General Overview of Nigerian Economy

The Nigerian economy is significantly reliant on the oil and gas sector, even though agriculture is the most important GDP contributor and the largest employer. 81% of the Nigerian government’s revenue are generated from the export of hydrocarbons exports, which account for over 95 percent of all exportations of the country. In 2009 the GDP growth in real terms was expected to fall to 2.9% compared to 6% in 2008, while growth in the non-oil-sector (particularly mining, industry, services) was expected to halve from 9% in 2008 to 4.5 % in 2009.

The Nigerian government based its outlook for 2010 on the assumptions of a daily oil production of 2.088 million barrels, an average benchmark oil price of US$57 per barrel, a target inflation rate of 11.2% and GDP growth of 6.1%. However, the IMF expects growth to remain slower than in recent years, stating that reduced financing, constraints on public spending, and uncertainty about economic prospects, will weigh on consumption and investment until well into 2010.

Strategic perspective of the Government

Both the late President Umaru Musa Yar’Adua, who’s term started in April 2007, and his successor, Goodluck Jonathan, officially subscribed to the broad lines of the economic policies initiated by the administration of President Olusegun Obasanjo: NEEDS (National Economic Empowerment and Development Strategy) was the policy followed in the medium term and “Vision 20:2020” in the long term. NEEDS was defined and exercised in broad collaboration with the Bretton Woods institutions. It is a policy designed to provide a macro-economic framework destined to fight against corruption and to achieve the UN Millennium Development Goals.

“Vision 20:2020” is the economic policy that seeks to position Nigeria in the top 20 economies by 2020 as well as being the financial centre of Africa. As a sign of his commitment to the Vision 20: 2020, President Goodluck Jonathan formally launched the initiative’s “Blue Print” document in June 2010.

President Yar’Adua had sought to pursue both policies through his own “seven-point political agenda” which focuses on power / energy, food security, security / Niger Delta, wealth creation, education, land reforms and transport / mass transit. It is yet to be determined if President Jonathan will continue to pursue the seven-point agenda, as he has publicly stated that his economic priorities will be electricity generation and agriculture.
 

Nigerian institutional partners for interested business operators

Nigerian Investment Promotion Commission NIPC, was established to encourage, promote, and coordinate investments in the country. It offers a “One-Stop-Shop” to investors for the granting of business entry permits, licenses, authorizations, incentives and general information:
 Nigerian Investment Promotion Commission (NIPC)

Nigerian Export Promotion Council NEPC, is mandated to promote the development and diversification of Nigerian’s export trade away from the oil and gas industries:
 Nigerian Export Promotion Council (NEPC)

Corporate Affairs Commission CAC, is the government agency charged with regulating the formation and management of companies in Nigeria. It also maintains the Nigerian Company Register:
 Corporate Affairs Commission (CAC)

Nigerian Customs Service NCS, is the official regulator of the country’s foreign trade. The Service maintains the list of items prohibited from importation, known as the “Import Ban” list:
 Nigerian Customs Service (NCS)

Bilateral commercial relationships between Nigeria and Switzerland

Bilateral relations and economic exchange between the two countries have intensified since the 1970s and agreements on aviation, investment assistance and investment protection have been signed.

Nigeria is one of Switzerland’s most important African trade partners (currently the fifth important behind South Africa, Libyia, Algeria and Egypt) and is a major supplier of crude oil. 10% of all imports of crude oil to Switzerland in 2009 originated from Nigeria.

Nigeria is the second most important export market for Swiss products in Subsaharan Africa (behind South Africa): Switzerland chiefly exports chemical products, machinery and textiles. With the exception of 2008 when Switzerland bought clearly smaller amounts of crude oil from Nigeria, Switzerland’s imports from Nigeria exceed considerbaly its exports to Nigeria.

Swiss Direct Investment in Nigeria in 2008 was up to 321.8 Mio. CHF (2007: 233.4 Mio. CHF). About 50 Swiss companies are operating in Nigeria, including multinational companies based in Switzerland like Novartis, Nestlé, SGS or UBS. They provide job opportunities to about 3500 people.

In order to assist business operators interested in the Nigerian or the Swiss market, and within its mandate to promote bilateral business interests, the Embassy of Switzerland to Nigeria maintains a Trade Section. It can be contacted through:

 abu.vertretung@eda.admin.ch