Country Information - Nigeria

ECONOMIC BACKGROUND The oil-rich Nigerian economy, long hobbled by political instability, corruption, and poor macroeconomic management, is undergoing substantial economic reform under the new civilian administration. Nigeria's former military rulers failed to diversify the economy away from over-dependence on the capital-intensive oil sector, which provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of budgetary revenues. The largely subsistence agricultural sector has failed to keep up with rapid population growth, and Nigeria, once a large net exporter of food, now must import food. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. The agreement was allowed to expire by the IMF in November 2001, however, and Nigeria appears unlikely to receive substantial multilateral assistance in 2002. Nonetheless, increases in foreign oil investment and oil production should push growth over 4% in 2002. Click here for Country Map [23kB]

BI-LATERAL TRADE OVERVIEW Nigeria is the largest trade partner (in terms of value of trade) of the U.S. in Sub-Saharan Africa (SSA), with total trade increasing rapidly in recent years. In 2001, Nigeria recorded a trade surplus well in excess of $ 7 billion with the United States, although this decreased to $ 4,9 billion in 2002. This far exceeds the trade surplus recorded by South Africa, being the country with the next largest trade surplus (with the US). The value of Nigeria’s exports to the US decreased sharply in 2002. U.S. exports to Nigeria have been increasing steadily in recent years, although they are still far outweighed by U.S. imports from that country. Of all SSA countries, Nigeria's exports to the U.S. rank first, ahead of those from South Africa. However, exports are not very diversified, and are concentrated in energy-related products (mainly oil and natural gas). Exports eligible under the provisions of AGOA amounted to almost $ 5,4 billion in 2002 (2001: $ 5,6 billion)(see link to Country Trade Profile below). This profile is similar to the trade profile of the 3rd largest exporter under AGOA (Gabon), whereas the 2nd largest exporting country under AGOA (South Africa) indicates a highly diversified trade base. The make-up of Nigeria's AGOA-eligible exports in 2002 appear to closely resemble that of 2001, and consist almost entirely of energy-related output. Click here for Detailed Trade Profile