Nigeriahas undertaken an economic structural adjustment program to reform itseconomy. The reforms were lessextensive compared to the other West African countries because of the largersize of its economy and its position as a major oil exporter. Although fertilizer markets have beenderegulated, Nigerian agriculture is heavily influenced by governmentintervention. The governmentsupports focus on input supply, extension service deliveries, theadministration of soft loan programs, and the maintenance of a buffer stockprogram to stabilize commodity prices. The Nigerian agricultural sector remains heavily protected with anaverage applied tariff of 40%.
Corn and Sorghum
á As a member of theEconomic Community of West African States (ECOWAS), Nigeria is committed totariff schemes consistent with the harmonized system under the organizationŐscommon external tariff (CET) policy. However, imports for sorghum and corn remain banned because the countryis self-sufficient and is determined to protect its local producers.
á Nigerian cotton isdiscounted because of trash and polypropylene (plastic) contamination which hasreduced its competitiveness relative to other African countries. The government has instituted an exportenhancement grant of 20% to compensate for the discounts to Nigerian cotton.
á While imports fromother countries, mainly the U.S., are subject to a 50% tax, those fromneighboring countries enter Nigeria duty-free.
á Under the ECOWAS newharmonized tariff scheme, the tariff on rice was reduced from 110% to 50%. However, an additional special tariffof 50% was initiated for non- ECOWAS countries, which brings the import tariffto 100%.
á A rapidly growingNigerian poultry sector (due to a governmental ban on poultry imports) issignificantly increasing the demand for soybeans. Domestic production currently at 200,000 MT (about 7 millionbu) is not able to meet the need for the poultry sector, human consumption, andmanufacturing. Nigerian soybean imports are expected to reach 100, 000 MT (3.7million bu).
á The import duty onsoybeans is 15%.
á With the privatizationof the sugar industry, the government of Nigeria is supporting the developmentof a uniform price support mechanism to ensure that producers are protected.
á Under the new sugarpolicy, it is the responsibility of the milling company to prepare the land,provide irrigation water, seed cane, and other inputs and to recover its costat the end of the marketing season.
á NigeriaŐs sugar marketis protected with a total import tariff and surcharge reaching 60%.
á The government requiresall importers to comply with vitamin A fortification if their products aredestined for household consumption.
á Wheat import tariff is5%. There are additional fees suchas port charges.