Doing Business in Nigeria

Prospects for U.S. business in Nigeria are especially promising in the following sectors: oil and gas equipment, healthcare services and medical equipment, electrical power generating equipment, computer hardware/software, telecommunications equipment, automobile parts and accessories, construction, and earth moving equipment, agricultural products and equipment, and franchising. Please read the Country Commercial Guide for Nigeria 2012. Chapter 4 of the document outlines the leading sectors for U.S. trade and investment.

U.S. companies should be assured that many genuine business opportunities exist in Nigeria, even if the business climate seems difficult and certain extra screening steps must be taken with potential business partners. In March 2007, Fitch Ratings affirmed the BB minus rating it had earlier given Nigeria in February 2006. It acknowledged the stability of the Nigerian currency (the Naira), the government of Nigeria’s commitment to economic and social reforms, and improvement in external reserves and public governance.

According to local media reports, the rating, released in March 2007, confirms Nigeria’s newly established status as a net creditor country with foreign reserves valued at approximately at USD56 billion as of February, 2008. Most Nigerians are positively disposed toward the United States and have a strong affinity for U.S. products. Nigeria has many honest businessmen and women eager to form partnerships with U.S. counterparts. Nigerian and U.S. authorities are working together to combat the fraud industry. In 2005, a National Cybercrime Coordinating Committee was established under the office of the National Security Advisor at the Presidency to coordinate activities of several local agencies charged with the

responsibility to reduce cyber crime.

Some U.S. companies are excluding Nigeria from their African commercial strategy based on alarmist, misleading and often incorrect information, and may miss out on excellent emerging market opportunities as a consequence. If U.S. business travelers prepare prudently, a business trip to Nigeria

can be an enjoyable and rewarding experience.