Nigeria - Country Profile - indoafrican.org

Country Profile - NIGERIA

General Information

Area: 923,768 sq km (356,669 sq miles).

Population: 115,224,000 (official estimate 2000).

Population Density: 124.7 per sq km.

Capital: Abuja. Population: 403,000 (1999).

GEOGRAPHY: Nigeria has borders with Niger to the north, Chad (across Lake Chad) to the northeast, Cameroon to the east and Benin to the west. To the south, the Gulf of Guinea is indented by the Bight of Benin and the Bight of Biafra. The country’s topography and vegetation vary considerably. The coastal region is a low-lying area of lagoons, sandy beaches and mangrove swamps, which merges into an area of rainforest where palm trees grow to over 30m (100ft). From here, the landscape changes to savannah and open woodland, rising to the Central Jos Plateau at 1800m (6000ft). The northern part of the country is desert and semi-desert, marking the southern extent of the Sahara.

Government: Republic since 1963. Gained independence from the UK in 1960. Military regime from 1983-1999. Head of State and Government: President Matthew Olusegun Obasanjo since 1999.

Language: The official language is English. A variation of English (Pidgin English) is also spoken. The three main Nigerian languages are Yoruba, Ibo (also spelt Igbo) and Hausa; another 400 languages are also spoken in the country.

Religion: 50 per cent Muslim, 40 per cent Christian and 10 per cent traditional beliefs. Muslims are in the majority in the north and west of the country, while in the south Christians form the majority of the population.

Time: GMT + 1.

Electricity: 220 volts AC, 50Hz. Single phase.

Communications:

Telephone: Full IDD is available. Country code: 234. Outgoing international code: 009.

Mobile telephone: GSM 900 and 1800 networks. Network operators include Econet Wireless Nigeria Ltd and NITEL GSM.

Internet: Internet and e-mail services are available in Internet cafes in Lagos. ISPs include Microcom Systems Ltd (website: www.micro.com.ng).

Fax: Available in large hotels.

Telegram: International telegraph services are operated by Nigerian Telecommunications Limited (NITEL) in all large cities.

Post: Airmail to Europe is unreliable and takes up to 3 weeks. Delivery may be more reliable through international couriers who are represented in major towns.

Press: English-language newspapers include the Daily Sketch, the Daily Times, the Guardian, the National Concord, New Nigerian, the Nigerian Tribune, the Post Express, This Day and the Vanguard.

Radio: BBC World Service (website: www.bbc.co.uk/worldservice) and Voice of America (website: www.voa.gov) can be received. From time to time the frequencies change and the most up-to-date can be found online.

Passport/Visa

Passport Required? Visa Required? Return Ticket Required?
British Yes Yes Yes
Australian Yes Yes Yes
Canadian Yes Yes Yes
USA Yes Yes Yes
OtherEU Yes Yes Yes
Japanese Yes Yes Yes

PASSPORTS: Passport valid for a minimum of 6 months beyond the date of departure required by all.

VISAS: Required by all except the following:

(a) nationals of Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Morocco, Niger, Senegal, Sierra Leone and Togo for stays of up to 90 days;

(b) transit passengers continuing their journey by the same or first connecting aircraft provided holding valid onward or return documentation and not leaving the airport, except for nationals of the USA who require a transit visa.

Note: Children under 16 years of age accompanying their parents residing in Nigeria (provided the name of such a child is entered in the passport of one of the parents) do not require visas, but must, however, complete one application form accompanied by a photo. All children holding their own passport must have separate visas or re-entry permits.

Types of visa and cost: Tourist, Business: Ł45 (single-entry); Ł75 (multiple-entry). Transit: Ł45. The prices quoted are for UK nationals; visa costs depend on nationality. Nationals of some African countries receive visas free of charge. Contact High Commission or Consular section at Embassy for further information.

Application to: Consulate (or Consular section at Embassy or High Commission); see Contact Addresses section.

Application requirements: (a) One completed application form. (b) Passport. (c) One passport-size photo. (d) Fee, which at present must be paid by postal order. (e) Onward or return ticket for Tourist visas. (f) Paid registered post return envelope if applying by post. Business: (a)-(f) and, (g) Letter of introduction from a company or a resident of Nigeria, accepting immigration responsibility for applicant; any Nigerian inviting a visitor must attach photocopies of the first five pages of his/her own passport, while a resident must enclose a copy of his/her residence permit.

Working days required: 2 (if applying in person); 7 (postal applications).

Money

Currency: Naira (N) = 100 kobo. Notes are in denominations of N500, 200, 100, 50, 20, 10 and 5. Coins are in denominations of N1.

Currency exchange: The government of Nigeria has fixed an artificially high rate for local currency (the Naira) in terms of its value in exchange for foreign currencies. However, trading on the black market is extremely dangerous and could lead to arrest. Therefore, visitors are advised to exchange currency at the official rate and at approved exchange facilities, which often include major hotels. Inter-bank transfers are frequently difficult, if not impossible, to accomplish.

Credit & debit cards: American Express, Diners Club, MasterCard and Visa are rarely accepted in Nigeria and, because of the prevalence of credit card fraud, their use is ill-advised.

Travellers cheques: Travellers cheques are generally not recommended.

Currency restrictions: Import of local currency is limited to N20 in notes and must be declared on arrival. Export of local currency is restricted to N20 in notes. Import of foreign currency is unlimited, but it must be declared on arrival; export is limited to the amount declared. Penalties for black market transactions are severe.

Exchange rate indicators: The following figures are included as a guide to the movements of the Naira against Sterling and the US Dollar:

Date Aug ’03 Nov ’03 Feb '04 May '04
Ł1.00= 208.21 225.27 249.10 243.18
$1.00= 130.54 132.75 136.85 136.15

Banking hours: Mon 0800-1500, Tue-Fri 0800-1330. There are over 80 commercial banks. The Government owns 60 per cent of all foreign banks.

Duty Free

Duty Free: The following goods may be imported into Nigeria by persons over 18 years of age without incurring customs duty:

200 cigarettes or 50 cigars or 200g of tobacco; 1l of spirits and 1l of wine; a small amount of perfume; gifts to the value of N300 (excluding jewellery, photographic equipment, electronics and luxury goods).

Note: (a) If more than each of the above is imported, duty will be levied on the whole quantity. Heavy duty will be levied on luxury items such as cameras or radios unless the visitor’s stay is temporary. (b) It is forbidden to buy or sell antiques from or to anyone other than the Director of Antiquities or an accredited agent; visitors should obtain a clearance permit from one of the above before presenting antiques, artefacts or curios at the airport.

Prohibited items: Champagne, sparkling wine, beer and soft drinks; fruits, vegetables, cereals and eggs, whether fresh or preserved; jewellery and precious metals; textile fabrics and mosquito netting.

Public Holidays

Public Holidays: Jan 1 2004 New Year’s Day. Feb 2 Eid al-Kabir (Feast of the Sacrifice). Apr 9-12 Easter. May 1 Workers’ Day. May 2 Mouloud (Birth of the Prophet). Oct 1 National Day. Nov 14-16 Eid al-Fitr (End of Ramadan). Dec 25-26 Christmas. Jan 1 2005 New Year’s Day. Jan 21 Eid al-Kabir (Feast of the Sacrifice). Mar 25-28 Easter. Apr 21 Mouloud (Birth of the Prophet). May 1 Workers’ Day. Oct 1 National Day. Nov 3-5 Eid al-Fitr (End of Ramadan). Dec 25-26 Christmas.

Note: Muslim festivals are timed according to local sightings of various phases of the moon and the dates given above are approximations. During the lunar month of Ramadan that precedes Eid al-Fitr, Muslims fast during the day and feast at night and normal business patterns may be interrupted. Many restaurants are closed during the day and there may be restrictions on smoking and drinking. Some disruption may continue into Eid al-Fitr itself. Eid al-Fitr and Eid al-Kabir (Eid al-Adha) may last anything from 2 to 10 days, depending on the region. For more information, see the World of Islam appendix.

Health

Special Precautions Certificate Required?
Yellow Fever Yes 1
Cholera Yes 2
Typhoid and Polio 3 N/A
Malaria 4 N/A

1: A yellow fever vaccination certificate is required by travellers over 1 year of age arriving within 6 days from infected areas. Travellers arriving from non-endemic zones should note that vaccination is strongly recommended for travel outside the urban areas, even if an outbreak of the disease has not been reported and they would normally not require a vaccination certificate to enter the country. The risk of contracting yellow fever is highest in Lagos and Kaduna states. Contact Embassy/High Commission for exact details of vaccination requirements prior to travel.

2: Following WHO guidelines issued in 1973, a cholera vaccination certificate is not a condition of entry to Nigeria. However, evidence of cholera vaccination is required by certain nationals before they may enter the country (check with the nearest Nigerian Embassy) and vaccination is therefore advised. Cholera is a serious risk in this country and precautions are essential. Up-to-date advice should be sought before deciding whether these precautions should include vaccination, as medical opinion is divided over its effectiveness; see the Health appendix for further information.

3: Polio and typhoid both occur.

4: Malaria risk exists all year throughout the country. The predominant falciparum strain has been reported to be resistant to chloroquine.

Food & drink: All water should be regarded as being potentially contaminated. Water used for drinking, brushing teeth or making ice should have first been boiled or otherwise sterilised. Milk is unpasteurised and should be boiled. Powdered or tinned milk is available and is advised, but make sure that it is reconstituted with pure water. Avoid dairy products which are likely to have been made from unboiled milk. Only eat well-cooked meat and fish, preferably served hot. Pork, salad and mayonnaise may carry increased risk. Vegetables should be cooked and fruit peeled.

Other risks: Bilharzia (schistosomiasis) is present. Avoid swimming and paddling in fresh water; swimming pools which are well chlorinated and maintained are safe. Hepatitis A, B, C and E are present; precautions should be taken. Meningococcal meningitis, leishmaniasis, trypanosomiasis and onchocerciasis (river blindness) occur. TB and Dengue fever also occur and HIV is a risk.

Rabies is present. For those at high risk, vaccination before arrival should be considered. If you are bitten, seek medical advice without delay. For more information, consult the Health appendix.

Health care: The government-provided health care facilities are of a poor standard and are subject to shortages of drugs, equipment, materials and even electricity. It is advisable to take a sufficient supply of drugs or medication to meet personal needs. However, there are some adequate private facilities where the standards approach those of Europe. Doctors and hospitals often expect immediate cash payment for health services. There is no reciprocal health agreement with the UK. Medical insurance is essential.

Travel – International

Note: Travellers are currently advised to avoid the Bakassi Peninsula on the border with Cameroon and Warri; plus all but essential travel is advised to Warri, the riverine areas in the Delta State and the southeast Plateau State. Localised outbreaks of civil unrest have been known to occur at short notice, and violent crime is prevalent in the south of the country, including Lagos.

AIR: Nigeria’s national airline is Nigeria Airways (WT), which operates services to West, Central and East African destinations as well as Europe and America (not recommended owing to overbooking; some countries have banned the airline from landing for insurance reasons). Other airlines operating between Nigeria, Europe and North America include Air France, British Airways, KLM Royal Dutch Airlines, Lufthansa, United Airlines and Virgin Atlantic.

Approximate flight times: From Lagos to London is 7 hours 25 minutes and to New York is 12 hours 10 minutes.

International airports: Lagos (LOS) (Murtala Muhammed) is 22km (13 miles) north of Lagos (travel time – 40 minutes). Taxis to the city are available. There is a free coach service every 10 minutes. Airport facilities include restaurant, bar, snack bar, bank, post office and car hire.

Kano (KAN) is 8km (5 miles) north of Kano (travel time – 25 minutes). Buses leave for the city every 10 minutes 0600-2200, and taxis are available. Airport facilities include restaurant, bank, post office, duty-free shop and car hire.

Abuja (ABV) is 35km (22 miles) from the city.

Note: Pickpockets and confidence tricksters, some posing as local immigration and other government officials, are especially common at Murtala Muhammed Airport.

Departure tax: None.

SEA: The main ports are Lagos, Port Harcourt and Calabar. Other important ports include Warri and Sepele.

ROAD: Links are with Benin, Cameroon, Chad and Niger. The principal trans-Saharan routes pass through Nigeria from Niger. The principal link with Benin is via the Idoroko border point along the good coast road to Lagos.

Travel – Internal

AIR: Nigeria Airways (WT) operates between Benin City, Calabar, Enugu, Jos, Kaduna, Kano, Lagos, Maiduguri, Port Harcourt, Sokoto and Yola. Charter facilities are available in Lagos from Aero Contractors, Delta Air Charter and Pan-African Airlines. It is advisable to book internal flights well in advance. There is often considerable delay in internal air services. Lack of fuel sometimes disrupts internal commercial air travel.

SEA: Ferry services operate along the south coast and along the Niger and Benue rivers. For timetables and prices, enquire locally.

RAIL: The two main routes are from Lagos to Kano (via Ibadan–Oyo–Ogbombosho–Kaduna–Zaria); and from Port Harcourt to Maiduguri (via Aba–Enugu–Makurdi–Jos). These two lines link up Kaduna and Kafanchan. There is also a branch line from Zaria to Gusau and Kaura Namoda. A daily service runs on both main routes. Sleeping cars are available, which must be booked in advance. There are three classes and some trains have restaurant cars and air conditioning. Trains are generally slower than buses, but cheaper.

ROAD: Traffic drives on the right. The national road system links all the main centres, although in some areas secondary roads become impassable during the rains. Reports of armed robberies in broad daylight on rural roads in the northern half of Nigeria have been reported and appear to be increasing. Buses and taxis (or ‘bush taxis’ in the shape of Ford Transit vans) run between the main towns. Car hire is not difficult to obtain in Lagos and Abuja, but it is best to go through hotels. Chauffeur-driven cars are advised. Documentation: An International Driving Permit is required, accompanied by two passport-size photos.

URBAN: Public transport in Lagos operates in rather chaotic conditions. The city suffers from chronic traffic congestion, which makes it impossible for buses and taxis to operate efficiently, especially during the rush hours. There are many private bus companies and several thousand private minibuses. Taxis in Lagos are yellow and both fares and tip should be agreed in advance. A ferry service runs to Lagos Island.

Accommodation

HOTELS: There are first-class hotels in Lagos and in the major towns, but they are heavily booked and advance reservation is essential. Lagos is one of the most congested cities in Africa, and the majority of good hotels are on Lagos Island. Hotels are generally very expensive, but there is a variety of alternative accommodation. Further information can be obtained from the Ministry of Culture and Tourism (see Contact Addresses section).

OTHER ACCOMMODATION: Government-run catering rest-houses are scattered throughout the country and offer accommodation in colonial-style rest-houses. In many towns, Christian missions are able to offer good basic accommodation at a reasonable price. The universities have guest houses for visiting academics, but may be able to accommodate other visitors. Most of the big towns have sporting clubs which offer cheap accommodation and eating facilities, and can be used by visitors who take temporary membership. Port Harcourt is the centre of the national oil industry and offers a large selection of accommodation to the industry, which is also available to tourists.

Sport & Activities

Watersports: The numerous beaches offer bathing, although many have strong currents and bathers should not swim far from the shore, especially in Lagos. Many of the better hotels have pools. Good river and sea angling is available throughout the country.

Wildlife: Yankari National Park, in the eastern half of the country, is particularly good for birdwatching. Animals which can be viewed here include elephants, crocodiles and monkeys. Nigeria’s largest national park, the Gashaka Game Reserve near Yola, also provides opportunities to view birds and animals.

Social Profile

Food & Drink: There are restaurants of all varieties in Lagos and the major towns. European and Oriental food is readily available. Although there are self-service cafes, mainly in department stores, most restaurants have table service. Nigerian food is typical of that found throughout West Africa, and meals will often include yam, sweet potatoes, plantain and pepper soup, with regional variations. In the north, meat is more popular than in other areas; specialities are suya (barbecued liver and beef on sticks) and kilishi (spiced dried meat), in the east egussi soup (stew of meat, dried fish and melon seeds), and in the south goat meat and bush meat, particularly antelope, which is considered a delicacy.

There are many brands of locally brewed and bottled beer which are very good. Spirits are expensive. Larger hotels and clubs have bars and cocktail lounges.

Nightlife: There are nightclubs in many of the hotels in Lagos and in the Surulere district. Some clubs have live entertainment, details of which are given in the local newspapers. North of Oyo in Ogbomosho, there is a lively market, particularly in the evenings. Local festivals which generally take place in the summer months provide a good opportunity to see dancing, music and traditional costumes.

Shopping: Markets are the most interesting places to shop. Special purchases include adire (patterned, indigo-dyed cloth), batiks and pottery from the southwest, leatherwork and kaduna cotton from the north and carvings from the east. Designs vary greatly, many towns having their own distinctive style. Other purchases include herbs, beadwork, basketry and ceremonial masks such as those of the Ekpo. Shopping hours: Mon-Fri 0800-1700, Sat 0800-1630.

Special Events: In the predominantly Muslim north, the most important festival is Sallah, celebrated 3 months after the feast of Eid al-Fitr (End of Ramadan), particularly in the towns of Kano, Katsina, Maiduguri and Zaria. Every family is required to slaughter a ram and festivities last for several days, with horseback processions, musicians and dancers. Featured also in northern communities are Durbars, long lines of horsemen led by a band, the horses in quilted armour with the riders wearing quilted coats and wielding ceremonial swords. In the south, there are masquerades and festivals marking events in local religions. In mid-to late-February, the Argungu Fishing and Cultural Festival is held on the banks of the Sokoto River. At Oshogbo, the Oshun festival is held at the end of the rainy season (August to September), attracting thousands of childless women who seek the help of the Yoruba goddess of fertility. Festivals in the western states include masquerades in June, the Oro festival in July and the Shango festival in August. In August, the Pategi Regatta takes place, half-way between Ibadan and Kaduna. Other festivals are held in February, July and August in the northern town of Ogbomosho. For more information or exact dates, contact the Nigeria Tourism Development Corporation (see Contact Addresses section).

Social Conventions: Shaking hands with everyone is customary on meeting and departing. In Yorubaland, it is a sign of respect for women to curtsey when introduced, and to enquire after relations, even if this is a first meeting. Unless the visitor knows someone well, it is unusual to be invited to a Nigerian’s home. Most entertaining, particularly in Lagos, takes place in clubs or restaurants. A small gift of appreciation is always welcome and business souvenirs bearing the company logo are also acceptable. Casual wear is suitable and a lightweight suit and tie are only necessary for businesspeople on formal meetings; on most other occasions men will not need to wear a jacket, although a tie might be expected. Women should dress modestly, and respect local customs regarding dress, particularly in the Muslim north. It is inadvisable for women to wear trousers. There are over 250 tribes in Nigeria, the principal groups being the Hausa in the north, the Ibo (or Igbo) in the southeast and the Yoruba in the southwest. The larger of the minor groups are the Fulani, Idoma, Igala, Igbirra, Kanuri, Tiv and Nupe in the north; the Efik, Ekoi, Ibibio and Ijaw in the east; and the Edo, Itsekiri, Ijaw and Urhobo in the west. A result of this ethnic variety is the diversity of art, dance forms, language, music, customs and crafts. Nigerians have a very strong sense of ethnic allegiance. Tipping: Unless a service charge has been included, 10 per cent is expected for most services. Note that for taxi drivers the fare including a tip should be agreed before the journey. Airport porters should be tipped per case.

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 10 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 3 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).

Climate

Climate: Varies from area to area. The southern coast is hot and humid with a rainy season from March to November. During the dry season, the Harmattan wind blows from the Sahara. The north’s rainy season is from July to September. Nights can be cold in December and January.

Required clothing: Lightweight cottons and linens are worn, with a warm wrap advisable in the north. Rainwear is essential during the rainy season.

INDIA-NIGERIA - ECONOMIC RELATIONS

Relations between Nigeria and India are warm and friendly, without any contentious issues. India established a diplomatic mission in Nigeria in 1958, even before Nigeria became independent in 1960. Both countries have been in the forefront of the worldwide anti-colonial and anti-apartheid struggle and have collaborated in various international fora. Prime Minister Jawaharlal Nehru’s visit to Nigeria in September 1962 laid an excellent foundation for close political and economic relations between the two countries. Since then, several high-level political, commercial and cultural visits have been exchanged between the two countries.

Indo-Nigerian relations gained momentum with the State Visit of President Olusegun Obasanjo to India in January 2000 as Chief Guest at the 50th Republic Day celebrations and the visit of the then EAM, Shri Jaswant Singh, to Nigeria in March 2000 to co-chair the Third Session of India-Nigeria Joint Commission. In May 2003, the Minister of State for Commerce and Industry, Shri Rajiv Pratap Rudy, visited Lagos to Chair the Conference of Commercial Representatives of Western Sub-Saharan Africa. During his visit, the Hon’ble Minister held meetings with local business groups. The Nigerian Foreign Minister, Mr. Oluyemi Adeniji, visited India from October 28-30, 2003 to co-chair the Fourth Session of the Joint Commission. The Indian side at this JCM was led by EAM, Shri Yashwant Sinha.

The Hon’ble Prime Minister, Shri Atal Behari Vajpayee visited Nigeria in December 2003 to participate in the Commonwealth Heads of Government Meeting (CHOGM-2003).

With a population of about 130 million and considerable revenue from oil exports, Nigeria is the largest trading partner of India in Africa. Bilateral annual trade turnover exceeds US$ 3 billion. Earlier, Nigeria occupied the 5th place so far as India’s exports to African countries are concerned (after South Africa, Mauritius, Egypt and Kenya). However, Nigeria has now moved to the 1st place.
Indian companies have sizeable investments in textiles, chemicals, electrical equipment, pharmaceuticals, plastics, fishing etc. The first Indian company, viz. K. Chellaram Company, was set up in Nigeria in 1923. India has assisted Nigeria through transfer of technology, machinery and expertise in the form of joint ventures and consultancy services. EEPC’s only Resident Office in Africa is located in Lagos as Nigeria is the largest destination in Africa of Indian manufactured products. Nigeria also imports more Indian pharmaceuticals than any other country in the African continent. Trade turnover continues to grow, including in computer components and software services, with large potential for Indian project exports in railways, power generation and electricity transmission, telecommunications, defence and machine tools.

The two countries have regularly exchanged visits at governmental and commercial levels to strengthen bilateral economic and commercial relations. While India’s Minister of State for Commerce and Industry visited Nigeria in October 2000, the Nigerian Ministers of Industry and Communications visited India in November 2001 and January 2002, respectively. During the last three years, several trade missions from states in Nigeria and Chambers of Commerce have visited India. From the Indian side, delegations from RITES, CII, IEEMA, jute industry, etc. came to Nigeria in 2002 to hold discussions with their respective counterpart organizations and identify areas of cooperation. In February 2004, Nigerian delegations participated in INDIASOFT-2004 and the BSM organized by CAPEXIL in Mumbai. A delegation from the Electronics and Computer Software Export Promotion Council (ESC) visited Lagos from February 26-29, 2004. A multi-product Buyer-Seller Meet was organized by the EEPC in Lagos on March 3-4, 2004.

Trade: Bilateral trade between the two countries has been in the vicinity of US$ 3 billion in the last three years, making Nigeria the largest trading partner of India in the African continent. India’s exports to Nigeria have consistently shown a healthy upward trend. India’s exports grew from US$ 248.09 million in 1998-99 to US$ 563.15 million in 2001-2002, an increase of 127% in 3 years. DGFT figures indicate that Indian exports to Nigeria in 2002-2003 declined by about 20% to US$ 449.09. This decline is attributable to the fact that because of general elections in Nigeria in April 2003, the economy was in slow gear and the budget process was delayed. Following successful completion of the elections, the country is looking forward to political stability and economic growth. This is likely to impact favourably on India’s exports in 2003-04. Figures for exports of Indian software are awaited. These are likely to add significantly to total Indian exports as several Indian IT majors, particularly in the banking sector, are active in the Nigerian market.
India’s imports increased from US$ 1177.73 mn in 1998-99 to US$ 2485.00 mn in 2001-02. Provisional figures indicate that the value of imports during 2002-03 was US$ 2467 mn. Traditionally, balance of trade has been in Nigeria’s favour, mainly because of large Indian imports of crude oil and the amount of trade deficit is dependent on the price of oil. Oil constitutes more than 96% of Indian imports from Nigeria. In 2001, India was Nigeria’s 2nd largest export destination after USA and Spain.

India-Nigeria Trade Statistics

Value in US $million
1998-
1999 1999-2000 2000-2001 2001-2002 2002-
2003
Indian exports to Nigeria 248.09 293.71 384.66 563.15
449.09
Indian imports from Nigeria 1177.73 2928.39 2704.18 2485.00 78.13
*2389.00
Total Trade 1425.82 3222.11 3088.84 3048.15 +2916.21

*Oil imports + Excludes software exports.

Main Indian exports:Pharmaceutical products, machinery and mechanical appliances, electrical machinery and equipment, automobiles, iron and steel, cereals, plastic and articles thereof, rubber and articles thereof, paper and paper products, cotton, textiles.

Main Indian imports:Crude Oil, wood, iron and steel.

Oil imports: India imports more crude oil from Nigeria than from any other country. In August 2000, a term contract was signed between Indian Oil Corporation and the Nigerian National Petroleum Company (NNPC) for import of Nigerian crude. This contract was renewed in August 2001. India’s import of crude oil from Nigeria remains substantial, as Nigeria is one of the few producers of the sweet varieties required by Indian refineries. Statistics of India’s oil imports from Nigeria are given below:

Year Quantity (MMT) Value
(In US $ million)
1999-2000 15.450 2597.7
2000-2001 12.570 2140.4
2001-2002 11.320 2001.9
2002-2003 11.578 2389.0

Project Exports/Joint Ventures:

MECON, RITES, TCIL and NSIC have been involved in consultancy and management projects in steel, railways, telecom, small-scale industry sectors in Nigeria for several years.
Petroleum India International (PII) has been involved in the maintenance of Port Harcourt and Warri oil refineries through the provision of technical manpower and training of Nigerian engineers. PII is also involved in the disinvestments of the National Oil Company.

HMT (I) set up the Nigerian Machine Tools (NMT) in 1982 with 15% equity participation. An agreement was signed on September 14, 2001 between India and Nigeria for the rehabilitation of NMT by utilizing a GOI grant of US$ 5 million. Under this agreement, 38 engineers and technicians from NMT went to India on four months training by HMT, Bangalore and most of the machinery supplied by HMT has already reached NMT. HMT has deputed three executives/engineers to oversee the installation of machinery and training of NMT staff.

Other joint ventures like INMB Bank (SBI joint venture), Prestige Assurance Company (New India Assurance JV), the Nigerian Engineering Works, etc. have been operating in Nigeria for a long time.

Major Indian IT companies like Infosys, Satyam, NIIT, and Aptech have signed agreements with local companies to set up training institutes and to promote their products in Nigeria.

Several private companies in Nigeria have set up joint collaborations with Indian companies primarily in trading and promotion of Indian products.

India and Nigeria have been discussing finalization of bilateral agreements for strengthening economic cooperation. These include the Trade Agreement, BIPA and DTAA. These agreements are likely to be finalized soon. Direct Air India flights to Lagos are likely to be resumed soon.

Technical and Economic Cooperation

Military: India has assisted Nigeria in establishing the Nigerian Defence Academy and other training institutions for all the three services from 1963-1986. Besides, India has been providing training to the Nigerian Armed Forces personnel in training institutions in India, both on self-financing basis as well as under SCAAP Programme. Most of these officers have risen to high ranks in Nigeria, including two former Heads of State. For the first time, an Indian Army officer (rank of Colonel) attended the National War College Course (1998-99) at Abuja.

The Nigerian Armed Forces purchased 2000 Tata trucks in 1997-98. The scope of defence cooperation is being enlarged to include defence trade and technical cooperation. Potential areas are supply of armament and ammunition, helicopters, trainer aircraft, fast attack patrol boats, assistance in establishing joint ventures and upgradation of Nigerian dockyards.

SCAAP: A total of 40 slots annually have been allotted to Nigeria for training of their officials in various short-term courses in India under Special Commonwealth African Assistance Plan (SCAAP). SCAAP programme is popular in Nigeria and it has been utilizing all the slots.

Indian Community: There is a strong Indian community of about 25,000-30,000 engaged in trading and manufacturing, industry and working as professionals.

Focus Areas for Cooperation:

Power Sector, SMEs, Pharmaceuticals, Telecommunications, Engineering goods, Railways, Information Technology and Health Sector, Environment.