• This Day (Nigeria) aagm: Political Economy of Sustainable Democracy in Nigeria (2)

China and Nigeria set up full diplomatic ties in 1971. The trade volume between the two countries reached 2.18bn US dollars in 2004. Nigeria is now China's second largest export market and fourth largest trade partner in Africa.
On Thursday, China and Nigeria signed five economic agreements covering investment, telecommunications service, technological support and other areas.
Wen said China cherishes its traditional friendship with African countries. He highlighted the role of the China-African Cooperation Forum, saying it has become an effective mechanism to promote dialogue and cooperation between China and African countries.
He went on to say that China supports the development of the African Union and the implementation of the New Partnership for African Development.
Obasanjo, who is in China for a four-day state visit, said he was pleased with the strong growth of China-Nigeria economic cooperation.
He said he hoped that China would actively take part in the construction of Africa's infrastructure and support Africa within the framework of the China-Africa Cooperation Forum.
Obasanjo arrived in Beijing on Thursday morning as guest of Chinese President Hu Jintao. On Thursday Hu met with Obasanjo for several hours, agreeing to build a "strategic partnership" between the two countries.
This is Obasanjo's third visit to China since assuming the presidency in February 1999. He is now visiting China in the duel capacity of Nigerian president and rotating president of the African Union.
After leaving Beijing, he will visit central China's Hubei Province and Shanghai.
Source: Xinhua news agency, Beijing, in English 1633 gmt 15 Apr 05
Document BBCAPP0020050415e14f006bu

China Huawei, Nigerian Communications Ministry Sign $200 Mln Agreement
196 words

15 April 2005

China News Digest

CHINAD

English

(c) Copyright 2005 AII Data Processing. All Rights Reserved. News Digest produced by AII Data Processing. For further details of international press reviews: www.aiidatapro.com, e-mail: [e-mail]; Tel: [phone]; Fax: [phone]
Chinese telecommunications equipment producer Huawei Technologies and the Nigerian Communications Ministry signed on April 14, 2005 a $200 mln (156 mln euro) partnership agreement.
Under the contract, Huawei will deploy a nationwide CDMA 450 wireless access technology worth $200 mln (156 mln euro) across Nigeria. China Development Bank will provide Nigeria a loan of this value. Huawei Technologies has also committed to make an additional manufacturing investment of $20 mln (15.6 mln euro) in Nigeria.
The CDMA 450 technology is the most appropriate and cost effective telecommunications solution to address the telecommunications challenges faced by Nigeria, Huawei said.
Like China, Nigeria also has remote rural areas and vast and sparsely populated regions. CDMA 450 provides wireless coverage of up to 60 km in radius and a single base station covers an area of 7,000 to 10,000 sq km.
Huawei currently has partnerships with the Nigerian telecommunications operators NITEL, MTN, Vmobile, Globacom and Starcoms.
www.huawei.com
Source: Huawei Technologies Co Ltd (DD/VS/TD)
Document CHINAD0020050415e14f000jh

China to launch satellite for Nigeria in 2007
425 words

15 April 2005

Business Daily Update

BDU

English

Copyright 2005 China Daily Information Company. All rights reserved.
China is expected to put a self-made communications satellite into orbit for Nigeria in 2007, making the African nation the first foreign buyer of both a Chinese satellite and its launching service.
The news came as Nigerian President Olusegun Obasanjo arrived in Beijing yesterday, starting a four-day state visit to China.
Describing the satellite export as a "milestone" in China's history in space, an official with the China Aerospace Science and Technology Corp said the satellite, called Dongfanghong IV, will be put into orbit by a Long March 3B carrier rocket from the Xichang Space Launch Centre in Southwest China's Sichuan Province sometime after next year.
"China Aerospace will also help to train Nigerian technicians," said the official identified as Li, adding that so far China has sent 28 foreign satellites into space.
The trip is Obasanjo's third visit to China after assuming the presidency in 1999.
During a meeting with Obasanjo, President Hu Jintao said Nigeria has become China's major trade partner in Africa and the two countries enjoy rapid growth co-operation in the fields of oil and gas exploration and infrastructure construction.
Hu suggested the strategic partnership develop by focussing on four aspects: enhancing political negotiation through high-level official and other personnel exchanges, increasing bilateral trade and two-way investment, strengthening co-operation in key fields and reinforcing negotiations in international affairs to protect the interests of developing countries.
Obasanjo, also the rotating president of the African Union, said Africa and China should continue to seek common prosperity by strengthening friendship and co-operation, saying Africa is hoping China can support and take part in the process of resolving the conflicts in the region and enhance co-operation in the fields of trade, investment and agriculture.
The two presidents yesterday also witnessed the signing ceremony of five agreements; two of them are governmental agreements on economic, trade and investment co-operation and the rest concern communications business.
As part of the agreements, Shenzhen-based Huawei Technologies Co Ltd will deploy US$200 million worth of CDMA450 wireless access technology across Nigeria and has also committed to an additional US$20 million manufacturing investment in Nigeria.
"Nigeria is one of our major overseas markets and it has great potential" said Huawei President Ren Zhengfei.
According to Wang Junqiang, Huawei's representative in Nigeria, the wireless access technology will provide the necessary coverage to address the current telecommunications digital divide between rural areas and cities in the African nation.
Document BDU0000020050415e14f0001m

UPDATE 1-China's Huawei, ZTE score $295 mln Nigeria deals.
373 words

15 April 2005

03:43 AM

Reuters News

LBA

English

(c) 2005 Reuters Limited
SHANGHAI, April 15 (Reuters) - Huawei Technologies Co. Ltd.
and ZTE Corp., China's top two telecoms equipment makers, won separate deals in Nigeria worth a total of $295 million, the companies said in separate statements.
In the bigger of the two deals, Huawei, China's largest telecoms equipment maker, said it had formed a partnership with Nigeria's Ministry of Communications that would include the sale of $200 million worth of equipment.
Under its agreement, Huawei will deploy a wireless network across the country, Africa's most populous, the company said in a statement late on Thursday.
China Development Bank will provide Nigeria with a $200 million loan to finance the project, while Huawei also will invest $20 million in a factory in Nigeria.
ZTE said it had signed a deal to supply $95 million worth of equipment to Nigeria's Ministry of Communications.
That deal came in the second stage of a project begun by ZTE in Nigeria last year, and was signed during a visit to China by the Nigerian communications minister.
Huawei and ZTE are also among a group of suitors said to be interested in buying a majority stake in Nigeria's fixed-line monopoly, Nitel, and cellphone unit M-Tel.
Both Chinese firms have ambitious export plans, as they seek to grow beyond their domestic base and compete on the global stage with the likes of mulitnationals Motorola Inc., Ericsson and Nokia.
Both have so far been limited largely to less developed markets, such as Nigeria and Russia. But Huawei has also signed some smaller deals in developed markets, such as the United States and France, and recently announced a deal to sell a third-general network to the Netherlands' smallest wireless carrier, Telfort.
Huawei previously said its exports could jump to as much as $4 billion this year, or about double the figure for 2004.
Earlier this week, ZTE said its 2004 profit had risen 23.3 percent as exports more than doubled to 4.56 billion yuan ($550 million), accounting for nearly 22 percent of total turnover. The company has said it aimed to increase its overseas sales to 40 percent of turnover by 2006.
Document LBA0000020050415e14f007so

China's Huawei wins 200 mln usd deal from Nigeria Ministry of Communications
131 words

15 April 2005

AFX Asia

AFXASI

English

(c) 2005, AFX Asia. All rights reserved.
BEIJING (XFN-ASIA) - Huawei Technologies said it has signed a contract worth 200 mln usd with the Ministry of Communications of Nigeria, backed by a loan from China Development Bank, to deploy CDMA450 wireless access technology across the oil-rich western African country. At the same time, Huawei has agreed to invest 20 mln usd in manufacturing projects in Nigeria, the Shenzhen-based telecom equipment maker said. No further details were provided. Huawei, China's largest telecom equipment provider, posted a total of 5. 58 bln usd sales revenue in 2004 and is expecting the figure for 2005 to almost double to 11 bln. (1 usd = 8.3 yuan) [e-mail] tom/ap/dk MMMM
Document AFXASI0020050415e14f0040h

Asian economic and corporate news summary
820 words

15 April 2005

AFX Asia

AFXASI

English

(c) 2005, AFX Asia. All rights reserved.
BEIJING (XFN-ASIA) - A summary of Asian economic and corporate news at 0500 GMT JAPAN: -Feb industrial output fall revised to 2.3 pct mth/mth vs 2.1 pct -Japan issues alert to nationals in China ahead of second wave of demos -Japan says China has become 'serious problem' to security -Kyocera to appoint managing director Kawamura as new president, COO -Mitsubishi Electric to close European mobile phone R&D unit SOUTH KOREA: -MOFE's Han says tax probe on foreign funds 'fair' -Samsung Electronics Q1 sales 13.8 trln won vs 14.4 trln -Samsung Electronics Q1 opg profit 2.1 trln won vs 4.0 trln -Samsung Electronics Q1 net profit 1.5 trln won vs 3.1 -Samsung Electronics Q1 results miss market consensus -Samsung Electronics raises 2005 LCD demand forecast by 6 pct to 177 mln units -Samsung Electronics sees 2005 handset sales at 100 mln units, up 16 pct yr-on-yr HONG KONG: -Hong Kong exchange fund end-March foreign assets 878.7 bln hkd, down 23.
7 bln -ZTE Corp signs 209 mln usd supply deal; denies bond issue reports -PetroChina lifts Q1 oil, gas output 6.2 pct yr-on-yr to 243 mln BOE -Sinopec Beijing Yanhua to withdraw Hong Kong main board listing in May -Kerry Properties, Shangri-la Asia delay 600 mln usd Shanghai project -GOME Electrical unit sells entire stakes in two cos -SW Kingsway buys Beijing residential block for 236.18 mln yuan CHINA: -China currency revaluation will almost cancel trade surplus - Goldman Sachs -China gears up for large-scale anti-Japanese protests this weekend -China's undervalued yuan is biggest US trade obstacle - US lobby group -CBRC tells foreign banks to tighten risk controls -Hong Kong airport authority pays 1.99 bln yuan for 35 pct of Hangzhou airport -Changan Auto 2004 net profit 1.32 bln yuan vs 1.45 bln - CAS -Changan Auto 2004 net profit 1.20 bln yuan vs 1.44 bln - IAS -Changan Auto 2004 net profit down 9.19 pct on price cuts -Bengang Steel Plates 2004 net profit 732.06 mln yuan vs 524.72 mln - CAS -Bengang Steel Plates 2004 net profit 700.43 mln yuan vs 473.51 mln - IAS -Bengang Steel Plates Q1 net profit 194.82 mln yuan vs 103.41 mln -Bengang Steel Plate 2004 EPS up 39.13 pct at 0.64 yuan -China Yangtze Power Q1 net profit 342.59 mln yuan vs 471.21 mln -China Yangtze Power Q1 net profit down 27.3 pct on lower output -Sany Heavy Industry 2004 net profit 327.3 mln yuan vs 324.8 mln -Sany Heavy Industry 2004 net profit flat on increased raw material costs -Xishan Coal & Elec Q1 net profit 244.95 mln yuan vs 121.3 mln -Xishan Coal Q1 net profit up 102.11 pct on higher prices -Shandong Infrastructure Q1 net profit 176.23 mln yuan vs 123.66 mln -Liaohe Jinma Oilfield Q1 net profit 175.46 mln yuan vs 147.24 mln -Liaohe Jinma Oilfield Q1 net profit up 18.76 pct on higher oil prices -Jinzhou Petrochemical Q1 net loss 55.32 mln yuan vs profit 55.96 mln -China Jinzhou Petrochemical Q1 55.32 mln yuan loss vs 55.95 mln net profit -Liaoning Energy to sell block of Huaneng shares to Liaoning Guoneng -Guoyang New Energy 2004 net profit up 69.25 pct to 347.9 mln yuan -Shougang Group planning new steel plant in northern China -Huawei wins 200 mln usd deal from Nigeria Ministry of Communications -UK's 3i invests 45 mln usd in CDH China Growth Capital Fund -Baosteel issues prospectus for additional 5 bln share issue TAIWAN: -Teco, Japan's Yaskawa form motor JV for Japanese market -Ritek to buy back up to 30 mln shares -Taiwan MoEA confirms approval of Chi Mei Opto's 1 mln usd China venture -TSMC buys 524.88 mln twd worth machinery from Applied Materials unit MALAYSIA: -BIG Industries plans one-for-ten stock split INDONESIA: -Q1 FDI approvals at 4.28 bln usd, up 173 pct on yr on new projects -Bank Indonesia buys back 2.22 trln rupiah government bonds due 2009-2013 -Bank Mandiri ratings unlikely to be affected by loans case - Fitch -Moderate quake rocks Indonesia's Java island; no reports of damage PHILIPPINES: -Feb overseas workers remittances up 18.5 pct yr-on-yr -Central bank says RCBC sound despite affiliate's financial problems -First Philippine Holdings 2004 net profit 3.3 bln pesos vs 3.8 bln;hit by provisions -PNOC-EC stops sale of gas field stake to SKorean consortium AUSTRALIA: -PM Howard eases opposition to ASEAN peace pact -Former insurance chief jailed over Australia's largest corporate collapse -Multiplex/Degremont jv wins 387 mln aud Perth desalination project- [e-mail] ic/mas MMMM
Document AFXASI0020050415e14f006en

China's Huawei wins 200 mln usd deal from Nigeria Ministry of Communications
131 words

15 April 2005

Xinhua Financial Network (XFN) News

XIFINN

English

(c) 2005 Xinhua Financial Network, Ltd. All rights reserved
BEIJING (XFN-ASIA) - Huawei Technologies said it has signed a contract worth 200 mln usd from the Ministry of Communications of Nigeria, backed by a loan from China Development Bank, to deploy a nationwide CDMA450 wireless solution in the oil-rich western African country.
At the same time, Huawei has agreed to invest 20 mln usd in manufacturing projects in Nigeria, the Shenzhen-based telecom equipment maker said.
No further details were provided.
Huawei, China's largest telecom equipment provider, posted a total of 5.58 bln usd in its 2004 sales revenue and is expecting the figure for 2005 to almost double to 11 bln.
(1 usd = 8.3 yuan)
[e-mail] tom/ap
Document XIFINN0020050415e14f00231

Huawei in $200 mln partnership in Nigeria.
251 words

14 April 2005

11:52 PM

Reuters News

LBA

English

(c) 2005 Reuters Limited
SHANGHAI, April 15 (Reuters) - Huawei Technologies Co. Ltd.
, China's largest telecoms equipment maker, said it had formed a partnership with the Nigerian government that would include the sale of $200 million worth of equipment.
Under its agreement with Nigeria's Ministry of Communications, Huawei will deploy a wireless network across the country, Africa's most populous, the company said in a statement late on Thursday.
China Development Bank will provide Nigeria with a $200 million loan to finance the project, while Huawei also will invest $20 million in a manufacturing facility in Nigeria.
Huawei and its chief Chinese rival, ZTE Corp. (0763.HK), are also among a group of suitors said to be interested in buying a majority stake in Nigeria's fixed-line monopoly, Nitel, and cellphone unit M-Tel.
Both Chinese firms have ambitious export plans, as they seek to grow beyond their domestic base and compete on the global stage with the likes of mulitnationals Motorola Inc. (MOT.N), Ericsson (ERICb.ST) and Nokia (NOK1V.HE).
Both have so far been limited largely to less developed markets, such as Nigeria and Russia. But Huawei has also signed some smaller deals in developed markets, such as the United States and France, and recently announced a deal to sell a third-general network to the Netherlands' smallest wireless carrier, Telfort.
Huawei previously said its exports could jump to as much as $4 billion this year, or about double the figure for 2004.
Document LBA0000020050415e14f00439

Chinese, Nigerian presidents hold talks in Beijing
859 words

14 April 2005

10:38 PM

BBC Monitoring Asia Pacific

BBCAPP

English

(c) 2005 The British Broadcasting Corporation. All Rights Reserved. No material may be reproduced except with the express permission of The British Broadcasting Corporation.
Text of report by official Chinese news agency Xinhua (New China News Agency)
Beijing, 14 April: State President Hu Jintao held talks with Obasanjo, Nigerian president and the African Union's rotating chairman, who is on state visit to China, at the Great Hall of the People on the afternoon of 14 April. Both sides highly appraised Sino-Nigerian and Sino-African relations, and reached important consensus on further raising the quality and standards of cooperation between both sides in all sectors, and on elevating and developing the relations between the two countries into strategic partnership relations within the framework of South-South cooperation.
Hu Jintao said: In the past 34 years since the establishment of Sino-Nigerian diplomatic relations, the two countries have made great progress in their relations, which have shown an encouraging momentum of moving forward on all fronts. Leaders of the two countries have exchanged visits frequently, and political mutual trust has been strengthened. Both sides have made rapid progress and scored remarkable results in cooperation in economic and trade affairs, oil and gas development, construction of infrastructure facilities, agriculture, and high technology. Nigeria has become China's important partner for economic and trade cooperation in Africa. The two countries have supported and closely cooperated with each other in international affairs. The Chinese side appreciates and thanks the Nigerian side for consistently upholding the stand of one-China and supporting the "Anti-Secession Law" enacted by China.
Obasanjo said: For many years, Nigeria and China have always been understanding towards and respectful of each other, their friendship has been deepening, and cooperation has been very fruitful. In the course of its development, Nigeria has received China's support and assistance in many areas, for which the Nigerian people are very grateful. He said: Nigeria has firmly implemented a one-China policy and supported China's great cause of the motherland's reunification.
Hu Jintao suggested that the two countries build up and develop strategic partnership relations from four aspects:
(1) Strengthen political consultations and mutual trust, deepen understanding and friendship, and jointly elevate the relations between the two countries to the level of strategic partners by promoting exchanges between top leaders and personnel at all levels of the two countries. (2) Further expand the scope of bilateral trade. Adopt positive measures to expand the avenues for economic and trade cooperation, and promote Sino-Nigerian bidirectional investment. (3) Strengthen cooperation in oil and gas development, construction of infrastructure facilities, processing and manufacturing industries, and other major areas, encourage and support enterprises of both sides in conducting mutually beneficial cooperation, create a mutually beneficial win-win situation, and make progress together. (4) Strengthen consultations and coordination between both sides in international affairs, protect the interests of developing countries, facilitate South-South cooperation, and promote the establishment of a new international political and economic order that is fair and reasonable.
Obasanjo consented to Hu Jintao's proposal. He said: Nigeria is conducting reform to realize economic and social development. The Nigerian side hopes to strengthen mutually beneficial cooperation between both sides in trade, investment, construction of electric power, railways, and telecommunications facilities, as well as agriculture, irrigation, the manufacturing industry, and tourism.
Touching on the African situation and Sino-African relations, Hu Jintao said: In recent years, the African Union has played an increasingly important role in the regional affairs, and Africa has constantly strengthened its dialogues and cooperation with the international community. China's strategic choice is to strengthen its solidarity and cooperation with the African nations. Through the Sino-African cooperation forum, the Chinese side will deepen traditional Sino-African friendship, expand mutually beneficial cooperation, and join the African countries in constantly scoring new achievements in the development of new-type Sino-African strategic partnership relations.
Obasanjo said: The African people will never forget the support given to us by the Chinese people in the struggle against colonialism and apartheid. In the new period, both sides should continue to intensify African-Chinese friendship and cooperation, and pursue common prosperity. Africa hopes that China will support and participate in resolving African conflicts, while strengthening cooperation with Africa in trade, investment, agriculture, and other areas in order to help Africa realize peace, security, and development.
After the talks, the two countries' heads of state attended a ceremony for signing the agreement between the two governments on economic and technical cooperation, and other documents.
Before the talks, President Hu Jintao held a ceremony to welcome President Obasanjo's visit to China, at the square outside the East Gate of the Great Hall of the People. Attending the welcoming ceremony were Vice-Chairman of the NPC [National People's Congress] Standing Committee Xu Jialu, State Councillor Tang Jiaxuan, Vice-Chairman of the National Committee of the Chinese People's Political Consultative Conference Wang Zhongyu, Vice-Chairman of the Central Committee of the Kuomintang Revolutionary Committee Liu Minfu, Foreign Minister Li Zhaoxing, Minister of the State Development and Reform Commission Ma Kai, and Minister of the Information Industry Wang Xudong.
Source: Xinhua news agency domestic service, Beijing, in Chinese 1432 gmt 14 Apr 05
Document BBCAPP0020050415e14f0008d

NIGERIAN SATELLITE FOR 2007 LAUNCH FROM XICHANG
By Qin Jize

432 words

15 April 2005

China Daily

CHNDLY

English

Copyright 2005 China Daily Information Company. All rights reserved.
China is expected to put a self-made communication satellite into orbit for Nigeria in 2007, making the African nation the first foreign buyer of both a Chinese satellite and its launching service.
The news came as Nigerian President Olusegun Obasanjo arrived in Beijing yesterday, starting a four-day state visit to China.
Describing the satellite export as a "milestone" in China's history in space, an official with the China Aerospace Science and Technology Corp said the satellite, called Dongfanghong IV, will be put into orbit by a Long March 3B carrier rocket from the Xichang Space Launch Centre in Southwest China's Sichuan Province sometime after next year.
"China Aerospace will also help to train Nigerian technicians," said the official identified as Li, adding that so far China has sent 28 foreign satellites into space.
The trip is Obasanjo's third visit to China after assuming the presidency in 1999.
During a meeting with Obasanjo, President Hu Jintao said Nigeria has become China's major trade partner in Africa and the two countries enjoy rapid growth co-operation in the fields of oil and gas exploration and infrastructure construction.
Hu suggested the strategic partnership develop by focussing on four aspects:enhancing political negotiation through high-level official and other personnel exchanges, increasing bilateral trade and two-way investment, strengthening co-operation in key fields and reinforcing negotiations in international affairs to protect the interests of developing countries.
Obasanjo, also the rotating president of the African Union, said Africa and China should continue to seek common prosperity by strengthening friendship and co-operation, saying Africa is hoping China can support and take part in the process of resolving the conflicts in the region and enhance co-operation in the fields of trade, investment and agriculture.
The two presidents yesterday also witnessed the signing ceremony of five agreements; two of them are governmental agreements on economic, trade and investment co-operation and the rest concern communications business.
As part of the agreements, Shenzhen-based Huawei Technologies Co. Ltd will deploy US$200 million worth of CDMA450 wireless access technology across Nigeria and has also committed to an additional US$20 million manufacturing investment in Nigeria.
"Nigeria is one of our major overseas markets and it has great potential" said Huawei President Ren Zhengfei.
According to Wang Junqiang, Huawei's representative in Nigeria, the wireless access technology will provide the necessary coverage to address the current telecommunications digital divide between rural areas and cities in the African nation.
(Copyright 2001 by China Daily)
Document CHNDLY0020050414e14f00003
Nigeria: Trade regulations
3,185 words

14 April 2005

Economist Intelligence Unit - ViewsWire

EIUCP

ViewsWire

16

English

(C) 2005 The Economist Intelligence Unit Ltd.
COUNTRY BRIEFING
FROM THE ECONOMIST INTELLIGENCE UNIT
Nigeria’s primary export markets are the United States, Brazil, Spain and France. Chief import sources for the country are the US, the United Kingdom, Germany and China. Nigeria’s exports consist primarily of crude oil, whereas most of its imports consist of machinery and transport equipment, chemical products and manufactured goods, especially iron and steel.
The US is Nigeria’s largest trading partner. According to the Economist Intelligence Unit, exports to the US rose from US$5.65bn in 2002 to US$9.20bn in 2003, an increase of 62.8%.The increase came mostly from the rise of oil purchases. Imports from the US reached US$2.31bn in 2003, up by nearly 100% when compared with the US$1.16bn in 2002.
Nigeria was a member of the Lome IV Convention, under which 72 African, Caribbean and Pacific (ACP) countries (mostly former colonies) were affiliated with the European Union. Under the terms of the convention, industrial exports from these countries entered the EU free of duty and quantitative restrictions if they complied with certain rules of origin. Some agricultural products remain subject to restrictions but receive most-favoured-nation treatment. Lome IV expired on February 29th 2000. Negotiations on new arrangements began in September 1998, and an interim agreement was signed at Cotonou, Benin in June 2000. This provided for the continuation of the present favourable terms for access to the EU market for another eight years.
Nigeria is a member country of the Summit Level Group of Developing Countries, known as the G15. This group was established during the ninth Summit of Heads of State/Government of the Non-Aligned Movement held in Belgrade in September 1989. The group, with 16 member countries, aims to achieve effective management of defined economic goals. Nigeria has reaped dividends from participation in the group by increasing trade with other members.
Nigeria also belongs to the Economic Community of West African States (ECOWAS), which aims to establish a common market among its members. However, the volume of formal trade between Nigeria and other ECOWAS countries is relatively small. The ECOWAS Trade Liberalisation Scheme (ETLS) provides for four successive 25% annual reductions in customs duty on approved manufactured products. Around 50% of the close to 1,000 industrial products admitted under the trade scheme are manufactured in Nigeria.
To avail itself of the scheme, a company directs its application to the National Planning Commission, which confirms the claims on local content, plant capacity and related items before forwarding the application to ECOWAS headquarters. Companies registered under the scheme include Cadbury (for confectionery and beverages), Carnaud Metalbox (for packaging), UAC Foods and PZ Industries (a Nigerian-owned consumer-products company). However, companies registered under the scheme complain that they cannot take advantage of the preferential tariffs because the institutional framework to implement the scheme is not yet in place. Furthermore, few bona fide manufacturers can compete favourably with the informal sector, which operates a well-run trading system. During 2004 the government announced the approval of 28 additional companies and 63 products that qualify for the ETLS. A total of 41 companies with 91 products applied for approval during the year; 22 of these companies were approved based on local raw-materials content, and the rest were based on value-added to foreign products. The 91 products include pharmaceuticals, biscuits, mineral water, juices, mattresses, packaging materials, lotions, perfumes, sweets, syrups, malt, beer and macaroni.
The Congress of the United States passed into law the African Growth and Opportunity Act in mid-2000. Under this legislation, specified manufactured goods with predominantly local content and value added can be exported to the US at concessionary or zero duty rates.
Nigeria adheres to the Harmonised System of Customs Tariff. All duties are levied on an ad valorem basis.
A comprehensive tariff revision is covered by the Customs, Excise Tariff (Consolidation) Decree 4 of 1995, which took effect March 1st 1995 for 1995–2001. Main features of the regime include the following: a narrower range of customs duties; few exemptions from the rate structure; fewer rates; more uniform rates; fewer import prohibitions; and a generally lower average rate. Nigeria is a member of the World Trade Organisation and is aware that maintaining a permanent import-prohibition policy would go against its commitments and might attract retaliatory measures from trading partners. Despite that, the Obasanjo administration has been adding items to a growing list of prohibited imports.
In 2001 the federal government undertook a radical review and reduction of tariffs on the numerous items as part of its poverty-alleviation drive. The imported items were mostly major raw materials for manufacturers in the following areas: pharmaceutical products; agricultural production and animal husbandry; petroleum products; soap and detergent; tyres and tubes; papers and printing materials; textiles, plastics and rubber products; engineering parts for assembly plants; paints and industrial chemicals; educational material; essential machinery and spare parts; and fertiliser. Gypsum, a chemical used predominantly in cement production, was removed from the import prohibition list in 2001 but now attracts a 65% duty rate.
Under import guidelines, an importer must first obtain an import-duty report (IDR) from a pre-shipment inspection agency. The importer takes the IDR to any one of the banks designated by the government to collect duties, with the assessed duties calculated at the prevailing exchange rate at the Interbank Foreign Exchange Market, and the importer pays the duty into the government’s import-duty account. The importer can then collect the goods from the ports. Since port personnel are known to demand bribes, however, the number of agencies authorised to operate at the ports has been reduced to six (from 18). An import-duty surcharge of 7% of the import duty assessed is in force, payable to the “Federal Government of Nigeria Surcharge Account”. Value-added tax is also payable at 5% of the duty charged. In addition, landing charges are levied on some imported items that compete with specific locally produced substitutes. For instance, a sugar-development levy of 5% is imposed on the cif value of imported sugar to aid the development of local sugar production. Similarly, for motor vehicles, a landing charge of 2% of the cif value is payable to the government.
Nigeria has in place the Automated System for Customs Data Entry and Control (Asycuda). The civil engineering and installation aspects of the Asycuda project have been completed at the airports (cargo) and seaports in the Lagos area. But certain factors affect its smooth implementation, including the visible dearth of computers needed for the smooth operation of the scheme and the lack of trained workers to use the computers effectively.
Fundamental indicators: foreign trade

Foreign trade (% growth) 2003 estimate 2004 estimate 2005 forecast

Exports of goods and services 9.5 1.1 2.7

Imports of goods and services 0.0 6.1 1.2

Foreign trade (% of GDP)      

Exports of goods and services 41.4 44.5 38.5

Imports of goods and services 39.5 38.9 36.3

Trade figures (US$ bn)      

Current-account balance -1.6 2.3 2.4

as percent of GDP -3.1 3.5 3.1

Goods: exports fob 27.3 33.7 34.9

Goods: imports fob -16.9 -17.5 -18.3

Trade balance 10.4 16.2 16.6

Services: credit 2.8 3.5 4.1

Services: debit -11.2 -13.6 -14.9

Services balance -8.4 -10.2 -10.8

Source: Economist Intelligence Unit, Country

Forecast Nigeria, March 2005.


Import bans apply to certain locally produced agricultural products or to locally sourced raw materials and semi-processed raw materials, certain finished goods, items considered unsafe because of poor quality control and items in which Nigeria has attained self-sufficiency. The import prohibition list has grown over the last few years, reversing the trend since 1996 of opening the market to competition. The long list of goods that may not be imported into Nigeria include furniture items such as curtains; building materials such as corrugated boards; personal clothing items such as men shoes and bags; hygiene products such as soap, toothpaste and detergents; and assembled bicycles. Officials claim that the additional prohibitions are designed to stop the dumping of cheap and substandard imports, from Asia in particular.
Having banned more than 40 products since August 2002, the Obasanjo administration’s trade policy is probably as restrictive as any pursued by previous military governments. There is little evidence, however, that the non-tariff barriers have helped local industries. Instead, import prohibitions have encouraged smuggling through Nigeria’s porous borders. Even if import bans were successful in removing foreign goods from the market, local industries would still need to tackle the array of factors that now make them uncompetitive; these include the lack of investment in machinery upgrades, dilapidated infrastructure and poor management.
Destination inspection was fraught with problems in early 1999, which resulted in a significant reduction in government revenue from customs duties. Consequently, the government restored pre-shipment inspection on September 1st 1999. All goods except personal effects, used motor vehicles and perishables imported into the country are subject to pre-shipment inspection in the country of supply. An appropriate clean report of inspection (CRI) must be issued. Bureau Veritas, Societe Generale de Surveillance, Swede Control Intertek and Cotecna Inspections are the government’s appointed inspection agents.
With the implementation of the Automated System for Customs Data Entry and Control (Asycuda) and the installation of x-ray inspection machines at the ports, every importer must have an Asycuda number, issued by the Nigerian Customs Service. Transactions involving bills for collection and open accounts have been readmitted into the Interbank Foreign Exchange Market.
Labelling requirements do not pose a major problem, but health, safety and environmental standards are becoming increasingly significant issues for importers. Two entities that have gained in prominence in recent years are the Standards Organisation of Nigeria (SON) and the National Agency for Food and Drugs Administration and Control (NAFDAC). The SON issued guidelines in June 1996 for product-quality inspection and the provisional release of imported goods. If the SON receives a timely application along with photocopies of the bill of lading, a CRI, the packing list/invoice and other specified identification documents, the goods should be released within the 48-hour period approved by the government for clearing goods at the ports.
NAFDAC regulates and controls import, export, manufacturing, advertisement, distribution, and safe use of food, drugs, cosmetics, medical devices, bottled water and chemicals. NAFDAC now requires that all such items to be imported for distribution in Nigeria must first be registered with it. The Central Bank of Nigeria announced in February 1999 that importers and exporters of regulated products would not be permitted to participate in the Interbank Foreign Exchange Market without proof of NAFDAC registration. NAFDAC guidelines also stipulate that labelling must be informative and accurate, and it sets minimum requirements in this respect. It also conducts inspections at the ports, for which it charges a nominal fixed fee. There is still demand from pressure groups for streamlining the functions of NAFDAC and SON to eliminate areas of conflict between the two bodies in their operations at the ports.
To guard against sub-standard equipment, the National Communications Commission (NCC) approves any telecommunications equipment for use in Nigeria by any of the licensed private telecoms service providers. For this purpose, the NCC has installed a type-test laboratory at its facilities in Nigeria. But with specialised high-technology equipment, such as for providers offering private network links or cellular systems, NCC officials will travel abroad to inspect and test the equipment at any convenient location at the proposed importer’s cost. The Nigerian Communications Act was passed in July 2003; it grants the NCC its independence as the regulator for the industry.
Form M documentation is required for statistical purposes and to aid import-duty assessment. Importers must buy their foreign exchange from the Interbank Foreign Exchange Market (IFEM). The exporter is allowed to hold export proceeds in an export domiciliary account or trade them through any bank of the exporter’s choice on the IFEM. The initial validity of an appropriate Form M for general goods is 180 days. Validity may be extended more than once by an authorised dealer, provided that, with the extension, the validity of the Form M does not exceed the maximum of 360 days.
There are no special industry or favoured-nation provisions in Nigeria.
No quantitative restrictions or quotas apply to imports into Nigeria, and there are no prior-deposit requirements. The impediments to imports—mostly corruption at the ports—are being systematically addressed by the streamlining of personnel and administrative functions.
A local clearing agent is required for clearance of goods from the ports.
Nigeria does not generally discriminate against imports from any country except in suspected cases of dumping or subsidies, when special import levies may be imposed.
Revised import guidelines, effective September 1st 1999, apply to all import transactions. Except for rare exempt items, all goods are subject to pre-shipment inspection. Importers must process the Form M through any authorised commercial/merchant bank, whether or not the import is valid for foreign exchange. Commercial imports must be accompanied by the final invoice bearing the CRI (clean report of inspection) number with an adequate description of the goods, packing list and transport documents. The CRI number must be stated on the relevant bill of lading and also written against each item in the cargo manifest. Apart from those items exempt from pre-shipment inspection, all goods entering the country without a CRI are impounded. Exempt items include the following: gold, precious stones, explosive and pyrotechnic products, art works, military items, weapons, used motor vehicles, perishables and parcel posts or samples. Personal items are imported at zero duty as certified by the pre-shipment inspection agents. All unaccompanied personal items are subject to pre-shipment inspection, regardless of value.
Imports by diplomats are exempt, though the enforcement of this rule may be somewhat discretionary.
Agricultural commodities destined for export are subject to export levies of up to 10%; exports of unprocessed cocoa beans (Nigeria’s second-largest export by value) are subject to a special 10% levy. The Central Bank of Nigeria collects these on behalf of the Ministry of Agriculture and the Export Commodities Co-ordinating Committee. The levies are government revenues used primarily for servicing Nigeria’s financial obligations to international commodity organisations to which it belongs.
All exporters are liable for regular port charges.
The Nigerian Export Processing Zone Act of 1992 empowers the president to designate areas as export-processing zones (EPZs). There is an EPZ in Calabar, and the Ogun and Ondo state governments are constructing an EPZ in Olokola.
Under the law, benefits to enterprises within the EPZ include exemption from taxes, duties, foreign-exchange restrictions and import/export licence requirements. Such enterprises also enjoy a rent-free period during factory construction. Enterprises wishing to operate in the EPZ need to apply to the Nigerian Export Processing Zone Authority. Required supporting documents include a feasibility study and evidence of available resources to execute the project. (For the latter, the track record of the project sponsor may suffice.)
Companies in an EPZ may sell up to 25% of their production domestically on payment of import duty. EPZ rent, payable annually, is to be used to help fund the costs of national infrastructure projects. The government, which confers EPZ status through the Ministry of Commerce, has reiterated its aim to extend this status to eligible manufacturers nationwide.
The Oil and Gas Free Zone, announced in 1996 pursuant to the Oil and Gas Export Free Zone Act 8 of 1996, was inaugurated on March 8th 1997 in the town of Onne (Rivers state), where a new deep-water port is being constructed. The law creates an authority responsible for granting or cancelling licences to operate in the zone. DMS of the UK and Intels Services, an Italian port and marine oil terminal-management company already offering port services at Onne, operate the zone.
The Nigerian Export Processing Zone Authority is receiving proposals from various state governments including Lagos for a zone along its coastline in Lekki, Jigawa, Akwa Ibom, Kwara, Borno and Oyo states.
All exports are subject to pre-shipment inspection under the Nigerian Export Supervision Scheme (NESS), mainly to ensure that exporters repatriate their correct foreign-exchange earnings. The exporter completes a Nigeria Export Proceeds (NXP) form in sextuplicate at least ten days prior to export, and the forms must be deposited with the exporter’s bank for registration, from which four copies are sent to the inspection agent. The exporter pays the bank an NESS administrative charge of 1% and a fee of 0.15% ad valorem of the fob value of the non-oil and oil goods, respectively, which the bank remits to the Central Bank of Nigeria. If on inspection the goods are valued higher, the exporter is liable for additional payments. Loading takes place only after the exporter receives a clean report of inspection (CRI) from the inspection agent. The export-inspection scheme adds to the cost of exports from Nigeria, making them less competitive in international markets.
Licences are required to export petroleum products. Export is prohibited for a few items (such as rough and sawn timber, scrap metals, and raw hides and skins) for conservation reasons and to protect some local industries (like tanneries). In practice, significant amounts of hardwood logs are exported, particularly cut timber, which exporters classify as “completely knocked-down” furniture parts. Exports of unprocessed rubber latex and rubber lumps also are banned. As with wood, few bans are wholly effective.
To encourage more non-oil exports, clients may use the Negotiable Duty Credit Certificate in lieu of cash to settle claims of beneficiaries under the manufacturer-in-bond scheme (MIBS). The 10% processing fee charged by the Nigerian Export Promotion Council on beneficiaries of the MIBS has been abolished. Moreover, the grant given to exporters of processed products has been increased to 10% (from 4%) of annual export turnover.
The Nigerian Export Credit Guarantee and Insurance Corp (Nexim), created in 1990, handles the government’s export guarantee scheme, which protects non-oil exports against political risks. Exports may be made against bills for collection (that may be financed through the Interbank Foreign Exchange Market) or irrevocable letters of credit. Exports of crude oil are usually insured overseas under special arrangements.
Nexim also provides export credit, related guarantees and refinancing of Nigerian banks’ short-term advances to exporters. Since the refinancing rate is set below the market rate for similar deposits, this facility improves lending banks’ margins on export finance while providing a subsidised rate to the exporter. But Nexim’s cumbersome procedures and cash-strapped condition (from widespread defaults on an African Development Bank loan) greatly affected its operations through 2000. Nexim is now being restructured and recapitalised.
SOURCE: Country Commerce
EIU ViewsWire 14 Apr 2005 (T11:01), Part 16 of 48
Document EIUCP00020050415e14e0000o

China, Nigeria sign economic agreements, seek "strategic partnership"
502 words

14 April 2005

12:14 PM

BBC Monitoring Asia Pacific

BBCAPP

English

(c) 2005 The British Broadcasting Corporation. All Rights Reserved. No material may be reproduced except with the express permission of The British Broadcasting Corporation.
Text of report in English by official Chinese news agency Xinhua (New China News Agency)
Beijing, 14 April: China and Nigeria signed five economic agreements Thursday night [14 April], promising to upgrade their relations to a "strategic partnership".
The five agreements, covering investment, telecommunication service and technical cooperation, were signed after an hour-long talk between Chinese President Hu Jintao and Nigeria President Olusegun Obasanjo, who is in China for a four-day state visit.