ANNOUNCEMENT 11 Feb 2014

In February 2014, the government of Nigeria announced a change in private-sector financial support and a change in its trade finance instruments.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 2 neutral
  • 0 liberalising

SOURCE



Government of Nigeria, 13 February 2104, 'Nigeria: Jonathan Launches Nigeria Industrial Revolution Plan, Targets Annual N5 Trillion Manufacturing Revenue' 'press release', AllAfrica: http://allafrica.com/stories/201402140456.html

McKinsey & Company, 4 March 2013, 'Approach for industrial revolution in Nigeria: The Nigeria Industrial Revolution Plan (NIRP)', posted on Nigerian Muse blog on 19 February 2014: http://www.nigerianmuse.com/20140219192600zg/nigeria-watch/approach-industrial-revolution-nigeria-nigeria-industrial-revolution-plan-nirp/

Steve Omanufeme and Jaiyeola Andrews, 12 February 2014, 'Jonathan Launches Industrial Revolution Plan, NEDEP', THISDAY LIVE: http://www.thisdaylive.com/articles/jonathan-launches-industrial-revolution-plan-nedep/171228/

'Nigeria Industrial Revolution Plan', NIRP release 1.0 of January 2014, found on the website of the Nigerian Export Promotion Zone Authority (NEPZA): http://www.nepza.gov.ng/downloads/nirp.pdf

International Monetary Fund, 17 February 2015, Selected Issues Paper on Nigeria, IMF Country Report No. 15/85, pp. 5-6: https://www.imf.org/external/pubs/ft/scr/2015/cr1585.pdf

Information on the NEDEP can be found under: http://nedep.boinigeria.com/about-the-programme/

Information on the Exports Expansion Grant (EEG) can be found under: http://www.nepc.gov.ng/page_export_expansion_grant_eeg.html


Inception date: 11 Feb 2014 | Removal date: 11 Feb 2016
Still in force

Trade finance

On 11 February 2014, Nigeria's president Goodluck Jonathan launched two intertwined projects: the National Industrial Revolution Plan (NIRP) and the National Enterprise Development Programme (NEDEP). The NIRP supports the development of a competitive advantage in the industrial sector while the NEDEP focuses on SMEs.
 
The trade discriminating features of both projects were highlighted during the president's speech in Abuja with the following quote: 'On our own part, the federal government will continue to support local manufacturers by buying vehicles that are made in Nigeria. And as long as those vehicles are produced in this country, the federal government will buy them. So we also encourage the state governments to support the patronage of made-in-Nigeria products in their states.'
 
Of the two projects, the NIRP which might have ultimately a considerable influence on trade flows as it supports big export businesses. The NEDEP only focuses on micro, small and medium enterprises (MSMEs), of which microenterprises represent the majority.
 
The NIRP was developed by the Federal Ministry of Industry, Trade and Investment in order to create jobs, maintain trade balance, boost competitive advantage and increase the current GDP of 4% to 10% over the next five years. The project will focus on three sectors where the ministry sees a potential comparative advantages: agriculture, solid minerals, as well as oil and gas. These three sectors are divided into six subsectors: palm oil, textiles and apparel, basic metals, automotive assembly, base petrochemicals, and plastics and rubber.
 
Amongst the various policies of the current two-year plan, there are measures with discriminatory and liberalizing characteristics, such as:

  • subsidized long-term loans
  • import substitution
  • subsidized prices (e.g., for crude steel)
  • adjusted tariffs in order to import capital goods for the manufacturing sector
  • review of fiscal regime for exports
  • comprehensive review of the Export Expansion Grant scheme

 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 11 Feb 2014 | Removal date: 11 Feb 2016
Still in force

State loan

On 11 February 2014, Nigeria's president Goodluck Jonathan launched two intertwined projects: the National Industrial Revolution Plan (NIRP) and the National Enterprise Development Programme (NEDEP). The NIRP supports the development of a competitive advantage in the industrial sector while the NEDEP focuses on SMEs.
 
The trade discriminating features of both projects were highlighted during the president's speech in Abuja with the following quote: 'On our own part, the federal government will continue to support local manufacturers by buying vehicles that are made in Nigeria. And as long as those vehicles are produced in this country, the federal government will buy them. So we also encourage the state governments to support the patronage of made-in-Nigeria products in their states.'
 
Of the two projects, the NIRP which might have ultimately a considerable influence on trade flows as it supports big export businesses. The NEDEP only focuses on micro, small and medium enterprises (MSMEs), of which microenterprises represent the majority.
 
The NIRP was developed by the Federal Ministry of Industry, Trade and Investment in order to create jobs, maintain trade balance, boost competitive advantage and increase the current GDP of 4% to 10% over the next five years. The project will focus on three sectors where the ministry sees a potential comparative advantages: agriculture, solid minerals, as well as oil and gas. These three sectors are divided into six subsectors: palm oil, textiles and apparel, basic metals, automotive assembly, base petrochemicals, and plastics and rubber.
 
Amongst the various policies of the current two-year plan, there are measures with discriminatory and liberalizing characteristics, such as:

  • subsidized long-term loans
  • import substitution
  • subsidized prices (e.g., for crude steel)
  • adjusted tariffs in order to import capital goods for the manufacturing sector
  • review of fiscal regime for exports
  • comprehensive review of the Export Expansion Grant scheme

 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

 
N/A
 
N/A