RESTRICTED 
WORLD TRADE WT/BOP/W/9 
ORGANIZATION BOP/W/165 
10 November 1995 
(95-3497) 
Committee on Balance-of-Payments Restrictions 
1995 CONSULTATION WITH NIGERIA UNDER ARTICLE XVIII: 120^) 
OF THE GATT 1994 AND THE RELATED UNDERSTANDING 
Background Paper by the Secretariat 
1. This paper has been prepared in accordance with paragraph 12 of the Understanding on the 
Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994. 
1. Previous consultations with Nigeria 
2. Nigeria first consulted with the GATT 1947 Committee in April 1984 under Article XVIII: 12 (a). 
Three simplified consultations were held in October 1986 (BOP/R/165), October 1988 (BOP/R/179) 
and March 1991 (BOP/R/190). They were followed by a full consultation in May 1993 (BOP/R/209), 
resumed in November 1993 (BOP/R/209/Add.l). 
3. At the last consultation, the Committee concluded that relaxation of fiscal and monetary policies 
had resulted in a resurgence of inflation, a significant deterioration of Nigeria's external and internal 
economic balances, and was the main cause of the country's economic decline. Rapid and decisive 
adjustment in such policies, including reaching a durable solution for servicing external debt, were 
required to restore growth and solve the country's balance of payments difficulties. The Committee 
urged Nigeria to intensify the process of trade liberalization in order to complement the necessary 
corrective macroeconomic and financial adjustment measures. Nigerian tariffs still suffered from 
unpredictability, while trade restrictions and other measures encouraged smuggling and other forms 
of illicit trade. Fourteen broad product groups remained under import prohibition. Doubt was expressed 
on whether such prohibitions could be justified under Article XVIILB. 
4. TheCommittee concluded the consultation in November 1993, following Nigeria's notification 
of a list of prohibitions maintained for balance-of-payments purposes on a tariff-line basis as requested 
by the Committee (BOP/313/Add.l). Nigeria engaged to continue to relax those restrictions with a 
view to disinvoking the provisions of Article XVIILB, provided an improved domestic and international 
policy environment would resuscitate the Nigerian economy and reduce its balance-of-payments 
difficulties and balance-of-payments situation improved. WT/BOPAV/9 
BOP/W/165 
Page 2 
II. The Trade and Exchange Policy Framework 
(i) Import restrictions 
5. Changes in 1995 resulted in the removal of the following items from the list of prohibited goods : 
day old chicks and parent stock; all sparkling wines including champagne; fruit, fresh or preserved, 
and fruit juices; vegetables, including tomato puree and paste, roots and tubers, fresh or dried, whole 
or sliced, cut or powdered and sage pitch; processed wood; rice and rice products1; aluminium 
sulphate, including alums; GLS bulbs and fluorescent tubes; R.20 batteries; branched alkyl and 
benzenes, the listed items are subject to tariff rates of between 5 and 100 per cent. From 1 January 
1995, import of furniture and furniture products are also prohibited. 16 product lines are currently 
prohibited from importation. Annex I reprodeces the current list of prohibited imports, including those 
under Article XVIII :B defined for the period 1995-2001. 
6. Export prohibitions have been introduced to encourage local processing or mitigate shortages 
in the home market. In 1988, the authorities banned exports of timber, wood in the rough and processed 
wood except furniture, furniture components and gmelina. Subsequently, prohibitions have been extended 
to cassava tuber, maize, yam tuber, beans, rice and products derived from these crops (1989); all 
imported food items (1989); raw hides and skins (1990); and palm kernels (1991). The following 
nine items are currently prohibited from exportation: beans, rice, cassava, maize, yam, timber, rawhides, 
scrap metals and unprocessed rubber. 
7. All imports valued at more than US$1,000 (the limit was US$5,000 before 1991) are subject 
to preshipment inspection to ascertain quality, quantity and normal price. "Clean Report of Findings " 
and "Import Duty Reports" are required to effect settlement in foreign exchange and release of goods 
by customs authorities at points of entry. Guidelines introduced on 1 June 1995 require importers 
to pay duties through six designated collecting banks ; this measure was expected to raise some additional 
US$430 million in 1995.2 
(ii) Import duties and other charges 
8. The Harmonized System customs tariff was introduced in January 1988, accompanied by tariff 
reforms designed to provide a stable tariff structure for the following seven years, but selective tariff 
amendments have occurred every year since then. During 1989-1991, changes involved increases in 
import duties up to 100-300 per cent on certain products. A new Customs and Excise Tariff covering 
the period 1995-2001 was announced with effect from 1 March 1995. According to the Nigerian 
authorities, the new schedule is to reduce the average tariff as well as the number of tariff rates and 
their range; it will also eliminate most exemptions. Nigeria's new customs tariff was made public 
in August 1995. The dispersion in import duty rates was reduced under the new tariff structure from 
0-300 to 5-100 per cent. Import duties have been reduced on inputs for local industries. Examples 
include battery parts, cold rolled and hot rolled sheets, tin plates, milk powder and fats, refractory 
bricks, sheet glass and marine engines. In August 1995 the authorities temporarily reduced tariffs 
'Following the initial announcement of its removal from the list of prohibited goods, reports indicated that 
rice remained a banned import (Financial Times and Marchés Tropicaux. 20 January 1995). 
2African Economic Digest. 19 June 1995. The increased revenue was expected to result from checking 
fraudulent practices at the country's ports. WT/BOP/W/9 
BOP/W/165 
Page 3 
further, by one third, in order to lessen the impact of the shift to customs duty valuations at the 
autonomous exchange rate. 
9. Only one tariff item was bound prior to the conclusion of the Uruguay Round. Within the 
framework of the Round, Nigeria undertook bindings for products in Annex I of the Agricultural 
Agreement, at a ceiling rate of 150 per cent, with a maximum level for other rates set at 230 per cent 
(including other duties and charges). For industrial goods, the customs duties of 68 four-digit tariff 
items were bound: 48 at ceiling rates of 40 to 50 per cent and 20 items at rates of 60 to 80 per cent. 
All 68 items are subject to a maximum level of 80 per cent for other duties and charges. 
10. Anti-dumping actions have resulted in incre were changed from 35-70 per cent to 200 per cent 
on fluorescent tubes, R.20 batteries, starch, GLS tubes and glass shells. However, higher duties apply 
to all sources, apparently for administrative reasons and for the proteciton of infant-industries. Nigerian 
anti-dumping legislation is being reviewed and the enabling legislation will be enacted into law at the 
appropriate time. 
11. The Department of Customs and Excise levies a 9 per cent across-the-board surcharge on imports, 
comprising a Port Development tax (7 per cent), a Raw Materials and Development Council surcharge 
(1 per cent) and a Shippers'Council surcharge (1 per cent). The taxes are levied to maintain the services 
of these bodies. Landing charges, equivalent to excise duties on imports competing with local products 
subject to excise duty, have been levied since 1988 on a non-discriminatory basis. 
(iii) Exchange regulations affecting trade 
12. The changes introduced on 1 January 1995 to the exchange rate mechanism marked a return 
to a two tier system, that existed until March 1992, which consists of an official market and on 
autonomous foreign exchange market where both banks and bureaus operate. All unofficial transactions 
take place in the autonomous market. The naira official exchange rate against the US dollar, which 
applies to selected government transactions (such as remittances to foreign missions, contributions to 
foreign bodies and payments of entitlements to officials travelling abroad), has been set at N22, while 
unofficial transactions take place at a rate of about N82; only banks and foreign exchange bureaux 
are authorized to conduct transactions in convertible currencies.3 Changes to the exchange rate 
mechanism, together with a new Foreign Currencies and Capital Investment Monitoring Decree, are 
detailed in the Nigerian basic document for this consultation (WT/BOP/6). 
III. Macroeconomic Developments4 
13. The Nigerian economy experienced substantial difficulties following the weakening of oil markets 
and the increase in real interest rates during the first half of the 1980s. Total exports fell from 
US$25.7 billion in 1980 to US$6.0 billion in 1986, largely as the result of a collapse in oil prices. 
The Nigerian Government made heavy recourse to international capital markets to finance growing 
current account and fiscal deficits. !n mid-1986 a structural adjustment programme was adopted by 
the Government. This included liberalization of foreign exchange and trade systems, the elimination 
of many price controls, a real depreciation of the naira and public sector reform. 
3Marchés Tropicaux. 10 February and 18 August 1995. The autonomous exchange rate is used to calculate 
import duties. 
4Data in this section are based on IMF sources, except where noted otherwise. WT/BOP/W/9 
BOP/W/165 
Page 4 
14. Real GDP grew throughout the 1988-92 period, albeit at falling rates (Chart 1), boosted in 
large part by the recovery of the oil sector and the impact of the structural adjustment programme. 
Although oil accounts for only one-seventh of GDP in real terms, the oil sector generates over 90 per cent 
of Nigeria's merchandise exports and just over 80 per cent of federally collected government revenues. 
Oil export values rose about 45 per cent between 1988 and 1989, and again between 1989 and 1990, 
boosted by growing production and the higher prices resulting from the crisis in the Persian Gulf. 
However, subsequent increases in petroleum production have failed to offset weaker oil prices and 
petroleum exports have fallen, from some US$13.5 billion in 1990 to US$11 billion in 1993 and an 
estimated US$9.3 billion in 1994. 
Chart 1 
Real GDP, 1988-94 Ï 
Annual percentage change 
12 
* estimate 
Source: IMF 
15. Since 1990, there has been a marked tendency for economic growth to slow down. The IMF 
estimates real growth to have been only 1.3 per cent in 1994, with petroleum GDP experiencing a 
fall of 6 per cent. According to the Central Bank of Nigeria, the disappointing economic performance 
of 1994 was due mainly to a continuation of undue fiscal expansion and the disruption of economic 
activities by political and labour unrest.5 The private sector has also faced credit constraints due to 
large government fiscal deficits, which have been a major factor behind a substantial increase in inflation 
5Africa Research Bulletin. 16 June-15 July 1995. WT/BOP/W/9 
BOPAV/165 
Page 5 
during 1991-94. Nigeria's high dependency on imported parts and capital goods has also meant that 
foreign exchange shortages have impacted seriously on the country's manufacturing sector.6 
16. After being brought under control in 1990, there has been a substantial rise in inflation as net 
domestic credit and broad money have expanded. After increasing by 23 per cent in 1991 (on an end-
period basis), consumer prices rose at increasing pace reaching a rate of some 77 per cent by the end 
of 1994. Inflation has been fuelled by an increase in fiscal spending and naira depreciation, with a 
persistent shortage of consumer goods resulting from foreign exchange scarcity reportedly also playing 
a significant role.7 According to IMF, in 1993, Nigeria's effective exchange rate based on weighted 
average of official and foreign exchange bureaus rate depreciated - the nominal rate depreciated by 
23 per cent while the real rate appreciated 9 per cent. During 1994, both the nominal and real rates 
appreciated, by about 33 and 83 per cent respectively. 
17. Gross domestic investment increased substantially between 1988 and 1992, attaining an equivalent 
of almost 25 of GDP at the end of the period (Chart 2). Gross national savings rose significantly during 
the 1988-90 period, from 12 per cent of GDP to almost 23 per cent. In 1989 and 1990, gross national 
savings exceeded gross domestic investment, Nigeria consequently registering a surplus on the current 
account during these years. In 1991 the current account was in balance, but during 1992-94 national 
investment is estimated to have exceeded national savings by between 2 and 3 per cent of GDP. As 
a result, the current account registered a deficit of a similar magnitude. 
18. The public sector in Nigeria consists of the federal government, 30 state governments, more 
than 400 local governments, and some 600 public enterprises, including about 90 autonomous social 
service institutions that fall under the control of their respective ministries. State and local governments 
are to a large extent dependent on the federal government for their revenues. The federal government, 
in turn, derives most of its income from the oil sector, customs and excise taxes, company taxes, profit 
remittances from public enterprises and the value added tax introduced in 1994. Due to a lack of 
accurate statistics it is not possible to construct the fiscal accounts for the consolidated public sector 
and what follows focuses mostly on the operations of the federal government. 
The motor-vehicle assembly industry has been particularly affected, Volkswagen of Nigeria having stopped 
work in December 1994 because of a lack of foreign exchange to import necessary components (African Economic 
Digest. 16 January 1995). 
The Economist Intelligence Unit, Country Profile: Nigeria, 1995-96, p. 14. WT/BOP/W/9 
BOP/W/165 
Page 6 
Chart 2 
Investing, savings and the current account balance, 1988-94 
Percentage of GDP 
30 
25 
20 
15 
10 
5 
0 
5 
-10 Gross national savings 
Gross domestic investment tr 
Current account balance 
1988 1989 1990 1991 1992 1993 1994* 
* estimate 
Source: IMF. 
19. Given stronger than expected oil prices in 1989 and further oil price increases subsequent to 
the Gulf crisis, federally collected revenues rose from some 20 per cent of GDP in 1988 to about 
36 per cent in 1990. This resulted in a significant reduction in the fiscal deficit of the federal 
government, which fell to only 2.9 per cent of GDP, as compared to 13.6 per cent in 1988 (Chart 3). 
During 1991-93 fiscal deficits increased markedly, reflecting large increases in extra-budgetary outlays 
and weaker world oil prices. The fiscal deficit was estimated to fall to close to 9 per cent of GDP 
in 1994, largely as a result of the elimination of extra-budgetary outlays. 
20. Fiscal deficits have been largely financed through domestic bank borrowing and the accumulation 
of external payments arrears. Restrictive fiscal and monetary policies in 1989 and early 1990 
considerably reduced net bank credit claims to the Federal Government and total domestic credit to 
the economy, leading to a sharp fall in inflation in 1990. However, a policy reversal led to domestic 
credit and net claims on the government rising by 19 and 15 per cent in 1990. Consumer prices rose 
13 per cent on average in 1991. The expansion of domestic credit then accelerated markedly, domestic 
credit and net claims on the government expanding 37 and 61 per cent in 1991, 81 and 138 per cent 
in 1992 and 91 and 122 per cent in 1993. As a result, inflation (on an end-period basis) reached 
23 per cent in 1991, 49 per cent in 1992 and 61 per cent in 1993. It is estimated that net domestic 
credit and net claims on the federal government rose at the still high rates of 28 and 27 per cent in 
1994, inflation attaining a rate of almost 77 per cent at the end of the year or 57 per cent on an average 
annual basis. WT/BOP/W/9 
BOP/W/165 
Page 7 
Chart 3 
Federal government balance, 1988-94 
Percentage of GDP 
1988 1989 1990 1991 1992 1993 1994* 
* estimate 
Source: IMF. 
21. Domestic public debt has grown substantially, rising from N47 billion in 1988 to an estimated 
N261 billion in 1993, when it amounted to 37 per cent of GDP. State governments and public enterprises 
have apparently also seen their naira debt increase, although no detailed information is available on 
this. Interest payments due on domestic debt in 1993 constituted 31 per cent of current expenditure 
of the federal government, the equivalent share in 1994 was estimated at 24 per cent. 
IV. Balance of Payments 
22. The combination of persistent, high net capital outflows and a weak current account balance 
has resulted in a deficit in the overall balance of payments throughout the 1986-94 period. Although 
these deficits declined during 1986-90, they have since risen, the overall balance expected to register 
a deficit of US$2.5 billion in 1994. WT/BOP/W/9 
BOP/W/165 
Page 8 
Current account 
23. In recent years, Nigeria's merchandise trade account has been continuously in surplus. During 
the late 1980s, this resulted mainly from compressed imports, and the fall in import demand as the 
result of falling oil exports up to the mid-1980s and mounting debt service obligations. Afterwards, 
increased oil output (volume of exports) and higher prices for crude petroleum on world markets 
supported large increases in the trade surplus, which multiplied more than five-fold between 1988 and 
1990, reaching some US$6.8 billion at the end of the period (Table 1). Subsequently, the merchandise 
trade surplus has fallen, to an estimated USS2.9 billion in 1994. This significant reduction in the trade 
surplus has resulted from a combination of lower export revenues from weaker oil prices, and the 
strong import demand resulting from the expansionary fiscal policy stance of the Nigerian government. 
Import demand weakened in 1994. During that year there was a sharp drop in imports due to foreign 
exchange shortages. 
24. Significant merchandise trade surpluses have tended to be offset by large deficits on the services 
and income (invisibles) account. Nigeria typically runs a deficit in its trade in commercial services. 
This net outflow is augmented by large debt servicing obligations. Contrasting with a large deficit 
1988, the current account was in surplus between 1989 and 1991 (Chart 2). As merchandise imports 
surged and exports declined in 1992, the current account balance experienced a deficit of US$590 million; 
the deficit expanded in 1993 as reduced exports and net inflows of unrequited transfers more than offset 
lower merchandise and net service imports. Given again larger falls in exports than in merchandise 
and net service imports, a slight expansion of the current account deficit, to close to US$1 billion, 
was estimated in 1994. WT7BOP/W/9 
BOP/W/165 
Page 9 
Table 1 
Balance of Payments, 1988-94 
(US$ million) 
Trade balance 
Exports f.o.b 
Imports f.o.b. 
Services (net) 
Of which: interest due 
nonfactor services 
(net) 
Private unrequited transfers (net) 
Official unrequired transfers (net) 
Current account balance 
Official capital (net) 
Disbursements 
Amortization due (1) 
Private capital (net) 
Direct investment 
of which from debt conversion 
Other (net) 
Short-term capital (net) 
Capital account balance 
Errors and omissions (net) 
Overall balance 
Financing 
Net reserves (increase -) 
Net nonreserve foreign assets 
(increase -)(2) 
Accumlation of arrears (decrease-) 
(3) 
Rescheduling of arrears 
Exceptional financing 
Debt relief (4) 1988 
1,292 
7,069 
(5,776) 
(3,845) 
(2,370) 
(942) 
544 
89 
(1,920) 
(3,432) 
618 
(4,049) 
333 
359 
(42) 
(26) 
(428) 
(3,526) 
547 
(4,899) 
4,899 
331 
-
4,568 
— 
-
-1989 
3,900 
9,812 
(5,912) 
(4,268) 
(2,357) 
(1,599) 
651 
128 
412 
(2,484) 
1,217 
(3,701) 
2,425 
2,443 
159 
(18) 
(2,419) 
(2,478) 
522 
(1,544) 
1,544 
(1,272) 
-
(361) 
(4,555) 
7,731 
7,731 1990 
6,843 
13,914 
(7,070) 
(5,389) 
(2,739) 
(2,102) 
1,029 
48 
2,531 
(3,094) 
927 
(4,021) 
584 
602 
no 
(18) 
(1,109) 
(3,620) 
496 
(592) 
592 
(2,508) 
-
2,423 
(725) 
1,403 
2,266 1991 
4,234 
12,127 
(7,893) 
(5,256) 
(2,422) 
(2,287) 
1,027 
22 
28 
(2,566) 
715 
(3,281) 
615 
588 
58 
27 
(116) 
(2,067) 
(2,923) 
(252) 
(2,292) 
2,292 
(50) 
-
751 
(833) 
2,424 
3,298 1992 
3,570 
12,307 
(8,737) 
(4,892) 
(2,150) 
(2,093) 
790 
(57) 
(590) 
(6,068) 
528 
(6,596) 
898 
836 
65 
62 
(1,817) 
(6,986) 
(120) 
(7,695) 
7,695 
3,370 
(352) 
2,057 
(208) 
2,828 
2,828 1993 
3,168 
11,297 
(8,129) 
(4,700) 
(1,939) 
(2,073) 
552 
54 
(927) 
(2,477) 
543 
(3,020) 
641 
614 
15 
27 
(354) 
(2,190) 
(220) 
(3,337) 
3,337 
60 
-
3,277 
-
-
-1994(est) 
2,860 
9,534 
(6,675) 
(4,357) 
(1,906) 
(1,893) 
550 
(48) 
(995) 
(2,089) 
608 
(2,697) 
577 
582 
9 
(5) 
(160) 
(1,673) 
167 
(2,500) 
2,500 
(200) 
-
2,700 
-
-
-
1 Amortization in 1992 includes US$3.4 billion of debt to London Club creditors which was bought back at the beginning of the 
year. 
2 The cost of purchasing in 1992 the collateral for par exchange of about US$2 billion debt to London Club creditors. 
3 In 1993 includes US$0.3 billion overdue balances in open accounts. 
4 In 1992 includes US$2.0 billion debt reduction through the debt buy-back operation with London Club creditors and US$0.8 
billion debt rescheduling with bilateral official creditors. Includes rescheduling of arrears. 
Source: IMF WT/BOP/W/9 
BOP/W/165 
Page 10 
Capital account 
25. The balance on the capital account has been in deficit since 1986, as capital outflows greatly 
exceeded inflows. As a result, the overall balance of payments has been negative in all years from 
1985 to 1994. Between 1988 and 1990, the deficit in the overall balance contracted in line with an 
improving current account. However, the overall deficit increased substantially in 1991, as the current 
account surplus contracted more than net capital outflows and debt servicing payments. The overall 
balance of payments registered a record US$7.7 billion deficit in 1992, when the capital account deficit 
more than trebled to almost US$7 billion due to the debt buy back operation with London club creditors. 
Substantially lower, although still sizable, capital account deficits have led to reductions in the deficit 
in the overall balance, which was estimated at some US$2.5 billion for 1994. That year, payment 
arrears on external debt were estimated to have increased by US$2.7 billion to US$9.1 billion in 1994. 
Reserves 
26. Gross international reserves recovered from a low of $320 million in 1988 (0.5 months of imports 
of merchandise and commercial services) to a high of $4.2 billion in 1991 (approximately 5 months 
of imports) (Chart 4). In part this increase reflects favourable developments in the oil market. Reserves 
peaked in March 1991 at $4.7 billion. Reserves declined in 1992 and 1993, but increased slightly, 
to US$900 million, at the end of 1994, equivalent to about 1.3 months of imports. 
Chart 4 
Gross international reserves, 1988-94 
USS billion and months of imports of merchandise and commercial services 
— Months of imports 
U Gross reserve 
1988 1989 1990 1991 1992 1993 1994* 
estimate 
Source: IMF. WT/BOPAV/9 
BOP/W/165 
Page 11 
Foreign indebtedness 
27. The stock of total external debt grew continuously through the 1980s. Total average debt almost 
equalled GDP during 1988-94 (Chart 5), and is estimated to have stood at 90 per cent of GDP at the 
end of the period. New debt relief agreements with both official and private creditors were negotiated 
during 1991-1992, reducing the stock of external debt by about 10 per cent. Total external debt as 
of the end of 1994 was estimated by the IMF to be about US$31 billion.8 Debt servicing obligations 
impose a severe strain on the Nigerian economy. During the 1988-94 period, interest payments on 
domestic and foreign debt represented between 60 and 70 per cent of current expenditures of the federal 
government; the debt service ratio to exports of goods and services (after rescheduling) averaged 
48 per cent. According to IMF, scheduled debt service totalize US$4.6 billion in 1994, of which 
US$1.9 billion represented interest obligations. 
Chart 5 
C External debt, 1988-94 
Percentage of GDP and debt services ratio 
1988 1989 1990 1991 1992 1993 1994* 
* estimate 
Source: IMF. 
8In his 1995 budget speech, the finance minister put external debt at US$29.4 billion in October 1994 
(The Economist Intelligence Unit, Country Profile: Nigeria. 1995-96, p. 33). WT/BOP/W/9 
BOP/W/165 
Page 12 
Trade 
28. As noted earlier, the lion's share of Nigeria's merchandise exports consist of crude petroleum 
(Table 2).9 According to UN data, remaining exports are mostly agricultural, cocoa beans, rubber, 
and palm kernels being the most important. The relative importance of petroleum exports has remained 
remarkably stable since the mid-1980s, despite large variations in world oil prices. Imports consist 
predominantly of manufactured products. Machinery and transport equipment account for the largest 
share of total imports, followed by chemicals and other manufactured products. The share of machinery 
and transport equipment has tended to increase, while that of chemicals has declined. 
Table 2 
Nigeria's trade by main product, 1988 and 1993 
(percent of total exports or imports) 
Commodity (S1TC Revl) 
Crude petroleum (331) 
Petroleum products (332) 
Cocoa (072) 
Rubber crude, synthetic (23) 
Palm nuts, kernels (2213) 
Other 1988 
Exports 
90.0 
1.0 
3.9 
1.0 
0.2 
4.0 1993 
91.0 
2.5 
1.5 
0.7 
0.0 
4.2 
Imports 
Food and live animals (0) 
Beverages and tobacco (1) 
Crude materials excl. fuels (2) 
Minerals fuels (3-33252) 
Animal and vegetable oil (4) 
Chemicals (5 + 33252+688-5714) 
Other manufactured products (6+7+8-68) 
Machinery and transport equipment (7 + 8911) 
Other 7.0 
0.5 
1.9 
3.3 
0.4 
16.6 
65.3 
40.1 
4.9 8.6 
0.5 
0.9 
3.1 
1.0 
13.3 
68.8 
44.9 
3.8 
Note: Trading partners used as reporters; 1993 excludes Ghana. 
Source: UNSTAT, Comtrade database and WTO calculations. 
29. The geographic pattern of Nigeria's trade is relatively concentrated, especially on the export 
side. The United States is Nigeria's major export market, accounting for about 47 per cent of total 
'The data in Tables 2 and 3 are only indicative of general patterns because of the uncertainty surrounding 
the value of goods traded informally, particularly with neighbouring countries. WT/BOP/W/9 
BOP/W/165 
Page 13 
exports in 1993 (Table 3). The European Community absorbed some 31 per cent of total exports, 
Germany, France and Spain having been the most important national export markets after the 
United States. The United States, the United Kingdom and Germany are the three most important 
sources of imports, each accounting for between 11 and 15 per cent of total imports. Asian countries, 
especially Japan but also China, India, Singapore and South Korea, have become increasingly important 
suppliers in recent years, accounting for close to 22 per cent of total imports in 1993 (up from 
10.6 per cent in 1985). 
Table 3 
Nigeria's trade by main region and main partners, 1988 and 1993 
(percent of total exports or imports) 
Europe 
-EC12 
- - France 
- - Germany 
- - Italy 
- - Netherlands 
- - Spain 
- - United Kingdom 
-EFTA 
- Eastern Europe 
- Other Europe 
Africa 
America 
- Canada 
-USA 
- Other America 
- - Brazil 
- - Chile 
Asia 
- East Asia 
- - China 
- - Japan 
- - Korea Rep. 
- - Singapore 
- South Asia 
- - India 
Middle East 
Oceania Exports 
1988 
43.2 
42.0 
6.1 
8.6 
2.3 
5.8 
11.7 
2.8 
1.0 
0.1 
0.1 
0.1 
55.8 
3.2 
43.9 
8.7 
1.8 
1.3 
0.8 
0.7 
0.1 
0.1 
0.0 
0.3 
0.1 
0.1 
0.0 
0.0 1993 
35.8 
31.1 
6.5 
7.3 
1.6 
4.6 
6.4 
1.5 
3.9 
0.4 
0.0 
2.7 
56.4 
4.5 
47.4 
4.6 
1.2 
3.4 
7.7 
0.8 
0.0 
0.1 
0.5 
0.1 
7.0 
7.0 
0.0 
0.0 Imports 
1988 
67.5 
59.2 
11.4 
12.2 
7.2 
4.0 
2.7 
16.5 
6.6 
1.1 
0.6 
0.4 
13.1 
0.4 
8.4 
4.2 
3.7 
0.0 
18.6 
17.4 
0.7 
7.3 
1.7 
1.5 
1.2 
1.1 
0.3 
0.1 1993 
58.2 
52.2 
8.9 
11.0 
5.8 
5.7 
1.6 ! 
15.2 
4.7 
0.9 
0.4 
0.4 
18.8 
0.7 
13.9 
4.2 
3.8 
0.0 
21.9 
19.9 
1.9 
7.9 
1.9 
2.5 
2.0 
1.9 
0.4 
0.2 
Note: Trading partners used as reporters 
Source: UNSTAT, Comtrade database and WTO calculations. WT/BOP/W/9 
BOP/W/165 
Page 14 
Annex 1 
Import Prohibition List, 1995-2001 (Trade) 
No. 
1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 
11. 
12. 
13. 
14. 
15. 
16. Products (HS) 
Live or dead poultry (i.e. fowls, ducks, geese, turkeys; and guinea fowls (excluding 
day-old chicks, grand parent and foundation stocks for research and multiplication 
purposes. (HS 0105, 1200-0105, 9990 and 0207, 1100-0207, 3600); Eggs in the 
shell, including those for hatching (0407-000) 
Maize (1005,1000-1005,9000) 
Sorghum (10007,0000) 
Millet (1008,2000) 
Wheat flour (1101,0000) 
Vegetable Oils, excluding linseed and castor oils used as industrial raw materials 
(1515, 1100, 1515, 1900 and 1515, 3000) 
Beer and Stout (2203, 0000, Barley and Malt (1003,0000 and 1107, 1000-1107, 
2000), Evian and similar waters (2201, 1000-2202, 9000) 
Barytes and Bentonites (2511, 1100-2511, 2000, 2508, 1100) 
Gypsum (2520,1000) 
Mosquito Repellent Coils (3808,1110) 
Domestic articles and wares made of plastic materials excluding babies' feeding bottles 
(3922,1000-3922,9000,3924,1000-3924,9000) 
Retreaded/used tyres (4012, 1000-4012, 9000) 
Textile fabrics of all types and articles thereof, chapters 50-63 but excluding: 
(a) Nylon tyre cord (5902,1000-5902, 9000) 
(b) Multifilament Nylon chafer fabric and tracing cloth (5111,2000,5112,2000 
and 5901, 9000) 
(c) Mattress ticklings (5903,1000-5903, 9000) 
(d) Narrow fabrics (5806, 1000-5806, 4000) trimmings and linings (5903, 
1000-5903, 9000 5908, 0000, 5808, 1000-5808, 9000) 
(e) Made-up fishing nets (5608, 1100) and mosquito netting materials (5608, 
1900 and 5608, 9000) 
(f) Gloves for industrial use (6116,1000-6116, 9900) 
(g) Canvas fabric for the manufacture of fan belt (5907, 0000 and 5908, 0000) 
(h) Moulding cups and lacra (6212, 9000), Elastic bands (5604, 9000), motifs 
(5810, 1000-5810, 9900) 
(i) Textile products and articles for technical use (5911, 1000-5911, 9000) 
(j) Transmission or conveyor belt or belting of textile material (5910, 0000) 
(k) Polypropylene primary backing material (5512, 1100-5512, 9900) 
(1) Fibre rope (5607,1000-5607, 9000) 
(m) Mutilated rags (6310, 1100) 
(n) Sacks and bags (6305, 1000 and 6305, 2000) 
Motor vehicles and motor cycles above eight (8) years old from the date of 
manufacture, (8702, 1100-8702, 9900, 8703, 1000-8703, 9000, 8704, 1000-8704, 
9900, 8711, 1000-8711, 9000) 
Furniture and furniture products (9401, 1000-9401, 9000, 9403, 1000-9406, 0000) 
Gaming machines (9504, 1000-9504, 3000) Comments 
Article XVm:B 
Article XViri:B 
Article XTX 
Article XIX 
Article XIX 
Article XVUI:B 
Article XVffl:B 
Article XVULB 
Article XTX 
Article XTX 
Article XVHI:B 
Article XVin & XX 
Article XVHI:B 
Article XX 
Article XVHI:B 
Article XX 
'"Reproduced from Annexl of WT/BOP/6. 