Nigeria’s total food and agricultural imports are estimated to reach $5 billion by end of 2012 from about $4.0 billion in 2011.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
Required Report - public distribution
GAIN Report Number:
Exporter Guide (2012)
Russ Nicely, Regional Agricultural Counselor
Uche M. Nzeka, Agricultural Marketing Specialist
Nigeria’s total food and agricultural imports are estimated to reach $5 billion by end of 2012 from about
$4.0 billion in 2011. Wheat from the U.S. is expected to account for more than 20% of the country’s
total food and agricultural imports despite the recent upward tariff movement on imported wheat.
Exports of other U.S. agricultural products such as tallow, soybean/soybean meal, rice, dairy,
fish/seafood products and consumer-ready products, etc., are also significant and growing. Recently,
climate change has had significant impact on Nigeria’s agricultural production and distribution. The
country may rely on fast tracking the adoption of agricultural biotechnology to meet its mounting food
security challenge caused by climate change. However, the country’s recent import policy/port reforms
with its economic growth and changing consumer demands have continued to expand market
opportunities for U.S. exports to Nigeria.
SECTION I. MARKET OVERVIEW
Nigeria is the largest market in sub-Saharan Africa with a population of more than 160 million people,
and a population growth rate estimated at three percent annually. Petroleum exports account for about
20 percent of GDP, 95 percent of total export earnings and close to 85 percent of federal government
revenue. Gross domestic product (GDP) growth fell to 3% in 2009, compared with 6% in 2008. This
mainly resulted from the effects of global financial crises as well as reform programs in the country’s
financial sector in 2009. Driven by a recovery in oil prices, GDP was rose to 6.8% in 2011 and 7.4% in
2012. GDP growth rate is projected to reach 8.5% in 2012.
Despite the rapid growth of the oil industry over the years, agriculture still accounts for about 40% of
GDP and provides employment, both formal and informal, for more than 60% of the population.
Nigeria’s agriculture remains largely subsistence-based, with about 80% of agricultural output coming
from farmers who live on less than a dollar per day and farm less than one hectare. The country also has
about 50 million people involved in agriculture and they farm with no more than 30,000 tractors only.
Crop production accounts for about 85 percent of agricultural activities, with livestock and poultry
accounting for 10 percent, and fisheries and forestry, less than one percent.
Major agricultural commodities produced in the country are cocoa, peanuts, palm oil, corn, rice,
sorghum, millet, cassava (tapioca), yams, rubber, cattle, fish and timber. Nigeria’s agricultural exports
to the United States increased to nearly $110 million in 2011, up from about $69 million the same time
last year. This is nearly double compared to export figure in 2010. This increase was mainly due to
larger cocoa and rubber exports. The principal export destinations for Nigerian agricultural exports are
Britain, the United States, Canada, France, and Germany.
The Government of Nigeria’s (GON) attempt to remove its gasoline subsidy on the first day of year
2012 resulted in an industrial strike, severely crippling economic activity for the week that it lasted.
After lengthy negotiations with organized labor, the GON was able to remove 1/3 of the subsidy, taking
the pump price from 65 Naira to 97 Naira per liter (about US $2.42 per gallon).
Also, the disruptive activities of the "Boko Haram" (BH) Islamic sect in northern Nigeria, where the
major part of Nigeria’s food supply is produced and consumed, have upset agricultural production and
distribution as access to farms and markets has become risky and expensive (For details, visit:
Insecurity And Fuel Price Hike Threaten Food Security In Nigeria_Lagos_Nigeria_2-17-2012)
Climate change has continued to impact negatively on Nigeria’s agricultural production and distribution
over the past few years. Between July and October 2012, flooding in Nigeria pushed rivers over their
banks and submerged hundreds of thousands of acres of farmlands. These elements have combined to
markedly increase the costs of food and food marketing in Nigeria. While Nigeria has been “muddling”
through these developments, sustained problems in food production and distribution pose significant
threats to the nation’s food security.
Nigeria is a huge net importer of agricultural products, with total imports of more than $4.0 billion and
exports to all countries at about $650 million in 2011. Imports are dominated by bulk/intermediate
commodities such as wheat, rice and sugar. The United States is a substantial exporter of agricultural
products to Nigeria, with exports estimated at more than $1.3 billion in 2011. Although U.S. exports
are primarily wheat (about 90 percent), exports of U.S. value-added and consumer-ready products have
maintained steady growth the recent years. Major competitors for the Nigerian market are Europe, Asia,
and South Africa. Nigeria’s traditional trade links with Europe remain strong, and EU agricultural
exports to Nigeria account for about 50 percent of the total. Imports from Asia, especially China, have
grown markedly in recent years and investment from China in all sectors of the economy has
experienced very rapid growth.
Nigeria is a long standing member of the WTO and is an active participant in CODEX and WTO
committees. However, the country’s powerful agricultural and industry interests have continued to
hamper GON’s attempts at total trade liberalization. Hence, the country continues to pursue trade
protection regime but remains under pressure to liberalize trade in conformity to its WTO
commitments. Imports of all live cattle, beef, and beef products are not allowed due to BSE related
concern. Pork, Mutton, and Goat meat are also unilaterally banned. Nigeria also bans live poultry
(excepting only day-old chicks) and poultry meat, including fresh, frozen, and cooked poultry meat, due
to concerns over their ability to enforce SPS standards on imported animals and goods. In 2008, GON
released a new tariff book for 2008-2012 that significantly liberalized imports— relaxing import
restrictions on textiles, tooth picks, furniture and cassava products in 2010.
Nigeria requires that all food, drug, cosmetic, and pesticide imports be accompanied by certificates of
analysis from manufacturers and appropriate national authorities, regardless of origin. Specified animal
products, plants, seeds, and soils also must be accompanied by proper inspection certificates. The
National Agency for Food and Drug Administration and Control (NAFDAC) is the Government of
Nigeria (GON) agency responsible for administering sanitary and phytosanitary (SPS) standards which
are mostly the application of the Codex Alimentarius Commission, European Union, and U.S. Food and
Drug Administration standards. NAFDAC’s responsibilities include protecting Nigerian consumers
from fraudulent or unhealthy products and its limited capacity for carrying out inspections and testing
contributes to what critics have characterized as a heavy-handed, arbitrary approach to regulatory
enforcement which sometimes leads to delays in clearance of legitimate food imports.
Nigeria has no existing laws governing agricultural biotechnology but the country’s National Assembly
(NASS) passed a bio-safety bill into law on June 1, 2011 but the law requires the President’s assent
before it becomes operational. Reportedly, Nigeria’s Presidency recently stated that the bill has become
void as the bill was passed by the 6th session of Nigeria’s National Assembly (NASS) whereas the
current NASS is the 7th session. This implies that the bill will have to be re-processed entirely again in
order for it to reach the stage it would require the President’s assent. Further information visit:
Agricultural Biotechnology Annual_Lagos_Nigeria_7-5-2012.
The U.S. principal interest in Nigeria’s agricultural sector is for the country to liberalize agricultural
trade in compliance with its WTO agreement and also, to participate actively in addressing Nigeria’s
food security challenges. Despite some difficult challenges of doing business in Nigeria, U.S. exporters
are encouraged to explore to enter Nigeria’s expanding market as the country’s huge population and
improving democracy continue to offer rewarding market opportunities.
Advantages & Disadvantages
Nigeria’s large population of more than 160 Very small presence of U.S. agribusinesses in
million growing at 3 percent per year provides Nigeria and limited knowledge of the Nigerian
U.S. exporter large and growing market for market among many in the U.S. trade.
economic shipments and trade.
The U.S. favorable disposition to trade Import bans remain on some major food and
liberalization and Nigeria’s liberalizing trade agricultural products.
policies removing import bans on a number of
Increasing awareness of U.S. Although Nigeria’s middle-class is expanding
processed/intermediate foods in Nigeria; the Nigeria’s dominant and price-sensitive mass
perception of U.S. foods among Nigerian market oftentimes limits volume of U.S.
consumers is also high. exports.
Changing demographics, including greater Both longer transit times and official
urbanization, more women working outside home, bottlenecks at Nigeria’s ports extend to
and changing lifestyles of the large youth reducing shelf life of U.S. products.
population is increasing the Nigerian consumers’
shift towards western food types and consumption
U.S exporters are assisted by the USDA Ag. Negative perceptions about Nigerian
Office in Nigeria with finding credible buyers and businesses among some U.S. exporters and a
obtaining market intelligence. reluctance to do business in Nigeria.
Nigeria’s growing middle-class and western-style Weak infrastructure and increasing energy and
retail sector, rising incomes and a trend toward production costs. Security concerns in the
greater demand for healthy foods are creating northern Nigeria where the country’s major
market similarity and easing transaction. agricultural activities, take place limiting
farming as well as making distribution of
goods in the region a high risk and expensive
U.S. consolidators and exporters of food and Strong competition from other suppliers,
agricultural products can sell mixed containers at especially the EU and Asia. Inadequacy of
relatively low-cost and low-risk as Nigeria has consolidated shipments required for large
adopted the ‘Global Listing for Supermarket’ items. vessels to be used to leverage high freight
Nigerian buyers consider U.S. suppliers as Often U.S. freight rates are significantly
consistent and reliable in terms of volume, standards higher than those from the EU and South
and quality. Africa.
The GON’s recent import policy and port reforms Inconsistent and poor implementations of
(destination inspection and port concessions) are GON policies and high levels of unofficial
reducing port clearance time and invoicing costs. transactions and procedures.
A recently inaugurated U.S. to Nigeria direct and More than 70 percent of Nigeria’s population
regular shipping route by Maersk Lines and other lives on less than $2 per day.
Nigeria’s rising income (average per capita income Shipment freights from the United States are
increased by nearly 200 percent to over $1,000 in more than 40 percent higher than from the
the last five years). EU.
USDA’s GSM-102 credit program can provide a The restructuring of Nigeria’s banking sector
competitive tool for penetrating Nigeria’s price- in 2009 impacted negatively on lending for
sensitive market. imports into the country.
U.S. superior and efficient agricultural production The Nigerian financial system still has some
and processing. bottlenecks impeding easy access to the
USDA’s GSM-102 program by local buyers.
Duty-free access to the U.S. market of Nigeria’s The poor response of Nigeria's entrepreneurs
food and agricultural products such as cotton, wine to AGOA and soaring cost of production
and a variety of agricultural products (under limiting Nigeria’s capability to achieve a
AGOA) is expected to increase a two-way trade two-way trade.
between the U.S. and Nigeria.
The U.S. has a Trade and Investment Framework The United States has no Free Trade
Agreement (TIFA) with Nigeria where both Agreement and bilateral investment treaty
countries discuss bilateral trade policy issues. with Nigeria.
SECTION II: EXPORTER BUSINESS TIPS
General and Agricultural Trade Situation
Despite the rapid growth of the oil industry over the years, agriculture still accounts for about 40% of
GDP and provides employment, both formal and informal, for more than 60% of the population. Crop
production accounts for about 85 percent of agricultural activities, with livestock and poultry accounting
for 10 percent, and fisheries and forestry, less than one percent.
Major agricultural commodities produced in the country are cocoa, peanuts, palm oil, corn, rice,
sorghum, millet, cassava (tapioca), yams, rubber, cattle, fish and timber. On the other hand, Nigeria’s
agricultural exports to the United States in 2010 increased to $64 million thru November, up from $62
million the same time last year. This increase was mainly due to larger cocoa exports.
Agriculture has shown some growth the past few years but, Nigeria remains a major importer of food
and agricultural products:
Nigeria imported approximately $4.0 billion in 2011—largely bulk commodities such as wheat
from the United States valued about $1.2 billion in 2011), rice and sugar from Asia and Brazil,
fruit juice concentrate/pre-mixes and dairy products. The country’s food and agricultural imports
are expected to reach $5.0 billion by the end of 2012
The market for frozen fish (especially, mackerel, herring and croaker) is also large and is mostly
sourced from the EU, South America, and some African countries.
U.S. exports are primarily wheat but, exports of U.S. value-added intermediate and consumer-
ready products have also risen in recent years.
U.S. Agricultural Exports to Nigeria
Total U.S. agricultural exports to Nigeria increased from about $583 million in 2007 to more than $1.3
billion in 2011. Wheat accounted for about 90 percent of the total food and agricultural exports.
Industry sources indicate that U.S. exports of consumer-oriented food products exceeded $80 million in
2011 as more of this export category enters the market unrecorded.
The chart below shows a breakdown of recorded U.S. food and agricultural product exports to Nigeria
U.S. Agricultural Products to Nigeria CY 2011
Source: BICO Report (http://www.fas.usda.gov/gats/BicoReport.aspx?type=country)
Exports of U.S. value-added products are rising rapidly despite the import bans on some major products
as shown in chart below:
T rends of U.S. Agricultural Export to Nigeria (2007-2011)
in $ million.
2006 2007 2008 2009 2010 2011
Source: BICO Report (http://www.fas.usda.gov/gats/BicoReport.aspx?type=country)
The principal competitors for the Nigerian market are Europe and Asia. Nigeria’s traditional trade links
with Europe remain strong, and EU agricultural exports to Nigeria, accounts for about 45 percent of the
total. Imports from Asia, especially China, have grown markedly in recent years and investment from
China in all sectors of the economy has grown rapidly.
The Nigerian Export Promotion Council administers a number of export incentive programs, which
includes tax concessions, export expansion grants, and foreign currency retention programs. Under the
newly redesigned Export Expansion Grant which is company-based rather than product-based as in the
past, the GON provides rebates ranging from 5-30 percent. Eligibility and rates are weighted by how
much of a firm’s activities contributed to creating local jobs. For example, cocoa grinding falls within
the 30-percent maximum, while export of cocoa beans only qualifies for a 5-percent rebate. This had
assisted the country’s export of non-oil products to reach about $650 million in 2011.
According to the Nigeria’s Central Bank, the country’s domestic manufacturing is expanding.
Improved business confidence, enhanced credit delivery and the improved electricity supply assisted
manufacturing capacity utilization at 57.0 percent in 2010, to rise by 3.8 percent in 2011. Despite this,
high-cost and unreliability of electricity, weak infrastructure , a-45 per cent increase in raw material
procurement cost, an increased cost of capital, multiplied taxation, among others, have continued to
deter production in Nigeria’s food processing and manufacturing sector. The low level of domestic
agricultural production and food-processing too, currently provides consumers with only a limited
selection of products. This has created a situation where there is greater reliance on imports.
Tariffs, Economic Union & Trade Agreements
Nigeria’s policy implementation has been poor due to the wide range of vested political interests in the
country. Nigeria implements a protective trade regime. Market access improved somewhat in 2005
when the GON began the phased-in adoption of the ECOWAS Common External Tariff (CET) and
announced full implementation of the CET (http://ictsd.org/i/news/10674/), which would remove the
remaining import bans by January 2008.
However, Nigeria failed to abide to its CET agreement for total liberalization by 1 January, 2008 and
import bans on many products remain in place. The GON released a new tariff book (2008-2012) in
2008 that significantly liberalized imports—relaxing import restrictions on textiles, tooth picks,
furniture and cassava products in 2010. However, a number of products remain banned for imports,
particularly poultry products, pork and beef. Nigeria’s powerful agricultural interests and industry
groups are opposed to recent attempts to fully liberalize trade.
Some countries in the West African sub-region have signed an interim EU-ECOWAS Economic
Partnership Agreement (EPA) with the EU in 2007 which offers duty-free access for exports of these
countries to the EU. EPA is a free trade agreement, which seeks drastic reduction and, eventually, total
removal of duties on goods imported and exported between the European Union countries and its former
colonies in Africa, the Caribbean and the Pacific (ACP) countries. Either the CET or the EPA would
require Nigeria to liberalize trade fully.
Although Nigeria recently removed some food and agricultural products from import ban list, the
country continues to implement protectionist agricultural trade policies—especially levies, higher
import duties and import bans, in contravention of its WTO commitments. Because of its restrictive
trade policies, Nigeria is unable to sign this agreement. This is constraining agricultural trade, creating
food security concerns and mounting pressures requiring Nigeria to embrace trade liberalizations.
At present, Nigeria has no Free Trade Agreement and bilateral investment treaty with the United States.
However, Nigeria signed a Trade and Investment Framework Agreement (TIFA)—http://www.usa-
nigeriabizforum.com/inner.php?link=3 with the United States in 2004 where outstanding trade policy
issues are raised. Discussions for the TIFA with Nigeria have provided a venue to raise these issues in
the past. In addition, Post continues to work closely with FAS Washington to elevate Nigeria’s
outstanding trade-related issues at the WTO.
SPS and Regulatory Systems
In general, the Government of Nigeria (GON) does not use SPS regulations as barrier to imports.
However, in 2005 the GON implemented the following SPS related import bans which are still in force:
Imports of bird eggs, live or dead birds including frozen poultry products from all countries have
been banned since 2005, with the rationale being to prevent the spread of Avian Influenza.
Beef imports are also banned, with BSE being the rationale despite the fact that the ban applies
to all countries, even those without BSE cases. The real reason for these bans is to protect local
producers and middlemen.
The National Quarantine Service and Federal Fisheries Department both of the Federal Ministry of
Agriculture have statutory responsibilities for plant health and seafood inspections, respectively. The
National Agency for Food and Drug Administration and Control (NAFDAC) under the Federal Ministry
of Health is the GON agency responsible for regulating processed food product importation,
advertisement and internal distribution. Existing SPS standards are mostly the application of the Codex
Alimentarius Commission, European Union, and U.S. Food and Drug Administration standards.
NAFDAC requires that all food, drug, cosmetic, and pesticide imports be accompanied by certificates
of analysis from manufacturers and appropriate national authorities, regardless of origin. Specified
animal products, plants, seeds, and soils also must be accompanied by proper inspection certificates.
Items entering Nigeria must be labeled exclusively in the metric system, as specified by law. U.S.
producers and exporters note that relabeling goods to meet this requirement is expensive and could limit
U.S. exports to Nigeria.
In theory, any regulated item not registered with NAFDAC is not legally importable. In practice, many
processed foods are routinely illegally smuggled into Nigeria through the land boarders, by sea and by
air without having gone through the registration process. In recent years, NAFDAC appears to have
become more active and stringent in enforcing existing food laws, primarily to protect local producers
and secondarily to curb widespread adulteration of processed food products. The main strategy
employed by the agency for the enforcement of Nigeria’s food laws is the process of product
registration. However, these agencies have limited capacity for scientific risk assessment and Nigeria’s
animal and plant health inspection services systems lack basic infrastructure.
The Government of Nigeria is generally supportive of biotechnology. After several years of discussion
and debate, the Nigerian Senate finally passed the Bio-safety Bill into law on June 1, 2011. The passage
of the law demonstrates that the country is prepared to receive, regulate and, most importantly,
commercialize biotechnology products. The law leans heavily on the precautionary approach and
requires certification and mandatory labeling for imports of all products of biotechnology. In the
meantime, Nigeria is currently conducting field trials for transgenic cow pea, sorghum and cassava
Recent reports from the office of Nigeria’s President indicate that the earlier submitted bio-safety bill
has become void as it was passed by the 6th session of Nigeria’s NASS whereas present NASS is the 7th
session. It therefore, will have to be reprocessed and passed by the 7th session NASS before
resubmission for President’s assent. This will be a major setback for Nigeria’s adoption of agricultural
biotechnology which the country needs direly to feed its growing population as well as provide food for
its neighbors, especially within the Sahel region.
Climate change has continued to become significant and impact negatively on Nigeria’s agricultural
production and distribution over the past few years. Between July and October 2012, flooding in
Nigeria pushed rivers over their banks and submerged thousands of acres of farmlands. Yields for
major crops were impacted: rice is down 22.4 percent, corn down 14.6 percent, soybeans down 11.2
percent, cassava down 9.3 percent and cowpea down 6.3 percent as a result of the flooding. This has
threatened the country’s food security situation as many farmers had lost everything and prices of basic
foodstuffs and supplies are already fast-rising. Floods had also forced about 1.3 million people from
their homes and more than 400 lives lost. These are also already impacting negatively on domestic food
supply and is expected that the GON will to have to import significant quantity of food during this last
quarter of year 2012 and most of 2013 as a result of this.
USDA Cooperators and Stakeholders
Despite a large and growing market, the USDA marketing cooperators for processed food products,
such as MIATCO, WUSATA, etc neither have representatives nor conduct market promotion and
development activities in Nigeria. However, some USDA stakeholders especially in the bulk and
intermediate products are increasing presence here:
The U.S. Wheat Associates is very active in Nigeria in providing trade facilitation and technical
assistance to the wheat milling industry. Post works closely with the USWA and their
country/SWOT analysis basically mirrors that of Post.
The American Soybean Association under its World Initiative for Soy in Human Health
(WISHH) has used the Quality Samples Program and a number of conferences to encourage the
use of U.S. soybean ingredients in soymilk and other products.
The U.S. Grains Council has organized trade facilitation activities to help create linkages
between Nigerian importers and U.S. grains exporters.
The US Rice Federation has also established market presence in Nigeria
U.S. Exporters’ Prospects
U.S. exporters are advised to explore entering Nigeria’s large and expanding market. Although the
challenges of transacting business in this country appear intimidating, Nigeria’s huge population with
the many rewarding market opportunities outweighs its threats. U.S. agribusinesses already in this
market should also persevere as the fears of doing business here are usually overcome as business
relationship with Nigerian firms endures. U.S. agribusinesses interested in doing business in Nigeria
should freely contact the USDA office in Nigeria (see:
http://nigeria.usembassy.gov/foreign_agric_service.html) to find credible local firms.
Buyers’ Preferences for Agricultural Products
Importers prefer consumer-oriented products with the following characteristics:
Relatively small-sized, prepared and packaged for affordable one-time use.
Bulk, intermediate products and ingredients for local re-processing and packaging.
Perishable food products processed dry and packaged for a long shelf life without the need for
refrigeration (for example dry seafood; dairy products such as milk powder; instant beverage
Packaged food products with longer “Best Before” dates.
Product Registration and Regulations
All processed foods must be registered with Nigeria’s food regulatory agency--National Agency for
Food & Drug Administration and Control (NAFDAC)--to be legally imported into Nigeria. Exporters
cannot directly handle product registration without a Nigerian company serving as importer/distributor.
NAFDAC requires there be a local partner so if they ever had to do a recall, they have a place to start
their process. The cost of product registration is typically borne by the importer except when an
exporter agrees to assist the importer in paying these costs. It is advised that U.S. exporters contact the
FAS/Lagos office in Nigeria when importers make similar requests from them.
Animal Food Regulations
A source from NAFDAC, Nigeria’s food regulatory agency (U.S. FDA equivalent) indicated that there
is no national standard for regulating dog or animal food in Nigeria. However, NAFDAC regulates dog
foods of any kind the same way as human foods and applies the Codex standards for regulating Animal
foods. Two additional tests— for melamine and mycotoxins—are also conducted on dog /animal foods
before they can pass for marketing and consumption. Visit: Food and Agricultural Import Regulations
and Standards - Narrative_Lagos_Nigeria_7-17-2012, for details.
Import Duties & Collections
The Nigerian Customs Service (NCS) is the GON agent responsible for import duty collection. The
agency has begun the utilization of Automated System for Custom Data (ASYCUDA++), a paperless
Direct Trader Input (DTI) for online submission and processing of custom documents and duty
payments. (ASYCUDA accelerates Customs clearance and simplifies procedures through
computerization) This has assisted with faster customs clearance at ports, and reduced unofficial
practices resulting mostly from increased contact between GON officials and freight agents/importers
during customs clearing.
Nigeria commenced a partial implementation of the ECOWAS CET in November 2005 which
harmonized its tariffs with those of other ECOWAS member states and reduced the tariff bands from
twenty to five. Despite these steps, GON’s protectionist policies persist, including numerous import
bans. GON had stated, however, that all these bans would be phased out by January 2008 in compliance
with its CET commitments, however the bans remain in place.
Port Concessions & Destination Inspections
As of April 2006, in order to increase efficiency the GON adopted port concession, which transferred
ports’ operation to private sector operators. However, importers are reporting that the change has only
added minimal improvements in cargo handling and port clearance. Reportedly, Nigeria’s new
authorities also think operators’ selection did not follow due process and may consider reviewing the
policy. Uncertainties about this possible review are causing operators to pursue more investment
recovery activities than improve port infrastructure to meet desired efficiency level.
As of January 2006, GON also replaced Pre-shipment Inspection (PSI) with Destination Inspection
(DI). This means that all goods destined for Nigeria’s ports are now inspected at the point of entry
rather than the point of shipment. NCS remains responsible for duty valuation, classification, collection
and release of consignments. The GON-appointed private firms function as Destination Inspection
service providers and provide x-ray cargo scanning services at entry ports. They also review importers’
documents and issue a Risk Assessment Report (RAR) to guide NCS on the risk, classification and
value for customs purposes.
Documentations, Export & Customs Clearing
Procedural Steps: Opening letters of credit in Nigeria now takes between 2-3 days for the importer
(buyer) to accomplish and follows these steps:
Importers process Form ‘M’ with his/her pro-Forma invoice through any local Authorized
Dealer Bank (ADB) irrespective of the value and whether or not payment is involved [Form ‘M’
is a quadruplicate document completed to apply or seek authorization to import from the
relevant GON agent--Central Bank of Nigeria (CBN)].
The Form ‘M’ shall be valid for importation only after acceptance by the relevant scanning
company and Risk Management Service Provider.
Supporting documents shall be clearly marked ‘VALID For Foreign Exchange (FOREX) or
NOT VALID FOR FOREX’ as appropriate. This is depending on whether or not foreign
exchange remittance would be involved.
The Form ‘M’ and relevant pro-forma invoice shall carry a proper description of the goods to be
imported to facilitate price verification. Visit the following websites for details:
Food and Agricultural Import Regulations and Standards - Narrative_Lagos_Nigeria_7-17-2012
Redesigned Export Expansion Grant Fund (REEGF)
In 2002, the GON introduced the Export Expansion Grant (EEG) in order to encourage local processing
and manufacturing firms to create more jobs. This program offered a 40 percent rebate to companies
exporting fully manufactured and semi-processed products with high local value addition, and 5 percent
for products that do not fall into the first category.
Inherent loopholes in determining which products qualified for which rates resulted in gross abuse of
the program and caused the GON to scrap it during the 1st quarter of 2005. However, organized local
manufacturers and processors [under Nigeria’s Manufacturers Association of Nigeria (MAN)] pressured
GON to re-introduce the Redesigned Export Expansion Grant Fund (REEGF) in November 2005, which
became effective in January 2006.
REEGF is company-based rather than product-based grant and provides rebates ranging from 5-30
percent. Eligibility and rates are weighted by how much of a firm's activities contribute to creating local
jobs. For example, cocoa grinding falls within the 30-percent maximum while export merchandising of
cocoa beans only qualifies for a 5-percent rebate. Please visit,
http://www.customs.gov.ng/Guidelines/Industrial_Incentives/index.php, for details.
Imports of food and agricultural products should maintain the upward trend as Nigeria’s inadequate
domestic food processing activities are unable to meet rising domestic demand. Nigeria’s import of
food and agricultural products, estimated at $3.7billion in 2011—approximately 15 percent growth
compared to 2010—is expected to reach minimum $4.0 billion and $5 billion by end of 2012 and 2013
respectively. The products are predominantly bulk/intermediate commodities—mostly wheat, rice and
sugar. Presently, the EU, Asia and South Africa are the leading suppliers of processed and intermediate
products to this market. Although cross-border smuggling remains high, Nigeria's recent import policy
and port reforms, destination inspections and ports concessions, are encouraging more formal trade
preferred by U.S. exporters. This, along with economic growth and changing consumer demands are
expanding market opportunities for U.S. exports to Nigeria. Of particular concern to the U.S.
agricultural sector is Nigeria’s need for agricultural trade liberalization in line with its WTO agreement
as well as participate in addressing the country’s food security challenges.
SECTION III: MARKET SECTOR STRUCTURE AND TRENDS
Retail Food Sector
Nigeria’s retail food sector consists of supermarkets, convenience stores/small groceries, and traditional,
open-air markets sharing 1.0 percent, 37 percent and 62 percent of total retail food sales, respectively.
Composition of Nigeria’s Retail Food Sector
Nigeria’s Retail Food Sector re-shaping and is also attracting multi-national supermarkets. Although the
traditional open-air markets remain the dominant channel for Nigeria’s retail food sales, there has been a
gradual but steady shift towards consumer food purchasing at the supermarket and the convenience store
channels over the last 5 years.
Nigeria had a history of developed supermarket retailing until social and economic changes in early
1980s diminished the country’s middle class significantly. However, there have been recent and
growing instances where middlemen such as the wholesalers/agents are bypassed in Nigeria’s
distribution channel for consumer-oriented foods. With the changing trend, processors, manufacturers
and importer-distributors seek competitiveness by selling large volumes directly to retail food outlets.
This trend is becoming attractive to multi-national supermarkets/hypermarkets and food service firms.
ShopRite, a multi-national supermarket firm from South Africa, has operated in the Lagos city of
Nigeria for more than 5 years. Recently, SPAR has partnered with a Nigerian supermarket firm to
launch its first outlet also in Lagos. (SPAR is a Dutch-based supermarket giant founded in 1932 with
global revenues in excess of 27 billion Euros, and the world’s largest food retailer with approximately
20,000 stores in 35 countries) Their presence is expected to set up competition within Nigeria’s retail
food sector and further the changing shape of the country’s retail food merchandising. Industry experts
project a quick recovery of Nigeria’s supermarket/food retailing as about 200 million additional
customers expected to enter the hypermarket within the next one year.
Nigeria’s retail food merchandising usually follow the channel shown in flowchart below:
Typical Distribution Channel in Nigeria’s Retail Food Sector
An importer may either be the U.S. exporter's appointed agent and sole representative or he may be
buying mixed-grocery containers from various consumer-oriented food exporters and wholesale/retail
outlets around the globe.
The wholesaler sells to retailers in large quantities and at discounted prices. Retailers purchase more
than 80 percent of their stock of consumer-oriented foods from importers and wholesalers located in the
traditional, open markets.
The GON has introduced some measures to minimize informal imports of consumer-oriented products,
more products still enter the market undervalued, concealed and unrecorded or through cross border
In 2011, consumer-oriented food imports are estimated at $800 million and industry sources forecast the
figure will increase by 20 percent in 2012.
Industry estimates of the origin of imported processed food products in 2011 are shown below:
U.S. market share is low but increasing mostly due to:
Higher freight rates for shipments from the United States.
Unfavorable perception of Nigerian firms by some in U.S. trade.
Some U.S. exporters’ reluctance to meet Nigerian importer demands, especially on
documentation and product specifications.
Lack of sufficient contacts between Nigerian importers and U.S. consumer-oriented food
Informal exports of U.S. consumer-oriented foods have risen geometrically the last few years. Industry
sources indicated that a minimum of $80 million worth of U.S. consumer-oriented foods was exported
to Nigeria in 2011. However, sources indicate that more than half of these exports enter the Nigerian
market unrecorded through either cross-border smuggling or falsified documentation. The same applies
to consumer food exported from other countries of the world. This is so because Nigeria’s high-tariff
and protective trade regimes encourage importers to connive with port and border officials to evade the
payment of high official tariffs in order to make their products competitive in the local market.
According to BICO report, the value of recorded U.S. consumer oriented food exports to Nigeria was
about $33 million in 2011. This reached more than $40 million by August 2012; nearly 40 percent
increase compared to the same period in last year. Post expects this recorded export figure will reach
$55 million by the end of 2012. Wine and beer, dairy products, breakfast cereals, processed fruits and
vegetables, tree nuts, fruit juices, and mixed grocery items make up most of these imports.
Nigeria’s middle-class as well as their income levels has also continued to increase for more than a
decade and expatriate community keeps expanding. The positive outlook for Nigeria’s democracy and
economy are providing comfortable environment to increase competition and advance sales growth.
The partial adoption of the more liberalized ECOWAS CET is also encouraging imports. U.S. food
product exports are projected to continue to increase following the recent commencement of a direct
shipping route from the United States to Nigeria. This will reduce ordering and shipping time. GON’s
import and port reforms are also assisting in minimizing informal imports and false documentations,
which were major advantages for third-country suppliers to the Nigerian market. Most Nigerian
importers of mixed container loads also require the services of freight consolidators based in the United
Food Processing (FP), Intermediate Foods & Ingredients
In Nigeria, the food processing sector is dominated by small and medium enterprises, as well as
multinational food companies. About 65 percent of Nigeria’s manufacturing sector is food processing,
and according to industry sources, manufacturing had an estimated 5.0 percent share of Nigeria’s GDP.
Nigeria can build its domestic food processing sector on the following intermediate products: Sorghum,
maize, millet, cowpea, “garri” (fermented cassava starch), cowpea, palm oil, fish, and rice. Sorghum,
millet and maize are widely consumed by most households and are used by various industries. Maize is
mainly used by the poultry industry as a raw material for feed while sorghum is used by breweries for
producing beverages. Garri is widely produced and consumed by households in the south and some in
the north. Rice is produced and consumed throughout the country while cowpea gets to the southern
markets from the north where they are produced and also consumed. Despite this, Nigeria’s food
processing is underdeveloped due mainly to ineffective policies, high-cost local production and weak
Nigeria is dominated by mass market consumers with low purchasing power, and a diet high in
carbohydrates. In order to boost sales and increase market share, manufacturers focus on packaging and
selling products in affordable small units for one-time use. However, an expanding middle-class and
rising incomes are prompting increased demand for low-carb, low-fat, and even sugar-free food and
beverages. Also growing concerns regarding food safety and dietary quality are also increasing demand
for higher quality products. As a result, local processors are developing and improving products in
order to meet the needs of this niche market.
According to industry sources, imported processed food products contribute only 5 percent of Nigeria’s
total food supply estimated at $15 billion in 2011. The locally semi-processed and unprocessed foods
contribute a huge 60 percent. The country’s market size for imported intermediate foods and
ingredients such as nutrients, flavors, colors, vitamins, etc., for use in local food processing, was
estimated at more than $7.0 billion that year. Approximately, $3.0 billion worth of both intermediate
foods and ingredients were imported.
Industry sources estimate that the country’s food processing sector will be about 25 percent up and
demand for intermediate foods and ingredients can exceed $8.0 billion and imports of these products
expected to reach $4.0 billion by 2012. This will result from the following:
The recent GON’s seeming commitment to improving domestic infrastructure—especially,
electricity and the country’s continued export drive in the non-oil sector
Nigerian consumers are becoming increasingly discerning and demanding better quality food
products, more local food processors perceive imported intermediate products/ingredients as the
highest quality products
The increasing desire to explore external sources for food ingredients to differentiate their
products for competitiveness
Nigeria’s increasing urbanization and income are also creating more sophisticated consumers
deviating from consumption of traditional menus and seeking convenience-type foods such as
potato chips, tortilla chips, cereal snacks, pretzels, popcorn and various other snacks.
Nigeria’s recent and continuing shift toward convenience-type foods largely accounts for the increasing
number of snack and fast food processors and outlets. The value of snacks consumed in Nigeria per
annum is estimated at more than $180 million and Nigeria’s snack consumption grows approximately
20 percent per year. And, the U.S. snack food exports to Nigeria more than doubled to reach $633,000
in 2011 compared to $316 recorded in 2010. Recorded exports of U.S. snack food to Nigeria had also
increased about 20 percent in August 2012 compared to the same period last year. Nigeria’s food
service sector also worth over $3 billion with its Quick Service Restaurants (QSR) sub-sector growing
at annual average of 25 percent.
Nigerians also perceive that processed food and ingredients from the U.S. are of higher quality whereas
local food processors see U.S. suppliers as more reliable. They have therefore continued to seek for
U.S. suppliers of ingredients such as seasonings, colors, spices, coatings, flavors as well as other
intermediate products to produce a variety of snacks and other more convenient, easy-to-eat foods
especially, from the local staples. Leading QSR firms are increasingly found to differentiate their
offerings with ingredients imported from the United States and competing firms desire to follow suit.
The combination of import restrictive measures (implemented by GON to protect domestic industries,
primarily food processors) as well as the initiation of REEGF (export rebate) had helped domestic food
processing to grow at an average of 10 percent per annum during past 5 years. However, key sector
players including the Manufacturers Association of Nigeria, report more recently that Nigeria’s food
processing sector has resumed its declining trend due mainly to the continued state of poor
infrastructure (especially power), multiple taxation and GON’s inconsistent policies—allegedly, often
initiated on political basis.
Nigerian food processors report that the sector will become extinct if the country is pressured to sign
and/or fully implement such regional trade agreements as the ECOWAS CET and EPA. They argue
that Nigeria does not have the comparative advantage and the necessary infrastructure that abound in
other regions which makes local food processing a high-cost activity. According to the estimation of
key government agencies, the IMF and the World Bank, Nigeria’s infrastructural gap will need over
$510 billion to bridge investment for the next 15 years (Source: Nigeria’s AFBTE Annual Report).
Potential for increased export sales is present for the following inputs:
Bulk Intermediate Processed
Barley and Corn Starch Baking mixes, Yeast &
Malt Ethanol Baking Powder
Edible and Fruit Juice Concentrate Fruit pre-mixes & syrup Jam & Jellies
inedible Fat Ice Cream Pre-mixes Mayonnaise
Raw Sugar Other Beverage Bases Salad Dressing
Refined Sugar Dairy Products Sauces, Spices
Wheat Flavors, Sweeteners Tomato Ketchup
Paddy Rice Industrial Salt, other micro-nutrients, other ingredients Seasonings, etc
for food and feedstuff processing, edible tallow, etc.
Third-country suppliers from the EU, Far-East Asia, South America as well as South Africa show
increased interest in the Nigerian food ingredients/intermediate products market and are quick to adapt
to the requirements of this growing sector.
Nigerian food processors perceive U.S. ingredient suppliers as reliable in terms of volume, standards,
and quality but U.S. exporters are constrained by:
Limited knowledge of the Nigerian ingredient market among the U.S. trade.
Strong competition from South Africa, the EU and Asian suppliers.
Limited local infrastructure, limited operational capital, high local production costs, and unstable
GON import policies.
A lack of knowledge of food ingredients available from the United States by Nigerian importers.
Limited contact with and negative perceptions of Nigerian businesses among some U.S.
Food Service (HRI) Sector
Nigeria's food service sector; consisting of hotels, restaurants and caterers (HRI) was estimated to reach
US$4.5 billion in 2011. The largest and fastest growing segment is the quick service restaurants (QSR).
Growth in the HRI sector is driven by modest economic growth, urbanization, more women working
outside the home and changing demographics in favor of the youths who have a preference for western
style convenience foods. The sector is expected to continue to grow as convenience QSRs become
more and more important in the Nigerian way of life. In the same vein, import demand for food
ingredients by the operators is trending upwards.
U.S. products with best market prospects include potato chips, sauces, seasonings, pastry mixes,
seafood, canned food, wine and ice cream. Except for wines and poultry meat, the import duties on
these products range from five percent to 20 percent. Major food service operators are looking for
franchises to represent major U.S. companies in Nigeria, especially in the quick restaurant sector.
Nigeria is a potential market for 1.3 million tons of milk worth about $3 billion but its domestic
production that enters through formal marketing channels is approximately 600,000 tons, estimated at
about $1.5 million. Domestic fresh milk production is grossly insufficient. Demand for other value-
added dairy products such as butter, cheese, ice cream, yoghurt and other milk beverages is also huge
According to industry sources, more than 75 percent of local dairy product consumers and dairy-related
food processors (including biscuit, snacks and ice cream manufacturers) also rely almost entirely on
imported powdered milk worth about $300 million annually. For instance:
About 400,000 MT of biscuits (produced mostly for the low-income mass market—value
averagely $350 million) are produced in Nigeria each year;
The value of snacks consumed per annum is estimated at more than $155 million;
Large and automated as well as medium-to small-scale bakeries have been established to
meet increasing bread and biscuits demand;
Snack consumption in Nigeria grows by approximately five percent per annum;
And, imported milk powder is the principal input for local ice cream production with
Nigeria’s ice cream market estimating 10 million liters valued approximately $40 million
$ Million Trends of U.S. Dairy Exports to Nigeria (2007- Aug. 2012)
2007 2008 2009 2010 2011 2012
Source: BICO Report (http://www.fas.usda.gov/gats/BicoReport.aspx?type=country)
Growing population, increasing urbanization, and rising per capita income are expected to stimulate
rising demand for dairy based products. Meanwhile, domestic production remains insufficient due to
increasing production/processing costs, non-competitiveness of the industry, and the failure to
incorporate more advanced technologies. Additionally, there is export potential for livestock genetics,
fodders and dairy-based food processing inputs which will likely increase.
The EU (Netherlands, Denmark) is the dominant dairy product suppliers and many U.S. firms are
apprehensive of doing business in Nigeria due to perceived negative business image of Nigerian firms
among the U.S. trade. U.S. dairy product exports (mainly, high-value dairy products) reached about $7
million (approx. approximately 20 percent of total market) in 2008 and 2009. It dropped to about $2
million in 2010 but jumped to more than $6 million by August 2012.
The more efficient dairy processing in the United States should provide U.S. suppliers an advantage
over third-country suppliers in exporting processed and intermediate dairy products to this market.
USDA/FAS office in Lagos (Nigeria) assists U.S. firms with identifying legitimate Nigerian businesses
and encourages U.S. exporters to persevere in this market. As business relationships with Nigerian
firms endure, the apprehension of doing business in this country will be overcome.
Frozen seafood is the cheapest form of animal protein in Nigeria and consumption has been increasing.
However, due to insufficient domestic catches and aquaculture production, Nigeria depends on large
volumes of imports to satisfy demand. Nigeria is a potential market for approximately 2.5 million MT
of fish. Of the country’s 1.5 million MT fish demand, approximately 1.0 MT is imported.
According to industry sources, imports significantly dropped more than 31 percent in 2009 due to the
impact of global financial crises and increasing costs. The restructuring of Nigeria’s banking sector in
2009 also impacted negatively on lending for seafood imports into the country. Removal of subsidy on
fuel by GON January this year, also impacted demand negatively but the market is trending up and
expected to surpass 800,000 MT by the end of 2012. U.S. fish exports have grown year on over the last
three years from $16,000 worth of fish in 2008 to approximately $13 million in 2011.
Due to the scarcity and rising price of Atlantic species from the major suppliers (the Netherlands),
Nigerian buyers are looking to other supply sources, including the United States, for especially
mackerel, herring and croakers. High energy cost translating to higher U.S. freight charges as well as
the dominant one-way seafood trade contributing to low U.S. market share.
In 2007, the U.S. recertified Nigeria for shrimp exports to the United States. As a result, it is possible
that reefer containers used to transport shrimp to the United States could be available for shipping
seafood and other perishable foods back to Nigeria at reduced freight costs.
Nigeria’s Federal Fisheries, a department in the country’s Federal Ministry of Agriculture (USDA
equivalent) issues import permit to firms wishing to import frozen fish into to Nigeria. Upon arrival,
NAFDAC with Federal Fisheries, inspects and release the consignment to the importer for entry into the
market if considered wholesome.
Aquaculture/Fish Feed Market
Total domestic production is low at about 500,000 metric tons and aquaculture contributes about
100,000 MT per year, or less than one percent of the total fish consumed in the country.
With Nigeria’s strong demand for seafood, dwindling global fish stocks and the Government of
Nigeria(GON) continued pursuit for increased local aquaculture and fish supply, Nigeria’s aquaculture
should be contributing significantly to the country’s Gross Domestic Products (GMP) but aquaculture
feedstuffs constitute about 70 percent of total production cost and discourage investment in the sector.
Most domestic fish feed productions are not formal--many local fish farmers formulate fish feeds for
use in the fish farms but there are some local firms producing pelletized fish feeds. The local fish feeds
are inexpensive but they do not meet farmers’ requirements for desired fish yield.
Nigeria imports approximately 40,000 tons of fish feed (significantly for catfish and tilapia production)
valued at $60 million per year. All imported feeds are floating and come in 15 kg and 20 kg bags and in
the following [(2, 3, 4 5 6.5, 8, and 9) millimeters (mm)]. Average market price is $1,500 per ton.
Aquaculture feedstuffs are imported into Nigeria from suppliers in different countries as shown in the
Following chart shows market shares of available brands of imported fish feeds in Nigeria:
Legally, fish feed products are registered by NAFDAC (Nigeria’s equivalent of FDA) prior to market
and consumption. Product registration by NAFDAC gives the local company registering the product an
exclusive distribution right to import the product/brand into Nigeria.
Wine & Spirits
In 2003 GON placed a ban on imports of beer and all non-alcoholic wines and beverages into the
country to protect local industries. The ban remains in place. Only alcoholic wines and spirits can be
imported at 30 percent tariff in line with the ECOWAS regional tariff (CET). However, the government
(GON) introduced a 20-percent levy towards the end of 2008—thus raising real duty on wine and spirits
to 50 percent.
Despite this, average wine consumption per capita jumped 1236.2% to approximately 0.5 liters and
increasing between 2004 and 2011. Still wines led the market—the category accounted for more than
80 percent share. Increasing demand results largely from:
Nigeria’s large and increasing population (over 150 million) and underdeveloped/high-
cost local wine create strong growth prospects for wine exports to Nigeria.
Growth will be for Nigeria’s market over the coming years. The expected growth will
result from Nigeria’s large population growing at an annual rate of 3% and providing an
ever increasing consumer base.
Nigeria’s middle-class and income have also continued to increase for more than a
decade. The positive outlook for Nigeria’s democracy and economy also means
consumer spending will increase and advance sales growth.
Nigerians are also increasingly becoming health-conscious and accepting wine products
as healthier than competing beverages such as, beer, spirits, soda, and others served at
homes, bars and social activities.
New brands and the entry of new players are beginning to result in increased
competition, and lowered prices, aggressive marketing and fuel growth in sales.
Market Structure for Wine & Spirits
Nigeria’s market for imported alcoholic wine products is driven by product prices and higher alcohol
contents. The bulk of wine used to be sold through retailers (supermarkets, grocery retailers and open
markets) as well as bars and restaurants patronized by the middle and high income consumers.
However, the recent increase in wine consumption has significantly shifted wine distribution channels
more to the traditional open wet markets (mostly patronized by the low and middle income consumers).
Currently, sales through traditional markets now account for about 70% of the total. Wine consumption
at bars and other food service outlets is small, less than 10 percent of the total.
The EU countries (Spain, Italy, France, etc) and South Africa are the major wine suppliers to Nigeria.
Although France, Italy, and Spain in the EU as well as the U.S. (California) are the traditional wine
countries, Nigerians import mostly from South Africa, Chile, Argentina and all other sources that
produce wine products that are perceived to be good quality and also offered at affordable prices.
Data Source: BICO Report
Value of U.S. wine exports to Nigeria has increased geometrically to over $5 million by August 2012
compared to $1.8 million by that time last year. U.S. wine exports to Nigeria had grown from about
$120,000 in 2008 to approximately $2.7m in 2010 (BICO report).
However, industry sources indicate that U.S. official export data do not capture much of U.S. wine
exports to Nigeria as many products (especially, those attracting high duty such as wine) still pass
through port clearance either under-valued or undeclared at Nigeria’s ports. Many of such products also
enter the market through cross-border smuggling activities. For details please visit: International Brands
Celebrate Growth in Nigeria’s Spirits Market_Lagos_Nigeria_4-13-2012
Nigeria is forecast to increase rice production by 200,000 tons to reach a total of 2.9 million in 2012/13.
Imports are projected to increase to 3.0 million ton from 2.5 million tons in 2011/12. The Government
of Nigeria (GON) introduced new tariffs for rice (effective July 1, 2012) which brought a 30 percent
levy on imported brown rice and a 50-percent levy on imported polished/milled rice with an expected
final levy increase of 100 percent, effective December 31, 2012. The new expected tariffs have
resulted to stockpiling of rice by importers and have increased cross-border trade in rice (with Benin and
Cameroon), which is expected to reach 100,000 tons. Please visit Update of Nigeria's Rice Market as of
October 2012_Lagos_Nigeria_10-15-2012, for details.
President Goodluck Jonathan announced new tariff measures for sugar and sugar related equipment and
machinery in his 2013 Budget Speech. The tariff policy that will take effect starting January 1, 2013
proposes a zero percent import duty on machinery and spare parts imports for local sugar manufacturing
industries and also a-five year tax break for investors in the local sugar sector. The total tariff on
imported refined sugar will increase to 80 percent from the current 35 percent. Raw sugar tariffs will
also increase from the current 5 percent to 60 percent. The GON plans to meet 70 percent of Nigeria’s
sugar needs through local sources in the medium term. Visit Nigeria Hikes Sugar Tariffs to Swell
Domestic Sugar Production_Lagos_Nigeria_10-18-2012, for details.
Effective July 20, 2012, the Government of Nigeria (GON) introduced a 15-percent levy on wheat grain
imports resulting in an increase of the effective duty from 5 percent to 20 percent. The GON also
introduced a 65-percent levy on wheat flour imports to increase the effective duty from 35 percent to
100 percent, beginning July 1, 2012. As a result, the prices of wheat flour and bread have increased
about 20 percent. Currently, flour millers are cautious, monitoring market situations in view of the new
tariff, while U.S. wheat exports to Nigeria have decreased about 20 percent to about $672 million in
June 2012 as compared to the same period last year.
Visit Nigeria Introduces Levy on Wheat Grain _Lagos_Nigeria_8-31-2012, for details.
SECTION IV: MARKET ENTRY STRATEGIES
New-to-market U.S. food and agricultural products exporters should consider the following market
entry strategies and tactics:
Select a local distributor/agent or representative in Nigeria to register the products with
the appropriate GON regulatory bodies, to introduce these products to the local market
and develop consumer demand. For assistance contact the Office of Agricultural Affairs,
U.S. Consulate General, Lagos-Nigeria.
Identify and sell through consolidators based in the U.S. who are already serving the
West African region.
Collaborate with USDA Cooperators covering Nigeria to sell enter the market.
Exhibit at related trade shows in the United States, which are attended by Nigerian
importers. This will make follow-up contacts easier.
Offer product shipment in mixed-lot containers, and offer flexible shipping volumes.
Adopt a pricing strategy, which encourages importers to initiate buying activities with
Send sample products and sales catalogs to Post to facilitate locating local buyers.
SECTION V: BEST PROSPECTS
Consumer-oriented products which are allowed for export to Nigeria
Sugar confectioneries (sweets and chocolate), biscuits, candy products, etc
Wine, including sparkling wine
Alcoholic beverages & Spirit & Liqueurs (excluding beer)
Nuts, Milk, Cream (powdered), Honey products
Spices, Sauces including, Soy Sauce, Mixed Seasoning
Coffee, Tea & Herbal products
Yeast & Baking Powder
Tomato Ketchup, Mayonnaise & Salad Dressing
Baby Foods & Health Food products
Sweeteners & Non-Dairy Coffee Whiteners
Fresh fruits and Vegetables
Product type offering the most sales potential in Nigeria
Agricultural-based food ingredients
Fast food, other HRI food ingredients and dairy products including, ice cream and
Industrial processed foods & beverages especially, fruit juice concentrate, and bulk
products for local re-processing and packaging
Bakery, confectionery, and food preparation ingredients
Specialized food ingredients such as additives, preservatives, and flavorings
Ingredients and additives for feedstuffs
Processed fruits and vegetab