RESTRICTED WT/TPR/S/356 9 May 2017 (17-2481) Page
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RESTRICTED WT/TPR/S/356 9 May 2017 (17-2481) Page: 1/104 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT NIGERIA This report, prepared for the fifth Trade Policy Review of Nigeria, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Nigeria on its trade policies and practices. Any technical questions arising from this report may be addressed to Jacques Degbelo (tel: 022 739 5583), Mena Hassan (tel: 022 739 6522) and Xinyi Li (tel: 022 739 5579). Document WT/TPR/G/356 contains the policy statement submitted by Nigeria. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Nigeria. This report was drafted in English. WT/TPR/S/356 • Nigeria - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT ........................................................................................ 11 1.1 Main Features of the Economy .................................................................................... 11 1.2 Recent Economic Developments.................................................................................. 12 1.2.1 Subdued economic growth ...................................................................................... 12 1.2.2 Fiscal policy .......................................................................................................... 14 1.2.3 Monetary policy ..................................................................................................... 14 1.2.4 Foreign exchange policy .......................................................................................... 15 1.2.5 Balance of payments .............................................................................................. 16 1.3 Trade Performance ................................................................................................... 17 1.3.1 Trade in goods ...................................................................................................... 17 1.3.2 Trade in services ................................................................................................... 21 1.4 Foreign Direct Investment ......................................................................................... 23 2 TRADE AND INVESTMENT REGIMES ........................................................................... 24 2.1 General Framework .................................................................................................. 24 2.2 Trade Policy Objectives ............................................................................................. 26 2.3 Trade Agreements and Arrangements .......................................................................... 27 2.3.1 WTO .................................................................................................................... 27 2.3.2 Regional and preferential agreements ....................................................................... 28 2.3.2.1 Regional agreements ........................................................................................... 28 2.3.2.1.1 African Union ................................................................................................... 28 2.3.2.1.2 Economic Community of West African States (ECOWAS) ........................................ 29 2.3.2.2 Other agreements and arrangements ..................................................................... 30 2.3.2.2.1 African Growth and Opportunity Act (AGOA) ......................................................... 30 2.3.2.3 Economic Partnership Agreement (EPA) with the European Union (EU) ........................ 30 2.3.2.3.1 Developing-8 countries (D8) .............................................................................. 31 2.3.2.4 Bilateral Trade Agreements .................................................................................. 31 2.4 Investment Regime .................................................................................................. 32 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 35 3.1 Measures Directly Affecting Imports ............................................................................ 35 3.1.1 Customs procedures ............................................................................................... 35 3.1.2 Customs valuation ................................................................................................. 37 3.1.3 Rules of origin ....................................................................................................... 37 3.1.4 Tariffs .................................................................................................................. 38 3.1.4.1 Overview ........................................................................................................... 38 3.1.4.2 Tariff bindings .................................................................................................... 38 3.1.4.3 Applied tariff ...................................................................................................... 39 3.1.4.4 Duty and tax exemptions and concessions .............................................................. 41 3.1.4.5 Preferential tariffs ............................................................................................... 41 WT/TPR/S/356 • Nigeria - 3 - 3.1.5 Other taxes and charges ......................................................................................... 41 3.1.5.1 Import adjustment tax (IAT) ................................................................................. 41 3.1.5.2 Supplementary protection tax (SPT) ...................................................................... 42 3.1.5.3 Other border taxes .............................................................................................. 42 3.1.5.4 Internal taxes ..................................................................................................... 42 3.1.6 Import prohibitions, restrictions, and licensing ........................................................... 43 3.1.7 Anti-dumping, countervailing, and safeguard measures ............................................... 44 3.1.8 Other measures ..................................................................................................... 44 3.2 Measures Directly Affecting Exports ............................................................................. 44 3.2.1 Export procedures and requirements ........................................................................ 44 3.2.2 Export taxes, charges, and levies ............................................................................. 45 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 45 3.2.4 Export support and promotion ................................................................................. 45 3.2.5 Export processing zones (EPZs) ............................................................................... 45 3.2.6 Export finance, insurance, and guarantees ................................................................ 46 3.3 Measures Affecting Production and Trade ..................................................................... 46 3.3.1 Taxation and incentives .......................................................................................... 46 3.3.1.1 Taxation ............................................................................................................ 46 3.3.1.2 Tax incentives .................................................................................................... 48 3.3.1.3 Non-tax incentives .............................................................................................. 49 3.3.2 Trade-related investment measures (TRIMs) .............................................................. 50 3.3.3 Standards, technical regulations and other requirements ............................................. 50 3.3.4 Sanitary and phytosanitary measures ....................................................................... 52 3.3.5 Competition policy and price controls ........................................................................ 54 3.3.5.1 Competition policy .............................................................................................. 54 3.3.5.2 Price controls ..................................................................................................... 54 3.3.6 State trading, state-owned enterprises, and privatization............................................. 54 3.3.6.1 State trading enterprises ...................................................................................... 54 3.3.6.2 State-owned enterprises and privatization .............................................................. 54 3.3.7 Government procurement ....................................................................................... 54 3.3.8 Intellectual property rights ...................................................................................... 57 4 TRADE POLICIES BY SECTOR ....................................................................................