Nigeria 

Nigeria country policy

Policy established 12 November 2009

• ILC, bank guarantee or central public guarantee (unconditional)
• The country ceiling is 1000 mln euro
• Early warning signal 200 mln euro
• - of which was used as at 2011-12-31 45 mln euro

Country class: 5

Garantie monetaire autoriteit (Ministerie van Financiën, centrale bank), centrale overheid of bankgarantie (onvoorwaardelijk).

G'tee monetary authority, central government or bank guarantee (unconditional)

Contante zaken in de olie- en gassector: garantie monetaire autoriteit (Ministerie van Financiën, centrale bank), centrale overheid of bankgarantie (voorwaardelijk)

Cash business in oil and gas sector: conditional security demand

Nigeria country facts

Atradius Dutch State Business Economic Research
Country Report last updated :  2 August 2011  

Country :  NIGERIA 

Political Situation

Fairest Elections In Nigeria’s History

Head of state
President Goodluck Jonathan (People’s Democratic Party, since April 2007) who is from the Niger Delta. Vice-president is Namadi Sambo.

Form of government
PDP government.

Internal Economic Situation
Diversification Economy Necessary

General situation
Economic growth will increase to 6.7% next year from 6.2% in 2011. The non-oil sector is driven economic growth. Especially the services sector and then telecommunication is main contributor. Oil revenues have increased, but remain volatile for changes in situation in Delta region. However, economic growth is constrained by shortages in infrastructure and energy. The financial sector is still recovering from the problems in 2009, which led to recapitalization of many banks by the central bank. Oil earnings are dominating the economy (appr. 95% of export revenues is oil related and 70-80% of the budget revenues). Diversification is necessary. Despite oil wealth the majority of the population still lives in poverty. Inflation is high, expected is 11.8% in 2011 and will decrease slowly due to high food/oil prices and liquidity in economy and government spending are high.

External Economic Situation
High Oil Prices Boost Bop

Main sources of foreign exchange
Crude oil and natural gas (90% of export revenues).

Main foreign markets
US (39%), India (10%), Brazil (8%), Spain (7%)

Main expenses of foreign exchange
Machinery, chemicals, transport equipment, manufactured goods and food.

Balance of payments 
Oil accounts for 95% of export revenues. Drop in oil prices/production cause major decline in export and makes CA volatile.