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Business Profile
Economy: Nigeria is Africa’s largest oil producer; the industry earns 90 per cent of the country’s export income and has underpinned its economy for decades. Nigeria also has commercially viable quantities of tin, coal, iron ore, zinc and some uranium, plus substantial but as yet largely untapped reserves of natural gas and coal. Agriculture occupies well over half of the population, who produce rice, maize, cassava, sorghum and millet as staples, as well as groundnuts, cocoa, palm oil and rubber as cash crops. Timber and livestock rearing have both developed during the last 20 years. Nonetheless, successive governments have failed to restore Nigeria’s one-time self-sufficiency in food. Manufacturing was established during the 1960s, principally with oil money, and now includes food processing and the production of vehicles, textiles, pharmaceuticals, paper and cement.
Despite its abundance of natural resources, Nigeria has suffered an almost permanent economic crisis during the last ten years, due to political instability, mismanagement and corruption. Per capita GDP is just US$300 annually, not much more than that of the world’s poorest nations. The country is weighed down by a massive foreign debt. Reduction negotiations have been completed with the ‘Paris Club’ of leading creditors. As a condition of the rescheduling, the new civilian Government has begun to put into effect economic reforms, including the sale of major state-owned industries. Recent economic performance has been determined mainly by the state of the world oil market – growth in 2001/02 was limited to just over three per cent by Nigeria’s decision to abide by OPEC quotas. Britain is the largest single exporter to Nigeria. Germany, France, the USA and increasingly Brazil and Spain are other principal sources of imports. The bulk of Nigeria’s exports are sold to the USA, Germany, France, Italy and Brazil. Nigeria is the dominant member of the West African economic co-operation organisation, ECOWAS, as well as a leading member of the oil producers’ cartel, OPEC.
Business: English is spoken in business circles. It is common for business meetings to take place without a prior appointment, although these should be made for government visits. Business deals will often progress at a slower pace than is common in Europe. Owing to the prevalence of commercial fraud targeting foreigners, business travellers should contact both their local Nigerian Embassy and Chamber of Commerce before travelling to Nigeria. Office hours: Mon-Fri 0730-1530 (government offices); 0830-1700 (private businesses).
Commercial Information: Information and advice can be obtained from Nigerian High Commissions and the Nigerian Information Service Center (see Contact Addresses section).
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