What is the GSP?
The Standard GSP targets developing countries that are classified by the World Bank as lower or lower-middle income countries and which do not have equal preferential access to the EU market through any other arrangement. Standard GSP beneficiary countries can benefit from duty suspension for non-sensitive products as well as duty reductions for sensitive products across approximately 66% of all EU tariff lines.
At a glance: GSP beneficiaries' preferential imports to the EU
218,54 M
Population
Federal Presidential Republic
Government
3.30%
GDP Growth
23.00%
Inflation
$ 472,62 B
GDP
Facts about Nigeria's economy
Oil Exporter
Nigeria is one of the largest economies on the African continent and Africa's biggest oil exporter. The overdependence on the petroleum industry, however, leaves the economy extremely vulnerable to volatilities in international energy markets.
Export Products
Nigeria's most dominant export product by far are petroleum oils, followed by natural gas and vessels. Important agricultural products are oil seeds, cocoa beans, and nuts.
Trade Partners
The EU, India and China are Nigeria's most important trading partners. The EU is the most important destination for Nigerian export products. and the largest partners for imports.
Economic Structure
The majority of the Nigerian population is employed in the agricultural sector although it only contributes about 24% to the country's GDP. Resource extraction is the most important sector of the economy, particularly the extraction of crude oil, natural gas, coal, and tin. The service sector significantly contributed to the economic growth of the country, especially the telecommunications sector.
Usage of GSP Preferences
Nigeria uses trade preferences granted under the GSP for about 42% of its total EU exports. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, currently stands at 79.8%.
Trade with the EU
Total trade with the EU amounted to € 45,801 million in 2022. The EU is Nigeria's most important trading partner and accounts for a total share of 28%.
Nigeria and the EU (2022)
Imports from Nigeria by product section
Imports from Nigeria over time (in € m)
NIGERIA AND THE EU’s GSP
Economic Impact
1%
Only a tiny fraction of Nigeria's exports to the European market are eligible for GSP preferences.
76%
With a preference utilisation rate of 76%, Nigeria currently makes considerable use of GSP preferences.
Preference utilisation and export diversification
Nigeria's imports to the EU
Preference Utilisation vs. total eligible imports
Mineral products account for about 96% of EU imports from Nigeria. However, less than 40% of these are eligible for duty reductions under the GSP. Nonetheless, Nigeria maintained a comparatively high preference utilisation rate of above 60%. At the level of individual product sections, the preference utilisation rate varies substantially. Product sections with a high share in overall imports, such as foodstuffs, fish and hides and skins, make good use of granted preferences. Other product sections, including animal and vegetable fats, machinery and transportation equipment, still show potential for higher utilisation of preferences.
The largest product sections under the GSP
Despite mineral products dominate overall EU imports from Nigeria by far, these products do not benefit from GSP preferences Preferential imports are dominated by prepared foods and beverages and fish and crustaceans which together account for almost 70% of preferential imports.
SUSTAINABLE DEVELOPMENT
Nigeria has ratified all 15 core international conventions on human rights and labour standards. This includes 7 UN conventions on human rights and 8 ILO conventions on labour standards. In addition, Nigeria has ratified 8 environmental protection conventions and 4 conventions that cover good governance aspects. Thus, Nigeria has voluntarily ratified all 27 conventions covered under the GSP+ regulation, even though the country is a beneficiary of the Standard GSP and not obligated to ratify any of the conventions to be able to benefit from the duty reductions.
Core international conventions on human rights and labour standards
Ratified
- Convention on the Prevention and Punishment of the Crime of Genocide (1948)
- International Convention on the Elimination of All Forms of Racial Discrimination (1969)
- International Covenant on Civil and Political Rights (1976)
- International Covenant on Economic Social and Cultural Rights (1976)
- Convention on the Elimination of All Forms of Discrimination Against Women (1981)
- Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
- Convention on the Rights of the Child (1990)
- Convention concerning Forced or Compulsory Labour, No 29 (1930)
- Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
- Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
- Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
- Convention concerning the Abolition of Forced Labour, No 105 (1957)
- Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
- Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
- Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)
Additional Conventions
- Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
- Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
- Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
- Convention on Biological Diversity (1992)
- The United Nations Framework Convention on Climate Change (1992)
- Cartagena Protocol on Biosafety (2000)
- Stockholm Convention on persistent Organic Pollutants (2001)
- Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
- United Nations Single Convention on Narcotic Drugs (1961)
- United Nations Convention on Psychotropic Substances (1971)
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
- United Nations Convention against Corruption (2004)
EU-Nigeria Bilateral Development Assistance
DG INTPA
Access all info about EU-Nigeria relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/nigeria_en
Opportunities in Nigeria
- Large and underutilised potential in renewable resources, particularly solar energy
- Diversified industrial base in Lagos
- Largest domestic market on the African content with a population of more than 200 million
- Further potential for economic diversification in the agricultural sector as well as the food processing and health industries
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By submitting a comment I confirm to have read the Terms and Conditions. Users should be aware that if in breach of the Terms and Conditions that their comments, replies and contributions can be removed from the website.
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