-

assembly plants;

ments will be on local media.

* PHASE 3: the sale of NAFCON (the state fertiliser company), NITEL, NEPA, Nigerian Airways, and four oil refine-

Bidding Documents

ries. The bidding documents lay down the ground rules for the


transaction. The documents include a detailed outline of the bidding procedures. The Information Memorandum

* Sell 40% of equity to “strategic investors” who will gain

provides background information on the enterprises the

management control.

proposed contracts and other relevant bidding docu-

* 20% to Nigerian investors through public share offe-


rings * 40% government control

Due Diligence Exercise

The scope of the privatisation programme includes the partial or total divestment of the shares owned by the


This is the Data Room process where prospective core

THE NIGERIAN ECONOMY investors have access to relevant information and docu-

NCP has approved that, where feasible, price will be the

ments of the enterprise being privatised. The Data Room

single determining variable for selection of the bidder to

will be open for a minimum period of four (4) weeks

purchase government equity in any particular public

during which the prospective core investors are expected

enterprise. Accordingly, once the technical bids have been

to carry out a comprehensive due diligence of the com-

evaluated, all those bidders that have been assessed to be

pany including meetings with management of the enter-

technically qualified proceed to the financial bidding

prise/BPE/Privatisation Advisers and visiting field sites

round when financial proposals are opened.

(where applicable).

Signing of Final Documents In addition, BPE responds to requests for information and addresses concerns and questions that the bidders may

Discussions with the Preferred Bid on the outstanding

have about the proposed transaction.

terms of the contracts commence immediately after the

Submission of Bids

announcement of the Preferred Bidder. As the proposed contracts were sent to all bidders as part of the bidding

Once bidders have had an opportunity to fully scrutinise

documents, there is usually little to negotiate and major

the enterprise, they are invited to submit technical and

changes to the contract are not entertained by NCP.

financial bids (in separate sealed envelopes), as well as a

Generally, details of all the final transaction documents

bid bond in an amount to be set by the NCP. The level of

must be agreed upon within 10 working days of the date

which is determined usually on the basis of the size of the

of the financial bid opening. In the event that such discus-

transaction. The bonds will be callable in the event that a

sions break down, NCP is free to commence discussions

prospective bidder defaults in its obligations to NCP. The

with the Reserve Bidder.

bonds have 180-day tenor.

Financial Close All late bids are rejected and returned unopened. Typically, upon signing of final documents, the Preferred

Evaluation of Technical Bids

Bidder will be required to pay the purchase consideration within a short period. In certain cases, usually where the

Two evaluation teams are made; one comprised of

transaction is large, the Preferred Bidder will be required

member of the NCP/BPE and the other from the transac-

to pay a deposit, usually of around 10% of the purchase

tions advisers. The teams separately consider the technical

consideration, immediately and then the balance within a

bids following criteria that have been predetermined and

predefined period of time.

communicated to the bidders in the bidding documents. The prospective core investors whose technical proposals

Transfer of Management Control

meet the minimum scores are qualified to proceed to the next stage, while those below minimum scores will be

During the interim period (from the time the Share Sale

declared unqualified and their financial proposals

Agreement is signed and full purchase consideration is

returned unopened.

paid, and upon which management control is ceded to the Preferred Bidder) an Interim Management Board will

Financial Bidding Round

be put in place to run the enterprise. This is done in order to preserve the value of the Enterprise. Upon the payment


THE NIGERIAN ECONOMY of the purchase of consideration, control will be transfe-

Harcourt, Onitsha, Kano, Yola and Kaduna. As of August

rred to the Core/Strategic investor, and a new board of

2002, the number of companies quoted on the NSE was

directors will be constituted by the shareholders.

194. Currently, the types of securities traded are corporate shares - majority common shares, corporate bonds

However, the privatisation process has slowed down

and government bonds (federal and states); sectors repre-

somewhat as the government confronts key SOEs (NITEL

sented are banking, food/beverage and tobacco, insu-

and Nigerian Airways), the supervising ministries, the state

rance, breweries, petroleum, etc. As of July 2002, the

governments as well as preferred bidders. For instance, in

total market capitalisation of NSE stood at US$6.1 billion

March 2001, the sale of NITEL did not materialise because

of which equity capitalisation accounted for US$5.9

the preferred bidder failed to pay the balance to acquire a

billion or 98%(9).

51% stake. Other major concern about the privatisation process is the overvaluation of these SOEs, which are

Following the deregulation of the capital market in 1993,

often in poor financial shape and have dilapidated assets.

the federal government in 1995 internationalised the

In any case, the government is fully committed to the pri-

capital market. Foreigners can now participate in the

vatisation programme.

Nigerian capital market both as operators and investors. In fact, most of the listed companies now have foreign/multinational affiliations and they represent a cross-section in


the economy. The market has recorded marked improvement in recent

The Nigerian Stock Exchange (NSE) was established in

years in terms of trading value. The trading value rose

1960. It has eight branches - in Abuja, Lagos, Ibadan, Port

from US$119.4 million in 1997 to US$237.2 million in 2000 and to US$426.8 million in 2001. As of July 2002,

NSE Data






Market turnover (US$M)






NSE Index






Market Capitalisation






Average Monthly Volume Traded (shares)






Average P/E (x)






Average Divided Yield (%)






Exchange Rate (N/US$)






the trading value stood at US$ 244.5million. Trading rose more than 200% between 1997 and 2001. Also, the new issues market has grown remarkably over the years. The new issues that stood at US$119.4 million in 1997 grew to US$144.9 million in 2000 and further to US$272 million by the end of 2001. In comparing the Nigerian Stock Market with other international stock markets, the size of the market is relatively small. For instance, the market capitalisation in Taiwan was US$247.6 billion (10) against Nigeria’s US$3.9 billion in 2000. However, when compared with capital markets in Africa, Nigeria stock market is second in the region and doing very well.


The market trades Monday - Friday 11.00am - 2.00pm


THE NIGERIAN ECONOMY under a central security clearing system and a T+3 settle-

his choice

ment period. There is a withholding tax on dividends of

* And if at any point in time the investor wants to pull

10% and capital gains tax of 10%.

out, he must go back to the bank with his Certificate of Capital importation and transfer all proceeds abroad

Stock Market Legislation:

including profit and net of all taxes.

Transactions in the stock market are guided by the follo-


wing legislation, among others:

1 Ghanaian News Agency 2

- Investments & Securities Decree No. 45,1999.

3 World Bank Group

- Companies and Allied Matters Decree 1990.

4 World Bank Group

- Nigerian Investment Promotion Commission Decree,

5 Federal Office of Statistics, Nigeria


6 Economist Intelligence Unit (EIU) Viewswire,

- Foreign Exchange (Miscellaneous Provisions) Decree,

Country Profile - Nigeria 2003


7 World Bank Group 8 Central Bank of Nigeria, Annual Report and state-


ments of Accounts 9 BusinessDay, Newspaper 2004

Transactions on The Exchange are regulated by The

10 BusinessDay, Newspaper 2004

Nigerian Stock Exchange, as a self-regulatory organisation


(SRO), and the Securities & Exchange Commission (SEC), which administers the Investments & Securities Decree 1999. The following procedures are to be adopted by the foreign investors who intend to bring in investible funds under the new legislation10: * The prospective investor appoints a local stock broker of his own choice * The broker and the investor agree on a bank in Nigeria for the investor * The potential investor then informs the bank on how much he is investing * Thereafter, the money is routed by electronic transfer to the designated Nigerian bank. Cash movement for dealing in securities is not allowed * On receipt of the funds, the bank issues the investor with a Certificate of Capital Importation (CCI) * With this Certificate, the investor through his stockbroker, enters the market and invests in any company of


Available: Nigeria, Libya, Egypt, Mozambique, Ghana, Ethiopia, Algeria (French), Tanzania and Kenya

Make Secure Payments with PayPal





“The lazy man will remember that he has not planted when his neighbours start harvesting”. Nigerian proverb





MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT On behalf of the government and people of Nigeria, I sincerely welcome you to our country as you seek to invest in our vast agricultural potentials. Nigeria is endowed with abundant agricultural resources most of which has yet to be exploited. It is the largest sector of the Nigerian economy contributing about 40 percent of Gross Domestic Product (GDP), employing nearly 70 percent of the active labour, both directly and indirectly, producing food and raw materials for industries and contributing substantially to the foreign exchange earnings of the country. The role of government in agriculture is now essentially supportive, regulatory and stimulatory to create a conducive and profitable environment for private sector participation and to attract foreign investors. The federal government has, through its present agro-industrial policy, designed a regime of incentives to expand the domestic productive capacity and increase the flow of foreign investment into agro-businesses in Nigeria. The government of Nigeria is fully prepared to welcome genuine foreign investors. There is the Agricultural Investment Bureau under the Department of Planning, Research and Statistics within my Ministry, which is responsible for agrobusiness trade and investment promotion. The Bureau serves as a meeting point between foreign investors and local entrepreneurs wishing to go into joint ventures. It also keeps a register of potential local investors that need foreign partners in various areas of agricultural production.

H.E. Mallam Adamu Bello Minister of Agriculture and Rural Development







Agriculture remains the largest contributor to the Nigerian


economy, accounting for 40% (11) of GDP and providing



about 70% of employment, both formal and informal, for



a large majority of the population. The climate favours



year-round crop production, and about three-quarters of



the country is suitable for agriculture. There are four vege-



tation belts: the coastal mangrove swamps, the rain

Source: Phillips Consulting, Nigeria 2003

% Contribution

forest, the woodland savannah and the northern savanIn the 1960s, Nigeria exported large volumes of cocoa


beans, groundnuts and groundnut oil, rubber, palm oil, palm kernels, cotton and timber. But with the discovery of Food





Livestock Fisheries

oil, the government shifted its focus from the agricultural sector to the oil sector, causing a decline in agricultural production output.





Cat fish

However, in the 1980s, the government realised the

Cashew nuts

Cashew nuts




importance of the agricultural sector, and thus imple-



Black afara



mented several objectives and changes with the aim of increasing the production output for both export and food crops. Cocoa




Moon fish







Gum arabic







Guinea Fowls

Shiny nose


Palm kernels




Some of the changes were: * Lifting the ban on the export of some agricultural commodities * Getting rid of price-fixing marketing boards * Refocusing on small farmers * Banks were encouraged to lend more actively for agriculture Also, there were some developments intervention experiPalm oil





ments such Operation Feed the Nation, Green Revolution Programme and The World Bank-funded Agricultural



Development Projects that increased food production.



Thread fin





15% of total import in the early years of the Structural




Adjustment Programme (SAP) but fell again to 11.6% of



Imports of rice, maize, wheat, and sugar rose to nearly

total imports in 2001.




Potentials of Nigeria’s Agriculture Geo-physical indicators of potentials:


Output (*000) Toones



* Large diversity of livestock and wildlife



* Large rivers and lakes (120 000 sq. km)



* Coastal and marine resources - 960 km shoreline



* Variable suitable climate



* Estimated arable land - 68 million hectares * Natural forests and range lands - 37 million hectares


Source: Phillips Consulting, Nigeria 2003

In the past, Nigeria derived the bulk of her foreign

leading sector in the economy in terms of contribution to

exchange earnings from agricultural exports with cocoa

the GDP, supply of raw materials, employment genera-

and coffee coming from the west, rubber from the mid-

tion, source of export and food security. The National

west, groundnut and cotton from the north, and palm

Economic Empowerment and Development Strategy

products from the east. Today, cocoa is the only crop

(NEEDS) has been introduced by the federal government

which still contributes significantly to foreign exchange earnings with output ranging from 130,000 tonnes to





175,000 (12) tonnes while rubber, palm produce and


Production (3

Number of

Area Under

cotton contribute insignificantly, and groundnuts have


year average to



19989) (T)















The Ivory Coast




totally fallen off the export list.


The production of livestock, fishing and timber was limited due to the outbreak of diseases hampering livestock farming in the past. Improved vaccines from the National Veterinary Research Institute helped to boost growth in livestock output by 2.7% in 2001, compared with 0.5% (13)in 1998. Cattle rearing is of great importance in Nigeria’s livestock. However, it has been limited by the amount of water available and the existence of tsetse fly infested forests. The commercial production of





livestock such as cattle, poultry and pigs is very feasible.













This could provide good returns on investment if the right technological base is implemented. Government Reform of the Agricultural Sector: With the commitment to increased investment in food and agricultural production, the government has the target of restoring agriculture to its former status as the


Source: Ebiz - Ghana 2004




to restructure and reform certain sectors of the economy

the private sector to assume its appropriate role in the

with the agricultural sector inclusive. This reform will help

agricultural sector.

the agricultural sector achieve the following:

(b) Rationalising the roles of the three tiers of government in their supportive activities to stimulate growth.

* Minimum annual growth rate of 6%;

(c) To restructure the institutional framework for govern-

* Export value of US$3 billion by 2007, with cassava as

ment intervention in the sector to facilitate smooth and

major component;

integrated development of agricultural potentials.

* Drastically reduced food imports from 14.5% of total imports to 5% by 2007;

Listed below are some of the efforts made by the govern-

* Increase in cultivable arable land by 10% annually and

ment to transform the agriculture and rural development

foster private sector participation through incentive

sector towards the attainment of massive food production


and ensuring food security in the country:

The federal government has designed the following strategies to reform the agricultural sector:

* The Federal Government gave over US$27 million as

* Implementation of the Presidential initiative on cassava,

take off grants for the procurement of 120,000 tonnes of

rice, vegetable oil, sugar, livestock, tree crops, and



* The procurement of over US$18 million of 99,148.75

* Promoting joint-venture private sector, managed multi-

tonnes of assorted fertilisers and the distribution to the

commodity development and marketing companies to

States and the Federal Capital Territory at 25% subsidy;

guarantee remunerative prices for farmers, stabilise con-

* The production of 4.25 tonnes of Rice foundation seeds

sumer prices and provide alternative markets for farm pro-

and the processing of 92.5 tonnes of improved seeds dis-

duce through buyer-of-last resort mechanism.

tributed to many farmers;

* Encouraging development of model rural communities

* Nigeria benefits from ECOWAS (Economic Communities

and farm settlements by states.

of West African States) fund for the development of fish

* Capitalisation of the Nigerian Agricultural Co-operative

production at US$121,000;

and Rural Development Bank to provide soft agricultural

* US$400,000 Nigerian Agricultural and Cooperative

credit and rural finance.

Bank (NACB) on lending facility to genuine farmers.

Agriculture: Government Incentives

The Federal Government has also gone into partnership with various international development organisations

In September 2001, the federal government of Nigeria

such as the World Bank, United Nations Development

approved a new Agricultural Policy Thrust for the nation.

Programme (UNDP), Food and Agricultural Organization

This was aimed at laying a solid foundation for sustained

(FAO), United State Agency for International Development

increase in agricultural productivity and enhancing output

(USAID), Japanese Government, etc. Some of the pro-

necessary for growth.

grammes and activities instituted through these partnerships include:

The thrusts include: * IFAD-Assisted Root and Tuber Expansion Programme (a) Creating a conducive macro-environment to stimulate

(RTEP) to which a loan of US$23 million has been signed.

greater private sector investment in agriculture to enable

The project will promote the production, processing, utili-




sation and marketing of cassava, yam, potatoes and


cocoyam in twenty-five States of the Federation. * Support of the Agricultural Development Projects (ADPs) by the World Bank.

Bio-Organics Nutrient Systems Ltd (BNSL)

* Special Programme on Food Security being supported by the FAO. The FAO is also responsible for providing tech-

Dr. U. K. Acholonu, Ph.D.

nical assistance in the area of agricultural policy.

Managing Director

* Resumption of the Japanese Government sponsored

Plot 893, Isheri Road (by Ojodu bus stop), Ojodu,

programme towards increased food production. The agre

P.M.B. 21292,Ikeja, Lagos

ement has been signed by the Governments of Nigeria

Tel: + 234 - (0) - 1 - 4700189 / 7748310

and Japan. The Grant-In-Aid Scheme, amounting to 400 million Japanese Yen for increased rice production, has

The Company BNSL is an avant garde entrepreneurial

also been signed.

company promoting agriculture, food and pharmaceuti-

Since many of the Nigerian farmers are poor, the federal

cals production through vitamin and mineral fortification

government came up with some schemes such as the

of livestock feeds, food and beverages.

Agricultural Credit Guarantee Scheme (ACGS) and the reformed Nigerian Agricultural, Co-operative and Rural

Founded in 1992 with only 5 staff, Bio-Organics Nutrient

Development (NACRDB) to provide guarantees to

Systems Ltd has today grown to a company now emplo-

Nigerian commercial banks in respect to Agricultural len-

ying 42 staff. Bio-Organics is an indigenous company ope-

ding. The amounts of loans doubled from years 2000 to

rating in the Nigerian environment. The company has

2001 due to increased awareness of the scheme as well as

grown in turnover and staff strength in the past five years

the higher guarantee limits.

due to both macro-economic and political stability.

Although Nigerian Agriculture is grossly underdeveloped

Major food and beverage companies such as Cadbury, NB

with traditional methods, it is hoped that the arrival of far-

Plc, Nestle, WAMCO, Cocoa Industries, DIL Maltex,

mers from Zimbabwe and South Africa will promote the

Dangote Group, Crown Flour mills and vegetable oil com-

creation of bigger production fields. Other FDI is also

panies etc, are on BNSL’s buying list. Also, in the Livestock

coming to Nigeria in the form of know-how from Asian

sector, Animashaun Farms, Obasanjo Farms, Hope,


Zartech, Chi Ltd, UAC Agro, Feed Masters and many others are regular clients for the Bio-Mix(R) range of pre-



11 Economist Intelligence Unit (EIU) Viewswire, Country Profile - Nigeria 2003

Furthermore, by 1994 and later 2002, Bio-Organics

12 Economic Intelligence Unit (EIU) Viewswire,

Nutrient Systems Ltd was chosen as an alliance partner by

Country Profile - Nigeria 2003

two world-renowned companies focused on micronu-

13 Economic Intelligence Unit, Viewswire, Country

trient blending and nutraceuticals, namely Fortitech Inc,

Profile Nigeria 2003

Schenectady, New York and BASF, Ludwigshafen, Germany.






“Truth is like oil, no matter how much water you pour on it, it will always float” Nigerian proverb





MESSAGE BY HIS EXCELLENCY THE PRESIDENTIAL ADVISER ON PETOLEUM AND ENERGY MATTERS “INVESTMENT OPPORTUNITIES IN THE OIL AND GAS INDUSTRY IN NIGERIA” Oil, for several decades, has been accounting for about 90 per cent of Nigeria’s foreign exchange revenue. It is projected that this commodity, and to a significant extent gas, shall continue to account for huge chunk of the nation’s hard currency earnings in the years ahead. Meanwhile, it is the judicious application of the petroleum revenues, backed by a properly implemented privatization scheme and the creation of an enabling business environment, that shall in turn determine the pace and extent of Nigeria’s economic progress as the years go by.

The Increasing strategic importance of this sector in the development of our national economy encouraged Government’s involvement in the industry. The petroleum industry has remained the engine of growth of the Nigerian economy - providing fuels for other sectors - transportation, industry, and agriculture.

Therefore, in order to re-invigorate the industry and address any shortcomings, the Administration

has embarked on re-engineering and restructuring to make the sector more responsive, more transparent, with enhanced linkages with other sectors of the economy and providing more opportunities for capacity building. In the oil and gas sector, Government is planning to privatize the downstream assets of the Nigerian National Petroleum Corporation, including the four existing refineries.

Government shall continue to put in place appropriate regulatory framework and fiscal incentives in an enabled environment to facilitate investment in the industry. In addition, Government fully supports environmentally friendly exploration and production activities. The Joint Venture Partners should therefore continue to join hands with Government to embark on community-based projects aimed at enhancing social and economic activities. It is the expectation of Government that the current efforts in the area of deregulation and liberalization of this strategic sector of the nation’s economy will be accorded the desired support to increase the revenue base as well as effectively launch Nigeria on the path of long-term sustainable socio-economic growth and development.

H.E. Dr. Edmund Daukoru Presidential Adviser on Petroleum and Energy Matters





MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF SOLID MINERALS DEVELOPMENT Solid Minerals and Agriculture were the key Sectors of the Nigerian economy during the colonial period when the country produced Tin, Columbite, and Coal in large quantities. The Geological Survey of Nigeria was well funded and organised. With the emergence of the petroleum industry 30 years ago, the non-oil sector was neglected. As a result, local entrepreneurs and artisans dominated mining activities working on small gemstones, industrial and construction material deposits. Mining institutions also deteriorated leading to poor quality delivery services. The new democratic government of President Olusegun Obasanjo is poised to correct the poor performance of the industry, having recognised the strategic role of the sector in poverty reduction and sustainable development of the country. To this end, the Presidential Committee on Solid Minerals Development was constituted to draw up a Strategic plan for the development of Solid Minerals. The Seven Year (2003-2009) Strategic Action Plan has the following pillars: - Building competencies in Geologic and Mining infrastructure to provide reliable geoscientic data on mineral opportunities in Nigeria. - Review of Legal and Regulatory Framework to ensure transparency, simplification of registration procedure and guarantee of tenure on mining rights. - Provision of attractive fiscal incentives and infrastructural assistance to attract investors. - As a strategy for poverty reduction and rural economic diversification, the development of Artisanal and Small Scale Mining. - Development of human capital in the management of mineral resources. - Creation of linkages and partnerships between government and other stake holders including the Private Sector, Professional Bodies, International Organisations, NGOs, Producers and Consumers etc. - Establishment of Environmental and Community Relations with guidelines for best practices. - Provision of conducive environment needed to stimulate private sector participation in the industry. In implementing the strategic plan, the government has commenced activities in the following programmes: - Review of the 1999 Solid Minerals Development Policy with the Imperatives of providing leadership role of the private sector in the industry. - The Artisanal and Small Scale Mining Programme has been established and government has commenced the formation of mining co-operatives among the informal miners and Buying Centres to take the products of small miners at competitive prices. - Provision of Solid Minerals raw materials for local industries. Road maps have been designed for massive production of Baryte, Bentonite, Kaolin, Feldspar and Gypsum to meet national demand. - Commencement of Geological and Mining Institutional Reforms with the establishment of the Geological Survey of Nigeria Agency and National Bitumen Development Agency to strengthen their capacities to perform their sanctuary functions. - Airborne Geophysical Survey of the Country. Contract has already been awarded to two Companies namely Fugro Airborne Survey Ltd and GPX PTY to fly about 40% of the Country to collect geological information. Work on this project will commence soon. The Surveys for Ogun State has been completed and these are aimed at providing high quality magnetic and radiometric coverage to aid geological information gathering. - Exploration data for five gold fields have been collated and published for investment by the private sector. - Government has allocated two of the Bitumen blocks to Messrs Nisand and Beacon for the exploitation of Bitumen resources in the South West Nigeria. In conclusion, Nigeria is creating the necessary conducive environment for rapid private sector involvement. The following mineral commodities are available for investment - Gold, Tantalite, Lead and Zinc, and several industrial minerals. Investors are welcome to the new frontiers of the Nigerian economy.

H.E. Elder Odion M. Ugbesiaz Minister of Solid Minerals Development






Refining and Petrochemicals Company,

(old) Port

Harcourt Refining Company and Eleme Petrochemicals Nigeria has been an oil producer since 1958 and is the lar-

Company Ltd (New Port Harcourt).

gest oil producer in Africa with 2.5% of the world’s reserves. Its proven oil reserves are estimated to be 24

All the refineries produce the normal range of petroleum

billion to 31.5 billion barrels1; natural gas reserves are

products such as liquefied petroleum gas, premium motor

well over 165 trillion standard cubic feet. The majority of

spirit or petrol, kerosene, fuel oil and automotive gas oil

these oil and gas reserves are found along the Delta of the

or diesel. However, they have in recent years faced pro-

River Niger, but newer oil reserves have been discovered

blems or another such as persistent malfunctioning and

in deeper waters offshore Nigeria.

breakdown of major components, technical difficulties, inadequate capacity of ports, pipelines and depots and

Nigeria is the 9th largest oil producer in the world and the

prolonged turn around maintenance resulting in periodic

principal oil producer in Sub-Saharan Africa. It is the 5th


most important exporter of petroleum to the United States. Nigeria’s economy today is heavily dependent on

As a result of these problems, low domestic production

the oil sector, which accounts for around 80% of govern-

continues to make Nigeria increasingly dependent on

ment revenues, 90-95% of export revenues, and over

imports of petroleum products. For example, in 2002, low

90% of foreign exchange earnings. Foreign oil companies

domestic production accounted for half of domestic con-

have dominated oil exploration, drilling, and shipping in

sumption in the first half of 2002.

Nigeria. For example, Shell Oil controls approximately 60 percent of the domestic oil market in Nigeria. Shell ope-

Nigeria’s net oil export revenues are expected to increase

rates many of its oil facilities in the oil-rich Delta region of

29% in 2004, to $27.0 billion, compared to $20.9 billion


in 2003 and $16.5 billion in 2002. This represents a big increase from 1998, when the country earned less than

Presently, there are four oil refineries in Nigeria, namely

$9 billion.

Warri Refinery and Petrochemicals Company Ltd, Kaduna The Nigerian National Petroleum Corporation, NNPC, creRefinery

Built /

Processing Capacity

ated in 1977 as the public corporation that manages Nigeria’s petroleum industry. Its mandate ranges from


exploration of crude oil and natural gas to production and Old Port Harcourt


60.000 Barrels per day



sale as well as producing oil and gas derivatives for domestic consumption and export.

125.000 Barrels per day

The country’s crude oil production comes from joint venture partnerships (JVP) between the stated -owned oil



150.000 Barrels per day

firm, Nigerian National Petroleum Corporation (NNPC) and six multinational companies: Shell, ExxonMobil, ChevronTexaco, Agip, Phillips and TotalFinaElf. The lar-

New Port Harcourt



150.000 Barrels

gest of the partnership is operated by Shell, which pro-

per day

duces nearly 50% of Nigeria’s crude oil. The NNPC has a




2400 2100 1800 1500 1200 900 600 300 0

Philip (1964); Pan Ocean oil Corporation


Bought over Ashland Oil Nigeria Limited


Agip Energy & Natural Resources


Statoil / BP Alliance


Esso Exploration & Production Nig. Ltd


Texaco Outer Shelf Nigeria Limited


Shell Nig. Exploration & Production Co.


Total (Nig.) Exploration & Prod. Co. Ltd


Amoco Corporation


Chevron Exploration & Production Co.


The Federal Government anticipates benefits to arise from



the deregulation of the downstream sector of the oil



industry and the privatisation of the four state-owned refi-

198 0

200 0


200 2

Elf Petroleum Nigeria Limited

199 6


199 8

Texaco Overseas Nig. Petroleum Co. Unltd

199 4


199 0

Chevron Nigeria Ltd

199 2


198 8

Mobil Producing Nigeria Unlimited

198 4


198 6

Shell Petroleum Development Company LTD

198 2


Thousand Barrels per Day

Companies registered in Nigeria


million barrels per day in 2003.

Although, the raging

crises in the Niger-Delta part of Nigeria as well as OPEC quota resulted in a decrease in crude oil and condensation production from 2.28 million b/d in 2001 to 2.10 million b/d in 2002. ed preliminary licenses to set up private refineries.


neries at Warri Refinery and Petrochemicals Company Ltd,

Source: Nigerian Investment Promotion Commission

Kaduna Refining and Petrochemicals Company, Port 55% interest in the Shell JVP. The other JVPs, in which

Harcourt Refining Company and Eleme Petrochemicals


Company Ltd. The objective of the deregulation is that








ChevronTexaco, Agip, and TotalFinaElf.

marketers would be able to source their products locally, and sell at reasonable prices under a strictly competitive

The international companies operating in Nigeria as at

market. This will eventually result in the domestic price of

2000 and when they were established in the table below:

petroleum products not being affected by price surge at the international oil market. Thus, the independent oil

Nigerian Crude Oil Production, 1980 - 2002

marketers would be encouraged to invest more and thereby be more viable to compete with the major oil marketers. There are many investment opportunities in the

In 1980, oil production was about 2.1 million barrels/day

downstream sector which will further enhance the success

(b/d), by 1987 it had fallen to 1.35 million barrels per day;

of the policy such as:

since then a continuous increase has been experienced resulting in crude oil production averaging to around 2.2

- Investment in storage terminals.




- Product transportation such as pipeline provision, and


maintenance, ocean going vessels, tugboats, barges, rail and overland tankers.

Nigeria is widely known for its richness in oil but the

- Natural gas processing and marketing

country is probably richer in gas.

- Bunkering

reserves in excess of 165 Trillion Standard Cubic feet

- Retail outlets

(TCF), which was encountered during the search for crude

- Oil trading

oil. Also, around 180 TCF of undiscovered but recove-

- Brokerage services

rable natural gas reserves is believed to be available.

- Other services such as financial, insurance and shipping

Projects have been established to tap into the abundant


natural gas reserves. Also, gas production is expected to

It has natural gas

become just as important as oil production if the Federal The forces limiting the success of the deregulation policy

Government develops the major reserves and associated

is the epileptic performance of the local oil refineries as

gas transportation systems. Significant exports of lique-

well as the vandalisation of the crude oil supply and

fied natural gas started in late 1999 and are slated to

refined product pipelines.

expand as Nigeria seeks to eliminate gas flaring by 2008. In 2002, oil and gas exports accounted for more than


98% of export earnings and about 83% of Federal Government revenue.

Due to the deregulation of the downstream sector of the petroleum industry in October 2003, subsidies on imported petroleum products came to an end. This stra-


tegy has not worked well so far because fuel prices continue to increase. In fact, in the first five months of 2004,

Nigeria’s Liquefied Natural Gas (NLNG) Limited is a joint

fuel prices had increased gradually from US$0.20 per litre

venture company to harness Nigeria’s natural gas

to US$0.36 per litre. And, in June 2004, the Nigerian

reserves, some of which are currently being flared. The

Labour Congress (NLC) was unhappy with the fuel price

company purchases and liquefies natural gas for export to

hike therefore called for a labour strike.

overseas markets.

After an extensive forum and negotiations between the

A Framework Agreement was signed following the forma-

NLC, fuel marketers and the Federal Government, the

tion of the LNG Working Committee comprising of the

labour strike was called off after four (4) days and the fuel

Nigerian National Petroleum Corporation (NNPC) a state-

price was reverted to US$0.31 per litre.

owned oil company, Shell Gas B.V, TotalFinaElf and Agip to commercialize the natural gas. The Plant Complex is at

Today, the fuel price is US$0.32 per litre but the

Finima, Bonny Island, Rivers State.

Government is hopeful, that on the long run, the downstream deregulation will promote private investments, the-

This NLNG plant site has a capacity to accommodate up to

reby putting a stop to the monopoly role of NNPC as well

6 trains. With the NLNG in operations, an increase gas

as create competition with an eventual reduction in fuel

commercialization gives hope of eventual elimination of


gas flaring. Nigeria’s government is keen to expand





(Chevron Nigeria); the Nigerian National Petroleum

Nigerian Gas Reserve as at 2001

Corporation; and Shell (Shell Petroleum Development Company of Nigeria) own as developers 36.7%, 25%, 18%, respectively, of the West African Gas Pipeline

Associated Gas 54%

Company Ltd. (WAGPCO) that will build, own and operate the pipeline. The three corporate entities are the majority shareholders commanding almost 80% of the shares of WAGPCo. Volta River Authority (Ghana), Societe Beninoise de Gaz (Benin), and Societe Togolaise de Gaz (Togo) hold, respectively, 16.3%, 2%, and 2% each. Non Associated Gas 46%

natural gas consumption to relieve some of the pressure


on native forests, which continues to be burned for fuel in many rural areas. The government plans to end gas flaring

The Nigerian Government in partnership with the

by 2008 which will not only reduce greenhouse gas emis-

Government of Algeria conceived the idea of the Trans-

sions, but also will provide more gas for domestic con-

Sahara Pipeline Project in 2000. This project is to help the

sumption as well as for export via the West Africa Gas

two countries utilize their abundant gas reserves by deli-


vering gas to the European market. The scope of the project is a construction of a gas pipeline that would transport natural gas from Nigeria’s oil fields of approximately

THE WEST AFRICAN GAS PIPELINE PROJECT Nigeria and three other western African countries: Ghana,

4,400 kilometres to Algeria and from there to Europe. The project is estimated at six (6) billion US dollars.


Benin and Togo are currently undertaking an interregional energy infrastructure called West African Gas

Traditional Sources

Pipeline Project (WAGPP). The purpose of the project is to provide a new market for natural gas from Nigeria to

Petroleum, natural gas, and hydroelectricity are Nigeria’s

these three other countries. The scope of the project

major sources of commercial energy; they are slightly out-

covers a construction of gas pipelines from Nigeria

paced by the largely noncommercial consumption of fuel

through Benin, Togo and then to Ghana. This will enlarge

wood and charcoal. However, as most of the oil is

sources of energy in the West Africa region as well as

exported, the role of petroleum products in domestic

improve the balance of energy requirements and

energy consumption was 31.9% while natural gas and


hydropower accounts for 61.9% and 6.2%14 in 2001, respectively.

The governments of the three countries and these corporate entities are involved the project: ChevronTexaco

Nigeria’s most important commercial source of energy is





electricity. The Federal Government owns National Electric

constant power supply for the country, is the privatization

Power Authority (NEPA) which has installed power gene-

of NEPA. The overall aim is to unbundle NEPA into 6 gene-

ration capacity of 6,000MW15 (of which 67% is thermal

rating companies, 11 distribution companies and 1 trans-

and 33% is hydropower) and is responsible to generate,

mission company - 18 companies in all. The government

maintain, co-ordinate an efficient and economic supply

hopes this will materialize soon to enhance productivity as

system as well as the distribution of electricity in Nigeria.

well as increase efficiency in the economy.

NEPA has 8 electricity generating stations throughout the country. They are:

Another source of energy is the solar power which is being promoted as an alternate method to electricity ser-

- 1150 MW: Lagos thermal power station, Egbin, Lagos

vice to rural areas not connected to the country’s electric

State 1986

power grid. In fact, some foreign private investors pro-

- 1020 MW: Ogorode thermal power station, Sapele,

vided a little over US$ 300,000 grant to the state of

Delta State 1978

Jigawa to aid in the supply of solar power to some

- 876 MW: Delta V1 thermal power station Ughelli, Delta

selected areas of that state. The objective of this project is

State, 1991

to provide power to those areas and to improve socioeco-

- 986 MW: Afam thermal power station, Afam, 1959

nomic conditions.

- 720 MW: Kainji hydropower station, Kainji, Niger State, 1968

There are also increased efforts to boost the renewable

- 540 MW: Jebba hydropower station, Jebba, Niger State

energy sector as a whole in other areas of the country.

1989 (J)

Similarly, the government has established a new Non-

- 600 MW: Shiroro hydropower station, Shiroro, Niger

Governmental Organization, the Centre for Renewable

State, 1968 (S)

Energy Development in Nigeria (CREDN) to take additional

- 45 MW: Abuja thermal power station, Abuja, FCT, 2001

steps to boost the use of renewable energy sources and

(Emergency Power Plant)

thereby diversify the country’s energy consumption from petroleum.

National Power capacity peaked at 4,023 Megawatts (MW) in December 2001, but the inadequacy of transmis-


sion and poor distribution infrastructure limits actual supply in the country to a little over 2,900MW. Currently,

Mineral development in Nigeria has been focused on its

only 10% of rural households and approximately 40% of

oil industry while the mining industry has been neglected.

Nigeria’s total population have access to electricity.

The mining industry contributes only 1% to the GDP over the years. With Iron-ore deposits as well as salt deposits

The Federal Government has raised hopes for improved

which are widespread in the savanna region, Tin and

power supply with a power sector reform law being put

columbite in the plateau area, great deposits of petroleum

together. Furthermore, it has approved some contracts for

and natural gas in the Niger delta and offshore of Bights

new thermal plants to generate and distribute at least

of Benin and Bonny, Nigeria has abundant minerals for a

10,000MW by 2005.

wide range of industries. It is also known for her reserves in bitumen, coal, tin, bauxite, iron ore, and gold.

In addition to the Federal Government’s objective for


Coal resources have been estimated at 3 billion tonnes,

MAIN SECTORS Solid Minerals Talc Iron ore Gold



Estimated Reserve

for Reconstruction and Development (IBRD); the

100 million tonnes

International Finance Corporation (IFC) which is mainly for

3 billion tonnes

private sector activities and the International Development


Association (IDA).[a1]


42 billion tonnes

The Mines Department of the Ministry of Solid Mineral

Rock salt

1.5 billion tonnes

Development is the Federal Government’s Agent for

1 billion tonnes

policy making, implementation of laws and regulations

Gypsum Lead/Zinc



7,5 million tonnes


700 million tonnes

governing solid minerals exploration, exploitation use or exportation. It is responsible for the supervision of all mining and quarrying operations throughout Nigeria.

Coal Gemstones Kaolin Tantalite

With the approval of the Honourable Minister of Solid

3 billion tonnes

Minerals Development, investment in the mining and


quarrying industry can either be by the acquisition of a

3 billion tonnes

mining / quarrying property from the original owner or by


obtaining an application, a Prospecting Right and/or

Source: Nigeran Investment Promotion Commission

Exclusive Prospecting License. The government has signed its first production sharing

lignite at 250 million tonnes, and limestone at 600 million

agreement with Nordic Industries, a consortium of

tonnes that are spread over fifteen states. Although, the

Danish, British and local firms to develop its coal industry.

parastatal Nigerian Coal Corporation is responsible for

The Okab/Odigbo mine district in the northern part of

most of the existing coalmines, the coal mining industry is

Kogi state has reserves estimated at 22 million tons and is

slowly being privatized as part of an effort to increase pro-

due to be developed. The Enugu mine has a capacity to

duction back to levels of 900,000 tons per annum which

produce 150,000 tonnes per year.

was last achieved in 1959. Nigeria exports tin, ferrous and non-ferrous minerals as


well as gemstones. To exploit the tremendous growth

1 Oil and Gas Journal

potential and to meet local demand as well as that of the

13 Economic Intelligence Unit, Country Profile,

Economic Community of West African States, the Ministry


of Solid Minerals Development has deregulated the

14 Economic Intelligence Unit, Country Profile,

mining sector under the Nigerian Investment Promotion


Council Decree 1995 which allows for 100% foreign ownership of mining operations and other related enterprises. In addition, free repatriation of capital, profits and dividends are added incentives.


The emphasis on encouraging massive foreign investors’ participation includes the World Bank finance for mining

African Petroleum Plc

which is now readily available through several agencies. These include the Multilateral Investment Guarantee

Engr. A. A. Sule

Agency (MIGA) of the World Bank, the International Bank

Managing Director






“It does not matter how high your hat is, everyone knows the level of your head inside it” Nigerian proverb






In the Nigerian economy, the financial system is the hub



Foreing ownership

of productive activity, as it performs the vital role of finan-

Citibank Nigeria



ment services and the fulcrum of monetary policy imple-

Ecobank Nigeria


Togo Based

mentation. The banking sector in Nigeria is one of the

Habib Nigeria Bank



As such, the ruling government is anticipating that with

Indo-Nigerian Merchant Bank



the country’s energy sector growing, the change in the

(INMB) 40%



South Africa


cial intermediation. It is also the primary provider of pay-

most dynamic and competitive industries in the country.

minimum capital base for banks as well as the price of oil

Merchant Banking

rebounding, the opportunities for foreign banks to enter

Corporation International

the Nigerian market looks promising. The Central Bank of

Bank (MBC)

Nigeria (CBN) is the apex regulatory authority in Nigerian

NigBelgolaise Merchant Bank

Financial sector and its primary responsibility for overall


control and regulation of the banking system. There are

Nigerian American Bank


Stanbic Bank Nigeria


South Africa

United Bank for Africa (UBA)



commercial, merchant, community banks as well as primary mortgage institutions, discount houses and finance companies.


BANKING banks. Today, no fewer than 89 banks (with a network of 2,994 branches) are licensed to operate, controlling However, a period of consolidation is anticipated that will

approximately 90% of the total assets and deposits in the

reduce the number of banks and make the sector even

country of which the First Bank of Nigeria Plc, Union Bank

more competitive. Prior to 1986, there were only 40

Nigeria Plc and United Bank for Africa (UBA) are the 3 big-

banks in the country, the number rose steadily to 120

gest banks1. However, there are other big banks called

banks, which included some European and American

“new generation banks” such as Zenith Bank Nigeria and Guaranty Trust Bank Plc while others are relatively small.

Commercial Banks


Development Finance Institutions


Community Banks


Finance Companies


Primary Mortgage Institutions


Bureaux- de-change


bigger banks.

Insurance Companies


This new minimum capital base is specifically designed to

Commodity Exchange


put an end to the boom and burst cycle as well as to

Discount Houses


strengthen the Nigerian Banking system3. Furthermore,

It is likely that the number of operating banks will go down again because of the introduction of the new N25 billion (US$189 million) minimum capital base from N2 billion (US$15.2 million). This will become effective December 2005 through acquisitions and mergers by the





Nigeria is seeking to position itself as the financial hub in

Exchange rate

West Africa as well as become a part of the global

(annual average; official

change. In the 1960s, about 60 to 70% of the banks

rate unless

collapsed. In the late 80s and 90s, more banks entered

otherwise inicated)

into the industry, at the same time 32 of them collapsed.






N: US$






N: US$ (autonomous
















Many of those newer banks that collapsed had their deposit liabilities spirited away by unscrupulous management, which became a root cause of Nigeria’s banking

rate) a

crisis then. The federal government intervened with new banking laws and regulations such as the Failed Banks and

N: British pound ster-

Financial Malpractices Decree so as to prevent recurrence


of such collapse. Also, the Nigerian Deposit Insurance


Corporation was established to increase the confidence level of banking customers.

* Based on interbank foreing-exchange market (IFEM) rates quoted by the Central Bank of Nigeria in its Annual Report and Statement of Accounts.


Source: IMF, Financial Statistics

increase of 148% over the past five years4. Also, the Although CBN is focusing on stabilising and strengthe-

financial sector has, since 2001, switched from a finan-

ning the banking sector, the sector has had phenomenal

cing deficit sector to a surplus sector. In 2003, it recorded

growth from 1999 to 2003 with total assets of almost

a relatively large surplus when compared to the previous

US$18.26bn as at July 2003 from US$9.53bn - an

year. This positive trend was traced to the successful transition to democratic governance in 1999. The deregula-

Interest Rates (%:end-period)






CBN minimum rediscount






bank, mortgage bank and bureaux-de-change which held

Treasury bill rate






97.2% of institutional savings in June 2002, compared to

Commercial banking savinbs






tion of the financial sector also triggered a sharp increase of total assets of non-bank financial such as community

95.2% in December 2001. In January 2001, in line with Commercial banking lending

global trends, CBN allowed banks to register as universal banks removing the restriction of been a commercial or













wholesale bank. With the return of democracy to Nigeria there are a

Merchant banking lending

number of United States Government agencies which make financing for feasibility studies available (TDA -













With the introduction of universal banking in January 2001, bank’s interes rater represent industry averages. Source:Central Bank of Nigeria, Annual Report and Statement of Accounts

Trade and Development Agency); Trade financing for importing American products and services (EXIM BANK Export-Import Bank); and investment funding (OPIC Overseas Private Investment Corporation).





ECONOMY: FINANCE companies and their intermediaries by members of the public. NAICOM ensures adequate capitalisation and

There are over 29 insurance companies in Nigeria. Both

reserves, good management, high technical expertise and

life and non-life insurance services are offered in the

judicious fund placement in the insurance industry. In

industry. The National Insurance Commission (NAICOM) is

1999, NAICOM implemented the capital reform for insur

charged with effective administration, supervision, regulation and control of the insurance business in Nigeria. Its

ance companies, which stipulated minimum paid capital

specific functions include the establishment of standards

of between N20 million for general insurance to N90

for the conduct of insurance business, protection of insu-

million for special risk category insurance.

rance policy holders and establishment of a bureau to which complaints may be submitted against insurance

THE CAPITAL MARKET Ten largest capitalised companies on The NSE as at 31 March 2004

The Nigerian Capital Market came into existence in 1960



with the establishment of the Nigerian Stock Exchange



(NSE), which became operational in 1961. The NSE facili-

(Billions of

(Billions of

tates the issuance and secondary trading of long-term



financial instruments. The apex regulatory body in Nigeria

Nigerian Breweries



Guinness Nigeria



First Bank of Nigeria



Union Bank of Nigeria



NestlĂŠ Nigeria



rise in the market capitalisation and volume of shares

Nigerian Bottling Co



traded can be largely associated to the restored demo

Total Nigeria



Cadbury Nigeria



Unilever Nigeria



Guaranty Trust Bank



Stock (Plc)

is the Securities & Exchange Commission (SEC) which regulates both primary and secondary markets as well the registered market participants of about 200 brokers/dealers, 35 issuing houses, 25 registrars and a clearing/depository company as of 31 December 2003. The Market capitalisation as percentage of GDP was 9.7% and 12.1% in 2000 and 2001 respectively. The significant

cratic political system as well as investors gaining more confidence in the stock market.

VENTURE CAPITALISM Venture Capital provides capital for start-ups and highrisk ventures. In Nigeria, the Small and Medium Industry


Investment Equity Scheme (SMIEIS) was established in Total



2001 to provide improved funding to these enterprises in order to facilitate the rapid achievement of the higher




economic growth.


11 banks signed a partnership to assist Small and Medium scale Enterprises (SME), thereby promoting private sector

AIICO Insurance Plc

investment in Nigeria. These banks were Diamond Bank Limited, FSB International Bank, INMB Bank Limited,

Henry I.E. Omoragbon

Magnum Trust Bank, NBC International Bank, Stanbic

Acting Managing Director / CEO

Bank Limited. The rest were First Bank of Nigeria plc, FBN

AIICO Plaza, Plot PC 12 Afribank Street

(Merchant Bankers) Limited, First City Monument Bank,

Victoria Island, P.O. Box 2577

Chartered Bank plc and Universal Trust Bank plc.

Lagos Tel: + 234 - (0) - 1 - 2615888 / 2625197

This scheme was part of the banking industry’s contribu-

Fax: + 234 - (0) - 1 - 2617433

tion to the federal government’s efforts towards stimula-

E-mail: /

ting economic growth, developing local technology and


generating employment, amongst others. The equity investments are to help in capacity building, hospitality

AIICO was established in 1963 as a collection centre and

and telecommunications services for these SME. Also, the

incorporated in 1970. It was then converted to a public

Federal Inland Revenue Service is making efforts towards

liability company in 1989 and was listed on the Nigerian

granting tax concessions under the scheme.

Stock Exchange with effect from 3rd December 1990. To date, AIICO has become the largest life insurer in

Furthermore, in facilitating the scheme, CBN together

Nigeria and a major underwriter for the general insurance

with the Securities and Exchange Commission (SEC) are

business. The company’s success has been the result of its

enhancing the registration of venture capital companies

ability to evaluate its potentials, set realistic goals and take

being set up by banks.

necessary actions to achieve them.

Strategies may

change. Objectives and organisational structures of the There is optimism that the scheme will be a success due

company can be reviewed from time to time. The end

to the involvement of financial institution partnerships as

result is to ensure optimum performance.

well as participation of the United Nations Industrial

Having the privilege of tapping the experience and exper-

Development Organisations (UNIDO).

tise of seasoned professionals from multinational insurance/financial companies worldwide, AIICO has reposi-


tioned its business. In this regard, it has entered into the

1 Central Bank of Nigeria

general insurance business instead of emphasising life

2 Exchange rate Central Bank of Nigeria (US$ -

insurance, as had been the company’s tradition.


AIICO has also made a shift from concentrating on retail

3 According to Central Bank of Nigeria

insurance to becoming a provider of wholesale insurance.

4 IMF, International Financial Statistics

Its strength lies in its ability to attract corporate clients; an attribute that has been facilitated by its investment in blue-chip companies, debenture stocks, leases, mortgages and the underwriting of high net worth issues. As a result of AIICO’s repositioning, it has improved its investment






“A patient dog eats the fattest bone.” Nigerian proverb





MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF COMMERCE Prior to the inception of the present administration in May 1999, the trade sector of the economy was plagued by a plethora of problems. Some of these problems included: regional trade barriers; multiple layers of distribution causing an increase in the cost of goods; bureaucracy in the implementation of trade incentives, which created long delays in business registration and payment of export rebate incentives, etc. and the dumping of sub-standard and subsidised goods. The large number of security agents at the ports and long procedures for the clearance of goods were further impediments to trade. This led to the directive GCFR, created by the President and Commander-in-Chief of the Armed Forces of Nigeria, Chief Olusegun Obasanjo, which was implemented to prepare a new trade policy for Nigeria consistent with the broad economic objectives of the administration and the new international trading environment. To ensure that Nigeria becomes a full player in the global economy, a new trade policy was approved in 2002. The trade policy document is a clear expression of the new orientation in our business practices intended to send positive signals to our trading partners of Nigeria’s readiness to adapt to changes. It covers issues relating to trade support infrastructure and the appropriate implementation strategies and action plan. Furthermore, to strengthen the regulatory framework in the trade sector, the President has graciously approved the transformation of the present Consumer Protection Council (CPC) into the Nigeria Trade and Competition Commission (NTCC). This new body is to handle issues relating to weights and measures administration, consumer protection, antidumping and competition policy. The new regulatory framework will also include the establishment of the Intellectual Property Commission of Nigeria and the Bankruptcy Commission. The objective of this new regulatory environment is to sanitise and streamline activities in the trade sector as well as provide a stable, fair and competitive market environment for due process and the transparent administration of trade policy measures in the country. The government is determined to end our dependency on crude oil exports by diversifying and expanding our non-oil exports of both agricultural and manufactured products through the establishment of Export Production Villages (EPVs) and Free Trade Zones (FTZs). The FTZs have succeeded in achieving the objectives established for them, which essentially are to attract foreign direct investment, generate employment, increase exports and contribute to government revenue. The FTZs are our centre of excellence and need to be encouraged and strengthened. It should be recalled that at the inception of this administration, the economy was characterised by low a GDP growth rate, low productivity, decapitalisation and under-capitalisation as well as low levels of savings and investment. It is obvious that the years between 1999 and 2003 were spent laying the foundation for a new Nigeria. Since May 2003,we have put far reaching reforms in place that are beginning to redirect, reconstruct and reposition Nigeria for greatness. In addition to accelerated privatisation, public sector reforms, intensified anti-corruption campaigns and governance and institutional reforms, the government has identified six core areas: oil, gas, solid minerals, agriculture, manufacturing and Tourism as special areas for attention. Hence, I would like to seize this opportunity to call investors to take advantage of the new opening and current reforms by investing in these core areas. H.E. Ambassador A.D. Idris Waziri Minister of Commerce





MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF INDUSTRY It has become obvious that the economic development of a nation depends largely on the utilisation of its abundant resources. Nigeria, in its new situation at the beginning of the century, is on the path of becoming the hum of the economies of West Africa Sub Region and Africa as a whole. Nigeria is classified as the world’s most promising emerging market because of her abundant endowment of the vast human and natural resources. It has concisely addressed critical issues of competitiveness, policy finance, technology advancement, incentives to industries, research and development among others. The present administration has accelerated Nigeria’s integration into the global economy and has thus improved her access to the international market. In 1980, the Federal Ministry of Industry articulated the first ever industrial policy in Nigeria, which was updated in 1989. In order to articulate the policy changes and adequately address the problem of the manufacturing sector with a view to repositioning it for the challenges of the 21st century, the Federal Ministry of Industry, under the present administration, initiated yet another review of the industrial policy document in 2003. The review of the industrial policy is of great importance and has been accorded high priority by the government of Nigeria. The efforts made in the past have not yielded the desired result, as the sector could not achieve the stated targets. As a result of inadequate investments in new technologies, deplorable infrastructure and ineffective utilisation of the natural resources, industrial production goals were not met. Consequently, the objectives of the new policy go beyond attending only the immediate needs of the industrial sector. The Nigeria Government has put a system into place that will ensure a permanent solution of the problems impeding industrial development. The objective of the Nigeria’s industrial policy is to rapidly transform the country into a major industrialised economy that is private sector driven. The private sector has become more organised and vibrant over the years in responding to challenges of industrialisation. The objective of rapidly transforming the country into a major industrialised economy now hinges critically on the private sector playing the leading role in investment management and development. The government, now more than ever, is poised to provide an enabling environment for the private sector to play the pivotal role, as both individual and corporate investors and as promotional trade associations, groups and community-based organisations. The government, in its wisdom, has realised that domestic capital is grossly inadequate to promote rapid economic growth. This is due to a combination of socio-cultural and economic factors, therefore attracting foreign capital and with it improved technology into the manufacturing sector is crucial to the attainment of many of the policy goals of government. Indeed, the government hopes that the liberalisation, privatisation and other measures taken will make the country more attractive to foreign capital and technology. Today, a foreign investor can hold 100% equity in any sector of the Nigerian economy. The government has also introduced a lot of incentives to attract foreign investors. In conclusion, the policy document spells out the policy objectives, strategies and measures to be taken. It provides a comprehensive list of incentives to industries along with operational guidelines to both Nigerians and foreign investors. It also provides the equity structure approved for Nigerian enterprises and relevant laws and regulations for guidance of industrial enterprises. Overall, these policies are intended to reduce the cost of doing business in Nigeria, improve the level of industrial performance, reduce poverty, reduce insecurity, increase investment (including foreign direct investment, flow etc.). As a function of this, the cost of production will be reduced, the quality of finished products will improve, thus making access to international markets enhanced and guaranteed. H.E. Ambassador Magaji Muhammed Minister of Industry






products, textiles, cement products, packaged foods andbeverages).

Today’s Nigeria would certainly have gone far in its industrialisation process, had all the initiated past policies been


followed through. At the inception of the present democratic administration, the state of basic infrastructure necessary to facilitate industrial growth in Nigeria was

The manufacturing sector produces a range of goods that

dismal. The Federal Government is however persistently

include meat and dairy products, refined sugar, beer,

forging ahead to accelerate industrial development by

cigarettes, textiles, footwear, paper products, soap, paint,

actively pursuing new policy guidelines and strategies.

ceramics, chemical products, plastics, cement and metal

The current campaign to energise this sector of the

goods among others.

Nigerian economy is geared towards encouraging private individuals and groups as well as corporate investors to

The majority of factories that produce these goods in

involve their diverse technical and financial capabilities in

Nigeria would be in serious trouble if it weren’t for the

trade and industry. The private sector has been heralded

relatively low labour costs. Also, some of these domestic

as the new engine of industrial growth, and with a

manufacturers, such as textiles companies, have practi-

renewed vow of co-operation from the federal govern-

cally lost their ability to compete in the traditional regional

ment, a successful drive to rebuild Nigeria’s industrial

markets as a result of an influx of cheaper products being

sector seems imminent.


The Federal Ministry of Industry has recently commis-


sioned the Industrial Information Centre to assist potential investors, both local and foreign, in gaining knowledge of the industrial capabilities in the country. It will also pro-

Nigeria’s efforts to boost the manufacturing sub-sector of

vide the public with invaluable information on the indus-

the economy are primarily aimed not just at the produc-

trial sub-sector of the Nigerian economy. This project is

tion of import substitutes, but also to produce enough for

part of the current administration’s policy thrusts to move

export manufacture. Some stringent measures have been

the economy forward.

taken to encourage local progress such as an outright ban on certain imported goods. Since 1999, some 41 catego-

The industry sector accounted for 15.7 % of Nigeria’s

ries of goods have been added to the list of items not fit

overall GDP in 2002, but current efforts to reorient the

for importation into Nigeria. This restriction policy was put

sector should see this percentage rise significantly over

in place to help improve local production and strengthen

the next decade. The annual percentage increase in indus-

indigenous industry. The banned list includes both

trial production was 1.2% for 2002/03.

finished goods and certain raw materials.

The trade and industry sector of the Nigerian economy is

The list of some of the prohibited import items to Nigeria

primarily active in the production and trade (imports &

are listed below:

exports) of crude oil, natural gas, mining products (coal, tin, steel, bitumen) and manufactured goods (tobacco











Empowerment Development Strategy (NEEDS) pro-


gramme. NEEDS is essentially a federal government pro-


gramme with a medium term strategy, which derives from the country’s long-term goals of poverty reduction,













Total Industry including






wealth creation, employment generation and value reorientation. The policy is meant to accelerate the following set targets: * Increase the annual growth of the manufacturing sector


by at least 7% per annum *Provisional

* Increase capacity utilisation to about 70% by 2007

Source: Central Bank of Nigeria, Annual Report and Statement of

* Contribute 70% of total investment in industries by the


private sector by 2007 The government has established the following agencies

* Wheat flour

and initiated the following incentives to boost trade and

* Sorghum

industrialisation in the country:

* Mosquito repellent

Small and Medium Industries Development Agency (SMIDA)

* Motor vehicles (8 years post-production) * Gaming machines * Bagged cement * Packaged fruit juice

The Small and Medium Industries Development Agency

* Biscuits

(SMIDA) is being established as one of the core economic

* Spaghetti and noodles

strategies of the current administration to promote and

* Sugar confectioneries (sweets/chocolates)

develop the Small and Medium Industries (SMIs) sub-

* Vegetable oil (Bulk)

sector as the tool for rural industrialisation and poverty

* Table drinking water (spring or sparkling)

eradication. The main role of SMIDA is to co-ordinate and

* Envelopes

support the development of the Small Medium Scale

* Beer (Bottled and canned)

Industries in the country. SMIDA is expected to play a vital

* Exercise books

role in the National Poverty Eradication Programme

* Poultry products

(NEPEP), which was launched in May 2001.

* Toilet rolls * Used air-conditioners/ compressors

Also, the Bankers’ Committee in Nigeria has established

* Used refrigerators

the Small and Medium Industries Equity Investment

* Wooden toothpicks

Scheme (SMIEIS) for local industrialisation by setting aside

* Cassava and cassava products

10% of every Nigerian bank’s pre-tax profit. The scheme

* Soaps and detergents

was inaugurated by President Obasanjo in August 2001.

* Flowers (fresh or plastic)

By May 2002, about 75 banks had already set aside N7.06 billion, out of which N570 million has been invested. The

Another government initiative designed to revitalise the

Nigerian Investment Promotion Council (NIPC) and the


Industrial Development Co-ordinating Council (IDDC) are










also working towards an accelerated resurgence of the

Nigerian industrial sector.

Establishment of Bank of Industry (BOI) Limited

Manufacturers Association of Nigeria (MAN) Similarly, the Manufacturers Association of Nigeria (MAN)

Due to infrastructure challenges coupled with high bank

is aiming at raising the sector’s growth target to between

interest rates, local industry is finding it tough to meet

11% and 12% per annum resulting in an 18% contribu-

certain standards. This only leads to the strengthening of

tion to the Gross Domestic Product and 5 million employ-

very large operators who are carving out what is begin-

ment level by 2007 from 1.4 million presently. To meet

ning to look like a monopoly share of the market. Again,

these targets, MAN is collaborating with industry experts

the government is looking at taking measures to ensure a

as well as looking for ways that the sector can urgently

fairer playing field for smaller companies. In May 2002,

attract massive investments into the economy. It is also

the Bank of Industry (BOI) Limited was established with an

looking to provide an enabling environment for such

authorised share capital of US$500 million. The bank’s

investments to thrive and provision of long-term funding

function is to facilitate the resuscitation of struggling

for local industrialists using channels such as the Bank of

industries and the promotion of new ventures across the

Industry (BOI) and the Small and Medium Industries

country. The main focus is on projects that utilise

Investment Scheme (SMIEIS).

domestic inputs - thereby creating employment - and produce quality products for the export market.

Product Quality

Development of Machine Tools Subsector

The intensified surveillance by the National Agency for Food Drugs Administration and Control (NAFDAC) to check the influx of counterfeit and sub-standard products

Other initiatives include the upgrading of facilities at the

whether imported or produced locally, has resulted in the

Nigerian Machine Tools (NMT) Limited in Oshogbo in

prohibition of some importation items and increased the

Southwestern Nigeria. A Memorandum of Understanding

quality on locally produced goods.

(MOU) was signed in September 2001, between Nigeria and India to commence the utilisation of a $US5 million

Also, the Standards Organisation of Nigeria (SON), a local

grant towards this development programme.

equivalent of the International Organisation of Standards

Sugar Sub-sector Development

(IOS), employs the veritable scheme of product certifica-

Under the revised Sugar Policy, any sugar imported into

tion for the enforcement of high standards and quality for

the country attracts an import duty of 40% and a sugar

home-made goods. They have instituted an award of

levy of 10%. This is aimed at accelerating the growth and

Nigeria Industrial Standards (NIS) “mark of quality” for

development of the local sugar industry in order to

outstanding products. They ensure that the quality mana-

achieve at least 70% self-sufficiency by the year 2010 and

gement system and standard business practice conform to

thereby drastically reduce sugar importation as well as

international standards.

conserve scarce foreign exchange earnings. To achieve this target, a 250-tonne cane sugar per day (tcd) processing plant is being built locally in Bacita. (Source:






Bitumen Development The Federal Government has approved the establishment

Although crude oil and natural gas are the chief resources

of the Bitumen Development Authority of Nigeria to expe-

extracted for trade, solid minerals are abundant in Nigeria.

dite action on bitumen exploration to generate consistent

The principal mineral resources are coal, iron ore, zinc,

revenue as well as reduce the high cost of importation of

limestone and marble among others. Despite having large

asphalt, a derivative of bitumen commonly used in road

deposits, low output has been recorded for several years.

construction. It has also entered into an agreement with a

This was mainly due to a fall in demand caused by a shift

subsidiary of an American energy company, Conoco, for

by its public sector consumers towards the use of gas and

the evaluation of technical, economical and commercial

petroleum. The solid mineral sector offers the opportunity

feasibility of exploring, developing, refining and marke-

to diversify Nigeria’s petroleum dominated economy. It

ting of Nigerian heavy oil and tar sands.

also offers viable prospects for mining, mineral processing and the manufacture of many intermediate raw materials for local industries and export. One of the objectives of


the new National Policy on Solid Minerals is to ensure the orderly development of the mineral resources of the

Recently, Nigeria’s trade sector has been dominated by


the oil industry, which accounts for up to 95% of total exports of goods. Agricultural products such as cocoa and

Nigeria’s renewed national solid mineral thrust offers a

rubber account for less than 5% while manufactured

competitive environment for solid mineral development.

goods account for less than 1% of exports. As mentioned

In collaboration with the governments of United Kingdom

earlier, plans are in effect to increase the total export of

and the Republic of South Africa, the country has recently

Nigerian made manufactured goods.

agreed to cooperate in the following areas: Formal regional trade within the Economic Community of * Re-establishment of internationally acceptable geolo-

West African States (ECOWAS) is relatively small, as the

gical laboratory

sale of crude oil to these countries is almost non-existent. However, a small volume of raw materials and finished

* Development of Regional Database of West Africa to be

products are exported to other West African states and to

centred in Nigeria.

Eastern Europe.

* Training and retraining of technical staff of Geological

To foster trade initiatives in other sectors of the economy,

Survey of Nigeria

the Nigerian government believes it should continuously push for change. It has recently drawn up a new National

* Digitalisation of Airborne Geophysical Survey Data of

Trade Policy with the aim of keeping up with global trends


while providing detailed guidelines for importers and exporters.

* Production of Metallogenic Map of Nigeria. Also, a comprehensive regulatory framework, the Commodities Exchange and Futures Market Commission





(COMEX), is being launched to deal with the lack of co-

* Agricultural produce processing, food and beverages;

ordination in commodities pricing.

* Textiles: yarn /textiles, apparel, leather and products of leather (including footwear of rubber and plastics);

Furthermore, Nigeria has recently signed firm trade agre-

* Wood: furniture;

ements with some of its major trade partners such as the

* Paper and paper products;

African Growth and Opportunities Act (AGOA) with the

* Iron and steel, non-ferrous metals;

United States. Under this act, specified manufactured

* Fabricated metal products, and

goods can be exported to the US at a concessionary of

* Consumer durables.

zero duty rates.

Textiles (Trade)

Export Free Trade Zones

When the African Growth and Opportunities Act (AGOA)

The Export Processing Free Zone Scheme (EPFZS) was

was signed into law in May 2000 as Title 1 of the Trade

introduced in 1991 in an effort to encourage investors to

and Development Act of the same year, the Nigerian

establish industries and businesses within demarcated

government set up a committee to map out new strate-

zones know as Export Processing Zones (EPZ), with the

gies for textile exportation to the Unites States. This

objective of exporting the goods produced within those

followed the granting of AGOA textile visa by the US to

areas. The concept of the free trade zone was fashioned

Nigeria. The act is also meant to check any protests from

to promote the non-oil export sector of Nigeria’s eco-

some local quarters concerning some necessary items on

nomy. From inception, emphasis was placed on the com-

the importation ban list.

pletion and commissioning of the primary territory at Calabar. The Calabar Free Trade Zone already has about

Cassava (Trade)

43 investors who have been granted approval by the federal government to operate in the area. Five investors

In an effort to rejuvenate the economy for the twenty-first

have commenced the export of their various products.

century, the Nigerian government has set a target of up to $5 billion revenue to be derived from the exportation of

In addition, the Nigerian government has allocated up to

cassava in the processed form by the year 2007. To meet

1,000 hectares of land for the development of a free

this target, the Cassava Export Promotion Committee has

trade zone in Lagos, the country commercial capital. The

been formed to help realise the full economic potential of

private sector has been encouraged to partake in the

one of Nigeria’s most popular food crops. In addition,

implementation of economic programmes aimed at acce-

efforts are being made to build up to 78 export warehou-

lerating the development of local industrial estates.

sing centres in every senatorial district of the 26 cassavaproducing states.

Privatisation Programme as it Affects the Industrial Sector The Nigerian Government has set for itself a programme


to privatise the ownership and operations of all industrial concerns with present government equity interest. The programme has been set up in two phases in order to

In recent studies by the Federal Ministry of Industry, acti-

ensure successful implementation. The first phase of the

vities identified in export market potential include:

privatisation exercise, as it concerns projects under the





supervision of the Federal Ministry of Industry, has been

ment, poverty alleviation, job creation and sustainable

completed. In this regard, the cement manufacturing

livelihood. Given the on-going policy reforms, institutional

plants at Ewekoro, Shagamu, Ashaka, Sokoto and Benue

arrangements and strategic investments being put in

have been fully privatised. Action on the remaining two at

place, the prospects for the industrial sector are becoming

Calabar and Nkalagu is pending because they require

the prime mover of the economy and the future is very

some minimal reactivation prior to offering their shares to


the public. The privatisation of government interests in

In a determined pursuit at evolving an efficient, competi-

pulp & paper, sugar, agro-fertilizer and automotive sub-

tive and diversified industrial base, the federal govern-

sectors constitute the 2nd Phase of the Programme.

ment will continue to pursue those policies that will have

The present administration places a high premium on

a positive impact on the industrial sector. As soon as the

industrialisation as a strategy for people-centred develop-

necessary funds are released, the Bank of Industry (BOI) will be in a position to commence loan disbursement to

Companies that have mobilised to Calabar

qualified and viable projects.

Free Trade Zone S/N


Name of

Line of





Combination Industries

Extruded snacks


Abumet Ltd

Wood Processing


Mr. Markus Truninger

Textiles and Garment



Ltd. 2

Kevin Woods Industries

General Manager

Ltd. 3

Golden Giant

Plot 306, Idu Industrial Estate, Area 1B P.O. Box 5781, Garki Abuja


Tel: + 234 - (0) - 9 - 5210827 4

Ayos Word

Wood Processing



Larngold Limited

Fax: + 234 - (0) - 9 - 4132831 E-Mail:

International Textiles and Garment


Abumet (Nigeria) Limited was incorporated in 1990 for the manufacture of aluminium building components. The 6

Union Forest Industrial

Wood Processing



BAOYAO Huan Jian

Iron and Steel


Interlining Party


Rubber Processing


company commenced production in May 1991 in an area of 3,240sq.m, which was extended to a total production


Kanuco Technology

area of 5,520sq.m in 1998. It is recorded as the first aluminium manufacturing company fully established in

Iron and Steel


Corporation 9

Engr. Hued Rubber Ind

The company offers a wide range of products and services including a modern and fully equipped factory with high


standard fabrication of standardised and individual speci10




fication of windows, doors, louvers, air grills, curtain walls, railings, partitions, flag poles, roofing and various




“The one being carried does not realize how far away the town is” Nigerian proverb


MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF AVIATION Due to a prolonged period of military rule, the Nigerian aviation industry had suffered neglect resulting in the collapse of infrastructure and equipment. However, the advent of the current democratic dispensation in May 1999 has reversed the situation for the better. The aviation industry in Nigeria is undergoing its most momentous transformation in decades. Passengers and aircraft movements have appreciated considerably due to enhanced safety and security standards in accordance with the International Civil Aviation Organisation’s Standards and Recommended Practices (ICAO-SARPSs). The industry is being extensively restructured for greater efficiency. The enabling environment created by the present administration has engendered greater private sector participation in the industry. The government has also introduced important new policies with far-reaching global implications for the aviation sector. The present leadership has demonstrated the will to transform the entire industry and make the hub of air transportation in Africa as is evident in the giant strides achieved so far. The federal government has left no one in doubt of its commitment towards private sector participation in the economy by gradually disengaging from major economic activities like aviation. It has resolved to only concentrate on the provision of incentives to support the private sector to advance economic growth and development. This monumental shift has equally rekindled hope and interest among the international community. Nigeria still remains the largest market on the African continent as reflected in the rising number of trade missions, enquiries, visits and the gradual inflow of foreign direct investment into the country since the return to democratic governance in 1999. Among the major interest to perspective investors are the enormous opportunities that abound in the Nigerian aviation industry and I wish to, at this juncture, invite foreign investors to come and explore this window of opportunity. H.E. MALLAM ISA YUGUDA Minister of Aviation



Harcourt, Okrika, Calabar, and Onne Lighter Terminal, handling General cargo, Liquid & Dry bulk, Container and

The Transportation sector is an important component of

Domestic cargo.

the Nigerian economy because it adds to its economic as well as the social growth. This transport network encom-

The Nigerian Ports Authority (NPA) is a fully government-

passes of a road transport systems, an air transport net-

owned organization under the supervision of the Ministry

work, waterway and sea transportation as well as railway

of Transport and is responsible for providing and opera-


ting the Nigerian ports. Its functions include maintaining, improving, and regulating the use of the ports. These

The success of a transport system in any country is deter-

functions put NPA in a position to control all public and

mined by the viability of its network. However, the

private activities in the sector. Because of its centralized

publicly owned transportation infrastructure in Nigeria is a

bureaucratic structure, which has become so burdensome

major constraint to economic development. Although,

and the management’s inefficiency of running the ports,

the road network constitutes an important aspect of the

the Federal Government has taken action to restructure

country’s development program, only 60,068 km out of

NPA. The Federal Government wants the ports to serve as

134,326 km are paved. The main link of transportation to

economic roles of enabling the wide range of economic

smaller towns and villages, major towns and cities is by

activities such as devolution of NPA’s power for competi-

roads using cars, buses, taxicabs, car hire and motorcy-

tion, creation of independent revenue sources for local


governments and the participation of the private sector in the industry to grow.

As part of the country’s infrastructure development programme, the Federal Government is currently concentra-

Shipping, apart from the oil and gas sector is a major con-

ting on wide range of initiatives in road constructions

tributing sector to the national economy. Over the years,

such as Owerri-Aba-Port Harcourt, Otta-Abeokuta and

shipping has been dominated by foreign firms because of

Ore-Benin roads.

its capital-intensive nature. The Federal Government, therefore, has introduced a Cabotage-shipping regime,


which forbids the investment of foreign firms in coastal shipping in Nigeria. The law was designed to ensure that Paved Roads 31%

only Nigerian firms are involved in local shipping. However, part of the Cabotage law has a waiver provision, which allows foreign firms to engage in coastal ship-

Unpaved Roads 69%

ping in the event of Nigerian firms not having the required capacity.

For instance, transshipment cargoes such as

petroleum products are exempted from the application of the Cabotage laws.


The success of the Cabotage law depends on the acquisition of shipping vessels by private Nigerian operators.

There are over eleven ports and eight oil terminals in

Moreover, the implementation of the law may have a

Nigeria. The main ones are Lagos, Tin Can Island,

negative effect on the indigenous ship owners that do not

Container Terminal, Roro, Warri, Sapele, Koko, Port

possess the required capacity, thus rendering the



lage. Even, the ferry scheme being run by the Federal and State Governments are not efficient due to their epileptic

Inland waterways

nature. The Federal inland water authority has only five to six ope-







Ships entered from abroad






Net registered tonnage (m)






Ships cleared to abroad






Net registered tonnage (m)






Total non-oil shipments (m tonnes)






Imports (m tonnes)






Export (m tonnes)






rating ferries and there are plans to acquire more ferries. The Federal Government is hopeful to boost inland water transportation with the approval of US$60 million for the capital dredging of River Niger and Benue.

Inland Dry Ports It is believed that the ports annual cargo traffic would likely jump from the present 35 million tonnes to about 50 million tonnes in the next ten years and over. Since the normal capacity of the ports (about 24 million tonnes) has been exceeded and the ports could hardly be

Source: Central Bank of Nigeria

expanded due to their geographical locations, the Federal Government is establishing six Inland Container Depots This remains one of the least developed sectors of the

also known as Dry Ports. The dry ports will reduce pres-

Nigeria transport industry despite the 8,575 km of water-

sure on existing seaports and stimulate private sector

ways6. As a result, it has put a lot of strain on road hau-

backed port activities in the hinterland. Containers arriving at the existing ports will be stacked on rail wagons

Merchant Maritime

and transported to the Dry Ports where they will undergo custom processes. This scheme is also expected to create

Total (3) Foreign-owned (4) Registered in other countries (5) By type

45 Norway-2, Pakistan-1, Togo-1, United States-1 126(year 2003 estimate) Cargo-7, chemical tankers-5, petroleum tankers-30, refrigerated cargo-1, roll on/off-1, specialized tankers-1

more jobs because custom clearing agents, accommodation and canteens would shift their bases to these new developed areas. The Nigerian Ports Authority has acquired land in Ifo, Ogun State for the project, while that of Abia (Abia State) is being processed.

2 All ships engaged in the carriage of goods or all commercial vessels excluding tugs, fishing vessels, offshore oilrigs, etc. 3 The number of ships, total dead weight tonnage of those ships, and their total gross register tonnage.


4 Ships that fly the flag of one country but belong to owners in another country.

Nigeria has 3,557 km of operated railway track of which

5 Ships that belong to owners in one country but fly the flag of another.

3,505 km are narrow gauge while 52 km are standard gauge. The main line which was completed in 1911, links Lagos to Kano, with extensions to Nguru from Kano, from


MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE Zaria to Kaura Namoda, and from Minna to Baro. The use

has declined due to competition from the road network,

of railways, both for passenger and freight traffic, has declined due to competition from the road network,







Passenger traffic












Goods traffic






which is more widely used coupled with the lack of maintenance, no expansion and development of the railway industry. In fact, the number of passengers carried by the Nigeria Railway Corporation (NRC) decreased by 15.8% in 2001 to 1.3 million, extremely less when compared to 6.3 million in 1990. In addition, revenue generated as well as distance covered by NRC have declined sharply. Source: Central Bank of Nigeria

The Federal Government has initiated a 25-year Railway Master Plan for the country. The plan incorporates a gigantic project of developing a network of railways cros-

which is more widely used, coupled with the lack of main-

sing the major cities in the country. The project involves a

tenance, expansion and development of the railway

new railway structure modelled after some countries

industry. In fact, the number of passengers carried by the Nigeria Railway Corporation (NRC) decreased by 15.8% in

Standard Guage 1.5%

2001 to 1.3 million, far less when compared to 6.3 million in 1990. In addition, revenue generated as well as distance covered by NRC have declined sharply. The federal government has initiated a 25-year Railway

Narrow Guage 98.5%

Master Plan for the country. The plan involves a gigantic project for developing a network of railways connecting the major cities in the country. The project is to create a

whose railways have been considered a success. The plan

new railway structure modelled after certain countries

also includes the expansion of the rail track from narrow

whose railways have been considered a success. The plan

to standard gauge as well as the privatisation of the

also includes the expansion of the rail track from narrow

Nigerian Railway Corporation (NRC).

to standard gauge as well as the privatisation of the Nigerian Railway Corporation (NRC).

Railway Lines


Nigeria has 3,557 km of operational railway track of which 3,505 km are narrow gauge while 52 km are stan-

In the late 1970s, there was tremendous growth in the

dard gauge. The main line, which was completed in 1911,

number of operators, airports and passenger traffic in the

links Lagos to Kano, with extensions to Nguru from Kano,

aviation sector. However, the industry witnessed serious

from Zaria to Kaura Namoda, and from Minna to Baro.

decline mainly due to growing cost, poor management,

The use of railways, both for passenger and freight traffic,

bad policies from the public and private operators and


MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE unfriendly investment environment in the 1980s and

tration to deregulate the industry and boost the economy,

1990s. For example, the stated-owned Nigerian Airways

many private investors’ confidence are growing with the

has experienced major financial problems due to misma-

realisation that a vibrant and profitable aviation sector is

nagement, large debt as well as diminishing fleet. It had


more than 25 aircrafts in 1983 but was down to only 3 in 1999.

There are about 20 main airports, run by Federal Airports Authority of Nigeria. Today, new private airlines are

With the restoration of democratic government and

beginning to enter into the market, dominating the

genuine demonstrations on the part of present adminis-

domestic routes, creating new jobs and heightening competition, resulting in better customer services and reaso-

Nigeria Airways





2000 *

nable air fares to air travellers. The international routes are presently dominated by foreign airlines.

Passengers (‘000)

Local airlines

such as Chanchangi Airline, IRS Airlines, ADC, Belleview,

Domestic routes 156





etc are among those operating and doing well in the domestic aviation sector today. Total passenger traffic rose by 37% to US$3.7m, representing 98% of domestic

Passenger-km (m)






Cargo (‘000 tonne-






flights in 20017. However, the industry still needs more improved funding and investment in technology to give it the capacity to profitably meet the needs of a fast growing market and fit into the global aviation industry.

km) Africa routes 32





To put this sector in the right direction, the Government has instituted the Nigerian Civil Aviation Policy in 1999.

Passengers (‘000)

This policy was designed to promote the establishment of Passenger-km (m)






Cargo (‘000 tonne-






a safe, efficient, reliable, dynamic, customer-focused, market driven, self-sustaining, high-tech industry, which would grow the sector at a minimum rate of 7% per annum.

km) International routes

Passengers (‘000)






Passenger-km (m)






Cargo (‘000 tonne-








The Aviation industry which was one of the biggest

* Provisional

employers of labour is losing about $2 billion yearly as

Source: Central Bank of Nigeria, Annual Report and Statement of

capital flight due to the absence of a functional national


carrier. For this reason, the Federal Government is deter-


MAIN SECTORS OF THE ECONOMY: TRANSPORT & INFRASTRUCTURE mined to privatize the Nigerian Eagle Airline (formerly

Harcourt, Sokoto and Yola.

Nigerian Airways) through its privatization’s agent, the Bureau of Public Enterprises (BPE). The government has

Having had a N2.3 billion turnover in 2003, and a current

assured the Nigerian public that the Nigerian Eagle Airline

market share of approximately 25%, the company plans

would fly before the end of 2004 despite the uncertain-

to expand their operations within the West and Central

ties that has followed with the appointment of South

African region. Once international operations begin, ADC

African Airways (SAA). Although SAA has not met some

Airlines is planning to purchase more Boeing 737-200 air-

of the conditions set by the Federal Government such as


the reciprocal allocation of 10 percent equity in the South African flag carrier, however, other European carriers -

According to Captain Omame, Managing Director of ADC

Virgin Atlantic Airways, Air France, KLM and Lufthansa


have expressed interest in the new national carrier. Nigeria is the place to do business, because the dark years are over, and although it takes time to recover,


Nigerians are full of energy and willing to do business, therefore this is a market no one should ignore.

Aviation Development Company Plc. (ADC Airlines)

Aero Contractors Company of Nigeria Ltd

Captain A. Omame

Mr. Koen Neven

Managing Director

Managing Director

84 Opebi Road, P.M.B 21751 Ikeja Lagos

M.M. Airport, P.M.B.21090, Ikeja

Tel: + 234 - (0) - 1 - 4962230 / 4962657 Fax: + 234 - (0) - 1 - 4970086 E-mail:

Lagos Tel: + 234 - (0) - 1 - 7916957 / 7749726 Fax: + 234 - (0) - 1 - 4971973


E-mail: Website:

ADC airlines was created in 1984 as a training company, and eventually evolved into a non-scheduled airline in

For 44 years, Aero Contractors corporate objective has

1991, and upgraded in 1992 to a fully scheduled airline.

remained the same, to provide reliable, efficient and safe

It currently has a staff of roughly 290 employees.

services at competitive rates to their customers. Aero complies with European JAR regulations and is approved

Its mission is to constantly move the boundaries of air

by all of the major oil and gas companies who demand

travel in Nigeria, and to create opportunities to make air

security, safety and high standards of professionalism for

travel in Nigeria easier. ADC Airlines presently has a fleet

their employees who travel frequently. The company

of 4 Boeing 737-200 that operate scheduled flights on the

offers various aviation services:

following routes: Abuja, Calabar, Kano, Lagos, Port




“An old man is there to talk.” Nigerian proverb



MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF COMMUNICATIONS Over last four years, the telecommunications sector of the economy has recorded monumental and remarkable progress. The Nigerian telecommunications industry before May 1999, when the new democratic administration was inaugurated, was to say the least, in a sorry state. The offices under the Ministry were performing below their optimum capacities. The unacceptable situation indeed tasked the Ministry into embarking on reforms aimed at ensuring that these government offices performed to their optimum in line with the high expectations of Nigerians. It was against this background that the Ministry undertook the re-organisation and restructuring of the agencies to reflect the resolve of the administration to provide effective and world-class postal and telecommunications services to a hitherto disappointed populace. Consequent upon this, a new telecommunication policy was initiated in the year 2000, thus paving way for the deregulation and liberalization of the telecommunications sector. This has led to unprecedented expansion in the sector with the emergence of many private telecommunications operators (PTOs) competing effectively with the only existing national carrier, Nigerian Telecommunication Limited (NITEL), which hitherto had enjoyed an unchallenged monopoly. The opening up of this vital sector resulted in the introduction of the GSM technology in 2001 with the licensing of three operators to provide digital mobile services. The competitive bidding, which led to the emergence of MTN, ECONET and M-Tel was hailed as one of the most transparent auction to be carried out on the continent. A second National Carrier, Globacom, was also licensed in 2002 to provide both mobile and fixed services. H.E. Chief Cornelius O. Adebayo Minister of Communications



federal government deregulated the sector by issuing licenses to four GSM operators namely MTN Nigeria, Vmobile Nigeria (formerly Econet Wireless Nigeria),

The Nigerian telecommunication sector has experienced a


rapid boom since the inception of the licensed Global

Telecommunications Limited (Mtel). Private sector inves-

System of Mobile Communication (GSM) operators in

tment in Nigeria’s telecom industry increased to a record

August 2001. In the past, the Telecommunication sector

US$4 billion in 2003. In addition, over 200 telephone

was predominately controlled by the state-owned com-

companies were given licenses to provide value-added

pany, Nigerian Telecommunication Limited (NITEL).


services (high-speed data transfer, telex links and satellite

1999, there were roughly 500,000 lines available. Lack of

links), community and rural telephones as well as regional

competition, unreliable power supply and high demand

and national telecom services. Today, there are various

on an overloaded telecommunication infrastructure ren-

business telecommunication services linking Nigeria to the

dered the telecommunication sector inefficient.

rest of the world by offering digital and broadband ser-





vices for voice, data and video applications. In an effort to reform the underdeveloped telecommunication sector and institute various positive changes, the

The transformation of Nigeria’s communications sector







% of Total

Digital Lines








Analog Lines*











1.20% 31%


ISDN** PTO lines***







Total Capacity







Digital Lines








Analog Lines












PTO lines








Total Connected







Capacity Utilization







Connected Lines


Source: NCC * Analog exchanges are being converted, the reason for declining capacity and connections ** All ISDN lines in Nigeria are owned by NITEL *** No PTO has ISDN lines installed, however, a few, namely Mobitel and 21 st Century Technologies offer DSL service. Commercial sale hovever appears limited. PTOPrivate Telephone Operators All figures are actual, except for 4 PTOs for wich estimates have been made.IInformation current by December 2002


MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT Summary Information on Installed Mobile Phone Capacity and

since the inception of the three GSM operators in 2001


and the start of the fourth operator, Globacom Limited in









2003, has been nothing short of astounding. Nigeria is now the fourth largest mobile market in Africa after South


960.000 1.020.000 1.918.500 2.193.325 **

Africa, Egypt and Morocco and the fastest growing market in Africa with more potentials yet to be tapped. With its huge population and high levels of demand, the

Subscribers 266.461


843.629 1.137.088 1.740.376 2.050.000

% of

subscriber base was over 1.1 million by the year-end 2002, increasing year after year, and covering over forty-

*** 89%






four (44) cities and towns in twenty-three (23) states by the end of 2002. Also, investors feel more secure inves-


ting in the economy now as the GSM has offered a corGrowth






nerstone in Nigeria’s race towards attainment of ade-


quate infrastructure. Employment also has increased dra-


matically (directly and indirectly) since the presence of the

Figures in italics are best estimates *Estimate **Estimate ***The percen-

GSM operators in Nigeria, attracting mobile phone manu-

tage of mobile subscribers who use their mobile phones for airtime resale

facturing companies such as Samsung, Nokia, Siemens,

in business centers and phone kiosks is unknown. This category of users

Motorola among others.

may have extended mobile access to a large proportion of the population,

To further enhance and promote local employment in the

as one may actually be serving several users.

sector, the Government has ordered all GSM operators to have all their recharge cards produced locally by January 2005. This unfolding economic boom in the GSM market

Global Telephone Comparisons4 (as at December 2002) World



Fixed Lines



GSM Lines




Total Lines




Fixed as % of Total




will likely be the most influential industry for Nigeria’s economy in the future. However, there are some complaints from the customers about the high tariffs by the GSM operators, generally perceived to be one of the highest in the world. The GSM operators have defended their high tariffs (about 0.35 US dollars per minute for local calls), by referring to the high licensing fee of US$285 million each of them paid, the Total Number of Connected Fixed Lines (June 2003)

GSM as % of Total





Fixed Lines

12 Months Fixed










12 Months GSM




3 Source: eShekels, NCC 4 Source: Nigeria Communications Commission (NCC) website


Source: NCC

MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT Total Connected Lines in Nigeria 1 (GSM+Fixed lines)

Main Fixed Telephone Line in Operation

(CAGR) of connected fixed lines is 9.6%3 between 1997 1NCC website

and 2002.

need to generate electric power for their services as well as the construction of transmission infrastructure. The Government maintains that in a liberalized country like


Nigeria it is the market forces that would eventually bring down the tariffs, and not price control that could discourage investors. The Government is planning to increase

In recent years, there has been an emergence of Internet

competition in this sector by granting licenses to more

service providers in the country. These Internet providers

GSM operators.

serve dial-up services as well as Internet cable connections

In addition, the Government has awarded several licenses

and VSAT connectivity. Cyber cafĂŠs are now located in

to several fixed line and fixed wireless telephone provi-

every corner of the most major cities in Nigeria. Even

ders. The total installed capacity for fixed lines in Nigeria

some remote regions have cyber cafes to facilitate con-

is 1,102,844, while the total number of connections as of

nectivity with the other regions. Telecommunication cen-

June 2003 is 724,790. Compound Annual Growth Rate

ters, popularly called business centers are available for placing domestic and international telephone calls, e-mail

G S M R a n k i n g w i t h o t h e r T e l e p h o n e 2 Service

services and the providing business services to small and medium scale businesses (SMEs), which is one of the main focuses of the present administration. To further enhance the development of Internet services, in 2001, the Nigerian government set up the initial capacity of 5,500 portals starting with Lagos as the main point of presence with 3,000 portals. Furthermore, the Government has instituted some initiatives to further develop the telecommunication industry. One such initiative is the National Economic Empowerment and Development Strategy (NEEDS), created to introduce strategies that would improve internet access and raise com-

2NCC website (Estimate as of December 2002)

puter usage and literacy levels in the country through the


MAIN SECTORS OF THE ECONOMY: TELECOMMUNICATION & IT use of fiscal and financial incentives to encourage private

GSM network in Nigeria. Glo Mobile introduced is “Pay by

sector investment in service provision in the industry.

the Second” billing which is regarded as the most innova-


tive landmark. Others are MMS, GPRS, WAP, and roa-

1 NCC website

ming. It has become the fastest growing GSM network in

2 NCC website (Estimate as of December 2002)

Africa, achieving a record of one million subscribers and

3 Source: eShekels, NCC.

covering over 87 cities and towns in just nine months of

4 Source: Nigeria Communications Commission


(NCC) website

Glo Fixed: fixed line phone (FLP). In the initial launch phase, fixed line services will be available in 15 major cities in Nigeria with a capacity of 500,000 lines. A 10,000-km long private optical fibre backbone network is being


deployed. Glo Gateway: It is Globacom’s long distance telecommunication carrier business. It interconnects with many inter-

Globacom Ltd

national networks and the leading traffic carriers in the world.

Dr. Mike Adenuga (Jr.)

Glo Online: It aims to be Nigeria’s premier Internet service



Mike Adenuga Towers 1, Mike Adenuga Close, Victoria Island Lagos

Globacom aspires to be a world class company focused on

Tel: + 234 - (0) - 1 - 2627513 / 4

the convergence of voice, data and multimedia technolo-

Fax: + 234 - (0) - 1 - 2627510

gies. Their vision is to build the biggest and best network


in Africa. Glo Mobile has covered most major highways in


the country and has plans to build a capacity of five million lines by the end of 2004. Globacom has also set up

Globacom is one of the world’s most advanced telecom-

interconnection pacts with leading international carriers

munications companies. It is the second national operator

including Belgacom, Cable and Wireless, Link Africa, and

(SNO) after NITEL and it delivers innovative telecommuni-

France Telecom.

cations, information and entertainment services to the people of Nigeria. The company has concentrated its initial efforts in the rolling out of its mobile network (Glo

Linkserve Ltd

Mobile), where it provides a range of customer-friendly products, services and tariffs never before experienced in

Mr. Igho Mrakpor

West Africa.

Chief Operating Officer (COO) Plot 569, Durban Street, Wuse II Abuja

In his product range Globacom has several departments

Tel: + 234 - (0) - 9 - 5231821


Fax: + 234 - (0) - 9 - 5231826 E-mail:

Glo Mobile: despite beginning operations two years after its competitors, Glo Mobile has today become the premier







“A traveller to distant places should make no enemies.” Nigerian proverb


MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF CULTURE AND TOURISM “Investment opportunities in the Nigerian Tourism industry� Nigeria is a vast country with the potential to meet the needs of every investor in the tourism sector. The country has a landmass of about 923,768 km2, located wholly within the tropics. Nigeria is blessed with a warm sunny climate, fascinating beaches and evergreen vegetation in the southern part, while in the north, the savannah grassland is overshadowed by alluring landforms. There are other interesting features like waterfalls, spring hills and pockets into holiday resorts at Mabilla Mountains, Jos Plateau and Obudu Cattle Ranch. The country is also blessed with a wide range of common and rare species of tropical wildlife in both the forest and savannah zones. 8 of these are being protected as national parks while over 40 others form protected found in all the 36 states of the federation. The cultural assets of the nation are of universal recognition. The richness and diversity of the Nigerian culture is a manifestation of the socio-cultural differences of the over 250 ethnic groups that have inhabited the area of ages. There are over 40 museums, monuments as well as arts and crafts in the form of leather works, bronze casting, calabash carving and pottery works. These, coupled with the hospitality of the over 120 million people, make Nigeria one of the most richly endowed potential tourist destinations on the globe. With these rich and diverse potentials, investment in the Nigerian Tourism Industry is an attractive venture. The investment climate in the country is one of the most favourable in the continent not only because of the stable democratic system and values but also because of the liberalisation of the economy. This includes the provision of incentive packages to encourage the participation of local and foreign investors in the development of the tourism sector as contained in the National tourism policy. To facilitate the realisation of the above objective, through active participation of the private sector, incentive packages are provided as follows: (i) Provision of infrastructural facilities and amenities such as roads, electricity, water supply and telecommunication to centres of attraction by government, (ii) Provision of land at consessional rates for tourism development, (iii) Provision of fiscal and other incentives such as tax rebate, soft loans with a long period of moratorium etc. These are in addition to conditions for partnerships and sole ownership of tourism ventures by local and foreign investors and provision of repatriation of profit, dividends etc by foreign investors among others;

To further re-position the industry, the government, with the support of the World Tourism Organisation and UNDP, is preparing the Tourism Master Plan that will provide a better guide and focus for the sustainable development of the industry.

Local and foreign investors should take advantage of this golden opportunity to invest in tourism related ventures of their choice such as: (i) Development and management of holiday resorts and amusement parks; (ii) Development and management of accommodation, conference and catering facilities; (iii) Provision and management of recreation, entertainment and sporting facilities; (iv) Establishment and management of transport service etc. Other priority sectors of the Nigeria economy, which investors can readily invest in, are agriculture, power and energy, oil and gas, solid mineral development and telecommunications. H.E. Amb. Frank Nchita Ogbuewu Minister of Culture and Tourism





TOURISM OVERVIEW Nigeria, a country rich in history, culture and tradition, is

rism scenarios, analyse potential opportunities and seek

ripe for a boom in its tourism industry. This sector of the

out the most lucrative means to attain funding for future

country’s economy has in the past been stunted by a host

tourism projects. The main thrust of government policy on

of negative factors including a deficiency of required

tourism is to make Nigeria a prominent tourist destination

modern infrastructure, facilities and lack of government

within Africa. In the process, it aims to create employment

interest due to focus on other sectors of the economy, pri-

opportunities, generate foreign exchange earnings, pro-

marily the oil and gas sector. The present government is,

mote rural tourist-based enterprises and accelerate rural-

however, determined to promote and develop tourism

urban integration.

into an economically viable industry. Indeed Nigeria wants

President, the Vice-President and some tourism-friendly

to attract a substantial percentage of the 47 million tou-

State Governors. The effects of the government’s policy

rist arrivals to Africa forecasted by the World Tourism

can already be felt. The total number of hotel beds has

Organisation by the year 2010. The 2002 report of the

nearly tripled from 12,900 in 1999 to 37,528 in 2003.

The Council members include the

WTO announced that in the year 2001 Nigeria enjoyed the biggest growth in the tourism sector along with

Some of the activities of the present administration which

Namibia and Zambia, occupying the 8th position in Africa

are directed at re-energising the tourism/hospitality

as a tourist destination.

industry in line with its policies include:

Tourism has recently been declared as one of the key

i) Participation at the World Travel Market (WTM) London

areas for economic development from 2003-07 and pro-

13th to 16th November, 2001;

gressive steps are being taken to achieve this objective.

ii) International Tourism Course (Exchange) ITB Berlin,

The restructuring of the culture and tourism sub-sector of

Germany, 3rd - 7th March, 2001;

the economy as a separate ministry in 1999 is an example.

iii) Caribbean Expo, London from 27th to 29th July, 2001;

The new ministry has already accelerated growth in both


the identification and development of the sectors diverse

seminar/training course for African region on statistics

resources and potentials, paying attention to developing

and the development of Tourism Satellite Account (TSA)

tourism in each geo-political zone of the country. 2003’s

in Tangier, Morocco, 5th to 7th February, 2001;

expected revenue out of tourism activities was N643.3

v) 26th International Congress ATA and the 12th

billion and with a calculated growth of 7.7% per annum

Convocation of African Ministers of Tourism held in Cape

until 2013, the tourism industry will mean N2.194 trillion

Town, South Africa from 20th to 25th May, 2001;

by that year creating a total of 1,992,570 direct and indi-

vi) 5th African Travel Association (ATA) symposium of

rect jobs.











November 2001. One of the primary initiatives taken by the government of President Olusegun Obasanjo was the inauguration of the Presidential Council on Tourism (PCT). It was established as part of the commitment of the Federal Government to develop tourism in Nigeria. Its objective is to review tou





ECONOMY: TOURISM Main Institutions The following institutional framework has been put in place to enhance effective execution of the tourism policy:

Travel Marketing Partners is a private organisation that

(a) The Federal Ministry of Culture and Tourism assumes

specialises in the marketing and promotion of tourism in

full responsibility for policy initiation and monitoring;

Nigeria. It is organising a tourism exhibition in Abuja to

maintaining links with the state governments on funding

showcase the tourism potentials of the country. The travel

and monitoring of nation-wide tourism infrastructure; and

exhibition is tagged Abuja International Travel Market

relating to international tourism agencies.

(AITM), which will be held in Abuja from December 1st to

(b) The Nigerian Tourism Development Corporation

5th, 2005. The exhibition will serve as a meeting point for

(NTDC) is the apex tourism body responsible for promo-

industry stakeholders and allied businesses to network

ting, marketing and disseminating information on the

and strike deals that will enhance the development of tou-

industry locally and internationally through publication of

rism. In an effort to develop the sector, AITM would now

handbooks, brochures and general guidelines for the ope-

become an annual event.

ration of the industry. It collaborates with the private sector as well as other tiers of the government in imple-

Tinapa Project

menting policy directives and executing tourism projects. It co-ordinates the activities of organised private sector

The TINAPA project in Calabar, the capital of Cross River

tourism associations and practitioners.

State in southern Nigeria, will be a catalyst for investment.

(c) The Presidential Council on Tourism (PCT) was esta-

The 80,000 sq. metre Tinapa shopping, entertainment,

blished as part of the commitment of the federal govern-

leisure and hotel complex - the first phase of will be com-

ment to tourism development. The main thrust of govern-

pleted at a cost of about US$120 million by mid-2006 and

ment policy on tourism was to generate foreign exchange

will be funded by (60 percent) equity and (40 percent)

earnings, create employment opportunities, and promote

debt. On January 15, 2004, construction began with the

rural enterprises and national integration among other

Nigerian government building the support infrastructure.


The first phase of the development will be comprised of

Nigeria has many potential areas for tourism such as

the shopping centre, two hotels, a water theme park and

waterfalls, unique historical sites and artefacts, rocks for-

a golf driving range. And, phase two, which is yet to be

mations etc; however, this sector has been neglected for

cost estimated, will include another four hotels, eco-tou-


rism and adventure sport facilities.

It is therefore the responsibility of the PCT, led by President Olusegun Obasanjo (Chairman of the council),

The Nigerian public and private sectors are expected to

to brainstorm on how to turn the tourism sector around.

take up the bulk of the equity while the main source of

(d) The Federation of Tourism Associations of Nigeria

the debt financing will come from South African entrepre-

(FTAN) functions as an umbrella body for private sector

neurs. Already, interested business representatives have

tourism, travel and hospitality associations and organisa-

been flown into the country by the Cross River State

tions in Nigeria.

Government to look at the project.

Goals of FTAN include: * Interaction with government on behalf of private tourism, travel and hospitality associations in the country.




* Acting as the representative of the private sector inte-


rests in the tourism, travel and hospitality sectors of the national economy with the government of Nigeria, with a view towards harnessing the abundant tourism resources

BTI Nigeria

within the country. * Mobilising and evolving rules and regulations for the

Mr Olufemi Adefope

effective control and regulation of the industry to ensure

Managing Director

that every tourism and tourism related association in the

28c Adetokunbo Ademola Street, Victoria Island Lagos

country belongs to FTAN.

Tel: + 234 - (0) - 1 2625920 /5

* Initiating programs of tourism manpower development

Fax: + 234 - (0) - 1 - 2625929

and tourism training workshops and seminars so as to


provide social skills and the scientific exchange of information.

BTI Nigeria is the leading corporate travel management

* Promoting public awareness and education about tou-

company in Nigeria. BTI Nigeria, incorporated on the 25th

rism and tourism related activities through the use of the

of November 1998, is a partner in Business Travel

press and electronic media.

International, the world’s leading corporate travel mana-

* Promoting bilateral exchange between FTAN and similar

gement company.

local and international organisations in other countries.

Nigeria has seen many changes and experienced extensive

Since joining the organisation, BTI

growth in the business travel market both on a local and

Principal Activities of FTAN:

global basis.

The company now services many major

domestic and international clients, all of whom rely on the * Market Research: Studies of tourism activities and deve-

local expertise provided by BTI Nigeria. BTI Nigeria

lopment trends, facility operations, tourism consumer

obtained I.A.T.A certification as an accredited agent on 21

spending behaviour and attitudes.

July 1999.

* Membership Support: The membership service staff answers all inquiries to help the members in many aspects of

BTI Nigeria combines the strength of the global BTI brand,

their businesses.

with its acknowledged expertise, infrastructure and tech-

* Information Services: Reports, abstracts, and technical

nological capability, along with its local strength, to offer

papers and trade journal articles on every aspect of the

clients outstanding levels of customer service. This flexi-

business of tourism.

bility and knowledge is essential in the challenging envi-

* Consulting Services: Operational reviews for existing

ronment in which they work.

tourism facilities, feasibility studies and demand and cash

In light of the ever-increasing complexity of the corporate

flow analyses for lenders and investors.

travel market and the need for new technology, BTI

* Promoting Growth of the Industry: Programs aimed at

Nigeria has introduced BTI Gems, a world-leading product

bringing more players into the tourism industry, increa-

for consolidating and reporting client travel expenditure

sing and encouraging tourism development in the

at both a country and a global level. BTI Nigeria also has


access to BTI CoRRe-X, which provides a suite of prede-

* Issue Management: Working with other tourism asso-

fined applications and routines. These includes: quality

ciations and industry members to build awareness on

check, seat finder which is an automatic check to monitor

issues that impact tourism, travel and hospitality.

the availability of waitlisted seats, fare finder which




“An ant-hill that is destined to become a giant ant-hill will definitely become one, no matter how many times it is destroyed by elephants.” Nigerian proverb


MAIN SECTORS OF THE ECONOMY: WORKS & HOUSING MESSAGE BY HIS EXCELLENCY THE FEDERAL MINISTER OF WORKS The Federal Ministry of Works is the main agency of the federal government for the formulation and implementation of public policy in the roads sector.

Over the years, the nation has built an expensive network of roads to facilitate and energise the rapid and sustainable growth of the economy. The national road network is comprised of an estimated 194,000km of roads, with the federal government being responsible for about 17%. State government maintained roads cover about 32,000km and consist of the nation’s major expressways and interstate highways. They link up the entire country and facilitate access to the ports as well as the major industrial, agricultural, commercial and population centres in the country.

Notwithstanding the seemingly progressive dwindling in yearly federal budgetary appropriations for road development, there is a strong resolve to complete all the projects started by the administration. Plans are also being made by government to develop new national revenue productive areas in tourism, agriculture, inland container depots, petroleum, solid minerals and bitumen production, steel development, etc. by providing access roads to the notable zones.

Government is considering increasing its revenue for road development through the introduction of a petroleum levy to be dedicated strictly to the funding of road maintenance. Another funding strategy under consideration is the application of the concept of build, operate and transfer (BOT) for new projects. Fifteen roads and bridges have been identified where BOT could be applied. An enabling legal framework is in the works to enable private entrepreneurs to invest in road construction and operation for a given period of time to recoup their investments and then return the roads to the government for subsequent management and operation.

The Ministry has launched a programme tagged “Operation 500 Roads” under which the Ministry through its maintenance agency, the Federal Roads Maintenance Agency (FERMA) is undertaking massive repairs and maintenance of 500 selected federal roads spread across the country. A total length of 26,400km of roads spread throughout the country, criss-crossing all federal constituencies, will be recovered either by Direct Labour or Maintenance by Contract.

Under the Direct Labour approach, all the Federal Controllers of Works in each state are being charged with the responsibility of maintaining at least 100km of roads per month. It is expected that 450 No. roads with a total length of about 14,400 will be maintained under this arrangement.

Under the Maintenance by Contract, the agency will retain the services of reputable contractors having asphalt plants located along selected routes. It is expected that about 50 No. roads with a total length of about 12,000km will be repaired under this arrangement.

On the whole, the Federal Ministry of Works is embarking on massive construction projects that will undoubtedly enhance the peace and volume of economic activities in the country. These construction projects offer a wide variety of opportunities for foreign entrepreneurs to invest in, taking advantage of the very liberal investment climate that this administration has now opened up in the country.

H.E. Senator Adeseye Ogunlewe Minister of Works



government-owned roads that lead to their businesses.

Water Roads Nigeria is a country with an abundance of water sources The main means of transportation is Nigeria is through its

in the form of rivers, lakes and lagoons. However, drin-

road network. The country’s rail transport system and

king and potable water is not readily available to a large

waterways have promising prospects for development but

majority of Nigerians due to inadequate public water

currently they are poorly developed. On the other hand,

infrastructure and increasingly high pollution. This is a

domestic air transportation is developing at a much more

great challenge because water is not only a critical human

rapid rate. However, Nigeria’s road network continues to

need but also a major factor of socio-economic develop-

constitute the most important aspect of the country’s

ment and a determinant for the eradication of water

development program as they help transport 95% of the

borne diseases especially in the rural quarters of the

nation’s goods and passengers.

country. Several state governments have initiated policies and programmes in the last few years to improve water

Nigeria has a highway road network of the 194,394 kilo-

supply and water infrastructure facilities in various com-

metres of which only 60,068 are paved while the rest is

munities, industries, farmlands and establishments.

dirt road. The majority of Nigerian roads are main trunk roads that link the major cities and the larger towns

Water Supply and Sanitation Programme

within the country. The Lagos-Ibadan Expressway and the Port Harcourt-Enugu Road are among the most frequently

A National Water Supply and Sanitation Policy

used roads in the country. Rural areas and the hinterlands are almost devoid of any proper roads to connect with the

This policy has been initiated to regulate the water supply

rest of the country.

and sanitation for all stakeholders in the country. This involves the collaboration of the three tiers of government

As part of the country’s infrastructure development pro-

as well as private sector participation.

gramme, the government is currently concentrating on a wide range of initiatives in road construction such as

B Rehabilitation of Urban Water Schemes

Owerri-Aba-Port Harcourt Road, the Otta-Abeokuta Road and the Ore-Benin Road to name a few. At the same time,

This World Bank assisted programme to provide water to

in 2002, the federal government established the FERMA

about 10 million people has been completed. Also, the

(Federal Roads Maintenance Agency) with the mandate to

National Urban Sector Reform project integrating private

maintain the existing federal road network. The agency

sector participation in State Water Supply schemes has

started with the “Operation 500 Roads” with the aim to

been launched.

repair and maintain above 26,000 kilometres of roads. On the part of the private sector, countless representations have

C Small Towns Water Supply and Sanitation Pilot Project

been made to various levels of government, appealing for the repairs of some major roads. In some instances, corporations located

The policy thrust of this project is to harness private sector

within the metropolises have taken it upon themselves to repair

potentials and maintenance of water supply provided


MAIN SECTORS OF THE ECONOMY: WORKS & HOUSING through governance. The policy is targeted at 21 million

Nigeria to deliver houses to contributors of the National

Nigerians and is financed by the World Bank and the

Housing Trust Fund (NHTF) in Lagos and Abia states under

European Commission.

the NHTF scheme. Working with estate developers, the company has funded the construction of over 1,000 hou-

D Water Quality Laboratories Monitoring Network

sing units in the country’s capital city, Abuja. In addition to residential housing, Union Homes also funds the buil-

This programme is aimed at quality control of water and

ding of shopping complexes and tourist attractions.

providing and supplying public and private sector agencies. Two laboratories have been constructed while four

Recently, the United States government, through its

laboratories are proposed to be established in Dadin-

Treasury Department, has expressed interest in training

Kowa, Minna, Akure and Enugu.

promising Nigerian mortgage operators by developing credit authority to leverage lending capital and engage local private sector financial institutions as providers of


micro loans. There will also be some involvement in efforts to computerise the operations of the Federal Mortgage

The stark lack of decent and affordable housing in

Bank of Nigeria (FMBN), a government-owned institution.

Nigeria’s urban and rural areas has persistently been an obstacle to economic growth and development. With a

In addition, the Urban Development Bank of Nigeria has

rapidly growing population, the task of meeting the hou-

recently been reinvigorated to assist in project financing

sing needs in Nigeria is proving to be beyond the facility

for the upgrading and renewal of necessary infrastruc-

of the government. In a bid to deal with the problems,

ture. In 2002, the bank sanctioned twenty-three projects

Nigeria’s Federal Ministry of Housing and Urban

for implementation, which are located in the six-geopoli-

Development has tasked itself with the responsibility of

tical zones of the nation in areas of water supply, road

ensuring an improvement in access to adequate housing

construction, housing development, unity markets and

for more Nigerians.

motor parks. The projects, which are in their various stages of completion, include the following:

Under the National Housing Policy, the government is seeking the participation of private sector developers and investors. The aim of

Housing Development Scheme at Bogoro, Bauchi State

these partnerships will be to identify and implement approaches to

Redevelopment of Kachia Market and Motor Park in

housing delivery through productive working relationships between

Kaduna State

the private and public sectors. The ministry’s Partnership and

Rural Water Supply Scheme in Imo State.

Business Development Programme has as its primary objective, the

Construction of Shopping Complex in Gombe State.

support of small, medium and large scale estate development pro-

Construction of a trailer park in Sagamu, Ogun State.

posals for sustainable delivery of mass housing and ancillary community services. Union Homes, a subsidiary of one of the nation’s largest banks, has over the last decade proven to be one of the foremost mortgage companies making progressive strides in housing development. The institution was the first in


eBizguides Nigeria has been produced during a 10 months stay Abuja and Lagos  and the regions of  Nigeria. This guide was possible thanks to the hard work in N i g e r i a

o f :


Melanie Hardiman: an English woman with passion, enthusiasm



Stephanie Lagattu: a French lady who made the d i ff e r e n c e


Jeff Moreau: another French guy full of energy to dynamise

ever ything



Marc Layola Otin: a Catalan with extensive African knowledge


N i g e r i a’s


LawrencePierre: the best of what France and Brittany can do together to bring trust and confidence In





Frederic Van De Vyver: a delighted Belgian guy with a great team



I n

M a d r i d

Pascal Belda : it is a privilege to publish a book aboutNigeria. Elisa L. Fuentes : a great spanish artistic touch to design the u





- eBizguide Kenya. - eBizguide Tanzania. 2003/04 - eBizguide Ethiopia. 2004/05 - eBizguide Algeria. 2004/05 - eBizguide Ghana. 2004/05

In Nigeria: - Marc Layola - Lawrence Pierre - Stephanie Lagattu

- eBizguide Mozambique. 2004/05 - eBizguide Egypt. 2005/06

ENERGY ³ TOURISM ³ AGRICULTURE ³ FINANCE ³ INDUSTRY In Nigeria: - Melanie Hardiman - Jeff Moreau

In Madrid: - Frederic Van De Vyver - Pascal Belda - Elisa L. Fuentes



- eBizguide Nigeria. 2005/06 - eBizguide Libya. 2005/06


- Libya - Kenya - Kenya - Kenya - Kenya

Profile for ebizguides

eBizguides Nigeria  

Nigeria, country, investment, guide, guidebook, business, entertainment, top 150 companies, legal framework, infrastructure, energy, educati...

eBizguides Nigeria  

Nigeria, country, investment, guide, guidebook, business, entertainment, top 150 companies, legal framework, infrastructure, energy, educati...