Nigeria

Nigeria is a beneficiary of the Standard GSP. With a per capita income of $1,597 in 2023, the World Bank classifies Nigeria as a lower middle-income country. Total EU imports from Nigeria amounted to about €22.8 billion in 2023. As most of Nigeria's exports enter the EU duty-free under the EU's normal tariff regime, the scope for preferential GSP imports is limited; these stood at close to €96 million in 2023.

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.

Nigeria flag

At a glance: EU preferential imports from Standard GSP beneficiary countries (2023, € million)

group

227.9M (2023)

Population

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Federal Presidential Republic

Government

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2.9% (2023)

GDP Growth

equalizer

24.7% (2023)

Inflation

money

$ 363.8B (2023)

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 dependence on the petroleum industry, however, leaves the economy extremely vulnerable to volatilities in international energy markets.

Export Products

Nigeria's dominant export product is petroleum oil, followed by natural gas. Together these two products account for more than 90% of exports. Other important exports are fertilisers, oil seeds, cocoa beans, and nuts.

Trade Partners

The EU, China, the US and India are Nigeria's most important trading partners. The EU is the most important destination for Nigerian export products, while China is the largest supplier.

Economic Structure

The majority of the Nigerian population is employed in the agricultural sector, although it only contributes about 23% to the country's GDP (2023). 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 contributes to the economic growth of the country, especially the telecommunications sector.

Usage of GSP Preferences

Because most of Nigeria's exports (mineral fuels) enter the EU market duty free under the normal tariff regime, only about 0.4% of total EU imports from the country used GSP preferences in 2023. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, stood at 63%.

Trade with the EU

Total trade with the EU amounted to €26.5 billion in 2023. The EU is Nigeria's most important trading partner and accounts for a total share of 28%. 35% of Nigeria's exports are destined for the EU, which makes the bloc the most important export market by far (India, ranked second, only absorbed 10% of Nigeria's exports in 2023).

Nigeria and the EU

Imports from Nigeria by product section (2023, € million)

Imports from Nigeria over time (€ million)

NIGERIA AND THE EU GSP

Economic Impact

1%

Only a small fraction of Nigeria's exports to the EU were eligible for GSP preferences in 2023.

63%

Nigeria's preference utilisation rate in 2023.

99%

Share of zero-duty imports from Nigeria. Most imports are duty-free under normal EU tariffs.

Preference utilisation and export diversification

EU imports from Nigeria (€ million)

Preference utilisation (%) vs. total eligible imports (in € million)

Mineral products account for about 96% of EU imports from Nigeria. As these enter the EU duty-free under the normal tariffs, the scope of GSP-eligible imports is limited. Imports of eligible products fluctuated strongly over the years with no clear trend being visible. 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 (€ million, 2023)

Although mineral oils dominate the overall EU imports from Nigeria by far, these products do not benefit from GSP preferences as they enter at zero duty under the normal tariffs. Preferential imports are led by fish, followed by food preparations, textiles, and hides, skins & leather. The latter two product groups were also among the fastest growing ones over the period 2021 to 2023, increasing by about 100% and almost 200%, respectively.

SUSTAINABLE DEVELOPMENT

Nigeria has ratified all 15 core international conventions on human rights and labour standards listed in the GSP Regulation. In addition, Nigeria has ratified all of the 12 environmental protection and good governance conventions listed in the Regulation. As a beneficiary of the Standard GSP, Nigeria is not required to ratify any of the conventions listed in the Regulation 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 Cooperation

DG INTPA

Access all info about EU-Nigeria relations on the International Partnerships website.

Contact points