1. Items of Trade- Majority of the trade happen in Oil, wholesale and retail trade, communications and agriculture. Amongst the above mentioned, increased trade is taking place in Oil and agricultural sectors.
2. Imports and Export duties - Nigeria is imposing tariffs in lines with the ECOWAS external common tariffs. However, the “gap between average applied MFN tariff rates and average bound rates and the low coverage of bindings makes the tariff quite unpredictable and acts as a discentive to foreign direct investment”. The government imposes different duties on imports that vary from products to products. The governmental policy stipulating that imports entering Nigeria by roads cannot be in containers is also disadvantageous, as the government has not taken sufficient measures to address the traffic congestion at the seaports.
There are two Import Prohibition lists in existence. (a) The Absolute Import Prohibition List is based on grounds of morality, security and health whereas the (b) Import Prohibition List is based on ideals of protection of domestic industry. The exports are also subjected to taxes. There is also an Export Prohibition List in existence. The summary report says that a new legislation is in the pipeline to do away with the Export Prohibitions List.
3. Regulatory Procedures - Though the customs procedures have become simplified, it still requires updation and has to be substituted by modern processing and clearing methodology and techniques. A new legislation is also underway to replace the Customs and Exchange Management Act, which is expected to come into force during the current year. The Public Procurement Act, 2007 is expected to reduce corruption and to improve transparency and efficiency in the public procurement process.
4. The System at present and Plans for Future - Nigeria is keen on providing tax and tariff related incentives to promote investments and proposes to develop Export Processing Zones, the activities of which are looked after by the Nigerian Export Processing Zone Authority. To improve the scope for services, A One Stop Investment Centre was opened by the Nigerian Investment Promotion Commission in March 2006
5. The Summary also discusses the uneven nature of privatisation in different sectors, the challenges faced at the agrarian sector which represents over half of employment of Nigerian population, the challenges faced by the gas and oil sector which is critical to the economy of the country, the problem pertaining to inadequate generation, transmission and distribution of electricity, the weakening of banking industry following the days of economic recession, etc.
6. Towards the conclusion, the Report also observes that the further diversification and growth of the economy could be made possible through attracting private investments. The lack of information and the poor co-ordination between agencies have been considered as reasons inter alia for the slow pace of change in some areas of Nigeria.
Ann Thania Alex
LL.M.
NALSAR, Hyderabad
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