a supplement to International Commerce C f . - . ~i MARKET FOR U. S. PRODUCTS IN geria RTMENT OF COMMERCE PUBLIC A A SUPPLEMENT TO International Commerce ... the weekly news magazine for world traders published by the Bureau of International Commerce and sold by the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, D.C. 20402, and by Department of Commerce Field Offices for $16 a year. market for US. products in eria U.S. DEPARTMENT OF COMMERCE Luther H. Hodges Secretary Franklin D. Roosevelt, Jr. Under Secretary Jack N. Behrman Assistant Secretary for Domestic and International Business Thomas G. Wyman Deputy Assistant Secretary for Domestic and International Business Eugene M. Braderman Director, Bureau of International Commerce by Arnold A. Wilken Bureau of International Commerce Foreword Among the newly independent countries of West Africa, Nigeria has come to be perhaps the most widely known and most favorably publicized in the United States. Its potential as a mass market for consumers' goods, its progress in industrial development, and its political transition to a stable, independent status have led a steadily increasing number of U.S. exporters and investors to look more closely for opportunities in a part of the world where the American business community has heretofore been noted chiefly for its absence. American trade with Nigeria has increased at an impressive rate: the value of U.S. exports to the country more than doubled from 1955 to 1961, and rose again by over 25 percent from 1961 to 1962. Acceptance of American products has been so general that the United States now ranks as Nigeria's third most important supplier. Despite these noteworthy gains, U.S. exports still constitute but a small proportion of Nigeria's total purchases abroad because of the country's tradi- tional reliance on British suppliers. Nearly $600 million worth of goods were imported by Nigerians in 1962, but only a little more than 7 percent of these originated in the United States. Approximately 35 percent originated in the United Kingdom and about 12 percent in Japan. . The Nigerian market is growing, and all indicators point to further expan- sion in coming years. This report reflects the optimism of the Department of Commerce that opportunities for aggressive American salesmanship will continue to be excellent in this widening and highly competitive market.. This report is designed to provide a balanced picture of both the prospects and the problems of selling in Nigeria. Its objective is to help you in your marketing program — now. January 1964. Eugene M. Braderman Director, Bureau of International Commerce. Credits This study was prepared by Arnold A. Wilken under the direction of Bernard Blankenheimer, Director, Africa Division, Bureau of International Com- merce. It is based largely on an extensive 6-week field survey made by Mr. Wilken in Nigeria, during which interviews were conducted in seven principal cities with leading Nigerian and expatriate businessmen engaged in commerce, finance, and industry, and with appropriate senior Nigerian Government officials. At the same time, however, the report draws heavily on many official and unofficial publications on Nigeria, and on numerous reports and dispatches prepared by the American Embassy at Lagos and Consulates at Enugu, Ibadan, and Kaduna. Special credit must be afforded Mr. David Post, American Commercial Attache with the Embassy at Lagos, for his very valuable contribution to the survey in providing guidance and direct support, through all stages of planning and implementation. Grateful acknowledgment for their cooperation and assistance in carrying out the project is also due Mr. George Dolgin, Counselor for Economic Affairs, Mr. Jay Nussbaum, Assistant Commercial Attache, and Mr. Paul Bennett, Economic Officer, American Embassy, Lagos; Mr. Nelson Ledsky, American Consulate, Enugu; Mr. Frank Haendler, American Con- sulate, Ibadan; and Mr. Daniel Sullivan and Mr. David Morrison, American Consulate, Kaduna. The report has benefited greatly from review in draft by the above-named members of the American Embassy at Lagos. IV Contents Page Foreword iii CHAPTERS I. Nigeria — An Open and Competitive Market 1 II. Market for Consumers' Goods 5 Population 5 Purchasing Power 6 Consumer Buying 7 Expenditure Patterns 10 Food Products; Beverages and Tobacco Products; Clothing; Textile Piece Goods; Furnishings and Household Goods; Radios, Phono- graphs, and Television Sets; Cosmetics and Drug Items; Other Con- sumer Items. III. Market for Producers' Goods 23 Factors in a Marketing Approach 23 Industry in Nigeria 27 Slaughtering, Meat Processing, and Canning; Grain Milling; Brewing and Soft Drink Bottling; Tobacco Products; Textiles; Footwear; Lumber and Plywood; Furniture and Cabinetry; Rubber and Rubber Products; Basic Industrial Chemicals; Oils and Fats; Paint and Enamel; Miscellaneous Chemicals and Cosmetics; Petroleum and Petroleum Products; Glass and Glass Products; Cement; Miscellaneous Non- metallic Mineral Products; Basic Iron and Steel Products; Basic Non- ferrous Metal Products; Miscellaneous Metal Manufactures; Ma- chinery; Electrical Apparatus and Appliances; Motor Vehicles and Bicycles; Miscellaneous Plastic Products; Music Products. The 6- Year Plan 36 Federal Government Development Program; Northern Nigeria De- velopment Program; Eastern Nigeria Development Program; Western Nigeria Development Program. IV. Distribution and Trade Promotion 43 Marketing Channels 43 Centers of Business and Transportation; Structure of Trade. Government Procurement 46 Advertising 47 Newspapers; Magazines; Trade Publications and Professional Journals; Radio and Television; Theaters; Point-of-Sale Advertising; Other Media. Packing and Presentation 51 Chambers of Commerce and Trade Associations 53 Credit Information 54 Marketing Aids 54 U.S. Government Services and Publications; Nigerian Directories and Government Publications and Services. V. Government Regulations on Imports 59 Licensing and Exchange 59 Shipping Documents 59 Customs Duties 59 VI. Trade Practices and Government Representation 61 APPENDIXES Page A. Notes for Business Travelers 63 General Country Information; Health Conditions; Hotel Accommodations; Food and Clothing; Transportation; Passports and Visas. B. American Firms in Nigeria 65 C. Buying Offices in the United States for Nigerian Firms 69 D. Bibliography 71 TABLES 1. Foreign Trade by Principal Trading Partners, 1955, 1960-62 2 2. Foreign Trade by Major Commodity Groups, 1955, 1960-62 3 3. Value of Gross Product of Manufacturing Sector and of Some Principal Indus- tries, Various Years, and Percent Increase, 1950 to 1960 6 4. Imports of Selected Consumers' Goods, 1955, 1960, and 1962 and Projected, 1967_ 6 5. Employment and Average Monthly Earnings of Workers in Establishments With 10 or More Employees, September 1960 7 6. Household Expenditures on Goods and Services in Lagos, 1959-60 Average 10 7. Household Expenditures on Goods and Services in Enugu and Ibadan, 1955 10 8. Household Expenditures on Goods and Services in Kaduna and Zaria, 1955-56 Average 11 9. Household Expenditures on Food Items in Lagos, 1959-60, and Kaduna and Zaria, 1955-56 12 10. Imports of Food and Food Products, by Principal Supplying Countries, 1955 and 1960-62 12 11. Imports of Beverages and Tobacco Products, by Principal Supplying Countries, 1955 and 1960-62 13 12. Imports of Clothing, by Principal Supplying Countries, 1955 and 1960-62 14 13. Imports of Textile Piece Goods, by Principal Supplying Countries, 1955, 1960-62. 15 14. Imports of Furnishings, Household Goods, and Appliances, by Principal Sup- plying Countries, 1955, 1960-62 16 15. Electricity Corporation of Nigeria — Sales and Consumers, by Region and Type of User, 1962-63 and Totals 1952-53, 1957-58, and 1962-63 17 16. Projected Demand for Household Appliances, 1964-6S 18 17. Imports of Radios, Phonographs, and Phonograph Records, by Principal Sup- plying Countries, 1955 and 1960-62 19 18. Imports of Cosmetics and Drug Items, by Principal Supplying Countries, 1955 and 1960-62 22 19. Consumption of Construction Materials, 1954, 1960, 1962 and Projections, 1965 and 1968 25 20. Imports of Transportation Equipment and Motor Vehicles, by Principal Sup- plying Countries, 1955 and 1960-62 26 21. Imports of Machinery and Tools, by Principal Supplying Countries, 1955 and 1960-62 28 22. Manufacturing Firms in Nigeria, by Number of Employees, Number of Firms, and Category of Product, April 1963 29 23. Capital Expenditures of Federal and Regional Governments in National Develop- ment Plan, by Sector, 1962-68 38 24. Federal Government Development Program, Capital Expenditure, by Ministry, 1962-68 38 25. Northern Nigeria Development Program, Capital Expenditure by Sector, 1962-68 40 26. Eastern Nigeria Development Program Capital Expenditure by Project, 1962-68. 41 27. Western Nigeria Development Program Capital Expenditure by Project, 1962-68. 42 VI CHARTS Page Foreign Trade of Nigeria, 1948-62 4 Gross Domestic Product, Consumers' Expenditure, and Imports of Goods and Services 8 Electricity Generated in Nigeria 19 MAPS Location Map of Nigeria 1 Political Map of Nigeria 32-33 Location of Some Principal Industries in Nigeria 31 PHOTOGRAPHS Lagos, Nigeria 1 Display of radios 7 Electricity Corporation of Nigeria building, Lagos 9 Men's clothing, Lagos department store 13 Kitchen equipment, Lagos department store 18 Imports of phonograph records 20 Cosmetics display 21 Steel mill laboratory 24 New cement plant 25 Nigerian Federal Government offices, Lagos 27 Kaduna Textile Mills, Ltd 34 Electric steel furnace 35 Machinist at work 36 Bookstore 37 Port Harcourt, Nigeria 43 Plastics plant ■ 45 Baby corner 52 Ibadan, Nigeria 55 Hotel in Lagos 64 Aircraft at airport 64 Home in Lagos suburb 67 Independence building sculpture 67 VII Nigeria — Market Indicators Located on the west coast of Africa. Fully independent since October 1960; a mem- ber of the British Commonwealth. Economy based on agriculture and animal hus- bandry; other resources include timber, tin, columbite, and petroleum. Lagos, the capital, has a population estimated in 1961 at 379,000 persons. GEOGRAPHY Area of 356,000 square miles, or slightly larger than Arizona, Nevada, and New Mexico combined. South- ern coastal boundary lies on the Gulf of Guinea. Ter- rain varies from heavy forest along coast to open grassland in the north. POPULATION Estimated at 40 million in 1963. Official language: English. INCOME Gross domestic product estimated at $2.9 billion in 1960; average per capita income about $80. CURRENCY Nigerian pound, equivalent to US$2.80 at official rate of exchange. Currency in circulation: $244.5 million in December 1962. FOREIGN TRADE Total imports 1962— $586 million of which $207 million from United Kingdom, $70 million from Japan, $42 million from United States. Total exports 1 962 — $459 million of which $197 mil- lion to United Kingdom, $63 million to Netherlands, $51 million to United States. PRINCIPAL EXPORTS PRINCIPAL IMPORTS Peanuts and byproducts, cocoa beans, palm kernels and byproducts, crude oil, rubber, timber and plywood, cotton, tin. Textile piece goods (mostly cotton), industrial machinery, petroleum products, motor vehicles, electrical machinery and appliances, manufactured items of metal, iron, and steel. VIII CHAPTER I Nigeria — An Open and Competitive Market With its growing market for a wide range of products, Nigeria is attracting increasing numbers of American businessmen. The attrac- tion is based on substantial fact. Nigeria is a big country. Its population is greater than that of any other country on the African Continent — 40 mil- lion persons — or, 15 percent of the total population of Africa. It has an area of over 356,000 square miles, or more than twice that of California, and is well endowed with natural resources. It has a diversified primary sector encompassing exports of five major agricultural crops, a strong forestry and lumber industry, and a petroleum industry of growing importance. Manufacturing, which lias developed in earnest over the past few years, prom- ises to continue its development at a favorable rate. Nigeria's imports increased by nearly 80 percent in value between 1952 and 1962 while exports rose 27 percent. Total Nigerian imports in 1962 were valued at $586.4 million, exports at $459.2 million. Nigerian imports from the United States have increased consistently during 1955-62, as shown in table 1, continuing to rise even in 1962 when the value of Nigeria's total imports fell by 6 percent from that in 1961. From 1955 to 1962, the U.S. • .vsf--;.-> Two lanes of traffic driving southeast on Marina, a principal street in the number 1 port and Capital of Nigeria, Lagos Location map of Nigeria See also, political map at page 32. 717-541 0—64- share of the value of Nigeria's import trade more than doubled — from 3.5 percent to 7.4 percent. Many items bearing U.S. trademarks enter Ni- geria from American-owned plants on the Conti- nent and in the United Kingdom or from firms abroad operating under business arrangements with American companies. Thus, well-known American brands of food products, soaps, cos- metics, and clothing are displayed in stores and markets all over the country, enjoying a high de- gree of consumer acceptance. Most of these goods now being sold in Nigeria have established reputa- tions for quality. In many cases, exporters seek- ing to enter new American lines in the country will find that a "Made in U.S." label or a brand name recognized as being American carries some value in itself. United States trade with Nigeria has increased in the face of extremely keen competition from other overseas suppliers and, often, in spite of dif- ficult marketing conditions. British exporters have continued to make strong efforts to maintain their traditional leadership in many lines. West- ern European and Japanese manufacturers are striving energetically to increase their sales in the country. Market acceptance for new lines is often slow in the face of strongly established brand preferences. The American exporter should be aware that nothing sells itself in Nigeria. Consumer accept- ance is not always immediate, and many firms now selling successfully in Nigeria are doing so only because they had the ability and the willingness to stay on through extended periods when sales re- turns amounted to a great deal less than promo- tion and sales costs. For the firm with a suitable product and the willingness to go out and sell it, however, rewards in the changing Nigerian mar- ket can be considerable. Demand for consumers'' goods in Nigeria from the private side of the economy is generated by a rural majority and an urban minority of the population. Demand for most of the higher priced and more sophisticated consumer items exists primarily in the cities where incomes, standards of living, and propensities to import are highest. It is in the cities, too, that the larger part of the expatriate population lives. Expa- triates number only some 40,000 persons but are important in the consumer goods market since they constitute a relatively high income group. While this basic division between an urban and a rural market can guide exporters in formulating appropriate marketing programs for particular types of consumer goods, it is being modified by social and economic changes. In the urban areas, for example, higher- and middle-income Nigerian consumers are rapidly adopting European consumption patterns. Thus, many items which were formerly imported almost Table 1. — Foreign Trade by Principal Trading Partners, 1955, 7 960-62 [Thousands of dollars] Country Imports 1955 : 1960 2 1961 19112 Exports i 1955 2 1960 2 1962 United Kingdom Japan.. _ United States West Germany Netherlands Italy.. France Norway India.. Hong Kong Belgium and Luxembourg Canada Czechoslovakia Other - Total - 177,885 46, 629 15, 347 29, 350 13, 168 10, 684 4,557 9, 708 22, 140 6,229 5,278 1,091 4,271 34, 790 255, 961 77, 879 32, 419 42, 593 32, 505 20, 180 13, 676 20, 189 11,701 10, 097 9,169 2,873 6,613 68, 639 238, 538 84, 940 33, 302 46, 200 29,712 21,905 16, 348 16, 344 19, 390 11,754 9,994 4,676 7,549 80, 985 206, 691 69, 589 41, 934 37, 573 25, 727 19, 407 18, 810 15, 489 14,281 12,277 8,315 7,560 7,430 101,342 254, 249 ( 3 ) 33, 972 11, 934 27, 932 8,979 8,917 3,267 471 ( 3 ) 4,067 683 716 8,100 223,110 7,153 44, 447 36,010 60, 111 20, 151 17, 994 3,008 1,512 433 9,152 3,437 1,764 35,451 213,410 9,360 53, 454 37, 009 61, 058 22, 822 27, 182 676 1,671 853 14, 154 1,408 1,721 31,426 381,127 604, 494 621,637 586, 425 363, 287 463, 733 476, 204 197,082 4,161 50, 692 41,213 62, 692 24, 648 18,860 2,050 383 762 11,280 4,814 1,228 39, 373 459, 238 1 Excluding reexports. 2 Figures for 1955 and 1960 include the former British Trust Territory of Southern Cameroons. 3 Less than $2,800 (£1,000). Source: Nigerian Federal Office of Statistics, Lagos, Trade Report for the Year 19SS; Trade Report for the Year 1960; Nigeria Trade Summary, December 1961 and December 1962. exclusively for sale to expatriate families are now being purchased increasingly by Nigerians. In rural areas, as indicated in chapter 2, incomes vary widely. The money economy is reaching into even remote parts of the country. Many of the basic needs for food, clothing, and shelter in the rural areas are met by each family's production so that a very large part of cash incomes are avail- able for expenditure on manufactured items. Purchases of consumer goods by rural families, in fact, are often surprisingly out of proportion, by American standards, to levels of income. One- fourth or even one-third of a rural family's annual cash income, for instance, may be spent on a radio. Another, similar example, according to business- men's reports, is a high-quality vacuum bottle which sells well in rural areas even though very expensive in relation to income. Capital equipment consistently occupies a prom- inent place among Nigeria's purchases from abroad, and many American manufacturers should find this to be a market of considerable interest. Imports of machinery and transport equipment, as shown in table 2, increased in value by nearly 75 percent from 1955 to 1962. This category of Nigerian imports in recent years has ranked second in importance only to "manufac- tured goods classified chiefly by material," the classification which encompasses the country's very large trade in textiles and clothing. The shape of demand for producers' goods in Nigeria — covered in chapter 3 — will be set largely by: (1) The nature of existing industry, (2) in- dustrial investment planned in the near future, and (3) the large developmental expenditures to be made by the Nigerian Federal and Regional governments under a 6-year plan. Opportunities for sales of capital goods and materials on a con- tinuing basis currently appear to lie in construc- tion and building lines and in general industrial machinery and tools that are basic to operations in manufacturing plants. This report focuses on trade opportunities and marketing factors in Nigeria at present and in the near future. In considering the Nigerian 6- Year Plan, for example, attention is given primarily to market opportunities which will be created in the capital goods field through actual implementation of scheduled projects. Detailed analysis of the plan's full impact on Nigeria's economy and of the growth in purchasing power which can thus be expected has not been undertaken here since these factors are of relevance more in a longer-run context. Altogether, the Nigerian market appears ex- tremely competitive, with immediate sales poten- tials ranging from excellent for some goods to poor for others. The market cannot be characterized as holding unlimited sales possibilities for any and all U.S. products. Businessmen deciding to enter Table 2. — Foreign Trade by Major Commodity Groups, 7955, 7960-62 [Thousands of dollars] Commodity group Imports Exports i 1955 2 1960 2 1961 1962 1955 2 I960 2 1961 1962 Food - 36, 269. 1 14, 142. 9 4, 789. 8 18,190.6 86.5 19,751.6 168, 212. 2 78, 036. 34, 318. 5 7, 329. 8 66,951.7 17, 226. 8 6,012.2 31,723.3 180.6 34, 249. 227, 175. 3 144,591.3 66, 956. 8 9, 430. 1 63. 626. 17. 107. 1 6, 870. 4 37, 463. 2 177.3 35, 271. 1 245, 056. 4 141,079.1 66, 508. 1 8, 478. 65, 779. 9 13, 353. 7 6, 745. 7 39, 406. 3 234.7 34, 530. 1 204, 582. 7 135,144.0 60, 629. 4 8, 018. 6 85,551.7 7.8 224, 408. 7 730.9 45, 702. 1 392.0 3, 289. 8 26.0 3, 178. 5 120, 425. 5 49.8 264, 166. 3 12,699.3 54, 104. 615.5 4,213.2 17.5 7,441.6 103,517.9 95.5 276, 439. 9 33, 007. 7 51,103.9 481.7 4,479.5 36.8 7, 040. 8 104, 730. 5 321 230,231.1 47,296.4 42, 379. 9 646 4 Manufactured goods classified chiefly by material - 24, 719. 1 187 8 Miscellaneous transactions and commodities, n.e.s 8, 724. 8 Total* 381, 127. 2 604, 494. 3 621, 636. 6 568, 425. 2 363, 287. 4 463, 732. 6 476, 203. 7 459, 238. 3 1 Excluding reexports. 2 Figures for 1955 and 1960 include former British Trust Territory of Southern Cameroons. a Entries do not necessarily add to totals due to rounding. Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1956; Trade Report for the Year 1960; NigeriaTrade Summary, December 1961 and December 1962. lines in this market will find that close attention must be given to establishing an effective sales and distribution system and to maintaining an active sales promotion program. Brand preferences are another very important consideration in market- ing in Nigeria. Therefore, when it is anticipated that demand for a particular type of product will develop in the country over the next few years, the importance of advance entry into the market to lay a foundation for future sales cannot be overstated. The competitiveness of business in Nigeria is most directly a result of the country's open, free enterprise economy. In finance and industry, pri- vate investment both from abroad and from local sources is actively encouraged, and repatriation of dividends and profits is freely allowed. In for- eign commerce, there is a lack of dollar or other currency discrimination and a minimum of quanti- tative restrictions on imports. Everyone is free to sell in Nigeria, and sales go to the most aggres- sive firm with the best product at the best price. Foreign Trade of Ni. Mill, 700 ins of S 600 Imports ^^^^^^^^^ 500 Exports jj 400 1 A. 300 A / / C—.^' 200 - 100 i i i i i i II 1 1 1 1 1 1948 1950 1/ Including Re-exports. Note: Converted from Nige 1950-62, 1£ = U.S. Sources: Nigerion Federal Nigeria, (Fourth Statistics, Niger, Editir o Tro unds at the folio ■y of Commerce ), Lagos, Septe s Summary, Dec ind Industry, He rber 1960, Page ™ber 1961 (pog. oaoOOK of Commerc 112, Nigerion Fed. 2), ond December e ond /nduslry rol Office of 1962(page5). CHAPTER II Market for Consumers' Goods Significant changes have taken place in the purchasing habits of many Nigerians over the past decade. Disposable income has risen among an important part of the population. Spending on European-type consumers' goods has increased markedly. Manufacturers and exporters will find the great- est concentration of purchasing power in Nigeria in the urban areas and, generally, in the southern part of the country where commercialized agri- culture and forestry have made greatest progress. Nigerians in the densely populated Eastern Region and around the large cities in the Western Region have shown perhaps the most rapid assimilation of European standards of living. The popula- tion of the Northern Region, dominantly of the Hausa and Fulani ethnic groups, is almost entirely Moslem. These people, with their long history and established traditions, have been generally much more conservative and less prone to abandon traditional patterns of living. Level of income, of course, is the single most important determinant of demand. Income dif- ferentials between rural areas in the north and those in certain parts of the south are substantial. For example, average annual cash income per family unit was estimated at $152 in a rural area near the northern city of Zaria, 1 at $660 among cocoa farmers in the West, 2 and at $476 among oil palm kernel producers in the East. 3 Admittedly, the cocoa farmers and palm kernel producers are a somewhat limited and special group in the rural population, but the comparison is nevertheless valid to some extent. The rural market, however, is very substantial for the so-called trading goods, e.g., sugar, salt, "■ Smith, M. G., The Economy of Hausa Communities of Zaria, Colonial Research Studies No. 16, H.M.S.O., London, 1955, p. 180. 2 Galletti, R., Baldwin, K. D. S., and Dina, I. O., Nigerian Cocoa Farmers, Oxford University Press, 1956, p. 473. 8 Martin, Anne, The Oil-Palm Economy of the Ibibio Farmer, Ibadan University Press, 1960, p. 31. textiles, matches, flour, pots and pans. Trade in these items, in fact, constitutes a large part of the total merchandising done in Nigeria; 15 or 20 million persons, even if they spend only $50 a year, can mean an important market for the right product. Income among agricultural producers has risen and should continue to rise, albeit at a less striking rate than that for urban workers. At least one American firm, for example, is presently making substantial gains in this market in sales of top quality packaged rice. The brand name product retails at a considerably higher price than competing imported or locally produced rice in Nigeria. Yet both urban and rural consumers, under the impact of an effective sales promotion program, have recognized the difference in quality and are- willing to pay more for the superior prod- uct. The Nigerian consumer is in fact a very dis- criminating buyer. Preferences and tastes fre- quently differ from those of American or European consumers, but the Nigerian buyer generally knows what he wants in a product and, within his means, is willing to pay for what he gets. POPULATION The total population in 1953 was 30.8 million persons, excluding the British Southern Camer- oons. 4 The excluded area has since become a part of the Federal Republic of Cameroon. Of the total population outside Lagos, 17.2 million were in the Northern Region, 7.2 million in the Eastern Region, and 6.1 million in the Western Region. Population density per square mile in 1953 was 245 in the Eastern Region, 134 in the Western Region, and 60 in the Northern Region. Population of some of Nigeria's principal cities in 1953 was as follows, by Federal Territory and by region : Federal Territory : Lagos — 277,000. 4 Government of Nigeria, Department of Statistics, Population Census of Nigeria, 1952-53, Lagos. The results of the 1693 census will be available in 1964. Northern Region: Kano— 130,000 ; Zaria— 54,- 000; and Katsina— 53,000. Eastern Region: Onitsha— 77,000 ; Port, Har- court— 72,000; and Enugu— 63,000. Western Region : Ibadan — 450,000 ; Ogbomo- sho— 140,000; If©— 111,000; Iwo— 100,000; Abeo- kuta— 84,000; and Oyo— 72,000. The non-African population in 1953 was placed at 14,800 of whom most were British. That popu- lation, by mid-1961, was estimated at 30,850 per- sons. At present, it is estimated at 40,000 persons. By mid-1961, the total population was esti- mated at 35.8 million — 19.9 million in the North, 8.4 million in the East, 7.1 million in the West, and 379,000 in Lagos. Nigeria's population today is placed at 40 million. The population may reach 43 million in 1965 and 55 million in 1975, accord- ing to one projection. 5 Nigeria's working population, 1952-53, by occu- pation and by number of both males and females, was: Males Females Agriculture and fishing 6, 469, 000 5, 188, 000 Administrative, professional, and technical 231,000 (') Trading and clerical 492,000 1,439,000 Crafts 508,000 (») Other 584, 000 (') Total 8,284,000 6,627,000 1 None. Source: Nigerian Federal Office of Statistics, Population Census of Nigeria, 1952-53, Lagos. Table 3. — Value of Gross Product of Manufacturing Sector and of Some Principal Industries, Various Years, and Percent Increase, 1950 to 1960 [Value in thousands of dollars in constant 1957 prices] Selected industries Manufacturing produc tion, total Baking.. Oil milling Margarine manufacturing Brewing and bottling Tobacco manufacturing Textile manufacturing Rubber processing ... Tanning.. Sawmilling Cement manufacturing Value 1950 1954 1957 1960 8,762 18,127 30, 589 43, 820 53 185 588 885 1,018 999 6,053 7,308 7 34 51 51 773 2,075 4,714 7,840 3,908 6,234 5,882 6,132 13 140 1,056 1,716 55 386 1,665 3,858 17 47 110 113 1,396 3,652 4,288 5,040 1,043 3,248 Percent increase 1950 to 1960 398 1,550 618 630 911 57 1,350 7,080 586 261 Source: Nigerian Federal Ministry of Economic Development, National Development Plan, 1962-68, Lagos, 1962. page 9. B U.S. Department of Agriculture, Foreign Agricultural Serv- ice, Nigeria — Determinants of Projected Level of Demand, Sup- ply, and Imports of Farm Products in 1965 and 1975 (ERS- Poreign-32), Washington, August 1962, page 115. PURCHASING POWER The gross domestic product — GDP — was placed at $1,958 million in 1950 and at $2,864 million in 1960. Both figures are given at 1957 prices. This was an average growth of 4 percent per year in real terms. 6 Nearly 60 percent of the country's income in 1957 was generated in the primary sector of the economy — in agriculture, fishing, and animal husbandry. The largest part, of the coun- try's income still comes from that sector. The value of manufacturing production has risen dramatically in recent years, as shown in table 3, but still amounted to only 1.3 percent of GDP in I960. 7 The GDP in 1957 prices may increase to between $3.4 billion and $3.6 billion in 1965 and to $5.3 billion by 1975, according to a U.S. Depart- ment of Agriculture estimate. 8 Average per capita income in 1960 in Nigeria was estimated at $80. It may rise to $84 per year in 1965 and to $98 in 1975. 9 These figures, of Table 4. — Imports of Selected Consumers' Goods, 1955, 1960, and 1962 and Projected, 1967 [Thousands of dollars] Commodity 1955 1 1960 i 1962 1967 Meat, fresh, chilled or frozen- _ Jams, jellies, marmalades, etc..- Sugar, beet and cane, refined Beer, ale and stout _.. Salt 237.7 406.7 6, 807. 5 7, 641. 6 4, 297. 9 1, 821. 6 4, 307. 3 293.3 1, 409. 3 1, 347. 6 1, 334. 7 206.9 612.7 540.5 742.3 957.8 702.8 942.2 1,028.1 1, 582. 10,601.1 10,914.6 5, 221. 4 3, 361. 1 8, 569. 7 1, 225. 1 1, 952. 9 2, 483. 2, 200. 9 481.2 1,475.5 2, 569. 2 4, 042. 2, 634. 1 626.8 2, 349. 8 680.3 1, 510. 5 9, 038. 3 7,911.8 5, 634. 5 2, 708. 9, 501. 4 1, 496. 9 1, 783. 3 2, 156. 8 1,392.6 666.0 1,802.2 1, 961. 2 2, 474. 5 2, 923. 2 627.0 1,966.0 1, 876. 2, 520. 13, 160. 14, 000. 7, 840. Prepared paints, enamels, etc..- Miscellaneous medicinal and pharmaceutical products 2 Bottles, flasks, etc Handtools and implements, In- cluding agricultural Metal hardware 8,120.0 16,800.0 3, 360. 3, 920. 3, 360. Nails, nuts, bolts, screws, etc Metal stoves, furnaces, etc Typewriters and other office ma- 3, 080. 1,120.0 2, 240. Airconditioning and refrigerat- ing equipment 3 4, 480. Radio receiving sets, domestic Dry cell batteries.. 6, 580. 4, 620. Hurricane lamps, oil burning Travel goods, handbags, etc 1, 260. 3, 920. 1 Figures for 1955 and 1960 include former British Trust Territory of South- ern Cameroons. 2 Excluding vitamins and vitamin preparations; bacteriological products, sera and vaccines; penicillin, streptomycin, etc.; opium, alkaloids, etc.; oint- ments and liniments; and bandages, wadding, etc. 3 Excluding nonelectric refrigerators. Source: Unpublished computations of Nigerian Federal Ministry of Com- merce and Industry, Economics and Statistics Division (Arthur D. Little Co., Inc., technical advisors). 6 Nigerian Federal Ministry of Economic Development, National Development Plan, 1962-68, Lagos, 1962, page 13. 7 Ibid., page 15. 6 U.S. Department of Agriculture, op. cit., page 113. 8 Ibid., page 115. course, are low compared with those of major in- dustrial countries but are above average for trop- ical African countries. By comparison, average income, in 1960, in Turkey was estimated at $195; in Brazil, $196 ; in Yugoslavia, $225 ; and in Spain, $293. Total consumer spending increased 42 percent in 10 years; from $1,706.3 million in 1950 to $2,436 million in 1960. Assuming that consumer expend- iture remains at 85 percent of GDP, as it was in 1960, total private consumption in Nigeria may reach $3 billion in 1965 and $4.5 billion in 1975. The relevance of these income and expenditure data to the market for various types of imported consumers' goods can be seen in table 4. Historic imports of selected items in 1955, 1960, and 1962 are shown, as well as projected imports in 1967. Probably the most meaningful figure on pur- chasing power in Nigeria is that on average earn- ings of wage earners in Government and industry. These workers — outside of the expatriate popula- tion — constitute to a large extent the urban buy- ing population. Employment in Government and in private industry establishments employing 10 ■6P M or more workers totaled 554,200 in 1960. Aver- age annnal earnings of these emploj'ees amounted to $500. 10 Average monthly earnings of workers in various occupations are shown in table 5. Since women held in 1960 only 5.1 percent of the total number of wage-earning jobs, each of the 554,200 employees may be treated as head of a household. Therefore, the $500 may be taken as average annual income per household among this wage-earning group. This figure probably understates total cash income per family in this population group, however, since a very large part of the female population is engaged in petty trade both in urban and rural areas and thereby con- tributed to household cash earnings. CONSUMER BUYING Consumption and expenditure patterns vary widely in Nigeria between urban and rural popu- lations and between income groups within these two populations. Extremes in standards of liv- ing, of course, are presented on the one hand by the high-income urban groups with consumption patterns very similar to those of Europeans and, on the other hand, by subsistence farmers or nomadic herdsmen in remote areas who may have at best, only occasional contact with the money economy. Differences occurring between income groups within a given environment are attested to by the existence in many Nigerian cities of modern de- Table 5. — Employment and Average Monthly Earn- ings of Workers in Establishments With 10 or More Employees, September, 1960 Occupation Employ- ment Average monthly cash earnings Administrative, professional, and technical 79, 369 55, 641 32, 818 51,047 18, 941 27, 575 177, 698 56, 859 $98. 51 56.03 16.78 38.44 27 89 43.80 Ofinerfll nnsldllftd lahnrers 20.69 Other 32.30 Total - ' 499, 948 41 40 1 This figure relates to workers for whom returns were received in a survey of employment and earnings. Actual total employment in establishments with 10 or more employees in September 1960 was estimated at 554,200. Source: Nigerian Federal Office of Statistics, Report on Employment and Earnings Enquiry, September 1960, Lagos, page 26. Brisk turnover of portable and table model radios is noted in this Lagos department store iu Nigerian Federal Office of Statistics, Report on Employment and Earnings Enquiry, Lagos, September 1960, pages 3 and 4. partment stores often located no farther than a block or two from traditional markets where goods ranging from indigenous foodstuffs to cosmetics and phonograph records are sold from wooden and corrugated sheet-iron stalls. Perhaps the most obvious trend among Nigerian consumers, however, is the increasing adoption of European tastes and standards of living. Western goods are, in effect, taken as being synonymous with a higher standard of living — and are sought by Nigerians no less avidly than by peoples any- where else in the world. Consumption patterns are modeled most closely after European stand- ards in the larger cities where the seats of govern- ment are located and where there are principal centers of trade and industry. The tendency to adopt European standards of living is observable, however, to some degree Gross Domestic Product, Consumers' Expenditure, and Imports of Consumer Goods; 1950-57 (in current prices) Billions of $ 3.0 2.5 1.0 Gross Domestic Product ^0^^^ ^ ^ ^ ^•«*^ Consumers Expenditure Imports of Consumer Goods \ \ ..IMIIIIIUIIHIIIII ' ' " lll■■M■l■■■■l■■■■■■■■■l••■■■• l • l •• llll • llll ■ l,l ■ ,ll,lllllllll 1950 1951 1952 1953 1954 1955 1956 1957 Source: P.N.C Okigbo, Nigerian National Accounts, 1950-57, Nigerian Federal Ministry of Economic Development, Lagos, 1962; page 22 and 24. 8 wherever the money economy has penetrated in Nigeria. Bicycles, patent medicines, radios, deter- gents and scouring powder, Western clothing, cosmetics, and even corn flakes are a part of the everyday life of a wide and increasing segment of the population. Many employees in private business and in government with reasonable pros- pects for increasing incomes in future years aspire to such material acquisitions as television sets and automobiles. These aspirations are by no means totally unrealistic; a considerable number of higher income Nigerians already possess these items as well as a wide range of other articles, in- cluding refrigerators, gas and electric ranges, radio-phonograph combinations, air conditioners, and motorcycles. In purchasing imported items, the Nigerian con- sumer'ordinarily wants to be sure he is getting the The Electricity Corporation of Nigeria Building, Lagos 717-541 O — 64- same article as is used abroad. Articles fabricated overseas especially for the African market are often considered by the Nigerian to be of inferior quality. One major supplier of imported beer, for example, was unsuccessful in his efforts to intro- duce a brand that carried special labels, "Bottled especially for the West African market." Sales of the beer started to increase only after the special label was removed. If, as may be necessary in some cases, a product is designed to meet particular African conditions, every effort should be made to present it as of superior quality and as having been produced to satisfy those specific African needs. The Nigerian has a very sharp appreciation of the value of money and is a very discriminating shopper. He considers price carefully and is ex- tremely conscious of quality — especially in articles with which he is familiar. Products of demon- strably high quality, products with established reputations for quality, or products which are valued for some particular feature sell consistently better and at higher prices than merchandise of either actual or reputed inferior quality. Nigerian consumers will ordinarily purchase the highest quality article possible within their means, busi- nessmen report. Buying for prestige value is prevalent in articles for personal consumption and sometimes occurs in items for business use. A firm distributing office equipment, for example, has stated that when one shop on a street buys a piece of equipment from the company, all similar shops on that street will almost certainly make similar purchases within a short time. The Nigerians valuation of any particular product's features may often differ widely from that of the consumer in the United States or Europe. Generally, this is now marked with in- creasing distance from the relatively sophisticated high-income urban market. In many of the vil- lages in the Northern Region, for instance, wooden matches — a standard trading item all over the country — will not sell unless the sticks are dyed red. These matchsticks are believed to burn better than those of natural-color wood. Other examples of consumer idiosyncracies in Nigeria are numerous. In many cases, the manu- facturer cannot possibly anticipate these factors without a close, firsthand look at the market where his products will be sold. A trip to Nigeria and discussion with persons having extensive experi- ence in the area might well save the prospective American exporter from costly errors in pack- aging, pricing, distribution, and advertising. EXPENDITURE PATTERNS The expenditures of low-income households in several principal cities and of medium-income households in Lagos were surveyed by the Nigerian Table 6. — Household Expenditures on Goods and Services in Lagos, 7959—60 Average [Expenditure in dollars per month per household at current prices] Expenditure Housing. Food ..- Drink _ Tobacco and kola Fuel and light Transportation.. Clothing Other goods Other services Total Low-income group Exnend- iture 6.13 20.48 3.58 1.81 1.47 3.54 4.56 2.93 3.12 47.63 Percent of total expend- iture 12.8 43.1 7.5 3.8 3.1 7.4 9.6 6.1 6.6 100.0 Middle-income Group 2 Exnend- iture 18.34 52.63 14.04 2.20 4.63 12.95 14.57 11.93 15.82 147.11 Percent of total exnend- iture 12.5 35.8 9.5 1.5 3.1 8.1 10.7 100.0 1 Basic annual income of $1,120 or less. 2 Basic annual income of $1,120 to $2,240. Source: Nigerian Federal Office of Statistics, Urban Consumer Surveys in Nigeria; Lagos, 1969-60, Lagos, 1963, pages 11 and 27. Table 7. — Household Expenditures on Goods and Services in Enugu and Ibadan, 1955 (Expenditure in dollars per month per household at current prices] Expenditure Housing. __ Food Drink Tobacco and kola Fuel and light Transportation... Clothing Other goods ... Other services Total Enugu ! Expend- iture 2.14 13.73 3.18 .91 .98 .97 3.54 2.30 2.00 29.75 Percent of total expendi- ture 7.2 46.2 10.7 3.1 3.3 3.3 11.8 7.7 6.7 100.0 Ibadan ' Expend- iture 1.90 16.06 2.55 1.74 .99 1.74 3.19 2.28 1.55 32.00 Percent of total expendi- ture 6.0 50.2 8.0 5.4 3.1 5.4 10.0 7.1 4.8 100.0 1 Survey was confined to households of clerks, artisans, and laborers with a basic annual income of $980 or less. Source: Nigerian Federal Office of Statistics, Urban Consumer Surveys in Nigeria— Lagos (1963-54), Enugu (1954-66) and Ibadan (1956), Lagos, pages 25 and 29. 10 Federal Office of Statistics. Some of the data compiled in these surveys are shown in tables 6, 7, and 8. In the typical urban family, almost half of total cash expenditure is for food, although the range is from one-third for the middle-income group in Lagos to two-thirds for low-income households in northern cities. Clothing ranks next in importance — ordinarily about one-tenth of ex- penditures. Urban housing, according to these surveys, accounts for one-tenth of expenditures. Nigerian consumers make significant changes in certain categories of expenditures as incomes increase. In the Lagos area, for example, among consumers whose monthly income ranged from less than $21 to over $77, those in the higher level spent 1,564 percent more on other services than those in the lower group; 700 percent more on other goods; nearly 500 percent more on clothing; and 250 percent more on fuel and light. For middle-income households, that is, those with $1,120 to $2,240 annual income, spending on trans- portation, housing, and other services rose more rapidly than income, The largest part of cash expenditures among rural households appears to go for clothing — for textile piece goods which are made into clothing by the purchasers or by local tailors. Most staple food needs are met by each family's own produc- tion, but purchases of a number of food items, such as salt, sugar, flour, tea, and coffee, probably comprise the second most important category of expenditures. Perhaps 20 percent of cash income, varying considerably one way or the other de- pending on total earnings, would remain for all other expenditures. Food Products Gari, i.e., ground cassava, is a staple food in the Nigerian diet, Other staples are yams, rice, corn, millet, and plantains. Consumption of bread and other bakery prod- ucts in urban areas is substantial and growing rapidly. Local bakeries report that sales in small towns and villages surrounding the larger cities also are increasing. Protein foods are important in the diet although protein deficiency is widespread. In urban areas, as much as 25 percent of household expenditures for food go toward purchases of meat, fish, and eggs. Fish, both local and imported, constitutes an important part of the diet in most areas of the country ; stockfish ranks by a wide margin as the leading category of foodstuffs imported into Nigeria, Fresh meat, locally butchered, is sold in most marketplaces. Frozen meats, mostly im- ported, and local sausage and bacon are sold in cities at stores equipped with refrigerators. Canned meat, some of which is locally produced, is sold in markets throughout the country, but consumption is greatest in higher income areas. Consumption of milk has increased greatly in recent years, and imports of evaporated, con- Table 8. — Household Expenditures on Goods and Services in Kaduna and Zaria, 1955-56 Average [Expenditure in dollars per month per household at current prices] Basic income group in dollars per month Expenditure Under $14 $14 to $20.99 $21 to $34.99 $35 to $48.99 $49 and over All incomes ' Expend- itures Percent of total expend- iture Expend- itures Percent of total expend- iture Expend- itures Percent of total expend- iture Expend- itures Percent of total expend- iture Expend- itures Percent of total expend- iture Expend- itures Percent of total expend- iture 1.52 14.17 .69 1.51 1.47 .43 2.39 .60 .34 6.1 61.6 3.0 6.6 6.4 1.8 10.4 2.6 1.5 2.28 15.90 1.20 1.86 1.92 .47 4.30 1.59 .77 7.5 52.5 4.0 6.1 6.3 1.6 14.2 5.3 2.5 3.23 17.76 2.44 1.59 1.95 1.82 5.33 2.26 1.69 8.5 46.7 6.4 4.2 5.1 4.8 14.0 5.9 4.4 4.70 19.43 3.35 1.45 2.04 1.65 5.94 4.03 2.35 10.5 43.2 7.5 3.2 4.5 3.7 13.2 9.0 5.2 5.84 28.25 7.00 1.60 2.93 1.79 7.77 5.99 3.68 9.0 43.5 10.8 2.5 4.5 2.8 12.0 9.2 5.7 2.88 17.51 2.20 1.61 1.90 1.06 4.48 2.17 1.34 8 2 Food -- - 49.8 Drink 6 3 4 6 5 4 Transportation 3 12 7 6 2 3 8 Total 2 23.12 100.0 30.29 100.0 38.08 100.0 44.94 100.0 64.85 100.0 35.15 100 1 This survey was confined to households of clerks, artisans, and laborers with a basic annual income of $1,120 or less. 2 Basic income in some cases is less than total expenditure since income shown in column headings does not account for supplemental earnings of household members. Source: Nigerian Federal Office of Statistics, Urban Consumer Surveys in Nigeria — Kaduna and Zaria, 1956-56, Lagos, pages 27, 29, and 45. 11 densed, and powdered milk have risen in value from $120,000 in 1950 to $6.3 million in 1962. Whole sterilized milk is now being sold in the country, and consumer acceptance reportedly has been satisfactory. Cans of condensed and dried milk are prominently displayed in markets all over the country, and a recent study conducted by the U.S. Department of Agriculture indicates that as much of this milk is sold in rural as in urban areas. According to the same study, evaporated or powdered milk is likely to continue as the fast- est growing imported food product for the next 10 to 15 years. Most Nigerian dishes are highly spiced. To- mato sauce is frequently used in cooking. Much of the canned fish sold in the country, for example, is packed in tomato sauce. Sweets are popular, but cookies — especially malted milk biscuits — usually are bigger sellers than candy. Northerners, however, are known for having a sweet-tooth, and for preferring pepper- mint candy. Frozen foods are sold in the major cities. They are expensive by Nigerian standards and are pur- chased almost entirely by expatriate and wealthier Nigerian families. An important consideration here, of course, is lack of storage facilities ; refrig- erators are increasingly common in Nigerian homes, but as yet ownership is limited mostly to the middle- and high-income population. Table 9. — Household Expenditures on Food Items in Lagos, 1959-60, and Kaduna and Zaria, 1955-56 [Expenditures in dollars per household per month at current prices] Table 10. — Imports of Food and Food Products, by Principal Supplying Countries, 1955 and 1960-62 [Thousands of dollars] Product Lagos low income ' L middle zgos income 2 Kaduna and Zaria ' Item Ex- pendi- ture Percent of total expendi- ture Ex- pendi- ture Percent of total expendi- ture Ex- pendi- ture Percent of total expendi- ture Staples 3 8.22 7.18 .92 1.65 1.48 1.02 40.2 35.0 4.5 8.1 7.2 5.0 17.26 19.25 3.18 4.76 4.82 3.36 32.8 36.6 6.0 9.1 9.2 6.3 7.80 4.57 1.21 2.00 1.20 .74 Oils and fats 26.1 6 9 Fruits and vegetables... Other foods 11.4 6 9 Bought meats 4 2 Total 20.47 100.0 52.63 100.0 17.52 100.0 Milk and cream, evaporated or condensed, unsweetened _. Netherlands _. United Kingdom Denmark Milk and cream, dried United Kingdom Netherlands Denmark United States Malted milk compounds United Kingdom United States Stockfish Norway Iceland Fish, canned; and fish prepara- tions, canned or not Netherlands Morocco Japan.. United States Wheat and spelt, unmilled United States Canada... Wheat and spelt, flour, and meal, Canada United States Bakery products other than cabin bread United Kingdom Denmark United States Jams, marmalades, jellies, etc Italy United Kingdom United States... Sugar, cane and beet, refined United Kingdom France Czechoslovakia Sugar, confectionery, except choc- olate _ United Kingdom Denmark Netherlands United States Salt United Kingdom Soviet Zone of Germany West Germany United States... 1955' 1, 089. 4 1, 000. 9 66.5 16.7 344.7 56.5 172.5 5.7 106.6 845.9 827.6 ( 3 ) 13, 378. 9 9, 464. 4 3, 748. 6 1,401.2 294.5 253.3 64.2 ( 3 ) ( 3 ) ( s ) 4, 945. 2 789.0 4, 122. 7 612.0 547.8 28.8 ( 3 ) 406.7 301.7 61.4 ( 3 ) , 807. 5 , 585. 2 209.3 953.6 838.9 9.3 79.5 m 4, 297. 9 3, 003. 6 612.5 678.7 ( 3 ) 1960 i 3, 340. 4 3, 247. 53.9 29.1 1, 365. 5 557.1 507.8 192.9 77.1 1, 288. 3 1, 262. 1 ( 3 ) 22, 216. 17, 483. 7 4, 350. 1 1,814.4 469.5 431.0 100.5 26.6 ( 3 ) ( 3 ) 8,831.3 1,435.9 7, 257. 4 1,312.1 813.4 268.8 14.6 1, 582. 1, 426. 2 94.0 ( 3 ) 10, 601. 1 9, 135. 4 1, 393. 6 1, 333. 8 784.4 163.7 264.4 15.9 5, 221. 4 3, 590. 9 796.1 817.9 ( 3 ) 1961 3, 714. 4 ( 2 ) ( 2 ) m 1, 196. 5 ( 2 ) ( 2 ) ( 2 ) ( 2 ) 1, 553. 9 ( 2 ) ( 2 ) 21,179.4 13, 567. 2 7, 155. 8 1, 936. 2 ( 2 ) ( 2 ) ( 2 > ( 2 ) ( 3 ) ( 2 ) ( 2 ) 9, 049. 5 3, 119. 4 5, 787. 1 1, 203. 8 ( 2 ) ( 2 ) ( 2 ) 1, 510. 5 ( 2 ) ( 2 ) ( 2 ) 8, 405. 2 5, 808. 7 ( 2 ) ( 2 ) 1, 140. 1 ( 2 ) ( 2 ) ( 2 ) ( 2 ) 5, 886. 4 3,616.8 1, 057. 1,035.0 ( 2 ) 1 Basic annual income of $1 ,120 or less. 2 Basic annual income of $1,120 to $2,240. 3 Includes rice, guinea corn, gari, yams, bread, etc. Sources: Nigerian Federal Office of Statistics, Urban Consumer Surveys in Nigeria, Lagos, 1969-60, pages 16, 17, 30, and 31; Urban Consumer Surveys in Nigeria, Kaduna and Zaria, 1955-66, page 33. 1 Figures for 1955 and 1960 include former British Trust Territory of Southern Cameroons. 2 Not available. Nigerian import statistics for 1961 do not give complete breakdown by country of origin. 3 Less than $2,800 (£1,000). Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1966; Trade Report for the Year 1960; Nigeria Trade Summary, December 1961 and December 1962. 12 Small quantities are typical of packaging in Nigeria. Consumers tend to purchase food for immediate needs rather than to keep stocks in the home. The following quantities and retail prices are typical for some items commonly sold in Nigerian markets : Canned milk 6 ounces__ $0. 07 to $0. 08 .18 ___ .05 ___ .05 .__ . 70 ___ .56 ___ . 28 Canned margarine 6 ounces — Tomato puree 2% ounces_ Sardines packed in oil 2 ounces Powdered milk for infants 16 ounces.. Instant coffee 2 ounces Corn flakes 6 ounces Grocery sections of department stores and larger retail outlets in the principal cities display as great a variety of foods as a typical American grocery store. In the past, these outlets have catered primarily to the expatriate market, but now efforts are being made to attract the Nigerian buyer. Some of these outlets already report that up to 50 percent of food sales are being made to Nigerians. Expenditures for various food items by typical urban families are shown in table 9. Imports of food and food products at time of most recent record are presented in table 10. Table 1 1 . — Imports of Beverages and Tobacco Prod- ucts, by Principal Supplying Countries, 1955 and 1960-62 [Thousands of dollars] Product Beer, ale, and stout United Kingdom Netherlands West Germany Ireland Denmark Distilled alcoholic beverages United Kingdom France Netherlands United States Tobacco, unmanufactured United States Federation of Rhodesia and Nyasaland Cigarettes United Kingdom United States 19551 I960' 1961 7, 641. 6 10, 914. 6 10, 979. 4 2, Oil. 1 4, 638. 2 5, 220. 1 2, 338. 1 3, 277. 1 2, 462. 2, 845. 1, 591. 2 1, 820. 3 114.4 965.7 ( 2 ) 300.6 422.5 281.1 1, 236. 5 1, 757. 3 1,310.7 720.7 825.0 ( 2 ) 220.9 440.8 ( 2 ) 272.1 464.2 ( 2 ) ( 3 ) « ( 2 ) 4, 476. 7 3, 307. 5 3, 613. 3 3, 453. 6 2, 754. 1 2, 955. 3 902.5 281.2 554.8 320.8 453.4 495.6 320.7 423.4 ( 2 ) ( 3 ) 28.6 ( 2 ) 1962 7,911.8 4, 616. 9 1, 278. 7 948.7 755.6 283.8 974.9 494.1 296.4 152.6 6.6 3, 300. 2, 995. 2 204.1 379.8 322.0 54.5 i Figures for 1955 and 1960 include former British Trust Territory of South- ern Cameroons. 2 Not available. Nigerian import statistics for 1961 do not give complete breakdown by country of origin. » Less than $2,800 (£1,000). Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1966; Trade Report for the Year 1960; Nigeria Trade Summary, December 1961 and December 1962. Beverages and Tobacco Products Beer and stout are by far the most popular European-type alcoholic beverages in Nigeria, and. although consumption per capita is still less than two bottles per year, Nigeria is the brewing indus- try's best customer in West Africa. Production of the locally brewed Star Beer and Sampson Stout has increased to 5y 2 million gallons annually. Stout also is produced in Nigeria at a new brewery which opened early in 19G3. Output of this plant is 200,000 bottles a day, and sales are expected to displace a significant part of imports. Imports of beer, ale, and stout still amount to $8 million a year. See table 11. Dutch, German, and Danish beers are at present the best selling imports. Wine, except for the local palm wine, is not a popular drink in Nigeria; imports have remained very small. The most widely consumed hard liquors are gin, scotch whisky, and brandy. Middle-income fam- ilies, i.e., those with $1,120 to $2,240 annual in- come, in the Lagos area spend an average of $17 per year on imported spirits. The quantity of alcoholic beverages consumed is not so great in the Northern Region as in the East- ern Region or Western Region. The difference is usually attributed to the predominance of the Moslem faith in the north. Some studies have indicated, however, that income may be more de- cisive than religion in this regard since consumers Men's clothing, Lagos department store 13 in higher income groups in the north spend at least as much on beer and other alcoholic beverages as do consumers in comparable income groups in the south. Several soft-drink bottling plants are in opera- tion in Nigeria, fully meeting local demand. Cola, orange, lemon-lime flavored drinks, and ginger ale are popular. A large part of the Nigerian market for ciga- rettes also is being met by local production. Plain, filter-tipped, and mentholated cigarettes are man- ufactured by the Nigerian Tobacco Company. At its plants in Ibadan, Zaria, and Port Harcourt. Prices are below those of imported cigarettes, but there is still some demand for imports among the middle- and higher-income population. Imported brands are largely British. Consumption in Ni- geria is estimated at four cigarettes per day per capita in the smoking-age population. Smoking is not a common habit among Nigerian women. Clothing Nigerians, who as a rule are conscious of their appearance, typically have a large investment in clothes. This is especially true in urban areas where many of the men maintain two complete wardrobes — one of traditional dress and one of Western-style clothing. The Nigerian market for ready-made clothing is divided sharply into an urban market for high- quality garments and a mass market, both urban and rural, for inexpensive goods. The mass mar- ket is supplied in large part by imports of second- hand articles. In the mass market, price is ordi- narily a decisive consideration. Even here, how- ever, it would be a serious mistake to assume any lack of quality consciousness. Nigerians are fa- miliar in detail with comparable quality and cost. Obviously shoddy goods simply will not sell. In most of the country, African costumes are still seen more commonly than Western-style clothing, especially among women. In the cities, most men wear shirts and trousers or shorts to work but African costumes for social events and leisure activities. Western clothes are rarely worn to social events and leisure activities except by a small minority of upper-income, mostly foreign- educated Nigerians. The flowing colorful agbadas of southern Nigeria or the white robes of the North are still preferred. Some exception to this pref- erence, however, is found in the Eastern Region where no particular traditional costume was estab- lished. As a result, European-style clothing has been more widely adopted in the Eastern Region than in the other regions. Nigerian imports of clothing, nevertheless, are sizable. See table 12. With Western clothing being worn by a gradually widening segment of the population, the market holds considerable promise for future growth. For example, virtu- ally all schoolchildren — in urban areas at least — are dressed in shirts and shorts or dresses. These children comprise an immediate market for chil- Table 12. — Imports of Clothing, by Principal Sup- plying Countries, 1955 and 1960-62 [Thousands of dollars] Product Stockings and hose... Japan... United Kingdom United States. Underwear and nightwear, knit or of knitted fabric Hong Kong United Kingdom Japan.. _ United States. Outerwear, knit or of knitted fabrics... Hong Kong United Kingdom Japan United States Shirts, other than knitted Hong Kong Japan United Kingdom United States. Outerwear, other than leather or knitted United Kingdom Hong Kong Japan.. _ United States ___ Waterproof clothing, including plastics United Kingdom Hong Kong Japan United States Hats and caps Czechoslovakia France -. United Kingdom United States Secondhand clothing of all materials _ United States.. Netherlands. _ United Kingdom 1955' I960' 1961 261.4 468.7 471.4 10.4 250.7 ( 2 ) 146.5 165.1 ( 2 ) ( 3 ) ( 3 ) ( 2 ) 1,171.4 1, 052. 3 660.4 33.0 50.6 ( 2 ) 66.5 119.6 ( 2 ) 937.8 676.6 ( 2 ) ( 3 ) 5.0 ( 2 ) 363.8 359.3 410.3 89.2 54.6 ( 2 ) 63.4 90.1 ( 2 ) 33.1 57.3 ( 2 ) 4.6 3.8 ( 2 ) 844.9 2, 734. 5 2 675. 575.4 990.4 ( 2 ) 85.7 986.0 ( 2 ) 109.1 395.2 ( 2 ) ( 3 ) 21.3 ( 2 ) 614.7 1, 731. 5 1, 638. 6 218.4 793.4 ( 2 ) 251.1 401.4 ( 2 ) 26.7 206.4 ( 2 ) ( 3 ) 87.9 ( 2 ) 304.6 537.4 562.3 174.5 173.0 ( 2 ) 62.6 204.2 ( 2 ) 5.2 27.0 ( 2 ) ( 3 ) 11.6 ( 2 ) 897.2 1,073.9 1085. 3 29.2 446.5 ( 2 ) 235.0 152.1 ( 2 ) 139.5 129.2 ( 2 ) ( 3 ) 10.2 ( 2 ) 481.7 2, 947. 3, 369. 5 150.4 2, 660. 8 ( 2 ) 00.1 116.3 ( 2 ) 269.3 150.4 ( 2 ) 1962 524.5 243.8 151.1 6.7 441.6 332.1 128.0 124.2 17.7 659.2 334.5 151.2 54.8 11.8 2, 621. 8 976.8 973.2 375.0 39.8 2, 012. 1 759.9 595.5 144.6 106.7 516.9 230.6 146.6 99.4 7.2 969.1 339.2 256.7 174.0 11.7 3, 229. 2, 800. 7 246.5 147.7 i Figures for 1955 and 1960 include former British Trust Territory of Southern Cameroons. 2 Not available. Nigerian import statistics for 1961 do not give complete breakdown by country of origin. 3 Less than $2,800 (£1,000). Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1955: Trade Report for the Year I960; Nigeria Trade Summary, December 1961 and December 1962. 14 dren's and teenage clothing, and for European clothing of all sizes in the future. Store managers report that the best and fastest- growing market for new clothing is for children's wear. Many retailers express a strong interest in American lines of children's clothing and welcome inquiries from manufacturers. Infants' and girls' dresses priced to retail from $3 to $8 would be competitive, as would boys' shorts and shirts in the comparable price range. Men's shirts — both dress and sport — comprise Table 13. — Imports of Textile Piece Goods, by Prin- cipal Supplying Countries, 1955 and 7960-62 [Thousands of dollars] Product Cotton yarn and thread India _ Italy United Kingdom Cotton fabric, pile finished (ex- cluding fents) Japan West Germany Soviet Zone of Germany Cotton fabric, grey unbleached. Hong Kong._ China, mainland India _ Cotton fabric, white bleached. _. Japan _ China, mainland United Kingdom Cotton fabric, printed Japan Netherlands United Kingdom United States Cotton fabric, piece dyed Japan. _ _ _. United Kingdom China, mainland United States Cotton fabric, color woven Japan.. India United Kingdom United States Woolen and worsted fabrics Japan _ United Kingdom _ United States _ Fabrics of spun synthetic fibers, printed _.. Japan _ Italy United Kingdom United States 1955' 19601 1961 2, 736. 4 2, 686. 5 3, 784. 7 13.0 945.5 ( 2 ) 285.3 573.7 ( 2 ) 1, 993. 8 864.8 ( 2 ) 1,912.4 3, 682. 2 3, 747. 2 164.4 3, 065. 3 3, 106. 7 1, 049. 7 414.8 476.3 13.5 ( 2 ) 4, 877. 1 1,111.2 1, 418. 9 ( 2 ) 297.4 372.3 533.1 4, 377. 590.7 711.1 8, 509. 3 7, 618. 9 11, 342. 1, 358. 3 1, 233. 1 3, 021. 4 287.9 2, 350. 5 3, 767. 6 3, 657. 9 1,392.8 1, 833. 4 15, 484. 2 29, 924. 8 31,684.3 7, 014. 7 15, 756. 8 18, 085. 1 2, 891. 6, 940. 3 7, 708. 3 4, 789. 8 6, 509. 9 4, 987. 7 30.5 ( 2 ) 6, 652. 6 12, 645. 15, 680. 7 1, 087. 5, 708. 7 7, 377. 5 3, 140. 5 3, 440. 4 4, 188. 6 ( 3 ) 762.3 ( 2 ) 6.8 ( 2 ) 13, 057. 3 7, 608. 3 10, 144. 3 3, 830. 6 2, 415. 2 4, 675. 2 7, 086. 3 3, 475. 4 3, 587. 6 772.7 328.4 378.3 ( 3 ) 6.5 ( 2 ) 729.7 3, 101. 3 2, 913. 9 15.7 1, 598. 3 ( 2 ) 518.9 1, 053. 1 ( 2 ) ( 3 ) 9.5 ( 2 ) 18, 274. 4 13, 314. 4 11, 104. 7 14, 194. 9 12, 479. 5 10,593.7 1, 344. 7 285.5 221.9 683.8 173.2 125.6 10.2 18.5 ( 2 ) 1962 3, 822. 5 2, 110. 3 816.2 666.5 3, 414. 2, 829. 3 414.7 65.4 257.3 76.8 63.1 52.2 6, 857. 5 2, 576. 5 1, 966. 8 1,033.3 22, 672. 5 14, 140. 5 5, 592. 3 2, 226. 1 28.1 12, 582. 2 7. 131. 3 2. 541. 4 840.0 3.9 6, 450. 5 2, 770. 4 2, 037. 8 602.8 4.2 3, 034. 8 1,914.8 974.7 38.4 6, 039. 9 5, 662. 8 111.7 100.5 15.9 i Figures for 1955 and 1960 include former British Trust Territory of South- ern Cameroons. 2 Not available. Nigerian import statistics for 1961 do not give complete breakdown by country of origin. « Less than $2,800 (£1,000). Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1956; Trade Report for the Year 1960; Nigeria Trade Summary, December 1961 and December 1962. now the largest single category of new readymade clothing imported. Several American brands of shirts among these imports are well known for their quality and their popularity is increasing. Many of these shirts are manufactured by over- seas subsidiaries of U.S. firms. Large, bold de- signs and bright colors are most popular in sport shirts. Colorful, striking designs are also the most popular for women's dresses and skirts. A market also appears to exist for men's summer weight, wash and wear suits. Business suits car- ried by leading Nigerian stores are neither well tailored nor fashionably styled by American standards and yet retail in the $55 to $60 price range. A few small shipments of lightweight syn- thetic fiber suits recently have been handled by some retailers. The suits have sold very well. Managers of these stores state that they should like to be contacted by American manufacturers of attractively styled, competitively priced men's clothing. Other types of garments for which sales oppor- tunities are reported include women's hosiery and undergarments, lightweight plastic raincoats, knitwear, women's dresses, blouses and skirts, and novelty-type caps and headgear. Textile Piece Goods The size of the market for cotton piece goods is five or six times that for readymade garments. Cloth traditionally constitutes the country's lead- ing import among consumer goods. Imports of principal types of piece goods for recent years are shown in table 13. Deep bright colors in bold printed patterns are most popular in the South. In the North, almost all the robes are white, although in certain areas of this region cotton cloth dyed and processed locally to a deep indigo blue is worn. The Yoruba people of the West tend to prefer printed patterns in various shades of blue. The textile market is extremely complex and sensitive with regard to changing preferences in patterns and shades. Wholesalers and agents in the trade have developed close contacts with the market to follow fashion trends. One wholesaler who has dealt in textiles for over 20 years, for example, reports that he still finds it necessary to check out new patterns with his principal cus- tomers (market women who also sell at whole- sale) before ordering in large Quantities. Japan is the principal supplier of textile fabrics 15 at the present time. In addition, Japanese-made polyester piece goods and ready-made clothing are displayed. Japanese textiles have recently been subject to import licensing. As a consequence, sales may be drastically curtailed. Wax block prints from the Netherlands have maintained their traditional popularity, however, and large quantities of material are also brought in from the United Kingdom. Some high-quality cotton fabrics from the United States have recently been introduced in the Nigerian market with considerable success. As an indication of the wide range of goods being sold in the country, some leading retail outlets are now handling American-made, prepleated material for women's skirts. Nigerian textile imports can be expected to de- crease as local production increases. Large-scale textile factories are now operating in the Northern Region and in the Western Region near Lagos, producing white shirting and grey baft. Addi- tional plants are in the advanced planning stage. A printing plant to process locally made fabrics is now under construction, and one of the existing factories plans to add printing facilities soon. Furnishings and Household Goods One of the most promising markets is that for household furnishings and appliances. Housing standards have risen in urban areas. Salaried employees in the middle- and upper-income brackets purchase a wide range of amenities for the home. A middle-income, urban family, for example, might live in a two- or three-room, cement-block house equipped with running water, electricity, and sanitary plumbing. There will be cotton throw rugs or linoleum on the floor, draperies of some sort over the windows, pictures and mirrors on the walls, and miscellaneous decorative items. Furnishings typically include an upholstered liv- ing room suite, a dinette set, lamps, wooden chairs, and steel -frame beds. The major part of the Nigerian population, of course, lives in rural areas and gets by with a great deal less in the way of home furnishings than does the middle income urban family. Still, business- men report that even in rural areas — especially in the southern part of the country — demand is ap- preciable for many inexpensive household items. Practically every household, for instance, is equipped with an assortment of aluminum or enamelware pots and pans and with plastic bowls, cups, and buckets of various sizes and shapes. Moreover, this market will almost certainly grow with the gradually increasing level of incomes; amenities for the home are usually given priority after food and clothing. Larger city stores have attractive displays of living room, dining room, and kitchen furniture. Much of that furniture is manufactured locally. A large part of the furniture sold is styled along conservative lines, and wooden pieces are com- monly finished in mahogany or similar dark shades. Modern furniture of the Scandinavian type finished in walnut and light colored woods, Table 14. — Imports of Furnishings, Household Goods, and Appliances, by Principal Supplying Countries, 1955 and 7960-62 [Thousands of dollars] Product Carpeting, rugs, etc United Kingdom Italy United States Tableware and household articles of glass, clay, china ware, etc United Kingdom Japan United States Household utensils, iron and steel, enameled Hong Kong Czechoslovakia United States Household utensils, iron and steel, galvanized, and other United Kingdom Poland United States Table and kitchen knives, forks, etc Japan United Kingdom West Germany Metal stoves, furnaces, etc United Kingdom Italy United States Sewing machines, household Japan United Kingdom France Air conditioning and refrigerat- ing equipment, excluding non- electric refrigerators _. United States United Kingdom Refrigerators, not electric United Kingdom United States Italy Electrothermic apparatus, in- cluding domestic appliances... United Kindgom United States West Germany 1955' 1960 1 1961 293.6 663.0 896.0 164.2 318.1 ( 2 ) 20.3 147.2 ( 2 ) m ( 3 ) ( 2 ) 1, 348. 2, 007. 9 1, 785. 9 400.3 576.8 ( 2 ) 425.8 430.9 ( 2 ) (3) 7.5 m 7, 146. 3 6, 390. 6 7, 715. 2, 763. 9 4, 561. 3 5, 506. 2 633.2 569.8 786.3 (3) (3) ( 2 ) 757.7 1,112.2 988.1 458.8 329.6 303.9 36.0 164.0 172.9 (') 10.4 ( 2 ) 343.4 604.8 629.9 4.7 228.0 207.3 116.4 159.5 165.4 142.7 125.6 143.2 206.9 481.2 600.3 106.9 207.4 251.3 21.4 ( 2 ) (») 5.0 ( 2 ) 1,258.8 1,447.1 1,215.5 107.1 257.2 424.5 1, 079. 4 1, 133. 3 624.0 (3) (3) ( 2 ) 540.5 2, 569. 2 2, 313. 8 258.1 1,993.5 1, 683. 4 153.5 295.3 371.8 879.0 1, 902. 3 1, 352. 9 828.3 1, 035. 4 ( 2 ) 43.2 508.5 ( 2 ) 125.1 ( 2 ) 682.7 1,142.7 1, 096. 586.5 936.9 ( 2 ) 4.9 10.3 ( 2 ) 11.8 113.0 ( 2 ) 1962 852.2 309.6 222.8 4.1 1, 299. 3 352.6 294.9 5.5 5, 674. 3 4, 385. 1 417.8 3.7 798.1 279.9 161.7 16.7 495.5 169.4 145.0 129.5 666.0 282.7 100.0 31.0 741.4 343.2 174.3 90.9 1,961.2 1, 580. 7 250.9 959.1 420.1 231.4 180.8 1, 191. 4 873.4 65.1 See footnotes at end of table. 16 Table 14. — Imports of Furnishings, Household Goods, and Appliances, by Principal Supplying Countries, 1955 and 1960-62 — Continued Product Portable electric appliances, do mestic United Kindgom Japan United States Hurricane lamps, oil-burnmg_ _ . West Germany Soviet Zone of Germany United Kingdom Lighting fixtures, etc United Kingdom West Germany United States Wood furniture and fixtures United Kingdom France United States Metal furniture and fixtures United Kingdom France United States Hardware West Germany United Kingdom Japan 1955 ' 19601 1961 125.8 453.8 469.6 92.4 232.5 ( 2 ) (») 46.9 ( 2 ) 4.0 34.6 ( 2 ) 702.8 626.8 852.1 147.6 265.5 ( 2 ) 83.4 208.6 ( 2 ) 353.5 78.1 ( 2 ) 335.8 739.6 675.3 298.2 589. 6 ( 2 ) 9.8 42.7 ( 2 ) ( 3 ) 4.5 ( 2 ) 76.8 334.3 494.7 57.2 172.4 ( 2 ) (?) 3.3 ( 2 ) («) 6.0 ( 2 ) 1, 384. 4, 188. 1 3, 565. 2 1, 341. 2 3, 944. 6 ( 2 ) 10.8 18.4 ( 2 ) 4.4 43.8 ( 2 ) 1, 347. 6 2, 483. 2, 434. 7 652.1 873.5 786.7 515.8 932.0 831.6 74.8 216.7 150.0 1962 387.4 161.0 96.4 15.0 627.0 310.8 228.8 57.2 689.2 535.1 40.6 12.3 368.6 119.9 47.4 42.0 2, 341. 1, 976. 6 109.9 52.5 2, 156. 8 798.7 772.2 235.6 1 Figures for 1955 and 1960 include former British Trust Ter- ritory of Southern Cameroons. 2 Not available. Nigeria import statistics for 1961 do not give complete breakdown by country of origin. 3 Less than f 2,800 (£1,000). Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1955; Trade Report for the Year 1960; Nigeria Trade Summary, December 1961 and December 1962. Table 15. — Electricity Corporation of Nigeria — Safes and Consumers, by Region and Type of User, 1962-63 and Totals 1952-53, 1957-58, 1962-63 Region Resi- den- tial, 1962-63 Com- mercial and indus- trial, 1962-63 Mis- cella- neous, 1962-63 Total 1952-53 1957-58 1962-63 Sales (millions of kilowatt-hours) Lagos and suburbs . North _._ 104.1 30.6 40.6 29.5 110.4 63.4 78.8 58.8 1.2 1.5 1.7 2.9 42.2 12.9 13.3 7.9 86.3 38.8 37.7 28.1 215.7 95.5 East West (excluding Lagos suburbs) 121.1 91.2 Total 204.8 311.4 7.3 76.3 190.9 523.5 Number of consumers (as of March 31st) Lagos and suburbs North 34, 889 24, 573 21, 427 26, 917 7,483 5,908 4,320 12, 036 1,463 589 797 601 17, 810 11,093 7,616 6,821 29, 583 19, 745 12, 853 19, 183 43, 835 31, 070 East ___ 26, 544 West (excluding Lagos suburbs) 39, 554 Total 107, 806 29, 747 3,450 43, 340 81, 364 141, 003 Source: Electricity Corporation of Nigeria, Lagos. Note: Year runs from April to March. however, is becoming increasingly popular. Electric appliances for 230 volt, 50 cycle current and gas appliances supplied by bottled gas are also prominently displayed and enjoy a good market in urban areas. Larger appliances are bought primarily by higher income families. Prestige is often attached to ownership of household appli- ances. Most of the refrigerators and stoves sold are smaller models. Two- and S^-cubic-foot re- frigerators, for example, are very popular. Air conditioners, of course, are prominent among Nigeria's imports of electrical appliances. See table 14. Most American lines are represented in the country, and these products are generally recognized for their quality and durability. The United States, as a result, holds the lead in this market by a wide margin at the present time. But British, Japanese, and German air condition- ing units are beginning to appear. Small appliances, such as irons and electric tea kettles, sell steadily and at a good volume in the cities. Some American lines are represented in the market, but most of the smaller appliances shown in stores are British brands and are rela- tively high priced. It is widely believed that sales opportunities would exist for attractively styled, less expensive American products in the small ap- pliance field. Typical retail prices for some of these items now being sold in Nigeria are: Electric toasters $20.30 Electric tea kettles 18.20 Electric coffee makers 8. 40 Electric irons 9. 50 Electric steam irons 13. 95-16. 10 Electric mixers 8.25 Some impetus to sales of electric goods will be given by increases in electrical generating capacity and transmission facilities programed under Nigeria's economic development plans. Sales are limited in some areas presently by lack of installed electricity or by the high cost of electricity. Growth of electricity consumption in Nigeria in recent years can be seen in table 15. There is a mass market for kerosene appliances of all sorts. Lanterns, cook stoves, and irons, for example, are sold all over the country. Villagers in even the most remote areas are likely to possess these basic items. Most of these articles presently being marketed are very low-priced and are not of exceptional quality. There should be some de- mand for more attractively styled and better con- structed lines. 717-541 O— 64- 17 Table 16. — Projected Demand for Household Appliances, 1964-68 [In number of units] Year Refrigerators Radios Stoves Water heaters Fans 1964 1965 1966 1967 1968 Maximum 15,900 16, 600 17, 200 17, 900 18, 500 Minimum 12,000 12, 500 13,000 13, 500 14,000 Maximum 208, 000 218,000 228, 000 238. 000 248, 000 Minimum 156,000 164,000 172, 000 180, 000 188, 000 Maximum 15, 900 16, 600 17, 200 17,900 18, 500 Minimum 12, 000 12, 500 13,000 13, 500 14,000 Maximum 15, 900 16, 600 17, 200 17, 900 18, 500 Minimum 12, 000 12, 500 13,000 13, 500 14, 000 Maximum 31, 800 33, 200 34, 400 35, 800 37, 000 Minimum 24, 000 25, 000 26, 000 27, 000 28, 000 Note: Estimates based on historic demand patterns plus demand calculated to be generated by Nigerian 6-year Development Plan. Projections for maxi- mum demand assume that all projects called for in the plan are fully carried out; minimum demand figures assume 50 percent to 75 percent implementation. Source: Nigerian Federal Ministry of Commerce and Industry, Economics and Statistics Division Survey of Construction Products in Nigeria, Lagos, 1963. Unpublished working paper. Arthur D. Little Co., technical advisors. Kitchen equipment, Lagos department store 18 Estimated demand for some types of household appliances through 1968 is shown in table 16. Radios, Phonographs, and Television Sets Radios are extremely popular, and the number of sets operating in the country is estimated to be as high as IV2 million. Most sets sold today are table models or transistorized portables. They are supplied primarily by Japan and the Netherlands. Almost all are equipped to receive the standard broadcast band and at least one shortwave band ; the more expensive models have three shortwave bands. Prices range from $17.50 up. The Ni- gerian buyer, no less than the American audio- phile, is attracted by multiple speakers, push- buttons, and control knobs. Phonographs are also very popular and, again, portable or table models are the best sellers. One company has recently introduced with great suc- cess a portable, battery-powered, transistorized, 3-speed phonograph which retails for $32.20. The larger part of phonograph record sales are of "high-life" and other local music, but American jazz also is very popular. Records are quite ex- pensive, 12-inch LP's retailing for upward of $6 ; low-cost American popular and jazz records might find a ready market here. Television sales are severely limited because of the high cost of the sets. Ownership is restricted to the principal cities where broadcasts may be received. There are probably only about 13,000 sets in the country at the present time. Television is another prestige item, however, so that sales of inexpensive sets might increase in the future to a greater extent than the level of consumer income would indicate. Television broadcasting in Nigeria is operated on Western European standards so that American sets, to be marketable, would have to be adapted to these standards. Data on imports of radios, phonographs, and phonograph records are presented in table 17. Cosmetics and Drug Items Virtually all types of cosmetics and medicinal preparations enjoy a strong market in Nigeria. Modern, attractively set up drug and cosmetics counters are to be found in department stores and pharmacies. Traders in the local markets all over the country display a variety of these goods rang- ing from perfume to tonics and cough medicine. Sales of cosmetics have risen sharply in recent years, and competition has intensified accordingly. Businessmen in Nigeria anticipate continued rapid growth as increasing numbers of women are em- ployed in stores and offices. Cosmetics, at least some of the more expensive types, are a prime example of a consumer item for which the market Electricity Generated in Nigerio, 1953-63 Millions of Kilowatt Hours ' 200 178 6 .V.V.V Otii; 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 (Years Ending March 31) X] Includes production by Electricity Corporation of Nigerio, Nigerian Electricity Supply Corporation, and private industrial firms. Source: Annual Abstract of Statistics 1961, poge 38, Nigerian Federal Office of Statistics, Logos, August 1961; and Digest of Statistics, July 1963, page 68, Nigerian Federal Office of Statistics, Lagos Table 17. — Imports of Radios, Phonographs, and Phonograph Records, by Principal Supplying Countries, 1955 and 7960-62 [Thousands of dollars] Product Radio receiving sets, domestic Japan West Germany Netherlands United States Phonographs United Kingdom Netherlands Japan Phonograph records United Kingdom Netherlands West Germany United States 19551 I960' 1961 742.3 4, 042. 3, 634. 6 ( 2 ) 906.2 ( 3 ) 171.0 1, 180. 5 ( 3 ) 187.5 695.3 m 4.7 ( 2 ) ( a ) 556.3 382.3 368.8 512.9 241.7 ( 3 ) 30.5 57.8 ( ! ) 4.2 9.3 ( 3 ) 574.6 646.5 588.5 403.7 410.0 ( 3 ) 60.4 173.4 ( 3 ) 77.2 26.8 ( 3 ) m 3.4 (') 1962 2, 474. 5 1, 150. 9 534.6 421.1 34.4 92.9 57.3 26.7 3.5 549.6 375.1 98.8 24.9 7.5 ' Figures include those for former British Trust Territory of Southern Cameroons. 2 Less than $2,800 (£1,000). 3 Not available; Nigerian import statistics for 1961 do not give complete breakdown by country of origin. Source: Nigerian Federal Office of Statistics, Trade Report for the Year 1955; Trade Report for the Year 1960; Nigeria Trade Summary, December 1961 and December 1962. 19 has broadened significantly. These imports were formerly purchased almost exclusively by the ex- patriate population, but an increasing percentage is now sold to Nigerian buyers. Toilet soaps, hair preparations, petroleum jelly, skin creams, face powder, and talcum powder are perhaps the lead- ing sellers at present. Probably less than half of the shampoo imported is now sold to Nigerians, but the percentage is increasing steadily. Sales of lipstick, nail polish, and deodorants are some- what limited at present, but, again, businessmen expect an upturn. As a rule, lighter shades of cosmetics are preferred in the North, while darker shades sell better in the South. One American firm manu- facturing cosmetics in Nigeria believes it is neces- sary to develop three distinct color ranges for effective coverage of the market — one for the East, one for the West, one for the North. Perfume is in demand in the northern region where, characteristic of areas in the Sahara and North Africa with predominantly Moslem popu- Imports of phonograph records in 1962 topped $500,000 20 lations, per capita consumption is high. Many of the consumers, incidentally, are men. Large selections of perfume are displayed in northern markets. Much of the perfume is manufactured locally. Perfumes selling in volume are inexpen- sive brands, but there appears to be some demand for moderately priced imported lines. Store man- agers in the North report that customers in upper income brackets will spend as much as $17 for a small bottle of high quality imported perfume; it is evident, however, that the market for perfumes in this price range would be small. Nutritional products account for a very large proportion of the drug items sold in Nigeria. Dietary deficiencies are common ; intake of protein and iron-giving foods is generally low, so that tonics and medicines claiming high iron content are popular. There is some preference for prep- arations in liquid form over those in tablet form. Children and expectant mothers constitute the largest market for vitamins and dietary supple- ments. Cosmetics Lagos department store where many American products are displayed 21 Various types of salves, medicated powders, and liniments are sold throughout the country. Heat generating rubs are very popular in the northern region where they are used particularly by the nomadic population to keep warm during the rela- tively cold nights of the harmattan. Laxatives are used very widely — more frequently and in much stronger doses than is common in the United States or Europe — because of the high starch con- tent of the typical Nigerian diet. Packaging in very small quantities is an im- portant feature of the mass market for drug and cosmetic items. Face powder, for example, is commonly put up in small containers to retail for 2 shillings ($0.28) . Traders in the market places often break packages to sell items individually — headache tablets are sold two at a time in many areas. Data on imports of cosmetics and drug items are presented in table 18. Other Consumer Items Many other types of consumer items, of course, are being sold, and the market for these goods is gradually broadening and changing. Business- men report that buyers, especially in urban areas, are increasingly willing to try new products and new brands. Store managers point out, for ex- ample, that children's tricycles are being sold now whereas 5 years ago they were unknown on the market. Books, periodicals, and educa- tional materials in general have been selling well in recent years and appear to offer strong growth possibilities for the future; this also serves to in- dicate something of the qualitative changes which are taking place in the market. Table 18. — Imports or* Cosmetics and Drug Items, by Principal Supplying Countries, 1955 and 7960-62 [Thousands of dollars] Product Perfumed alcohols United Kingdom France West Germany Dentifrices United Kingdom Netherlands West Germany Talcum and dusting powders United Kingdom Italy Japan Scented greases and pomades United Kingdom ___ United States Belgium and Luxembourg. . Other perfumery, etc _ United Kingdom United States India Toilet soap, including medicated soap United Kingdom Netherlands West Germany Vitamins and vitamin prepara- tions United Kingdom Israel West Germany Ointments and liniments United Kingdom Belgium and Luxembourg. . United States Bandages United Kingdom United States. 1955 1 I960' 1961 40.3 51.3 77.6 19.8 29.8 ( 2 ) 9.9 12.1 ( 2 ) 7.0 5.4 ( 2 ) 78.1 213.2 175.0 75.1 180.9 ( 2 ) ( 3 ) 15.3 ( 2 ) ( 3 ) m ( 2 ) 326.8 330.5 341.2 319.5 304.5 ( 2 ) 4.9 ( 2 ) ( 3 ) 16.8 ( 2 ) 540.1 129.6 112.6 516.6 116.2 ( 2 ) ( 3 ) ( 2 ) ( 2 ) 513.8 795.1 719.4 445.2 652.8 ( 2 ) ( 3 ) 20.6 m 6.6 21.8 ( 2 ) 354.0 731.2 650.8 327.3 607.2 ( 2 ) 10.2 72.9 ( 2 ) 4.6 41.3 ( 2 ) 57.2 144.4 118.9 46.3 126.3 ( 2 ) 5.5 ( 2 ) ( 3 ) 4.6 ( 2 ) 840.3 2, 107. 4 1,958.4 669.2 1, 298. ( 2 ) 22.0 398.9 ( 2 ) ( 8 ) 52.9 ( 2 ) 708.8 603.6 590.6 705.0 591.8 ( 2 ) ( 3 ) 2.8 ( 2 ) 1962 58.9 26.3 23.7 5.1 203.3 174.1 13.4 7.9 219.1 173.3 16.2 12.9 97.4 78.3 6.5 3.4 464.3 304.8 33.7 32.6 633.8 498.2 75.9 51.6 164.4 84.4 51.3 12.7 , 643. 6 ,066.1 382.8 78.1 545.9 519.4 22.4 1 Figures include former British Trust Territory of Southern Cameroons. 2 Not available. Nigerian import statistics for 1961 do not give complete breakdown by country of origin. s Less than $2,800 ( £1,000). Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1965; Trade Report for the Year 1960; Nigeria Trade Summary, December 1961 and December 1962. 22 CHAPTER III Market for Producers' Goods FACTORS IN A MARKETING APPROACH Machinery, transportation equipment, and build- ing and construction equipment and materials comprise what has traditionally been one of the largest and most steadily expanding import markets in Nigeria. In 1962, machinery and trans- portation equipment alone brought into the coun- try amounted in value to $135 million — nearly a quarter of the total imports for the year. With the relatively favorable outlook for continued growth of private investment on the one hand, and with the very large public investments programed under the 6- Year Plan on the other, the market for producers' goods should maintain its upward trend. While the overall picture for this market is strong, it is necessary to point out that vigorous sales efforts will be required to increase the U.S. share. American technical equipment, of course, is widely known for its high quality and dura- bility, but it is also a fact that delivered prices of these U.S. goods are often significantly above those of foreign competitive products. Consequently, it would be unrealistic to expect a significant increase in sales of this American equipment and material to be generated entirely by demand — such an in- crease can only be developed by active selling on the part of American manufacturers. A firm seek- ing to enter this field will find it absolutely essen- tial to establish an effective distribution, servicing, and sales promotion capability in the country. This is a tremendously competitive market. Japanese as well as German, British, and other European firms and export associations have tech- nical and sales personnel permanently assigned in Nigeria to ensure that proper personal contacts are made, that correct installation of equipment is made, and that after-sales servicing is ade- quate. Firms attempting to enter the capital equipment market have found it necesary to adopt aggressive and sometimes unconventional market- ing and financing techniques. One German man- ufacturer of large offhighway construction trucks, for example, recently made arrangements with one of the leading expatriate technical com- panies in Nigeria to supply on a consignment basis a stock of trucks with the necessary inventory of spare parts. The technical company was unwill- ing to take the agency for the German trucks if its own capital were to be tied up in maintaining the expensive stock of equipment and replacement parts. The German firm, therefore, had no al- ternative but to carry the inventory in Nigeria on its own account in order to have its product repre- sented by a company with adequate distribution and servicing facilities. The present position of British and other Euro- pean machine manufacturers is strengthened by several factors. One factor is that most of the industrial and construction equipment in Nigeria prior to independence was brought in by the Brit- ish and was of British manufacture. Another factor is that almost all Nigerians in technical and managerial positions have received their train- ing and education in England; they are familiar with British equipment and materials and are prone to specify these items for the jobs or oper- ations with which they are concerned. In addi- tion, British standards are used for all physical specifications. Equipment and materials, to be useable in Nigeria, must in most cases conform to these standards, which differ significantly from those in the United States. Still another factor is that the major part of the privately financed industrial development in Nigeria today is being undertaken by British and European investors who are likely to equip the new plants with machinery from their home countries. 23 The position of European machine manufac- turers in the Nigerian market, however, is chang- ing — albeit gradually. For example, Nigerian engineers and other professional persons now are receiving advanced training in the United States under the participant training program of the Agency for International Development (AID) or under private auspices. They are learning about new American processes, equipment, and materials, some of which they will certainly find suitable for use in Nigeria. In addition, several American architectural and engineering firms have now es- tablished offices in Nigeria. This should lead to increased usage of various U.S. building and con- struction components and systems. Finally, American investors are taking an increasing part in the development of industry in Nigeria so that the range of U.S. manufacturing and processing equipment installed in the country is widening. The U.S. AID program should also be men- tioned as it relates to sales of American capital goods in Nigeria. 1 The program will be impor- tant in a longrun context, of course, for it acceler- ates the rate of economic and social progress in Nigeria and contributes to growth of effective de- mand for a wide range of commodities. But the program is of immediate significance as well, par- ticularly to producers of capital equipment and educational materials, since procurement of neces- sary materials and services for AID-financed proj- ects is normally tied to U.S. sources. Heaviest emphasis of the AID program in Nigeria is in agriculture, education, and industry. Commitments for grants and technical cooperation in continuing projects in these three fields during fiscal year 1963 amounted to $15 million. Most of this amount is in the form of technical assistance and training, but some funds are allocated for purchase of such items as books, laboratory equip- ment, training aids, and demonstration equipment and for construction of new schools and buildings. Loans made for individual capital projects form a more important part of the AID program from a capital equipment and materials standpoint. Among these loans is one of $12.1 million for im- provement and expansion of the Ibadan water 1 For a discussion of the AID program in Africa as a whole, see "The AID Program : Implications for U.S. Business in Africa" in Africa — Sales Frontier for U.S. Business, Washington, D.C., 1963, a special U.S. Department of Commerce report available for $1 at any Commerce Department Field Office or from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402. Steel mill laboratory supply system and another of $8.6 million for road development in the Calabar area. This aspect of the program will expand in the near future since the United States has pledged to make available some $225 million to the Nigerian Federal and Regional Governments for projects scheduled under the 6- Year Plan. As a rule, the market for very specialized in- dustrial and processing equipment is not large. The manufacturing sector is expanding, however, and sales opportunities are increasing in some of the rather specialized lines; for example, quite a large number of Nigerian firms are established in printing, baking, lumber milling, furniture mak- ing, and processing and manufacturing of rubber and rubber products. Greatest opportunities, however, appear to lie in the market for general industrial machinery ; for example, electric motors, grinders and polishers, materials handling equipment, air compressors, general metalworking and woodworking ma- chinery and handtools. Machinery of this sort is used in practically all types of shops and factories and will be needed increasingly as existing in- dustry modernizes and expands and as new plants are established. Demand is also strong for replacement ma- chinery in plants already operating. The usable life of tools and machinery in Nigeria is reported by plant managers to be considerably shorter than in many other parts of the world. Equipment 24 tends to deteriorate under the hot, humid, conditions that prevail in most of the country un- less special maintenance measures are taken. Tools and machinery receive hard usage in many factories. The market for building and construction equip- ment and materials also is strong and growing stronger. The pace of building has been very rapid in recent years with new offices, plants, and homes springing up in the principal governmental and commercial centers. Steadily increasing needs for housing in urban areas, new manufac- turing industries, and publicly financed building and construction projects called for in the develop- ment plan indicate that the high level of con- struction activity will continue. It has been estimated, for instance, that construction costs will account for $336 million to $420 million of the total capital expenditure envisioned under the 6- Year Plan. 2 Accurate statistics regarding the growth of con- struction activity in terms of building starts or square feet of housing constructed are not avail- able for all of Nigeria. Historic and projected consumption figures for certain construction ma- Table 19. — Consumption of Construction Materials, 7954, 7960, 7962 and Projections, 7965 and 7 968 1 5 Nigerian Federal Ministry of Commerce and Industry, Eco- nomics and Statistics Division, Survey of Construction Products .In Nigeria, Lagos, 1963, page 16. Unpublished working paper. Arthur D. Little Co., technical advisors. Material 1954 1960 1962 1965 1968 Cement 1,000 tons.. 368 761 835 1,184 1,300 Linoleum and similar floor covering mate- rials.. 1,000 sq. yds. 2 186 847 1,147 1,495 1,843 Asbestos cement corrugated and flat sheeting 1,000 tons. _ 8.4 21.4 28.7 39.7 43.9 Paints, varnishes, and lacquers 1,000 tons.. 2.63 6.38 7.62 11.64 12.99 Window glass million sq. ft.. 2.46 5.57 5.72 9.33 10.38 Reinforcing bars and rods 1,000 tons- 12.7 38.4 47.1 73.1 81.8 Metal hardware tons.. 1,642 2,914 2,490 3,200 3,440 Sanitary fixtures $1,000.. 339 1,145 1,448 2,142 2,377 Insulated cable and wire tons.. 837 3,630 4,146 6,278 6,992 New cement plant, near Enugu. See map, Location of Some Principal Industries Eastern Nigerian Ministry of Information 1 The 1965 and 1968 figures are projections of historic data adjusted to account for estimated requirements of projects under the 6- Year Plan. 2 The 1965 and 1968 figures do not take into account requirements of projects under the 6-Year Plan. Source: Nigerian Federal Ministry of Commerce and Industry, Eco- nomics and Statistics Division, Survey of Construction Products in Nigeria, Lagos, 1963. Unpublished working paper. Arthur D. Little Co., technical advisors. terials, however, are given in table 19. These figures indicate the expansion in activity that has taken place and that is anticipated. Since American engineering, architectural, and construction firms are becoming more active in Ni- geria, sales of certain types of U.S. building and construction components should improve. Oppor- tunities appear particularly strong for sales of sanitary and kitchen plumbing and fixtures, elec- trical switches and outlet boxes, plastic or alumi- num conduit for household wiring, and plastic and rubber composition floor tile. Most of these items currently on the market are of British or European manufacture and, by American stand- ards, are poorly styled and not especially well built. Plumbing and electrical items, of course, must conform to British specifications to be marketable. Electrical current in Nigeria is 230-volt, 50- cycle, single phase and 400-volt, 50-cycle, three phase. In some of these lines, American products al- ready enjoy a strong competitive position. One U.S. brand of electric hot water heater which is being installed in much of the new construction, for example, retails at about $110 as opposed to 25 717-541 0—64- $210 for comparable models imported from other countries. The market for commercial vehicles is now and should continue to be strong and fast moving. Highway transport accounts for more traffic than all other forms of transportation combined — nearly two-thirds of all freight traffic and over nine-tenths of the passenger traffic is carried by truck or bus. Further, the importance of road transport in Nigeria's transportation system ap- pears to be increasing so that, with the growing demands being placed on the system by progress in both manufacturing and agriculture, the coun- try's requirements for commercial vehicles should rise steadily in coming years. The number of trucks and buses registered at the beginning of 1963 was estimated at 29,000; total vehicle registration was as follows : Trucks and Passenger ouses cars Total January 1962 _ _. _ _ 27,000 42,000 69,000 January 1963 ._ _ _ 29,000 46,000 75,000 Most of these commercial vehicles are of British manufacture — Austin, Bedford, Morris, and Land Rover, by descending order of popularity. Merce- des Benz trucks also occupy a strong position in the market, with sales rivaling those of some of the leading British makes. The most common form of road transport is the well-known mammy wagon — a truck chassis on which a locally built wooden body that is suitable for carrying both passengers and freight is mounted. Mammy wagons carry maximum loads and are driven to the limit — up to 42 passengers with baggage and other cargo are carried at a time, and 12,000 miles per month on a truck is not un- usual — so that the useful life of these vehicles is ordinarily not much over a year. Product requirements for sales leadership in commercial vehicles are not complex. First, the vehicles must be constructed extremely rugged and designed for ease and simplicity of maintenance. This follows from the very hard usage given trucks and buses. Most of the mileage put on such vehicles is often over unsurfaced dirt roads. Second, design must minimize the problems in- herent in maintaining an adequate inventory of replacement parts in a large country with widely scattered servicing and repair centers. Some of the best selling British automotive vehicles feature continuity of design to the extent that many parts are interchangeable not only from one model year to the next but also interchangeable among pas- senger cars, tractors, and trucks and buses. As a result, automotive dealers handling these makes of vehicles report that they are able, on a routine Table 20. — Imports of Transportation Equipment and Motor Vehicles, by Principal Supplying Coun- tries, 1955 and 7960-62 [Thousands of dollars] Product Tractors, tracked, without equipment United States.. United Kingdom. Tractors, wheeled, without equipment United Kingdom United States West Germany Industrial trucks United Kingdom United States West Germany Angledozers and bulldozers (equipment and tractor com- plete) United States _ United Kingdom West Germany Graders, levelers, and scrapers, self-powered United Kingdom United States Conveying and hoisting ma- chinery, road wheel mounted (excluding industrial trucks)... United Kingdom Italy United States Passenger cars, engine displace- ment not exceeding 1,400 c.c West Germany'.. United Kingdom.. Italy Passenger cars, engine displace- ment over 1,400 c.c but less than 1,700 c.c. France United Kingdom United States Passenger cars, engine displace- ment over 1,700 c.c West Germany United States United Kingdom Dual purpose motor vehicles * United Kingdom. West Germany United States Motorcycles Japan West Germany. France United Kingdom Buses.. West Germany. United Kingdom.. Trucks, complete West Germany United Kingdom United States See footnotes at end of table 263.4 200.5 48.7 284.6 265.1 19.4 70.0 68.2 ( 8 ) (») 92.8 84.5 8.3 188.1 78.1 110.0 274.6 235.2 39.4 2, 506. 9 207.3 2, 057. 5 102.1 976.8 3.2 587.7 3, 262. 5 710.0 807.5 1, 015. 1 3, 483. 7 2,129.9 290.8 507.7 617.9 146.2 23.3 420.2 631.3 397.2 233.3 3, 118. 4 901.2 1, 925. 46.7 I960' 1, 148. 5 771.6 362.1 1,141.5 937.7 118.4 60.8 414.1 392.5 ( 8 ) (») 116.0 20.9 95.0 721.8 257.1 450.4 274.6 213.6 22.8 4, 478. 6 1, 735. 5 2, 052. 1 513.8 6, 648. 4 1, 443. 7 3, 301. 1 7, 733. 2, 094. 5 1, 727. 3 2. 474. 4, 228. 3 2. 888. 1 612.9 271.0 1,717.5 108.2 330.4 306.4 711.7 1, 157. 1 494.9 634.2 6, 288. 1 2, 743. 8 2, 662. 8 34.9 1, 183. 3 m m 1,239.7 ( 2 ) ( 2 ) ( 2 ) 410.4 227.2 ( 2 ) ( 2 ) 394.7 ( 2 ) ( 2 ) ( 2 ) 1, 046. 4 653.0 ( 2 ) 446.9 387.6 ( 2 ) ( J ) 5, 261. 1 2, 636. 1, 852. 8 ( 2 ) 7, 180. 8 ( 2 ) 2, 925. 4 ( 2 ) 5, 840. 8 1, 967. 8 1,498.5 1, 395. 1 4, 359. 5 2, 513. 5 847.5 478.3 1, 739. ( 2 ) ( 2 ) ( 2 ) ( 2 ) 1, 765. 1 820.8 930.3 8, 132. 6 3, 947. 5 2, 866. 3 ( 2 ) 26 Table 20. — Imports of Transportation Equipment and Motor Vehicles, by Principal Supplying Coun- tries, 1955 and 7 960-62 — Continued [Thousands of dollars] Product Truck chassis, with engine mounted . United Kingdom West Germany. United States Bodies, chassis, frames, etc., for road motor vehicles United Kingdom West Germany United States Bicycles __ United Kingdom Japan__ 1955 ' 8,951.8 7, 808. 4 452.5 40.9 2, 843. 8 1,912.7 460.3 338.0 5, 349. 7 5,331.8 6. 1 I960' 10, 223. 4 7, 530. 4 2, 354. 4 148.8 7, 137. 3. 996. 3 2, 335. 5 231.2 5. 723. 4 5, 335. 3 384.8 1961 11,936.6 9, 509. 4 2, 193. 1 ( 2 ) 8, 414. 4 4, 833. 8 2, 318. 5 304.6 3, 233. 4 2, 918. 1 ( 2 ) 1962 3, 309. 5 3, 081. 2 188.3 37.8 6, 596. 3 3, 225. 8 2, 037. 2 181.2 2, 671. 4 2,381.6 271.9 i Figures for 1955 and 1960 include former British Trust Territory of South- ern Cameroons. ' Not available; Nigerian import statistics for 1961 do not give complete breakdown by country of origin. > Less than $2,800 (£1,000). « Includes jeeps, land rovers, estate cars, and kit cars, and station wagons. Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 1955; Trade Report for the Year 1960; Nigerian Trade Summary December 1961 and December 1962. basis, to maintain over 90 percent availability of parts requested. Third, vehicles must be engineered for economy of operation. Fuel and lubricants are much more expensive in Nigeria than in the United States. These requirements for commercial vehicles in Nigeria are so different from those in the United States that American manufacturers may be able to expand sales significantly in Nigeria only by introducing a line of export models especially de- signed for overseas conditions. The suitability of such vehicles would, of course, extend far beyond the Nigerian market. The principal determining factors of both the present and future market in Nigeria for manu- facturing and construction equipment ( and ma- terials are : ( 1 ) The structure of private industry in the country at present and the lines along which industrial development is taking place most rap- idly and (2) the kinds and sizes of construction and developmental projects which are to be carried out in the 6- Year Plan. These two topics, there- fore, are discussed below. Statistical data on Ni- gerian imports of producers' goods and materials are shown in tables 20 and 21 as well as 15. fffmiim Nigerian Federal Government offices, Lagos INDUSTRY IN NIGERIA Industry in Nigeria has undergone considerable growth and diversification in recent years. Lim- ited almost entirely to processing of agricultural products and to forestry and some mineral produc- tion for export markets a few years ago, the coun- try's manufacturing and processing sector now provides a widening range of goods for the domes- tic market. The Federal and Regional Govern- ments are continuing their efforts to attract over- seas investors. There seems little doubt that in- dustrial development will move steadily ahead with the growth of market opportunities in Ni- geria's gradually expanding economy. The market for industrial equipment and ma- chinery, of course, depends on the manufacturing enterprises already operating and on the indus- tries to be established. Most rapid growth in re- cent years has been observed in industries aimed at supplying basic domestic needs, such as manu- facturing and processing of textiles, footwear, food products and beverages, building materials, furni- ture, and household and kitchen utensils. Much of the industrialization in the near future will con- sist of a "filling out" process as existing plants are expanded and new factories are established in 27 these same basic lines. Growth can also be ex- pected in a broader range of light manufacturing as well as in ancillary and service industries, such as fabrication of containers and packaging ma- terials, and in the assembly and repair of indus- trial motors and transportation equipment. A complete tabulation of manufacturing firms in Nigeria as of April 1963 is shown in table 22. Slaughtering, Meat Processing, and Canning Potential exists in Nigeria for development of a modern meat industry; there are an estimated 15 million head of cattle, primarily in the Northern Region, and large numbers of pigs and sheep in all parts of the country. Lack of refrigerated transport facilities has been one of the principal barriers to development of the industry thus far. There are several slaughterhouses in Nigeria, most of them in the Northern Region. One meat can- ning plant is in operation in Kano, producing 6 million cans of corned beef annually. Sausages, bacon, and other pork products are processed at plants in Lagos, Kano, and Port Harcourt. Grain Milling Several rice mills are in production, mostly in the Western Region. Over 250,000 tons of rice are grown annually in Nigeria. A $5.6 million flour mill in Lagos has been in production since mid-1962. Capacity of the mill is about 8,000 bags per day, or 120,000 tons per year ; present output is 2,000 to 3,000 bags per day. A small flour mill with approximately 20,000 tons annual capacity has been proposed for the Eastern Region. Brewing and Soft Drink Bottling About 5.5 million gallons of beer and stout are brewed annually at the Lagos and Aba plants of Nigerian Breweries, Ltd. ; the same company has another plant nearly ready for production in Kaduna. During the first part of 1963, another firm opened a new plant which will have an out- put of 50 million bottles of stout a year. Two other breweries are under construction in Nigeria — one in the Eastern Region and one in the Western Region. Some 12 plants presently are producing a wide range of carbonated beverages, including colas, orange and lemon-lime drinks, ginger ale, and quinine water. Output of the soft drink industry in 1962 was estimated at 4.5 million gallons, al- though total installed capacity is over 12 million gallons. Tobacco Products Three factories in Nigeria — at Ibadan, Port Harcourt and Zaria — produce a total of over 3 billion cigarettes per year. The industry uses about 11 million pounds of leaf tobacco annually, Table 21. — Imports of Machinery and Tools, by Principal Supplying Countries, 1955 and 7960—62 [Thousands of dollars] Product Diesel engines, marine, station- ary, and other., United Kingdom.. France United States Other internal combustion en- gines, marine, stationary, and other.. United Kingdom. United States Sweden Agricultural machinery and ap- pliances, except tractors United Kingdom United States West Germany Typewriters and office machin- ery.. United Kingdom West Germany. United States Metalworking machinery, ma- chine tools and parts United Kingdom United States West Germany _ Pumps for liquids United Kingdom United States France Conveying and hoisting machin- ery (other than road wheel mounted).. United Kingdom France... United States.. Boring machinery United States... France... Italy .- Woodworking machinery United Kingdom West Germany United States Printing and bookbinding ma- chinery United Kingdom.. West Germany United States — Textile machinery and acces- sories United Kingdom West Germany United States.. -. 1955' I960' 1961 444.1 1, 227. 4 1,083.1 424.0 1,111.2 966.9 6.8 ( 2 ) 11.3 38.3 ( 2 ) 360.0 334.6 340.9 241.6 147.0 ( 2 ) 19.6 73.4 ( 2 ) 73.5 57.4 m 254.5 504.1 258.7 228.4 251.8 176.0 5.2 23.4 ( 2 ) 12.2 11.5 ( 2 ) 612.7 1, 475. 5 1,808.6 455.7 852.5 964.4 46.9 203.5 330.2 21.2 131.9 101.8 889.0 1, 027. 2 1,080.5 768.5 591.3 712.7 18.3 40.9 ( 2 ) 37.5 181.0 233.2 883.3 1, 726. 6 1, 754. 3 823.4 1, 524. 4 1,517.4 19.6 74.6 ( 2 ) 21.3 32.4 ( 2 ) 1,238.3 2, 262. 9 1,301.2 1,103.1 1, 426. 1 868.7 61.3 14.1 ( 2 ) 40.2 98.1 ( 2 ) 1,899.7 646.1 216.3 m 324.6 ( 2 ) m 53.6 ( 2 ) ( 2 ) 481.7 365.3 590.4 337.6 203.2 373.1 97.3 79.4 122.8 13.5 7.5 ( 2 ) 717.4 1,143.8 2, 096. 8 640.9 618.3 1,242.5 35.0 392.8 407.1 20.3 23.7 ( 2 ) 31.8 459.5 4,421.4 29.4 423.3 ( 2 ) 16.0 ( 2 ) (•) 3.4 ( 2 ) 1962 974.9 850.7 59.3 5.6 308.8 95.6 80.5 491.5 405.7 62.8 11.6 1,802.2 982.0 227.4 147.1 2, 875. 6 2,081.0 259.0 188.0 1,961.1 1,587.3 200.1 66.5 1,574.4 1, 116. 2 163.8 88.9 1,686.7 1,187.4 199.6 180.5 389.8 178.1 125.9 16.9 1,461.8 861.1 387.9 77.4 2, 250. 1,139.9 848.2 28.8 See footnotes at end of table. 28 Table 27. — Imports of Machinery and Tools, by Principal Supplying Countries, 1955 and 7960— 62 — Continued [Thousands of dollars] Table 22. — Manufacturing Firms in Nigeria, by Number of Employees, Number of Firms, and Category of Product, April 7 963 — Continued Product Machinery and appliances for processing rubber and manu- facturing articles of rubber. _. United Kingdom United States.. Denmark.. Electric generating sets and generators United Kingdom United States West Germany Electric motors United Kingdom United States West Germany Hand tools and implements, in- cluding agricultural United Kingdom West Germany United States 1955' 19601 1961 103.4 370.9 191.0 103.4 209.6 65.0 5.5 ( 2 ) ( 2 ) 1,116.8 1,690.4 788.1 1,076.4 1,084.6 576.5 7.4 68.6 ( 2 ) 11.0 27.6 ( 2 ) 148.8 262.5 179.7 131.8 180.1 118.8 ( 3 ) 23.0 ( 2 ) 8.5 40.9 ( 2 ) 1,409.3 1,952.9 2, 005. 856.6 842.9 867.0 500.5 686.7 711.4 7.6 33.7 ( 2 ) 1962 1,952.9 1,866.7 76.2 3.4 1,309.4 1,119.7 87.6 58.0 445.9 388.5 20.0 14.2 1,783.3 689.7 660.0 55.6 1 Figures for 1955 and 1960 include former British Trust Territory of South - em Cameroons. 2 Not available. Nigerian import statistics for 1961 do not give complete breakdown by country of origin. a Less than $2,800 (£1,000). Sources: Nigerian Federal Office of Statistics, Trade Report for the Year 195fi; Trade Report for the Year 1960: Nigeria Trade Summary, December 1961 and December 1962. Table 22. — Manufacturing Firms in Nigeria, by Number of Employees, Number of Firms, and Category of Product, April 1963 Number of employees ' Num- ber of firms, total Category of product CM O o I-H OS o !M OS OS o o OS o> o o o OS OS o o 8 OS OS OS o o o "3 3os ~ — o _r a s fa 5 t> i ° a B Number of firms Stone, clay, and sand 2 1 1 3 2 2 2 5 Slaughtering and meat processing, and canning. 1 2 2 2 14 2 2 1 7 2 3 1 5 10 Dairy products 7 Fruits and vegetables (canned and preserved).. 2 11 7 Grain mill products 4 Bakery products 1 3 41 Sugar 1 1 Cocoa, chocolate, and su- gar confectionery— 1 5 2 2 1 2 4 Miscellaneous food prepa- rations 6 15 Beer 4 1 3 1 5 Soft drinks and carbonated beverages 6 2 4 8 2 3 23 Tobacco products 1 1 4 Thread, yarn, and woven 4 1 1 1 7 12 3 2 3 3 1 1 3 1 20 Knitted textiles g Cordage, rope, and twine.. 1 2 Miscellaneous textiles 1 1 1 2 Footwear 1 3 1 2 3 13 Wearing apparel, except footwear.. 3 21 Number of employees ' Num- ber of firms, total Category of product o O OS o OS OS o o 10 OS OS o o o OS OS O OS OS OS o So. OS O OS o - •o d 03 I- g , o ° s Number of firms Madeup textile goods ex- cept wearing apparel 1 16 3 14 1 19 1 20 1 10 5 Sawn timber 5 6 1 1 1 9 1 7 1 4 3 2 5 6 8 63 Miscellaneous wood prod- ucts 2 Furniture and joinery 11 2 23 5 1 3 2 5 2 7 12 3 16 10 6 2 1 10 2 3 1 8 7 1 6 1 67 Articles of pulp, paper, and paperboard g Printed products 2 77 Tanned and treated hides and skins 10 Leather products except footwear and other wear- ing apparel 9 1 9 2 7 1 9 4 6 1 5 Rubber and rubber prod- ucts 2 6 44 Basic industrial chemicals . 15 Vegetable and animal oils 5 1 2 1 .... 2 39 Paint, varnishes, and lac- quers 7 Miscellaneous chemical 2 12 38 Refined petroleum prod- ucts 1 1 Miscellaneous products of petroleum and coal 1 1 2 Tiles, "bricks, and other 1 1 1 1 2 1 1 Glass and glass products .. 1 2 1 1 2 1 2 3 Pottery, china, and earth- 6 Cement 2 1 4 Miscellaneous nonmetallie mineral products 4 2 4 5 20 Basic iron and steel prod- ucts .. 1 Basic nonferrous metal 1 9 1 1 9 3 2 3 2 Other metal products ex- cept machinery and transport equipment Machinery, except elec- 8 4 2 2 1 8 5 .... 1 .... 44 6 Electrical machinery, ap- paratus, and appliances 4 2 4 1 2 1 2 2 1 1 .... 1 .... 13 2 1 1 2 2 3 1 4 1 1 1 .... 5 17 Motorcycles and bicycles... Miscellaneous products, 4 6 Theater and musical prod- 1 2 Total 142 141 117 98 62 18 8 8 114 708 See footnotes at end of table. 1 List refers only to firms with 10 or more employees. 2 Over 10 employees, but exact number not known. Source: Nigerian Federal Ministry of Commerce and Industry, Economics and Statistics Division, Manufacturing in Nigeria, Lagos, June 1963. Unpub- lished papers. Arthur D. Little Co., technical advisors. Note: Category of products according to Standard Industrial Classifica- tion of the United Nations. 29 80 percent of which is grown in Nigeria. A $1.4 million cigarette factory with some Northern Region Government financial participation is being built at Ilorin. Textiles The textile industry is one of the most rapidly developing in Nigeria. The largest plant in opera- tion presently is that of the Kaduna Textile Mills with annual production of 40 to 45 million yards of grey baft and bleached shirting. It employs 2,800 persons. The Nortex (Nigeria), Ltd., fac- tory, also in Kaduna, started production in early 1963. This mill employs 1,200 workers and is presently producing 12 million yards of baft and bleached sheeting yearly, but plans call for a tripling of output with a few years. The $8.4 million Nigerian Textile Mills plant at Ikeja, near Lagos, has been in operation since late 1962. The factory produces 18 million yards of woven cotton fabrics and 1.2 million yards of knitted cloth per year, and employs 1,300 workers. Several other textile factories are either in operation or are planned. Footwear A large number of factories are manufacturing various kinds of footwear. Annual capacity of the industry at present is estimated at 2 million pairs of rubber shoes and sandals, 2 million pairs of plastic shoes and sandals, and 1 million pairs of canvas shoes. Several small factories throughout the country produce leather shoes and sandals, and two large factories — one in the Western Region and one in the Northern Region — are under con- struction which will also manufacture gloves, handbags, and suitcases. Lumber and Plywood Some 63 sawmills are operating, 3 of them with over 500 employees each. The plant of the African Timber and Plywood Company at Sapele is one of the largest plywood factories in the world. Niger- ian exports of logs amounted to $12.2 million and those of sawn timber and plywood to $7 million in 1962. Furniture and Cabinetry A great many furniture and cabinetmaking factories are operating in all parts of the country. Several of the larger plants are integrated opera- tions and include a sawmill as well as manufac- turing and finishing facilities. This industry has grown very rapidly in the last few years, and Nigerian-made furniture is displayed in leading retail outlets in all major cities. In addition to tools and machinery, import needs for this in- dustry include a wide variety of furniture fittings, upholstery materials, and plastics for table and cabinet tops. Rubber and Rubber Products Car, truck, and bicycle tires and tubes are pro- duced at the first such plants to be built in West Africa — one is the $8.4 million Dunlop factory at Ikeja, near Lagos, and the other is the $8.6 million Michelin plant at Port Harcourt. Tire retreading plants are operating in Lagos and each of the three regions ; one plant makes enough camelback to meet its own requirements and supplies some of the other retread factories as well. Some 38 plants using locally produced latex, manufacture crepe rubber and rubber sheets for export. One factory produces foam rubber mat- tresses and cushions. Basic Industrial Chemicals Factories in Kano, Lagos, Apapa, and Port Har- court produce for industrial use such gases as oxygen, nitrogen, solid, liquid, and gaseous carbon dioxide, and acetylene. Oils and Fats Palm oil is processed at numerous factories throughout Nigeria. Five large mills in the Northern Region, each with over 100 employees, produce peanut oil. Paint and Enamel Six factories are in operation with a combined capacity of over 1 million gallons of paint and enamel a year. Miscellaneous Chemicals and Cosmetics Pharmaceutical products, such as vitamins, sulfa drugs, aspirin, and antimalaria drugs, are produced at five plants — three in Lagos and two in the Eastern Region. Operations at these fac- tories are largely repackaging, mixing, and tablet 30 making. A sixth pharmaceutical plant may be located in the Northern Region. Cosmetics, perfumes, and pomades are manu- factured in at least a dozen plants. It is expected that the existing firms will expand and new fac- tories will be opened, since the demand for cos- metics is increasing rapidly. Factories at Lagos and in each of the three regions manufacture hard soap, including a wide range of toilet soaps. Annual output of these factories is about 40,000 tons. One plant will soon produce detergents. Petroleum and Petroleum Products The first exports of crude oil were made in 1958. Since then production has increased steadily (70,000 barrels a day in 1963) and exploration for further petroleum deposits has continued. 3 Petro- leum exports in 1962 amounted to $46.9 million. A petroleum refinery is being built in Port Harcourt and is expected to go into operation in the spring of 1965 ; the refinery will have a processing capac- ity of 1.9 million tons of crude oil per year. Glass and Glass Products Nigeria's first glass factory is located at Port Harcourt and was opened officially in August 1963. The $2.8 million plant will supply most of the country's needs for bottles and glass containers. Cement Three cement plants had a combined estimated output in 1962 of 440,000 tons. Two of these fac- tories — one in the Eastern Region and one in the 3 A barrel is equivalent to 35 imperial gallons, or about 42 American gallons. & ./" \ NIGER / N V ^ y r / ,.--' Meat Sloughterinc Tanning Cement* Meat Slaughtering & G nnii 9 Tann ing ed Vegetable s Pe fume Peon ut Milling Co smetic Foot wear Me tol Man utactures Fum Jure Ti e Retr< ading NORTHERN REGION f DAHOMEY / r ( Kadun Textiles Metal Door , & Windows Beer Furniture Peonut Milling Cigarettes Tanning Cotton Ginning ./•'""' ( Sawmill ing Foom Rubber Tire Retreading Plastic Products Canned Fru.t and Jutce Furniture Cigareties Paints Ibadan Sugar ' Paper * Tin Mining and Smelting ■Columbite Mining Phonograph Records Powdered Milk V . y* — '" ^ / Motor Vehicle Assembly Tires Industrial Gases Sawmillina Steel Structures Furniture Aluminum Manufactures Cosmetics Radios and Light Bulbs Paints and Stout Dairy Products Textiles Concrete Products Cher iicols Phar maceuticals Palrr Oil Tire Retreading Beer Maidugun Meat Slaughtering Tanning .J J c CAMEROON t. CHAD V NIGERIA LOCATION OF SOME PRINCIPAL INDUSTRIES *UNDER CONSTRUCTION CAMEROON Cement and Products Aluminum Rolling Aluminum Manufoctur. Petroleum Extraction Petroleum Refining ' Glass Products Industrial Gose Palm 0,1 Sowmilling Furniture Motor Vehicle Assembly Cigar, Steel Structures Point Tires 31 Dogondoutch / ^ .^Dpsso ( ) / y -, — -p* <- T ) *\ SMaradi / / /\ v. * KatsmaH * r / \ \ \ y / \ \ \ \ __\zinder N I G E R^^\ ». •* Nguru Z-X\ Kaura Namoda V "^A \ \ i K a n oV^w^^^ TAPPER V?'"C '^volta y \y J I Y I N O R T HXMv-^ ^nC ^^^-o. ( \ 1 ■ \ \ ZanarsC^^ / s ( * J ^v >■ ^^^JKaduna/^ Kontagora J y~*L^ n^ \ Bauchi^l_^ ^<^a DAHOMEY j> ^t0nsJ J ^ , ~\ \ ^°s ^S^f / S f^rashiker; (parakou If J? / *) i / / ^// — t ~xf~*^ Kafan ^ .-^ / | Minna chan^i> — \ 7 ^ _ '^ _v ^ Vr J \ "' \ r^ v, Baro Q . /7 ) \ ( ° gt on-io/ho", t \ 1 (l 35^^^ /S / \ Lokojal^-^'^ )yo / .^^Oshogbo ^---s /"ttL/^S ^AMakurdi \. (fPefeie' Vo Abeokuta\ \\^\ldawgaX(W E SJ badan vrv-^pwoy ~^ ^^ L- r E R N RE ebu Ode G Yo N / j* A ( \§£P m City \ (^ P^y ** — \ ^""^^-A-^—^ F AST 1 OnitsljiaTaT^ \ c ri o i E R n\ ^ w** Sapelen\__/ y/f ^ ( V Rt F O^ i o n ^7-^^y^" ( == "^^^ L oO / /// XOwerri/ / \l£/ Warri } ( V) C^\ / / \ ~^[7 J / : c/\a m e \ Salabjar • V J G t/LF OF G UINEA V ^Tj ) i l VePort HaVcourt \k^ / ( Jf Nkongs S/CWT OF \BueaX /) BIAFRA V ^7 L,D^I|a 4 Boundaries are not necessarily those recognized by the U.S. Government. 8 Victoria ^_J ^ U^ , y V 7 / k*°£ O/O N NIGERIA ...__ International boundary Region boundary ® National capital ® Region capital —i — k Railroad Principal road 25 50 75 100 Miles 25 50 75 100 Kilometers Western Region — are large integrated plants using local raw materials. The third, located near Port Harcourt, uses imported clinker. Another plant using local raw materials is expected to be built in Sokoto in the Northern Region. A second clinker- grinding plant is under construction in the Lagos area. Miscellaneous Nonmetallic Mineral Products About a dozen plants, each employing over 100 workers, manufacture various concrete products, including blocks, beams, posts, and pipes. Several factories in major cities are making terrazzo tiles, which are widely used for flooring. Two plants are now in production manufactur- ing asbestos cement products, such as corrugated and flat sheeting, pipes, and molded accessories. Basic Iron and Steel Products The $840,000 steel rolling mill of Nigersteel, Ltd., near Enugu, has been in production since July 1962. The first such factory of its kind in West Africa, the mill manufactures mild steel rods and high tension steel bars from iron and steel scrap. Planned additions to the plant's equipment will enable production later of wire rods, angle iron, flat iron, and channels. Basic Nonferrous Metal Products A new $3.4 million aluminum rolling mill has recently been completed at Port Harcourt. Pro- duction of semif abricated aluminum coil and sheet was expected to amount to about 1,600 tons in 1963, and the plant should be operating at its full capac- ity of 5,000 tons per year by 1965. Tin ingots are produced from Nigerian ore at the Makeri tin smelter near Jos. Exports of tin metal in 1962 amounted to 7,500 long tons, and were valued at $19.3 million. Miscellaneous Metal Manufactures Steel window and door frames are manufactured at plants in Mushin (near Lagos) , Port Harcourt, Ibadan, Kano, and Kaduna. About three plants produce metal boxes, cans, and drums. Several factories are making aluminum, enamelware, and iron and steel utensils. Corrugated aluminum sheets for roofing are processed at three plants with a total annual capacity of over 4,000 tons. A 33 great number of small and medium-sized plants throughout the country produce a wide range of miscellaneous metal products such as nails, welded wire mesh, chain link and barbed wire fencing, wrought-iron products, steel tanks, brass castings and hollow-ware, and steel beds, chairs, and school desks. Machinery Sewing machines are assembled at a factory in Apapa ; annual output is 10,000 to 15,000 units. Electrical Apparatus and Appliances One radio assembly plant has been in production since 1962, and two others were expected to begin operations late in 1963. An automobile battery factory is planned with production to start early in 1964. A light bulb manufacturing plant has been under construction at Apapa, near Lagos, with completion scheduled for late 1963. Output from the factory is expected to supply almost all of the country's demand for incandescent lights — roughly 3 million bulbs a year. Worker adjusts machinery In Kaduna Textile Mills, Ltd. 34 Motor Vehicles and Bicycles Two small plants are assembling 4 makes of trucks which are imported on a completely knocked-down basis ; total production is estimated at less than 3,000 trucks per year. Many bus and truck bodies are manufactured locally. Proposals for two complete automobile assembly plants are well advanced. One British firm operates plants in each of the three regions assembling bicycles using imported parts. Miscellaneous Plastic Products Three plants — in Apapa, Ibadan, and Aba — manufacture a variety of plastic products ranging from small household utensils to containers and wrapping materials for industrial use. Two of these plants are equipped with extruding as well as with molding machines. Suitcases and miscellane- ous travel goods made from plastic and fiberboard are produced at two factories near Lagos. Electric furnace at the Nigersteel Company.Ltd. plant, Enugu, Eastern Nigeria 35 Music Products Two phonograph record plants started opera- tions in 1963, pressing 78 and 45 r.p.m. records. One factory is in Jos and the other in Onitsha. THE 6-YEAR PLAN The National Development Plan covers the 6- year period from 1962-68, that is, fiscal years 1962- 63 through 1967-68. Broad objectives stated in the plan are: — To achieve an economic growth rate of at least 4 percent per year. — To reach this growth rate by investing 15 percent of gross domestic product while en- deavoring to raise per capita consumption by about 1 percent per year. — To achieve self sustained growth not later than by the end of the third or fourth national plan. The present plan is conceived as the first in a series aimed at long-range develop- ment of the economy. Priority has been given to agriculture, industry, and training of high and intermediate-level man- power. Planned expenditures under the plan re- flect this choice of alternatives ; of total Govern- ment outlays scheduled for the 6-year period, 14 percent will be allocated to primary production; 13 percent to trade and industry, and 10 percent to education. Over 70 percent of total capital expenditure will be channeled into sectors con- tributing directly to economic growth — primary production, trade and industry, electricity, the transport system, communications, and irrigation and industrial water supplies. Previous development plans have been under- taken by the Federal and Regional Governments, but the present program represents the first fully coordinated efforts of the four Governments to Metalworking machinery is needed in increasing amount with industrialization. Machinist at work in Nigerran Railway Corporation workshop, Lagos. International Bank for Reconstruction and Development 36 accelerate the expansion and broadening of the country's productive base and to raise standards of living of the Nigerian population. The plan itself actually encompasses four separ- ate plans — the Federal Government development program and the programs of each of the three Regional governments. Primary responsibility rests with each Government individually for fi- nancing and implementing the program with which each is concerned, and the four programs differ according to the regional interest and con- stitutional responsibilities of the four Govern- ments. The four plans have been closely coordi- nated in all phases of formulation, however, so as to reflect the same order of priority in overall ob- jectives and to interrelate to form the National Development Plan. The overall structure of the plan in terms of expenditures to be made by the four Governments in various sectors can be seen in table 23. Total capital formation during the period of the plan is expected to be considerably greater than the $1.89 billion in publicly financed projects out- lined in the plan itself. Including Government capital projects out of recurrent expenditures — that is, out of the Government's ordinary bud- gets — and estimating private investment to amount to $1.1 billion, total gross fixed capital formation is forecast by the planning authorities over the 6-year period to be $3.3 billion. Whether this planned level of investment can be reached, of course, depends on a number of factors. A gap of over $900 million, for example, exists between total revenues available and outlays scheduled under the plan by the four Govern- Bookstore in Ibadan department store ments; it is hoped that this gap can be filled by foreign government development loans and grants. Too, the amount of private investment which will take place is a matter of some conjecture; the $1.1 billion figure projected is meant to be only a reas- onable estimate. With regard to both of these questions, the outlook at present appears relatively favorable. As of mid- 1963, major commitments for assist- ance in the plan had been made by several foreign governments, including the $225 million U.S. pledge, and others by the United Kingdom, West Germany, the Netherlands, and Canada, as well as by various United Nations agencies and some private foundations. Particularly encouraging is the fact that progress is being made in securing overseas financial assistance for the Niger Dam Project, the largest single undertaking in the plan. Developments in the private sector have also been favorable, for an impressive number of industrial undertakings have been carried out by foreign investors in the past year or two ; if response to the Federal and Regional Governments' efforts to pro- mote foreign investment remains as strong over the next few years, private industry's contribution toward the plan's overall goals for capital forma- tion will be significant. Programs of the U.S. AID to encourage increased American private in- vestment abroad should also be a positive factor in this regard. Nigeria has been designated as a pilot country by AID to receive special emphasis in the private enterprise field ; AID and the U.S. Commerce Department in cooperation are actively encouraging U.S. firms to consider undertaking new investments in Nigeria in industries which will contribute to the country's economic growth. It is clear, at any rate, that very large expendi- tures for capital equipment, machinery, and ma- terials will be made during the course of the plan in implementing scheduled projects and that these outlays by the Federal and Regional Governments will constitute a major portion of the Nigerian market for producers' goods over the 6-year period. In order to give some indication of the range of equipment and materials which will be purchased to carry out the plan, major projects in each of the four Government's programs are outlined below. Procurement for scheduled proj- ects will be handled by the governments or statu- tory corporations concerned, either directly or through the facilities of the Crown Agents. See, also, section, Government Procurement. 37 Federal Government Development Program Nigerian Federal Government expenditures under the plan will total approximately $1.2 bil- lion. Largest outlays are scheduled to be made by the Niger Dams Authority, the Ministry of Commerce and Industry, the Ministry of Works and Surveys, and the Electricity Corporation of Nigeria. Details of the Federal expenditures program by project and by Ministry are shown in table 24. Niger Dam. — Highest priority in the Develop- ment Plan has been assigned to construction of a dam on the Niger River at Kainji — about 65 miles north of Jebba and some 600 miles from the river's mouth on the Gulf of Guinea. Initial generating capacity will be 280 megawatts (mw.). Provision will be made for additional generating units up to 980 mw. The dam at Kainji will actually be the first of three to be built in a major development scheme designed for flood control and to harness the Niger's potential for irrigation, fishing, and navi- gation as well as for hydroelectric power. A second dam will be built at Jebba in 1982 with a capacity of 500 mw., and later a third is to be con- structed at Shiroro Gorge on the Kaduna River. Total capacity when all three stages have been completed will be 1,730 mw. Total cost of the Kainji Dam, which also in- cludes the first stage of a national power grid, will be about $190 million. Of this, $111.7 million will be expended for construction of the dam itself and for installation of four 70-mw. generating units; $35.8 million will be spent for transmission lines: $17.6 million for navigation installations; $2.5 million for reservoir clearance; and $23 million for financing costs. Roads and bridges. — Second largest allocation in the Federal plan is $99 million to the Ministry of Works and Surveys for road and bridge con- struction. The Federal road program will em- phasize reconstructing Nigeria's system of major highways, that is, trunk A roads, by widening, straightening, and improved surfacing. Major outlays are also to be made for building two new bridges — the Niger bridge now under construction between Onitsha and Asaba and a second bridge connecting Lagos with the mainland. Steel mill. — Proposals invited by the Federal Government for establishment of a viable iron and steel mill using Nigerian iron ores, limestone, and coal have been received from several international Table 23. — Capital Expenditures of Federal and Regional Governments in National Development Plan, by Sector, 7962-68 [Thousands of dollars! Sector Federal North- ern Region Eastern Region West- ern Region Total Per- centage distri- bution Primary produc- tion. 57, 305 123, 284 274, 792 291, 080 84, 000 5,216 81,631 28, 851 64, 848 (') 7,529 6,583 762 122, 962 6,160 62, 983 27, 619 4,200 613, 048 (>) 20, 838 53,057 9,288 16, 800 6,829 (') 246 (') 2,780 0) 85,011 36, 204 1,680 24, 780 (') 14, 280 24, 654 5,093 9,257 (') 1,495 1,260 700 5,788 336 51,629 65, 646 4,200 17, 780 (') 27, 588 35, 994 4,581 25, 984 4,200 4,228 2,164 1,238 3,119 4,480 256, 928 252, 753 284, 872 402, 688 84, 000 67, 922 195, 336 47, 813 116,889 11,029 13, 224 10, 254 2,699 134, 649 10, 920 13.6 13.4 15.1 21 3 Trade and industry Electricity Transport system Communications. Water other than irrigation Education Health.. 4.4 3.6 10.3 2 5 Town and coun- try planning Cooperatives Social welfare Information Judicial. 6.2 .6 .7 .5 .1 General 7. 1 Financial obliga- tions .6 Total 1,155,003 2 276, 648 210, 538 252, 831 2 1,894,992 100.0 1 No allocation. 2 Components do not necessarily add up to totals because of slight differ- ences in sectoral definitions. Source: Nigerian Federal Ministry of Economic Development, Nationa Development Plan, 1962-68, Lagos, 1962, page 41. Table 24. — -Federal Government Development Pro- gram, Capital Expenditure, by Ministry, 7962-68 [Thousands of dollars] Item Communications Telecommunications Posts Meteorology Works and surveys Roads and bridges, Surveys Lagos water supply - Transport and aviation Inland Waterways Department. Coastal Agency Marine Division Escravos bar. Koko — extension Koko — approach roads Civil Aviation Department Transport surveys Victoria Beach erosion study Commerce and industry Steel mill Mint and security printing Direct investment in industry... Development bank Insurance company Agricultural Credit Institution- Federal Loans Board Total by program 76, 745 6,440 815 99, 070 5,323 5,216 5,547 140 412 18,418 13,857 700 140 84, 000 840 14,000 11,200 2,800 8,400 1,400 Total by Ministry 84,000 109, 609 41, 062 125, 244 38 Table 24. — Federal Government Development Pro- gram, Capital Expenditure, by Ministry, 7 962- 68 — Continued Item Commerce and industry — Continued International Trade Fair Federal Institute of Industrial Research Institute of Administration - ... Mines and power - - - - Geological and water survey Mineral development.. Oil re finery -. Economic development.. Fisheries Department Forestry research Veterinary research Agricultural research Agricultural investment Office of Statistics -. Development research Nigerian Institute of Social and Economic Research Census Cabinet office... - Niger Delta Development Board Police. Information Domestic broadcasting. _ External broadcasting Television Health Education Lagos affairs.. Lagos sewerage - Lagos Executive Development Board (land and housing)... Nigerian Building Society Metropolitan area housing project Lagos town council Tinubu square office building... Labor Establishments- African staff housing fund Defense Foreign affairs Internal affairs. Finance. Justice -. Statutory corporations and companies Electricity Corporation of Nigeria Niger Dam _ _ Nigerian Railway Corporation Nigerian Ports Authority Nigeria Airways Nigerian National Line, Limited Nigerian Coal Corporation Financial obligations Total. Total by program 1,120 924 560 2,820 473 5,600 2,478 1,394 902 4,094 28, 000 280 1,400 560 2,870 6,504 28, 958 3,069 1,470 2,044 4,382 42, 078 4,200 3,763 5,160 1,400 5,124 Total by Ministry 8,893 41,978 35, 462 6,583 28,851 81,071 59, 584 7,563 5,124 83,258 4,536 2,713 594 762 84, 000 190, 792 56, 479 66, 133 5,373 17,780 1,400 6,160 1,155,028 Source: Nigerian Federal Ministry of Economic Development, National Development Plan, 1962-6%, Lagos, 1962, pages 52 to 54. firms and are now being evaluated by the Govern- ment. Should the project be feasible, it is ex- pected that a mill with a capacity of from 125,000 to 250,000 tons would be built ; output would con- sist primarily of black and corrugated sheets, rods and bars, angles, channels, and other structural steel. The project would be financed jointly by the four Governments, possibiy with some private capital participation. To expedite matters, how- ever, the full estimated cost of $84 million has been set aside in the Federal program. Electricity Corporation of Nigeria — ECN. — Some $84 million is to be invested by the Electric- ity Corporation of Nigeria — ECN, a public statu- tory corporation, for expansion of thermal gener- ating and transmission facilities. Major capital outlays will be $23 million for generation (expan- sion of the Afam Plant from 60 mw. to 80 mw. and building of the TJghelli Thermal Plant, 60 mw.) ; $15.8 million for transmission ; and $19.3 million distribution. The generating stations at Afam and Ughelli will use natural gas from Nigerian reserves. Education. — The Federal Education Program for the 6-year period totals $81 million of which the major part will be devoted to higher education. Principal items of expenditure will be $15.4 mil- lion to establish the University of Lagos ; $13 mil- lion for expansion of the University of Ibadan; $11 million in grants to the regional universities; up to $8.7 million for primary school construction in Lagos; and $3.3 million for technical training in Lagos. Telecom?minications. — Nearly $77 million will be spent to expand and update the domestic tele- phone system. A total of 60,000 new exchange lines will be installed, allowing an addition of over 100,000 new telephones. Trunk dialing facilities between the major commercial and industrial centers will be expanded greatly. Nigerian Ports Authority. — Highest priority in the transport sector has been assigned to the de- velopment program of the Nigerian Ports Au- thority. Over $66 million will be invested in con- struction of five new berths at Apapa (Port of Lagos) and two new berths at Port Harcourt, re- placement or renovation of the Customs Quay at Lagos, construction of new warehouses at Port Harcourt, and increased mechanization of the Au- thority's operations. Nigerian Railway Corporation. — No new lines are planned for the Nigerian rail system except to complete the remaining 230 miles of the Bornu Extension in the northeastern part of the country. Modernization plans, however, call for the pur- chase of 14 diesel locomotives and 1,485 rail cars. Over $15 million will be spent on relaying existing sections of track with heavier rails. Total cost of the railway program is estimated at $56.5 million. 39 Northern Nigeria Development Program Total outlay for the Northern Region program will amount to $276.6 million. Largest expendi- tures are scheduled for development corporations, communications, education, urban and rural water supplies, and agriculture. See table 25. Development corporations. — Over $90 million will be spent on projects ranging from fisheries to housing by four public corporations which are being organized to take over and expand the op- erations of the Northern Region Development Corporation. The fovir new organizations are the Industrial Development Corporation, the Agri- cultural Development Corporation, the Native Housing Authority Corporation, and the Develop- ment Bank. Planned outlays include $24.4 mil- lion for industrial investment in conjunction with private capital (enterprises being considered, among others, are textiles, tanning, oilseed crush- ing, paper manufacture, and food processing) ; over $20 million for subsidies to promote increased usage of fertilizers and insecticides ; and $8 million to meet increasing needs for roads, housing, drain- age, and water in the northern capital city of Kano. Communications. — About $63 million is to be expended on a road development project involving improvement of some 3,000 miles of roads. Major emphasis is placed on development of a feeder system of roads to the Bornu Railway Extension. Education. — A total of $53 million has been al- located to expansion of educational and training facilities. Major items of expenditure include $22.6 million for establishment of teacher training colleges; $15.4 million for expanding the sec- ondary school program; and $4.4 million for primary education. Eastern Nigeria Development Program Capital expenditures planned by the Eastern Region Government total $210.5 million, with heaviest stress on primary production, trade and industry, transport, and education. The list of projects comprising the program appears in table 26. Primary production. — A sum of $85 million will be devoted to the primary sector. Of that sum, $71.6 million will be spent to increase production of tree crops (cocoa, oil palm, rubber, coconut, and cashews) on both small-holder and plantation levels. About $5.9 million will go toward develop- ment of agricultural training, research, and ex- tension services. Trade and Industry. — Over $36 million in capi- tal expenditure will be spent in promotion of trade and industry. Almost all of this amount — $28 million— has been set aside for participation with private investors in new industries. The Eastern Region Government is now participating in a number of enterprises and is negotiating with in- vestors for establishment of several others; these already operating or planned enterprises include the Shell-BP petroleum refinery near Port Har- court, two textile mills, an asbestos cement factory, glass, sanitary ware, stationery, tire, and chip- board factories, a rice mill, and a paper mill. Transport. — A sum of $24.6 million has been allocated for construction of roads and bridges. Western Nigeria Development Program Capital expenditure under the Western Region program will total $252.8 million with largest out- lays to be made by the Ministries of Trade and Industry ($81.5 million), Works and Transport ($49.6 million), Education ($35.7 million), and Lands and Housing ($31.1 million). The overall program, by project, is shown in table 27. Table 25. — Northern Nigeria Development Program, Capital Expenditure by Sector, 1962—68 [Thousands of doll arsl Sector 1962-63 1963-64 1964-65 1965-66 1966-67 1967-68 Six years, 1962-68 Agriculture 2,583 1,412 116 188 1,150 4,760 6,018 1,856 2,922 1,700 350 63 4,151 2,448 265 244 18, 796 12, 374 11,388 1,905 2,320 4,347 1,028 32 252 414 31 128 3,254 2,131 242 2,375 1,567 228 1,184 1,259 213 1,026 1,340 233 14, 574 Animal resources Forestry 10, 157 1,298 431 Development corporations- Education __ Communications Water supplies (rural) 18, 716 9,401 11,388 1,905 2,319 2,185 678 17 17, 021 8,841 11,388 1,905 2,319 1,484 48 1 17, 085 8,841 11,388 1,905 2,319 1,295 28 1 18, 055 8,841 11,388 1,905 2,319 1,285 90,823 53, 056 62, 956 11,380 Water supplies (urban) 14, 518 Health 12,298 Social welfare and cooperatives Land and survey 2,131 59 252 Administrative and judicial buildings... Training 864 140 320 264 346 68 2,275 171 144 272 Total 24, 065 60, 121 52, 698 47, 441 45, 865 46, 459 276, 650 Note: Totals do not necessarily add exactly due to rounding. Source: Nigerian Federal Ministry of Economic Development, National Development Plan, 1962-68, Lagos, 1962; page 180. 40 Table 26. — Eastern Nigeria Development Program Capital Expenditure by Project, 7962-68 [Thousands of dollars] Project I. Primary production Tree crops: Ministry schemes Rubber planting scheme Palm grove rehabilitation scheme- Cocoa planting scheme. Farm settlements Cross River scheme Minor crops. .. Allocation Total Tree crops: E.N.D.C plantation schemes Oil palm plantations..- _ Rubber plantations _ Cocoa plantations Coconut plantations Cashew plantations Total Agricultural training, research and extension Extension training program, including erlnary Livestock extension Community development Agricultural information Agricultural research vet- Total Animal health and husbandry Regional livestock center Poultry center Brooder units Obudu cattle ranch Animal feed mill Trypanosomiasis units Veterinary services (including hides and skins). Total Fisheries and forestry Fisheries... Forestry. Total Land use Niger Delta scheme Soil and land use survey. Total Supporting services for agriculture Machinery pool Processing machinery Agricultural credit Total II. Trade and industry Trans-Amadi Industrial layout Other industrial layouts and estates. Industrial production Industrial institutes and centers Small industry loan scheme Cooperatives Total III. Electricity Rural electrification. IV. Transport Roads and bridges. . Inland waterways... Total See footnote at end of table. 8,330 5,376 1,680 17,150 7,000 280 39, 816 5,678 18, 620 6,714 246 546 31,805 3,671 112 1,148 95 840 5,866 140 185 294 678 140 78 504 2,019 428 428 857 210 280 490 238 1,120 2,800 4,158 3,651 1,400 28,000 633 1,400 1,120 36, 204 1,680 24,640 140 24, 780 Table 26. — Eastern Nigeria Development Program Capital Expenditure by Project, J 962-68 — Con. Project V. Water supplies Rural water supply. . Urban water supply. Total VI. Education University of Nigeria _ Secondary grammar schools Scholarships and training of engineers _ _ Teachers' Training College... Rural education Women's Occupational Training College Secretarial training Institute of Administration Trade centers and technical institutes Handicraft centers Other education and training programs to be de- veloped Total VII. Health Hospital expansion. Mental health Dental service Urban health Rural health. School health Malaria control Health education... Total VIII. Town and country planning Residential estates Town planning Survey division _._ 'Housing Corporation Government staff housing scheme. Allocation Total IX. Social Welfare Fire service Libraries. Sports facilities. Total X. Public Information Information... XL Justice Administration of justice XII. General government New legislature Miscellaneous administration — Completion of 1958-62 building program. Rehabilitation and Works Organization. Government printer Total XIII. Financial obligations Local government- - 5,600 14,280 3,640 955 1,450 1,400 126 56 81 795 2,906 210 13, 034 24, 654 3,940 42 98 213 560 17 84 140 5,093 2,660 227 70 5,600 700 9,257 504 501 490 1,495 1,260 700 2,240 1,028 1,686 470 364 5,788 336 1 Eastern Nigeria Development Corporation. Source: Nigerian Federal Ministry of Economic Development, National Development Plan, 1962-68, Lagos, 1962; pages 197 to 266. Large-scale industries. — A sum of $28 million has been allocated for participation or direct in- vestment in medium- and large-scale industries. Factories are under consideration or have been proposed in a number of lines, including glass- ware, cigarettes, enamelware, printing and station- ery, matches, tires and tubes, insecticides and agri- cultural chemicals, and refrigerator assembly. Urban water supply. — A total of $17.5 million is scheduled for expenditure to improve water supply to urban areas. Priority attention is given to providing adequate water systems for existing or proposed industrial estates. Roads and bridges. — Plans for improvement of commercially and industrially important routes will require outlays totaling $17.5 million; about $2.5 million of this will be devoted to construction of a bridge at Sapele. Farm settlements. — Approximately $14.6 mil- lion will be spent on farm settlement projects which involve agricultural training, opening of ad- ditional land for cultivation, and extension serv- ices to encourage the adoption of modern agricul- tural techniques. University. — Some $14 million will be channeled into the newly established Ife University to help meet the increasing manpower requirements of in- dustry, commerce, and public service. Table 27. — Western Nigeria Development Program Capital Expenditure by Project, 1962-68 [Thousands of dollars] Table 27. — Western Nigeria Development Program Capital Expenditure by Project, 1962-68 — Con. Project I. Primary production Farm settlements Farm institutes Agricultural research _. Agricultural extension Veterinary services Plantations Fisheries Forestry. Integrated rural development for special areas: agrl cultural schemes. Credit facilities for primary production Subtotal.. II. Industrial production Cottage and rural industries Small-scale industries. Allocation 15,630 448 717 7,728 1,240 8,400 400 266 2,800 14, 000 51,629 3,842 Project II. Industrial production — Continued Integrated rural development for special areas: indus- trial schemes Large-scale industries Industrial credit facilities (including Development Bank) Industrial estates Subtotal... III. Economic and social services and administration Roads and bridges Inland waterways Electricity _ Urban water supply Rural water supply Water board Town and country planning (including training) Ibadan slum clearance: preliminary investigation Land acquisition , Surveys Housing mortgage finance Housing estates Staff housing scheme Integrated rural development: low-cost, self-aided rural housing Integrated rural development: village reconstruction. Trade: Office equipment and library Credit Facilities to small business Education Primary Secondary grammar schools _._ Teacher training ._ Technical and commercial University Modern aids to teaching _. Cultural activities Cooperatives (cooperative bank, credit facilities, college and library) Health and social welfare Information services Fire services Printing Broadcasting and television Law courts Government offices and buildings general Loans to local government councils Service authorities Subtotal Grand total Allocation 1,400 28, 000 19,040 9,332 62, 272 17, 500 280 4,200 17, 500 8,688 1,400 4,480 280 1,400 224 5,600 7,000 2,800 2,800 1,400 14 3,360 2,240 6,440 8,092 4,340 14, 000 588 280 4,217 4,581 1,288 1,400 36 840 1,238 3,119 4,480 2,800 138, 902 i 252, 804 1 Projects do not necessarily add exactly to subtotals and grand total due to rounding. Source: Nigerian Federal Ministry of Economic Development, National Development Plan, 1962-68, Lagos, 1962, pages 342 to 344. 42 CHAPTER IV Distribution and Trade Promotion MARKETING CHANNELS Centers of Business and Transportation Nigeria's two principal port cities are Lagos, through which over 65 percent of the country's import traffic flows, and Port Harcourt, which handles about 20 percent of such shipping. From these cities and from several smaller ports — in- cluding Calabar, Sapele, Warri, and Burutu — im- ported goods travel by truck, rail, river boat, or combination of the three, to other major com- mercial centers throughout Nigeria. Lagos and Port Harcourt are the only ports linked by rail with the interior ; the rail lines from these two cities join at Kaduna Junction in the Port Harcourt, Nigeria Northern Region, and the railway then extends to the principal produce centers of the north, such as Zaria, Kano, and Jos. The rail line is presently being extended some 400 miles to Maiduguri in the northeastern part of the country. Lagos ranks as the leading financial, commercial, and political center of the country, and virtually all large companies operating in Nigeria have offices located in the Lagos area. A number of other cities, however, are of considerable commer- cial importance both as markets within themselves and as central distribution points serving smaller towns and outlying rural areas. Most large and medium-sized firms, therefore, have outlets and/or servicing facilities located in several of these larger population centers — Kaduna, Kano, Zaria, Jos, Makurdi, and Maiduguri in the North; Enugu, Port Harcourt, Onitsha, Aba, and Calabar in the East ; and Ibadan, Oshogbo, Benin, and Sapele in the West. Structure of Trade The marketing system in Nigeria varies widely for different types of goods. Technical and pro- ducers goods and consumer items requiring tech- nical servicing are handled almost exclusively by the large expatriate trading companies with trained staff and physical facilities to provide in- stallation and maintenance services throughout the country. More sophisticated and higher- priced consumer items, similarly, are marketed largely through the department stores and larger established retail outlets in principal cities which are operated for the most part by expatriate firms. Consumer goods for the mass market are distrib- uted through a complex supply system which may involve expatriate or Nigerian firms as principal importers and a great many individual traders 43 in intermediate roles between the original whole- sale purchase and ultimate sale to the consumer. Historically, the leading position in Nigeria's import trade has been held by a small number of major trading companies of British, French, and Swiss nationality. It is estimated that in 1949 some 85 percent of all imports were handled by European firms whereas Lebanese and Indian mer- chant houses imported 10 percent and African firms only 5 percent. These large companies still play a major role — they account for probably 50 to 60 percent of the country's imports today — but important changes are taking place in the structure of Nigeria's dis- tribution and marketing system and in the func- tions performed in the system by the major trad- ing firms. On the one hand, an increasing num- ber of small and medium-sized importing firms, many of them of Nigerian nationality, have en- tered the general merchandising field. On the other hand, the larger expatriate organizations, such as United Africa Company and John Holt, Ltd., have initiated programs to withdraw from some of their traditional activities — produce buy- ing and retail and wholesale trade in consumer items standard on the African market — and to redeploy their resources into more technical, capi- tal intensive, or specialized fields of commerce and industry. This redeployment, of course, is ac- tively encouraged by the Government, which is anxious to see Nigerian businessmen occupy a more prominent place in both foreign and domestic trade. A recent annual report of the United Africa Company explains the organizational shifts being made by the established trading companies this way: "Given the pattern of change that is currently taking place in the operations of leading mer- chants in tropical Africa, the trend of structural redeployment is from a basically monolithic mer- chant structure, with its network of distributing stations and its worldwide spread of buying organ- izations, to a group of virtually autonomous in- dustrial and specialized merchandising units, each drawing upon the parent body for capital, special- ized operational expertise not locally available and certain centralized services. . . . Basically, this trend of change is dictated by technical and eco- nomic considerations. A brewery requires a quite different and distinct setup from a cement factory; the merchandising machinery for phar- maceuticals has little in common with that for motor vehicles ; or that for textiles with domestic electrical goods." x Trading companies act primarily as representa- tives for : 1. Machinery, capital equipment, and other types of goods which require substantial invest- ments in servicing facilities, technical staff, and spare parts imrentory. 2. Higher-priced or more sophisticated con- sumer items or specialized lines of merchandise which can be marketed through the chains of de- partment stores or other retail outlets (pharmacies, clothing, hardware, or food stores, for example) operated by these companies. Many American companies have made profitable connections in Nigeria with small or medium- sized firms which act principally as manufacturers' representatives. These firms — both expatriate and Nigerian — often trade in a wide variety of capital and consumer goods although as a rule they prefer lines not requiring elaborate servicing or sales facilities. Some of these firms will carry stocks on their own account and act both as distributor and sales manager; most, however, are reluctant to become involved in actual distribution and act chiefly as commission agents. Many types of consumer goods and other items which do not require extensive technical or servic- ing facilities can be distributed effectively through the growing number of Nigerian importers-dis- tributors. A few of these firms also are gradually entering the picture with regard to some types of technical goods. One Nigerian firm, for example, is very successfully selling and servicing Ameri- can-made public address systems. Nigerian firms are expected to become increasingly important in the general retail field as a result both of strong Government and public pressure for Nigerianiza- tion and of the redeployment policies of the large expatriate firms. In selecting an agent, the exporter should con- sider carefully the advantages and disadvantages offered by each of the various classes of importers. Advantages of the major trading companies as business contacts include, generally, their cover- age of Nigeria in terms of sales and servicing facil- ities (many of them, in fact, operate throughout West Africa) ; the potential size of their orders; 1 The United Africa Company Limited, Statistical and Economic Review, April 1963. Shenval Press, London, page 33. 44 Ibadan worker in United Africa Company plastics plant, one of Nigeria's large expatriate trading companies the availability, in many cases, of buying agents in the United States ; their unquestioned financial reliability; and their long experience in foreign trade. At the same time, however, these companies may not be able to provide the kind of individual attention to sales promotion the exporter would desire. Some foreign firms have exclusive importer-dis- tributor agreements with the large trading houses but have set up their own sales and service staff, sometimes within the trading house structure. Thus, the foreign producer takes charge of sales promotion while the trading house imports and distributes the product. Manufacturers agents are often particularly ef- fective in that they can offer representation which covers both the quality market — that is, the depart- ment stores and established retail outlets in urban areas — and the traditional markets of petty traders, bazaar stall holders, and market women. Depending upon the individual firm, of course, the agent may be ideally equipped to carry out inten- sive promotional work and to keep close watch on sales performance and market developments. Advantages of dealing with Nigerian traders in- clude the close touch which they maintain with consumer tastes ; their personal contacts with sub- distributors and their knowledge of business tech- niques in Nigeria; their ability to merchandise a line in small quantities until it gains acceptance; their ability to promote individual lines inten- sively ; and the longrun advantages of doing busi- ness with nationals of Nigeria rather than with resident foreigners. Establishing reliable trade contacts and an effec- tive system of distribution can easily be the most difficult single problem facing a prospective ex- porter, and the businessman planning on entering this market should be prepared to adopt a realistic approach. Capable and well-established importers in Nigeria can afford to be choosy in accepting new agencies or handling new products. Most newly introduced American products will be competing with similar products from manufacturers in the United Kingdom, Western Europe, and Japan who already have working arrangements with major importers. Since the largest firms already handle wide selections in most lines of imports, the Amer- ican exporter may be obliged to deal with a smaller or less experienced representative than he might otherwise prefer. The situation in this regard, of course, will vary with the individual product involved. Managers of even the largest retail chains express an interest in being contacted by exporters or manufacturers with new or competitive product lines ; these firms are in business, and as with firms anywhere else in the world, they are more than happy to take on new lines which offer prospects of higher turn- over or wider profit margins. One American manufacturer, for example, visited Lagos recently with a line of locks and doorknobs which were obviously well suited to the needs of the Nigerian market. This businessman found two or three of the largest and most experienced trading compa- nies operating in Nigeria very anxious to obtain an agency for his product line. Further, small and medium-sized importers sometimes offer advantages which offset what they may lack in size. Several American firms, for ex- ample, have established very successful contacts lately with such importers who are actively seek- ing lines to put on the market in direct competition with established brands of merchandise for which the large European trading houses hold exclusive agencies. 45 Purchasing decisions in the major expatriate firms are generally made at the overseas head- quarters and buying offices of these companies — for the most part in London, Liverpool, Paris, and New York. Representatives of U.S. firms wishing to deal with these larger importers, therefore, should plan to visit their head offices. At the same time, however, contact in person with local man- agers at the Nigerian offices can be very useful; judgments of the local managers as to the market- ability of various products are ordinarily accepted at the home offices of these firms. It is not un- common in this connection for agents to provide shipments on a consignment basis from local stocks so that the local manager is able to test consumer acceptance of a new line. It is frequently suggested that American manu- facturers or exporters should consider establishing their own sales outlets in the country as a means of overcoming the problem of securing really effec- tive sales and service representation. This sugges- tion appears to be most applicable to fields of mer- chandising requiring large investment in technical equipment or inventories, large-scale organiza- tional capability, or specialized knowledge along either technical or managerial lines. Two types of operations are most often men- tioned in this connection as offering profitable op- portunities for American business talents: (1) Technical sales and servicing (establishing an or- ganization to import capital equipment and goods, and to operate a chain of sales and servicing fa- cilities) ; and (2) large-scale general merchandis- ing (operating large, modern department stores). Setting up organizations along either of these lines would not conflict with Government policies aimed at increasing Nigerian participation in commerce. Such operations are acknowledged to be beyond the financial capacity and organiza- tional resources of most Nigerian firms at present, and representatives of the Federal Ministry of Commerce and Industry have stated that addi- tional competition in these lines would be in the public interest. GOVERNMENT PROCUREMENT Procurement of goods and services by the Fed- eral and Regional Governments is handled by each Ministry, there being no central Government pur- chasing agency. While a large part of Govern- ment procurement is channeled through the Crown Agents in London, various other purchasing methods are also used, depending on the size and nature of the order; needed materials, equipment, and services may be obtained by issuing interna- tional tenders (ordinarily issued through the Crown Agents), by publication of local tenders, by direct local purchase, or through contractors responsible for a particular project. Use of direct local purchasing through tenders or otherwise to obtain goods and services is gen- erally restricted to cases where a small project evidently of interest only to local suppliers or contractors is involved, and to procurement of items for day-to-day operations, such as office sup- plies and furniture. Preference, of course, is given to locally manufactured items when avail- able. It is reported, however, that direct pur- chases are becoming increasingly common in some ministeries even for relatively large expenditures, such as routine acquisition and replacement of technical equipment, machinery, and vehicles. American firms seriously interested in supply- ing equipment, materials, or services to Federal or Regional agencies or statutory corporations will find it virtually essential to maintain effective representation in Nigeria, either through an ag- gressive local agent or through the company's own representative. Past experience has shown that price is by no means the sole factor considered by Government agencies in the award of con- tracts; personal contacts can be invaluable in en- suring that full information reaches responsible parties with regard to a product's quality, reli- ability, and servicing and maintenance features. The Crown Agents Office is a private, self- supporting organization which provides a wide range of financial, commercial, and consultative services to governments and to international and Government-sponsored public authorities on a contract basis. The Office charges a commission for services rendered to meet administrative and working costs. The basic function of the Crown Agents, and that for which they are best known, is the purchase, inspection, shipment, and insur- ance of supplies, materials, machinery, and equip- ment of any kind. The organization annually places well over 150.000 orders, totaling some $168 million, with manufacturers in countries all over the world. Governments and public authorities utilizing these services on a regular basis include : Nigerian Federal and Regional Government, Bornu Native 46 Administration, Kano Native Authority, Katsina Native Authority, Lagos Town Council, Sokoto Native Administration, Nigerian Railway Cor- poration, Nigerian Broadcasting Corporation, Nigerian Ports Authority, Central Bank of Ni- geria, Eastern Nigeria Information Services Cor- poration, Eastern Nigera Library Board, Nigerian Coal Corporation, Nigeria Hotels, Nigeria Delta Development Board, Northern Nigerian Native Authorities Housing Corporation, Western Ni- geria Development Corporation, Western Nigeria Housing Corporation, Ahmadu Bello University, Ibadan University College, Nigeria College of Arts, Science and Technology, University of Ife, University of Nigeria, and Nigerian Defense Forces. Since the reputation of the Crown Agents rests on their ability to secure for clients virtually any item on the international market from least-cost sources, the company maintains a large staff of specialists whose job it is to maintain intimate knowledge of products of all kinds available in the major manufacturing countries of the world. Manufacturers are invited to submit particulars of their products to the head office of the Crown Agents at 4 Millbank, London, S.W. 1, England, or to the branch office in the United States at 3100 Massachusetts Avenue NW, Washington, D.C., 20036. ADVERTISING Use of advertising has grown very rapidly in the past few years. In view of the essentially con- servative buying habits of most consumers, manu- facturers have found advertising to be not only effective but necessary in securing widespread acceptance of new products on the market. At the same time, as the market has become so in- tensely competitive in almost all fields recently, even those producers with old established lines have found it necessary to increase their advertis- ing, both in scope and intensity, to keep their prod- ucts in the mind of the buying public and to maintain sales. As a rule, uncomplicated and straightf or warded presentation has proven most effective. With the relatively low rate of literacy in the country, ad- vertisers invariably use clear, uncluttered illustra- tions and simple messages aimed at establishing direct product recognition. Most advertising for consumers' goods appeals directly and openly to the consumers' aspiration for financial success, phyical prowess, and, espe- cially, popularity; subtlety in presentation is not generally profitable. "Situation advertising," whether printed or verbal, typically relates the story of someone achieving success in one form or another as a direct result of using the product in question. Poster, magazine, and newspaper ads often show the consumer in an obviously desirable setting — it is a rule that the product itself must be clearly and prominently displayed in the picture — and have short, to-the-point messages. A number of advertising firms are operating in Nigeria. Most of them are under British man- agement and provide services in other African countries as well. At least one American advertis- ing firm is presently considering establishing of- fices in Nigeria. Local advertising firms are well acquainted with the most effective marketing techniques in Nigeria and with the suitability of the various media for promoting sales of any particular type of product. Services of a firm with offices in the country should definitely be utilized by any manufacturer intend- ing to direct a promotional effort at the Nigerian market. Factors influencing the Nigerian's de- cision to buy are not always identical with those of his American or European counterpart., and unless the characteristics of the buyer in Nigeria are taken fully into account, an advertising cam- paign might misfire completely. Small points in wording of advertising copy, for example, can have an important bearing on the effectiveness of a sales promotion program; although English is the official language in Nigeria, levels of compre- hension vary widely, and local usage sometimes differs from that in the United States. Newspapers The average Nigerian has a great interest in current events, and newspapers are very widely read. In many villages and markets it is common for the paper to be read aloud — every word of it, including advertisements — so that the medium's effectiveness extends beyond the literate popula- tion, and readership figures per copy are much higher than in the United States or in European countries. Ads for producers' equipment appear more fre- quently in Nigerian papers than in the United 47 States due to the relative lack of specialized trade publications. A number of newspapers are published in Ni- geria; most are in English although there are a number printed in the principal vernacular lan- guages. Advertising rates are quite low. Leading English language papers are the following (esti- mated circulation in parentheses) : Daily— Daily Times (114,600); Morning Post (65,000) ; Daily Express (55,300) ; West African Pilot (47,300) ; Nigerian Tribune (30,000). Weekly— Sunday Times (147,300) ; Sunday Express (72,200) ; Sunday Post (68,600) ; Nige- rian Citizen (28,000). Magazines Several popular magazines enjoy wide circu- lation. As with newspapers, multiple readership is very high so that circulation figures greatly un- derstate advertising effectiveness; estimated life of many magazines in the country is 3 months, and readership per copy is placed by some as high as 15 to 20. In addition to the magazines listed below, which relate especially to Nigeria, a number of popular British and American periodicals are sold in the country. Advertising rates shown are for single insertions in black and white; color ads may be placed in most magazines at extra cost, and rates are discounted for multiple insertions. Drum : A pictorial, general interest monthly which is printed in several editions and circulates in many African countries. The Nigerian edition contains about 50 pages and sells for 14 cents. Circulation of Nigerian edition : 116,000, includ- ing 8,000 copies going to Sierra Leone. Rates : Range from $35.50 for a 3-inch, single- column ad to $709.80 for a full page. Spear: A monthly general interest magazine circulating primarily in Nigeria, but sold also in other English-speaking West African countries and in London. Contains about 50 pages, with a cover price of 14 cents. Circulation: 41,000. Rates: $3.64 per single-column inch; $154 for full page. Flamingo : A monthly picture magazine printed in three editions — British, West African, and American. The West African edition circulates in Ghana, Nigeria, Sierra Leone, and Liberia. Price is 14 cents. Circulation: 37,000. Rates: $7.70 per single-column inch; $210 for full page. Read : The Nigerian edition of Reader's Digest. A monthly, running about 80 pages, this magazine was introduced at the beginning of 1963. Cover price is 14 cents. Circidation: 25,000 (guaranteed). Rates : $140 for full page. West Africa: A weekly news-type magazine published in London and dealing with political and economic developments in West Africa. Circu- lates in interested business, academic, and Govern- ment circles both in Africa and in overseas countries. Price is 14 cents. Circulation: 8,000. Rates : Vary from $8.75 for an eighth page to $70 for a full page. Trade Publications and Professional Journals Formation of trade associations in Nigeria has thus far been somewhat limited, and there are rel- atively few trade journals published relating spe- cifically to Nigeria. Those trade publications in circulation, however, are widely read in relevant circles, and appear to offer an effective means of reaching selective audiences. Leading Nigerian publications of this type are: Nigeria Trade Journal : A quarterly, published by the Nigerian Federal Ministry of Information, which carries articles on trade, industry, and agri- culture and reviews of marketing conditions of the country's principal exports and imports. Cover price is 35 cents. There are ordinarily about 48 pages of text and 48 pages of advertising in the magazine. Read by businessmen, Government offi- cials, and researchers both in Nigeria and overseas. Circulation: 7,000. Rates: Vary from $33.60 for a quarter page to $112 for full page. West African Technical Review. Quarterly. Contains articles on industry, technology, and technical education and research. Published by W A Technical Review, Buckingham House, Princess Street, Manchester 1, England. First issue (May 1963), 48 pages self-covered with 22 pages of advertising. Price, 35 cents a copy. 48 The Broadsheet. Monthly, published by Fed- eration of Building and Civil Engineering Con- tractors in Nigeria, P.O. Box 220, Yaba, Lagos. Contains 10 to 12 pages of mimeographed news items on construction and engineering develop- ments. Circulation: 550. Rates: $11.20 for full page. Commerce in Nigeria : The annually published organ of the Lagos Chamber of Commerce. Con- tains about 140 pages of general articles on trade and industry in Nigeria as well as a classified di- rectory of member firms of the Lagos chamber. Distribution is to member firms in Nigeria and to chambers of commerce and trade associations in other countries. Circulation: 4,000. Rates : From $26.25 for a half page to $105 for full page. The Lagos Chamber of Commerce also publishes a Quarterly Review which contains items of in- terest to businessmen operating in Nigeria. The circulation of approximately 800 is almost en- tirely within the country to member firms and government agencies. Rate for a full page ad is $56. West African Builder and Architect: A bi- monthly containing articles of interest to firms en- gaged in building and construction in West Africa. Read by private businessmen, personnel of town planning authorities and other interested Govern- ment departments, and professional architects and engineers in Nigeria (55 percent of total distribu- tion), Ghana (30 percent), Sierra Leone (5 per- cent), and overseas countries (10 percent). Price is 49 cents per copy which, on the average, con- tains some 20 pages of text and 34 pages of ad- vertisement. Circulation: 2,000 (total). Rates: From $25.20 for a quarter page to $70 for full page. The Nigerian Grower and Producer: A bi- monthly devoted to agriculture, stock raising, for- estry, and related topics. About 24 pages in length, cost is 18 cants. The publication circulates widely among larger scale agricultural producers, and interested government and research agencies in Nigeria. Rates: From $25.20 for a quarter page to $70 for full page. West African Medical Journal : A bimonthly journal presenting papers concerned with medical cases and problems in West Africa. Contains about 50 pages of text and 36 pages of advertise- ment. Price is 84 cents per issue. The journal is read by the medical profession in Nigeria and other English-speaking West African countries; approximately 55 percent of total circulation is within Nigeria. Circulation: Over 1,000 (total). Rates: From $19.60 for a quarter page to $56 for full page. West African Pharmacist: A bimonthly deal- ing with pharmaceutical activities and develop- ments in Nigeria, Ghana, Sierra Leone, and Gambia. Contains about 24 pages of text and 26 pages of advertisement. Circulates to Govern- ment health departments, libraries, private phar- macists, and pharmacists in hospitals and medical centers throughout West Africa. About 45 per- cent of total distribution is to Nigeria. Circulation: 1,250. Rates: From $19.60 for a quarter page to $56 for full page. Journal of the Pharmaceutical Society of Ni- geria : A quarterly professional journal ordinarily containing approximately 24 pages of text and 8 pages of advertising. Cost is 46 cents per issue. Rates : From $19.60 for a quarter page to $46.20 for full page. West African Directory, 1963-64 : A newly pub- lished annual, hard bound, and over 600 pages in length. Gives a wide range of political, economic, financial, and commercial information on both English- and French-speaking West African coun- tries as well as a classified business directory for each country. Cover price is $5.88 per copy, and circulation is primarily to businessmen interested in trade and investment in West Africa. See sec- tion, Nigerian Directories and Government Pub- lications and Services. Rates : From $39.20 for a quarter page to $168 for full page. Radio and Television Five broadcasting companies provide radio coverage to the entire country and television service to the principal cities. Advertising men in Nigeria regard radio as one of the most effective means of reaching the mass 49 audience, because of the large number of sets in operation, and because effectiveness of the me- dium is not restricted by literacy problems. There are no accurate statistics as to the number of radio sets in Nigeria. According to estimates made by the various broadcasting companies, however, there are about 200,000 radios in the Northern Region, 215,000 in Lagos and the Western Region, and over 1 million in the Eastern Region. The total, therefore, may be as high as 1.5 million. The number of sets purchased has been increas- ing rapidly with the introduction into the market of low-cost radios and transistorized portable sets which do not depend on electricity installed in the home — small plug-in models with standard broad- cast and one shortwave band are currently retail- ing for as low as $17.50 and transistor portables with standard and two shortwave bands for $32. One broadcasting executive has reported that radio ownership should increase very sharply in the near future since a Japanese-made standard-band tran- sistor radio retailing for only $9.80 is about to be introduced. The average number of listeners per radio in Nigeria appears to be high. Most sources agree on an estimate of six. The number of television sets in Nigeria is not- large. Station operators estimate that there are presently about 1,200 sets in the North, 1,500 in the East, and 10,000 in Lagos and the West, The number in the East is expected to increase substan- tially, however, when television broadcasting is extended to the high-income Port Harcourt area in mid-1964. Television sets are owned primarily by expa- triate families and by high-income Nigerian busi- nessmen and Government officials; a small but gradually increasing number are sold to middle- income Nigerians, such as executive officers and traders. The number of viewers per set varies widely, ranging from an estimated 4 in the homes of expatriate families to as high as 75 in some of the middle-class homes where television viewing often involves an entire neighborhood. Commun- ity viewing centers have been established in a large number of villages throughout the country; at- tendance at these centers frequently ranges from 200 to 300 persons. On an overall basis, the aver- age number of viewers per set is estimated to be 25. Sponsored programs and spot or station break announcements are available on all radio and tele- vision stations, and all stations are staffed to pro- duce commercials in English or any of the popular vernacular languages. Production charges are nominal. For illustrative purposes, advertising rates are given below for each station for 30 and 60 second spot announcements on prime time. Frequency discounts apply, and rates are less for off-peak listening hours. Nigerian Broadcasting Corporation (NBC) covers all of Nigeria, broadcasting on shortwave, mediumwave, and FM. Programs of national in- terest are transmitted over the country as a whole, while those of regional interest are broadcast sep- arately from the regional headquarters in Ibadan, Enugu, and Kaduna. Commercials may be ar- ranged for national or regional coverage. Programs are also carried over a system of re- diffusion boxes which are wired into homes for a monthly charge of 6 shillings ($0.84). About 86,000 of these extension speakers are currently installed. Hours : 6 :20 a.m. to 8 p.m. Rates : (national coverage) 60 seconds — $55.30 ; 30 seconds— $30.80 Nigerian Television Service (NTS) : Presently broadcasting only to the Lagos area, this station will operate an additional transmitter in Ibadan in the near future. Hours: 5.45 p.m. to 9.30 p.m., weekdays; 5:45 p.m. to 10.30 p.m., Saturdays and Sundays. Rates: 60 seconds— $33.60 ; 30 seconds— $22.40. Western Nigeria Radiovision Service, Ltd. Sound Broadcasting (WNBS) : Operates short- wave and mediumwave transmitters covering the Western Region, including Lagos. Hours : 6 a.m. to midnight, daily. Rates: 45 seconds— $14; 30 seconds— $11.20. Television Network (WNTV) : Operates trans- mitters in Ibadan and Lagos. Hours: 37i/ 2 hours a week. Rates: 60 seconds— $33.60 ; 30 seconds— $22.40. Eastern Nigeria Broadcasting Corporation Radio (ENBS) : Transmits on medium and short-wave bands, covering all of Eastern Nigeria. Hours: 6 a.m. to midnight Monday through Saturday; 7 a.m. to 11 p.m. Sunday. Rates : 45 seconds— $14 ; 30 seconds— $11.20. 50 Television (ENTV) : Transmitter presently op- erating at Enugu, with additional facility being installed at Aba to cover the heavily populated Port Harcourt area. Hours : 6 :30 p.m. to 11 p.m. nightly. Rates: 60 second— $25.20; 30 seconds— $16.80. Broadcasting Company of Northern Nigeria, Ltd. Radio (Radio Kaduna) : Covers all of Northern Nigeria on shortwave and mediumwave bands. Hours: 5 p.m. to 11 p.m. Rates : 60 seconds— $14 ; 30 seconds— $7.70. Television (Radio Kaduna Television) : Signals broadcast to Kaduna, Zaria, and Kano. Hours: 7 p.m. to 10 p.m. Sunday-Friday; no transmissions Saturday. Rates : 60 seconds— $28 ; 30 seconds— $15.40. Theaters Motion picture advertising is widely used and the 90 or so theaters operating throughout the country offer an effective means of reaching a large number of potential customers. The annual theater audience is estimated at 5 million persons. An advantage of theater advertising is that it reaches a population above the subsistence level and with some freely disposable income; admis- sion prices ordinarily run from the equivalent of $0.20 to $0.50. Advertising rates vary depending on location and size of theaters ; charges for nightly showings of a 1-minute film range from approximately $20 to $35 per week. Point-of-Sale Advertising Point-of-sale advertising is used increasingly in department stores and larger established retail out- lets in Nigeria. Managers of these stores are aware of the importance of attractive product presenta- tion and of the effects proper placement of mer- chandise can have on impulse buying. Display material from manufacturers is welcomed and, when provided, is invariably used to great advantage. In the smaller retail shops and market stalls throughout the country, however, such merchan- dising aids are seldom if ever used. Goods are usually stacked or arranged in an orderly man- ner, but space limitations and the small stocks of any particular item usually carried by these mer- chants preclude the use of elaborate display material. Product presentation is important in this mar- keting situation, as it is in any other, however, and much can be done through attractive packaging. Other Media Other advertising media used in Nigeria include bus and train placards, posters, billboards, and traveling sales promotion vans. Advertising in buses is used in the Lagos area where the only municipal bus system is operated. The railway system is well developed; some 11 million passengers are carried annually. Posters and billboards are used very extensively in cities and villages and along roadways all over the country. Sound vans are a widely used and very effective method of advertising in Nigeria. These vans, generally operated by manufacturers agents or by direct importers with exclusive lines, travel to the cities, towns, and even small villages. Music or other entertainment is used in order to attract a crowd ; this is followed by an intensive sales presen- tation and a demonstration of the product. Advertising with vans is an expensive operation in terms of cost per customer reached, but it is con- sidered to be highly effective and indeed essential as a means of introducing new products into more remote market areas. PACKING AND PRESENTATION Businessmen well acquainted with product pres- entation in West Africa are unanimous in their opinion that the most effective label on an item to be sold in Nigeria is one which is already widely recognized in European or American markets, and that, in most cases, little is to be gained from de- signing new package markings especially for the purpose of appealing to the Nigerian customer. Many experts recommend, when the packaging of an item already being sold in the country is to be changed in any way, that the new package, if at all possible, should first be displayed in the larger retail outlets where the expatriate and high- income Nigerian population does its shopping, and that sufficient advertising should be posted to as- sure the consumer that only the package and not the product has been altered. Where the item 51 has been enjoying good sales in Nigeria, such changes should be made only after careful con- sideration and consultation with local marketing specialists to ensure that adverse effects on sales are not encountered. Close attention should be given to the size of the container and the type of packaging material in which the item will be sold. Many products are sold at the retail level in very small quantities, and, for types of goods where this factor is rele- vant, manufacturers may well find it advantageous to package accordingly. Containers usually have value in Nigeria aside from their contents — they are used to store food in the home and for a variety of other purposes — so that reusable containers of glass, metal, or plastic are generally preferable to paper cartons or cellophane bags. There are few general statements that can be made regarding the most effective design of labels or special packages for the Nigerian consumer market. One recognized rule is that the design should be distinctive and incorporate some sort Infant care products find a promising market at this "baby corner'* in an Ibadan department store. 52 of bold, clearly understandable symbol so that the item is readily distinguishable by the package or mark itself. The most important rule, however, is that local advice from competent marketing spe- cialists should be sought in any such undertaking. With regard to crating shipments of goods for Nigeria, use of rugged materials is extremely im- portant; cardboard boxes alone usually are not sufficient, and goods so packed are very likely to reach their ultimate destination in damaged con- dition. Goods are liable to be landed by lighter at many Nigerian ports, to be handled at several points in transit, and to be exposed to severe cli- matic conditions during transportation to inland points. Crates should be clearly marked and, where possible, of a size to facilitate loading and unloading by hand. Packing should also be such as to minimize risk of pilferage. Items subject to damage by humidity or moisture should be packed in sealed containers or waterproof mate- rials, and perishable goods must be in airtight containers. CHAMBERS OF COMMERCE AND TRADE ASSOCIATIONS Chambers of commerce have been organized in a number of Nigeria's leading cities and commer- cial centers, and members of these organizations in most cases include almost all established indus- trial and commercial firms in their respective com- munities. The chambers perform all functions normally associated with such organizations, act- ing as representatives for the business community, furthering common interests of the members, and holding regularly scheduled meetings to discuss legislative changes affecting commerce or industry and other pertinent matters. Bulletins are sent by the chambers to all mem- bers giving the minutes of meetings as well as in- formation about trade inquiries received from firms abroad. This is a useful service through which an American firm may be able to establish business contacts in a particular city. The various chambers of commerce are also able to assist visiting businessmen in making local con- tacts, in obtaining general economic or commer- cial information about a community, or in establishing an operation. Trade associations in Nigeria may also be useful points of contact. Some of the associations such as the Nigeria Timber Association and the Ni- gerian Chamber of Mines have been in operation for a number of years and are quite active, while others are relatively new organizations which have not as yet acquired a wide membership. Some of the principal chambers of commerce and trade associations in Nigeria are the follow- ing: Aba Chamber of Commerce P.O. Box 622, Aba African Chamber of Commerce 73, Oluwole Street, P.O. Box 478, Lagos Association of Accountants in Nigeria Marina House 63 Marina, P.O. Box 549, Lagos Association of Master Bakers, Confectioners and Caterers of Nigeria 13/15, Custom Street, Lagos Association of Singlet and Shirt Manufacturers (Ni- geria) 64, Idoluwo Street, Lagos Association of West African Travel Agents (Nigeria) P.O. Box 35, Lagos Federation of Building and Civil Engineering Contrac- tors 8, Jibowu Street, P.O. Box 220, Yaba Ibadan Chamber of Commerce Co-operative Bank Building Private Mail Bag 5168, Ibadan Kano Chamber of Commerce P.O. Box 10, Kano Lagos Chamber of Commerce 35/37, Martin Street, P.O. Box 109, Lagos Nigerian Association of African Importers and Ex- porters 35, Kosoko Street, Lagos Nigerian Chamber of Mines P.O. Box 454, Jos Nigerian Motor Distributors' Association P.O. Box 542, Lagos Nigerian Rubber Dealers' Association P.O. Box 27, Sapele Nigeria Timber Association 60/1, Martin Street, Private Mail Bag 2264, Lagos Onitsha Chamber of Commerce 50, Old Market Road, P.O. Box 181, Onitsha Pharmaceutical Society of Nigeria 4, Tinubu Square, P.O. Box 546, Lagos Port Harcourt Chamber of Commerce P.O. Box 71, Port Harcourt Refrigeration Association of Nigeria c/o Federal Institute of Industrial Research, Lagos Federal Ministry of Commerce and Industry P.M.B. 1023, Lagos Second-Hand Clothing Importers' Association 19, Milverton Avenue, P.O. Box 252, Aba 53 CREDIT INFORMATION Credit information on firms in Nigeria is avail- able to the American exporter from several sources ; in keeping with sound business practice in international trade, the exporter should make full use of these facilities and obtain as much data as possible about prospective trade contacts before making any business commitments. The most readily available source of such infor- mation is the exporter's local bank. Most Ameri- can banks doing international business have corre- spondents among the licensed banks operating in Nigeria and can obtain information for their cus- tomers about Nigerian firms through these corre- spondents. Licensed commercial banks in Nigeria are the following (addresses of the head offices in Nigeria only are shown; the majority of these banks also have branch offices throughout the country) : African Continental Bank, Ltd.* 148, Broad Street, Lagos Agbonmagbe Bank, Ltd. 168, Strachan Street, Eboute-Metta, Lagos Arab Bank, Ltd.* Abibu Oki Street, Lagos Bank of America* 136, Broad Street, Lagos Bank of West Africa, Ltd.* Marina, Lagos Bank of India, Ltd.* 36/38, Balogun Square, Lagos Bank of Lagos* 5/7, Belogun Street, Lagos Bank of the North, Ltd.* 9D, Civic Centre, Kano Banque de L'Afrique Occidentale* 30, Hadejia Road, Kano Barclays Bank D.C.O.* 40, Marina, Lagos Berini (Beirut Riyad) Nigeria Bank, Ltd.* 38, Balogun Street, Lagos Chase Manhattan Bank* Investment House, Broad Street, Lagos Co-operative Bank of Eastern Nigeria, Ltd. Milverton Avenue, Aba Co-operative Bank of Western Nigeria, Ltd. Co-operative Buildings, New Court Road Private Mail Bag 5137, Ibadan Muslim Bank (West Africa) , Ltd. 16, Williams Street, Lagos National Bank of Nigeria, Ltd.* 82/86, Broad Street, Lagos United Bank for Africa* ( partly owned by Bankers Trust Company of New York ) 127/129, Broad Street, Lagos •Authorized foreign exchange banks. Other ready sources of credit information on firms in Nigeria include the U.S. Department of Commerce and the Nigerian Federal Ministry of Commerce and Industry. Services of these Gov- ernment agencies are discussed in the next section. Exporters are cautioned to verify the reliability of credit information which may be received from unknown credit rating or guaranteeing firms abroad. A number of American and other foreign firms over the past few years have sustained losses after making shipments to Nigeria on the basis of credit reports received from fictitious Nigerian commercial credit or guarantee firms. Activities of such fraudulent credit agencies, of course, are of serious concern to the vast majority of reputa- ble businessmen in Nigeria and to the Nigerian Government, and efforts are being made to control these instances of business malpractice. Informa- tion on the reliability of any unknown Nigerian financial agency from which credit reports are received may be obtained through U.S. Depart- ment of Commerce Field Offices, from the Com- mercial Intelligence Division of the Department of Commerce in Washington, or from the Nigerian Federal Ministry of Commerce and Industry. MARKETING AIDS U.S. Government Services and Publications The U.S. Department of Commerce offers a wide range of services and publications designed to as- sist American businessmen trading or investing abroad. The manufacturer or exporter consider- ing the Nigerian market is encouraged to utilize these services : — To obtain lists of firms in Nigeria. Trade lists are compiled by Foreign Service Officers abroad and published by the Commerce Depart- ment, giving names and addresses of firms and short descriptions of their operations. They are available for $1 each from any Commerce Depart- ment Field Office or from the Commercial Intelli- gence Division, U.S. Department of Commerce, Washington, D.C., 20230. The following trade lists have been prepared for Nigeria : Air Conditioning & Refrigeration Equipment — I, D, & M Automotive Vehicles & Equipment — I & D Beverages, Non-Alcoholic — M Books, Magazines & Periodicals — I & D Chemicals— I & D Dry Goods & Clothing — I & D Electronic Equipment for Home Entertainment, Phono- graph Records and Pre-Recorded Tapes — I, D, & M 54 Hardware — I & D Importers and Manufacturer's Representatives (a list- ing of large and medium-sized importers active in more than one line of business, including all the major trading companies) Machinery, Equipment & Supplies, Electrical — I & D Machinery & Equipment, Except Electrical — I & D Machinery & Equipment, Farm — I, D, & M Medicinal & Toilet Preparations — I, D, & M Mining Companies & Exporters of Ores Office Supplies & Equipment, Paper & Stationery — I & D Petroleum Products— I, D, P & R Provisions — I & D Tobacco & Tobacco Products — I, D, & M (D — Dealers or Distributors; I — Importers; M — Manu- facturers ; P — Producers ; R — Refiners ) — To obtain descriptive information on firms in Nigeria. World Trade Directory Reports (WTD's) are compiled and distributed in the same manner as Trade Lists and, are available for $1 each. WTD's may be obtained on firms in any Free World country ; each report contains detailed commercial and sales information on a spe«fic foreign firm to provide a basis for determining the firm's competence and reliability. Informa- tion includes data as to type of organization, method of operation, lines handled, size, capitaliza- tion, sales volume, names of officers, reputation, representatives in the United States and U.S. lines represented (if any) as well as sources of credit information and other references. — To find an agent or representative in Ni- geria. Trade Contact Surveys will be made on request by commercial specialists at the American Embassy, Lagos. Local firms are contacted to lo- cate a qualified agent, distributor, or licensee; the Embassy's report will give pertinent information on firms expressing an interest and meeting the American firm's specific requirements (at least three if possible) as well as marketing data for the product(s) involved. A charge of $50 is made for each survey. Details and necessary application forms are available from Commerce Department Field Offices or from the Commercial Intelligence Division, Department of Commerce, Washington, D.C. Ibadan, Capital of Western Region and largest city in West Africa with more indigenous population than any city in Africa. 55 — To place sales literature on display in Ni- geria. American Embassies and Consulates in countries around the world maintain commercial libraries for the use of local businessmen. Firms wishing to place literature about their prod- ucts in these commercial libraries in Nigeria or other countries abroad should write to the Office of International Trade Promotion, Bureau of Inter- national Commerce, U.S. Department of Com- merce, Washington, D.C., 20230, or contact a Field Office. — To follow current economic and commer- cial developments in Nigeria. — To get specific leads for trade opportuni- ties. — To learn of invitations for tenders for construction projects or Government provi- sions and supplies. INTERNATIONAL COMMERCE, the Com- merce Department's weekly news magazine for businessmen interested in trade and investment abroad, reports on general economic conditions in countries around the world and lists opportunities for export sales of specific U.S. products. The subscription price is $16 a year; checks should be sent to the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402. — To obtain basic economic and commercial information about Nigeria. Overseas Business Reports (formerly World Trade Information Service reports) , special supplements to Interna- tional Commerce, and various other reports are prepared by the Commerce Department's Office of International Regional Economics on the basis of reports submitted by commercial and economic specialists at American Embassies overseas or in connection with surveys conducted abroad by Commerce Department personnel. A checklist of these international business publications may be obtained free of charge from the Publications Sales Section, U.S. Department of Commerce, Washington, D.C., 20230. The following reports on Nigeria or on market- ing in Africa as a whole are currently available from the Superintendent of Documents or from Department of Commerce Field Offices: Foreign Trade Regulations of Nigeria, OBR- 63-122, 10 pp. September 1963. 15 cents. Africa — Sales Frontier for U.S. Business, a sup- plement to International Commerce. 121 pp. March 1963. $1. Living Conditions in Nigeria. OBR-63-14. 6 pp. January 1963. 15 cents. Market Indicators for Africa. WITS, part 3, No. 62-20. 20 pp. August 1962. 20 cents. Establishing a Business in the Federation of Nigeria. WTIS, part 1, No. 62-57. 8 pp. July 1962. 15 cents. Market for U.S. Products in Nigeria. WTIS, part 1, No. 61-12. 24 pp. 1961. 15 cents. — To obtain specific economic or commercial information about Nigeria. Specific questions about any aspect of the Nigerian economy or about customs duties, or licensing and documentary re- quirements applicable to imports of particular commodities into Nigeria should be directed to any Commerce Department Field Office or to the Africa Division, Bureau of International Com- merce, U.S. Department of Commerce, Washing- ton, D.C., 20230. Businessmen may obtain further information on any of the above, or on other Department of Com- merce publications and services through any Com- merce Department Field Office. Full information on Commerce Department services to exporters as well as on private business aids to marketing abroad is contained in the booklet What You Should Know About Exporting, available for 25 cents from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402. Nigerian Directories and Government Publications and Services There are available a number of business direc- tories covering Nigeria and publications of the Nigerian Government which contain classified or alphabetical lists of firms or other relevant infor- mation for businessmen. Publications preceded with an asterisk in the following list may be ob- tained on loan through Commerce Department Field Offices or from the Africa Division, Bureau of International Commerce, U.S. Department of Commerce, Washington, D.C., 20230. Directory of the Federation of Nigeria, 1962. Contains general commercial, financial, economic, and political information as well as alphabetical and classified lists of firms in Nigeria. 248 pages. $5.60 postpaid. Diplomatic Press and Publishing Co., 13 Cotswold Gardens, London, N.W. 2. 56 West African Directory, 196 '3-6 %. Includes commercial, financial, economic, and political in- formation and classified business directories for all West African countries. 624 pages. Thomas Skinner & Co. (Publisher) Ltd., London. Avail- able in United States at $7 postpaid from the publisher, 111 Broadway, New York, N.Y., 10005. *Commerce in Nigeria. Annual. Official pub- lication of the Lagos Chamber of Commerce. Con- tains information on commerce and industry in Nigeria and a classified directory of member firms of the chamber. 140 pages. Free on request. Lagos Chamber of Commerce, P.O. Box 109, Lagos. *Port Harcourt. Official publication of the Port Harcourt Chamber of Commerce. Includes information on the Port Harcourt area plus alpha- betical and classified directories of member firms of the chamber. 74 pages. Free on request. Port Harcourt Chamber of Commerce, P.O. Box 71, Port Harcourt. Handbook of Commerce and Industry in Nigeria. Annual. A detailed guide to Nigeria in- cluding information on all aspects of the country's economy and political structure, Contains the complete import, tariff schedule and texts of laws relating to import licensing, a map supplement, and a section for visitors to Nigeria which includes a tabulation of facilities and charges at all hotels and resthouses in the country. 408 pages and supplement with 12 maps. $6 postpaid. Prepared by the Nigerian Federal Ministry of Commerce and Industry ; available in the United States from the Vice Consul (Commercial), Trade and In- vestment Division, Nigerian Consulate General, 575 Lexington Avenue, New York, N.Y., 10022. Directory of Industries and Allied Trades in Western Nigeria. Contains data on industrial and commercial development in the Western Region and a classified directory of firms. New edition presently under preparation. Approximately 60 pages. Free on request. Western Nigerian Min- istry of Trade and Industry, Ibadan. *Guide to Trade and Investment in Eastern Nigeria. Covers general aspects of marketing and investing in the Eastern Region. 14 pages. Free on request. Eastern Nigeria Information Service, c/o Barnet and Reef Associates, Inc., 445 Park Avenue, New York, N.Y., 10016. * Industrialists 1 Guide to Northern Nigeria. Provides basic information on the economy and industrial development of the Northern Region. 72 pages. Free on request. Northern Nigerian Ministry of Trade and Industry, Kaduna. * Industrial Directory. A list of all major manu- facturing plants (10 or more employees) in Nigeria — 700 in number — arranged according to the International Standard Industrial Classifica- tion system of the United Nations. Entries for each firm include name, address, specific product or products manufactured, and the approximate number of employees. Prepared by the Federal Ministry of Commerce and Industry with the as- sistance of an advisory team from Arthur D. Little, Inc., sponsored by the U.S. Agency for International Development (AID). Free on re- quest. Economics and Statistics Division, Federal Ministry of Commerce and Industry, Lagos. A'very useful service to traders is offered by the Federal Ministry of Commerce and Industry, Lagos. The Ministry, in an effort to promote the development of mutually profitable commercial ties between Nigeria and overseas countries, will provide any private businessman "status reports" on Nigerian firms which contain general data and information regarding the financial standing and reliability of the firm. This service, which is pro- vided free of charge and is being used increasingly, has led to a marked reduction in the number of reports of unsatisfactory trade dealings with Nigerian firms. Commercial information about Nigeria may also be obtained from the Trade and Investment Divi- sion, Consulate General of Nigeria, 575 Lexington Avenue, New York, NY., 10022 (Telephone PLaza 2-1670). 57 CHAPTER V Government Regulations on Imports LICENSING AND EXCHANGE Most goods from the United States may enter Nigeria freely under open general license. Con- trols, however, are enforced on certain commodi- ties, primarily for sanitary, safety, moral, or reli- gious reasons and, to a much lesser extent, to protect domestic producers or to assist indigenous traders. Specific import licenses are required to import coal; petroleum products; gold and articles manu- factured wholly or mainly of gold; used clothing; cement; and various agricultural products which would compete with Nigerian crops, such as sesame seeds, cocoa beans, cotton, peanuts, palm kernels, and soybeans. Special control measures apply to, and special permits or licenses are required for certain items, principal among which are: ammonia nitrate; poisonous cyanides; denatured or methylated al- cohol, or spirits imported for medicinal or scientific purposes; some types of nets, traps, and snares; used clothing; coin-operated gambling machines; and machines for duplicating keys. Commodities absolutely prohibited from being imported into Nigeria include obscene materials; foodstuffs unfit for human consumption ; matches made with white phosphorous; beads made of celluloid or other inflammable substances; textiles, made-up clothing, hardware, china, or earthen- ware bearing inscriptions from the Koran ; and various types of weapons and firearms. Foreign exchange is readily granted for pay- ment for imports covered by open general license or for which the importer holds a valid specific license issued by the Import Licensing Authority. The basic unit of currency is the Nigerian pound (£N) which is defined in terms of gold and which equals US$2.80. The pound is divided into 20 shillings (s) equal to US$0.14 each, and the shil- ling, in turn, contains 12 pence (d) , each equivalent to 1% cents. SHIPPING DOCUMENTS Documents normally required on shipments to Nigeria are the exporter's invoice, the bill of lad- ing or airway bill for air shipments, the certificate of origin, and a declaration of value. "When the exporter and the supplier or manufacturer are not the same firm, a supplier's or manufacturer's in- voice must accompany the exporter's invoice. No special form is required for either the bill of lad- ing or the exporter's invoice. The certificate of origin and declaration of value may be included on the exporter's invoice or submitted separately. Consular certification is required only for im- ports of brandy, whisky, and rum. CUSTOMS DUTIES Most imports entering Nigeria are subject to customs duties, Imperial weights and measures are used in customs transactions : a long ton equals 2,240 pounds, a hundredweight equals 112 pounds, a cental equals 100 pounds, and an imperial gal- lon equals 1.2009 U.S. gallons. Specific duties charged on weight are, with few exceptions, based on net weight, although in in- stances where the correct net weight is not ascer- tainable from container markings or from ship- ping documents, customs officials may charge duty on the gross weight. Ad valorem duties are based on the. c.i.f. value of goods. The Nigerian import tariff system is used pri- marily as a revenue generating device; nearly 50 percent of total Federal Government revenues are 59 derived from import duties. In recent years, how- ever, as Nigeria has experienced a continuing- un- favorable balance of trade and as increased em- phasis has been placed by the Government on industrialization, changes in various duties have been made to discourage imports of luxury and nonessential goods and to protect newly estab- lished industries in the country. As a general rule, then, import duties are low or nonexistent on capital goods, machinery, and raw materials which must be brought in as industry and agriculture develop, and high on items considered to be non- essential. The duty on passenger cars, for ex- ample, is graduated upward from 25 to 75 percent as engine displacement varies from 1,200 cubic centimeters to over 3,500 cubic centimeters; im- port charges on liquor are $29.40 per gallon or 100 percent ad valorem, whichever is higher. Many types of capital goods and equipment for industrial, agricultural, and scientific or educa- tional use are exempted from import duties and are of particular interest to American manufac- turers. The list of these duty-free imports covers a wide range from industrial and agricultural machinery and road-building equipment to disin- fectants, weed-killing preparations, and fertilizers. Information on duties applicable to particular products may be obtained on request from the Africa Division, Bureau of International Com- merce, Washington, D.C. The complete im- port tariff schedule is published in the Handbook of Commerce and Industry in Nigeria. See Ap- pendix D, Bibliography. Further details on Nigeria's import tariff sys- tem, licensing and exchange controls, shipping documents required, and related information are contained in the Commerce Department publica- tion, Foreign. Trade Regulations of Nigeria, OBR 63-122, September 1963. 60 CHAPTER VI Trade Practices and Government Representation TRADE PRACTICES Terms of sale vary greatly in all sectors of com- merce in Nigeria. In the intricate distribution system through which basic consumer items ulti- mately reach the mass market, short term credit is commonly extended at all levels — that, is, be- tween various semi-wholesalers and traders and between traders and their final customers. Vir- tually none of the credit extended in this manner flows through formal financial channels — it is casually arranged and based on personal acquaint- ance of the parties involved. Many large importing firms and local manu- facturers extend credit for short periods to their well-known customers, but such transactions are carefully monitored and usually are made only with well established retailers or semi-wholesalers (mammy traders ) . For the most part, the princi- pal importers and manufacturers deal on a cash basis. It is reported, in fact, that the large textile mills operating in Nigeria sell only for cash pay- able up to 30 days in advance of delivery. On the whole, commercial credit arrangements used depend on the type of commodity involved, the size of the businesses which are parties to the transaction, and the closeness of relations between parties. Use of regularized consumer credit arrange- ments in Nigeria does not at present extend beyond installment ("hire purchase") sales of motor ve- hicles and household appliances and furnishings or monthly charge account sales to department store customers. Ordinary commercial terms for motorcycles, automobiles, and trucks are from i/3 to V£ down with 12 months to pay; interest charges normally run between 12% to 15 percent per year on these loans. Special terms for automobile purchases, however, are available to officials of the Federal or Regional Governments whose duties require them to have a personal vehicle; arrangements have been made with a local financial institution whereby longer-term, lower-rate car loans may be extended to such individuals and guaranteed by the Government concerned. Installment and charge account buying in de- partment stores is not widely used except by ex- patriate and high-income Nigerian families and by the small but growing middle class, composed largely of salaried employees in government and industry. With regard to import trade, terms of business again vary widely. Larger firms having well established relations with exporters and manu- facturers overseas generally trade on an open ac- count basis. Medium and smaller-sized firms trading regularly and in good volume with partic- ular suppliers abroad commonly receive shipments on sight or time-draft. Outside of purchases made by such firms, however, the vast bulk of the coun- try's import trade is done on the basis of an ir- revocable letter of credit. Bankers and businessmen in Nigeria strongly recommend that shipments be made only on a fully secured basis until the exporter obtains credit in- formation from reliable sources indicating the im- porter's credit worthiness. The majority of Nigerian firms are fully aware of the dictates of sound business practice and do not expect to trade on a deferred payment basis until a relationship of mutual confidence has been established. In Ni- geria no less than in other parts of the world, some American firms have sustained heavy losses by shipping to an unknown importer without requir- ing an irrevocable letter of credit. Such letters of credit should be issued by one of the foreign exchange banks in Nigeria, which are listed in the section, Credit Information. Normal business hours for commercial firms in Nigeria are 8 a.m. to 12:30 p.m. and 2 p.m. to 5 p.m. Monday through Friday, and 8 a.m. to 12 :30 p.m. on Saturdays. Many small shops stay open later than these hours. Commercial banks are open for business from 8 a.m. to 1 p.m. weekdays and from 8 a.m. to 11 a.m. on Saturdays. Federal and Western Government offices are open from 8 a.m. to 2 p.m. during the week, from 8 a.m. to noon on Saturdays. In Northern Ni- geria, Government offices open 1 hour earlier but break between 9 and 10 a.m. Business hours for Eastern Government offices are 8 a.m. to 2 :30 p.m. Monday through Friday, and 8 a.m. to 12 :30 p.m. on Saturdays. Officially observed public holidays are New Year's Day (January 1) ; Good Friday; Easter Monday; Independence Day (October 1) ; Christ- mas Day (December 25) ; Boxing Day (December 26) ; and the Mohammedan Festivals of Id el Fitr (2 days), Id el Kabir (2 days), and Id el Maulud. Dates of the Moslem feast days vary from year to year, falling approximately 10 days earlier each succeeding . year. In 1963, Id el Fitr fell on Feb- ruary 25 and 26, Id el Kabir on May 3 and 4, and Id el Maulud on August 2. In the Eastern Re- gion, Eastern Nigeria Youth Day (March 27) is also a public holiday. English is the official language and the language of commerce in Nigeria. As indicated in Chapter V, the imperial sys- tem of weights and measures is used in Nigeria. Many manufacturing and industrial plants in the country, however, use the metric system, as do the airline companies. It is very important that American firms make all quotations or offers to prospective importers in Nigeria in c.i.f. Lagos or Port Harcourt prices. Few firms in the country are accustomed or have facilities, and none are inclined to calculate freight and insurance costs from the United States; it is thus difficult for them to make cost comparisons with offers received from firms in Europe or the United Kingdom whose sales literature invariably gives prices in c.i.f. terms and full details as to volume discounts. Exporters planning to enter the Nigerian market should register their trade names and trademarks. Details are available from the Regis- trar of Trade Marks, Federal Ministry of Com- merce and Industry, Lagos; or from the Nigerian Consulate-General in New York City. GOVERNMENT REPRESENTATION The Government of Nigeria is represented in the United States by the Embassy of Nigeria in Wash- ington, and by the Consulate-General of Nigeria in New York City, and at the United Nations in New York by a Permanent Mission. The Embassy is located at 500 Dupont Circle Building, Wash- ington, D.C., 20036 (telephone ADams 4-4800). The Consulate-General and the Permanent Mis- sion to the U.N. are both located at 575 Lexington Avenue, New York, N.Y., 10022 (telephone PLaza 2-1670). The United States maintains an Embassy in Lagos ( 1 King's College Road ; telephone 2-2741 ) and Consulates in the three regional capitals — Enugu (No. 2A Commercial Layout, Ogui Road, telephone 3318) ; Ibadan (Western Region Finance Corp. Bldg.) ; and Kaduna (5 Ahmadu Bello Way, telephone 2132). Business visitors are invited to call on the Commercial Attache at the Embassy or on officers at any of the Consulates while in Nigeria; these officers are intimately familiar with commercial and industrial developments in the various areas of the country, and are often able to proivde valuable information or to assist the traveler in making 1 business contacts. 62 APPENDIX A Notes for Business Travelers GENERAL COUNTRY INFORMATION The Federation of Nigeria embraces three regions — the Eastern, Western, and Northern Regions — and the Federal Territory of Lagos ; a fourth region — the Midwest Region — is now being established in an area around Benin and Sapele which was part of the Western Region. Nigeria has been fully independent since October 1, 1960, and is a parliamentary democracy with a federal system of government. The regions share powers with the Federal Government in certain spheres, while the Federal Government has ex- clusive jurisdiction over matters of national concern — aviation, banking, customs, foreign relations, police, posts and telegraph, railways and major highways, for ex- ample — and the Regional Governments have sole responsi- bility in local affairs, such as education, agriculture, personal taxation, land tenure, and roads other than na- tional trunk routes. Nigeria is more than 356,000 square miles in area, or about the size of California, Oregon, and Nevada com- bined. It extends over 700 miles from east to west at the widest point, and 650 miles from north to south. Terrain and vegetation vary considerably from mangrove swamps and tropical forest along the coast to open range in the interior. The far northern part of the country borders on the desert, but lies well within the zone of regular rainfall during the summer months. The southernmost point in Nigeria lies about 4° north of the Equator, and the northern boundary is approxi- mately 14° north. HEALTH CONDITIONS Health conditions vary widely throughout Nigeria, being entirely adequate in the major commercial and in- dustrial centers most likely to be visited by business travelers, but becoming more difficult, in remote areas. Water supplies are considered safe for consumption in a few of the principal cities, but bottled drinking water is provided at hotels, and beer and soft drinks are readily available. Visitors to Nigeria are required to have valid cer- tificates of vaccination against smallpox and yellow fever. Immunizations for typhus, (typhoid, tetanus, and polio are also strongly recommended. Preventive drugs against malaria should be taken regularly as prescribed from a period 2 weeks prior to reaching West Africa to 1 month after departing. Modern hospital facilities are available in Lagos and Ibadan ; smaller hospitals or dispensaries are located in most other cities and large towns. HOTEL ACCOMMODATIONS Very satisfactory hotel accommodations are available in the major cities, and new ultra-modern hotels are now being built which will supplement present facilities in Kaduna and Enugu, Most rooms are air conditioned at hotels and catering resthouses in the principal cities. Rates are reasonable — ordinarily from ,$8 to $13 per day (single, breakfast included), depending on the city and type of accommodation. Full details as to the hotels and resthouses operating in various cities and town are con- tained in the Handbook of Commerce and Industry in Nigeria and in 'the West African Directory (see section, Nigerian Directories and Government Publications and Services). Expansion of hotel space has not kept pace with in- creased demand in most Nigerian cities. Visitors are advised to make hotel reservations well in advance and. when traveling in the country, to have their travel agency or carrier cable ahead at each stop to reconfirm arrival and departure dates. FOOD AND CLOTHING Hotels and resthouses throughout, the country provide restaurant facilities ; quality of meals served varies, being excellent in the very larft'e cities, but entirely satisfactory at all licensed establishments. There are restaurants and night clubs in most of the larger cities, at which meals vary in quality. Light summer clothing is suitable year round in Nigeria. Businessmen ordinarily wear short-sleeved dress shirts with no coat during the day. Laundry and drycleaning facilities are available at some hotels, but if much travel within Nigeria is contemplated the traveler will find it more convenient to bring wash and wear clothing. Aver- age daytime temperatures range from 80° to 90° F. in the 63 coastal region to 95° to 105° F. in the north, although early morning temperatures drop to below ~>^> F. in the northeast, during December and January. Relative hu- midity is ordinarily from 60 to 80 percent along the coast : inland there is considerable seasonal variation, and in the north humidity during the day ranges from 15 per- cent in January to 70 percent in August. Patterns of rainfall vary over the country, but as a rule the wettest months are June through September. Annual rainfall ranges from 130 inches in some coastal areas to 25 inches in parts of the Northern Region. TRANSPORTATION Nigeria Airways provides a good schedule of connections between larger cities and towns in Nigeria. Taxis are abundant in most cities : those in Lagos are fitted with meters, but in other cities charges can be high unless the traveler is prepared to bargain. Information as to standard fares can usually be obtained at hotels. Cars may be rented in principal cities. Daily charges range approximately from $9 to $15 depending on the type of car and whether or not a driver is provided. PASSPORTS AND VISAS In addition to a valid U.S. passport, the businessman entering Nigeria is required to have a visa. Visas, valid for 28 days, may be obtained from the Nigerian Embassy in Washington or from the Nigerian Consulate General in New York. A traveler in transit does not require a visa if his stay in Nigeria does not exceed 24 hours. Modern hotels, like this one in downtown Lagos, are available in the larger cities One of a fleet of new Fokker "Friendships" flying regular runs to internal and neighboring points 64 APPENDIX B American Firms in Nigeria This list has been compiled from information supplied by American Foreign Service officers abroad under the direction of the Secretary of State. While every effort has been made to include in the list only firms of good repute, no responsibility can be assumed in connection with any persons or firms listed herein, nor for any trans- actions had with such persons or firms. * Nonprofit organization ♦African American Institute 31 Martins Street, Lagos P.M.B. 2382 Tel. : 21967 Hankers Trust Company c/o United Bank for Africa 127 Broad Street P.M.B. 2406, Lagos Tel. : 26631 E. A. Bramhall & Associates 21/25 Broad Street, Lagos P.O.B. 2786 Tel. : 26371 Brezina Nigeria. Limited 5 Williams Street P.O.B. 2403, Lagos TeL: 26045 African Research and Development Company, Inc. 4 Labinjo Lane, Lagos P.M.B. 2708 Tel. : 22999 Allis-Chalmers e/o Vivian Younger and Bond P.O.B. 427, Lagos American Motion Picture Export Co. 15 Wharf Road, Apapa Tel. : 55702 *AMSAC (American Society of African Culture) P.M.B. 2814, Lagos American Overseas Petroleum, Ltd. 14 Industry Road P.O.B. 521, Port Harcourt Associated Press 29 Moloney Street, Lagos P.O.B. 2454 Tel. : 25859 British-American Insurance Company Hassan Building, Ijora Causeway P.O.B. 1818, Lagos Canadian Aero Service Corporation c/o Federal Surveys Department, Lagos Chase Manhattan Bank 21 Broad Street, Lagos P.O.B. 2379 Tel. : 26371 Checchi and Company 6 Labinjo Lane, Lagos P.O.B. 1225 Tel. : 25371 Chesebrough-Ponds International, Ltd. 16 Burma Road P.M.B. 1079, Apapa Tel. : 55351 Chrysler International, S.A. P.O.B. 1036, Lagos Bank of America 132 Broad Street P.M.B. 2317, Lagos Tel. : 25961 Cynamid Overseas Corporation Ikoyi Hotel P.O.B. 1665 Tel. : 24075 65 Daveo (Technical) P.O.B. 1711, Lagos Enterprise Development Co. (Nigeria), Lid 6 Labinjo Lane P.O.B. 1284, Lagos Tel. : 20375 Esso West Africa, Inc. 21 Broad Street P.O.B. 176, Lagos Tel. : 24891 Farrell Lines, Incorporated P.M.B. 1151, Apapa Flour Mills of Nigeria, Ltd. Old Dock Road, Apapa P.M.B. 2438, Lagos Tel. : 55081 *Ford Foundation 12 Broad Street P.M.B. 2368, Lagos Tel. : 20388 Ford Motor Company P.O.B. 1194, Lagos Jesco Mechanical Projects (Nigeria), Ltd. 174 Broad Street P.O.B. 1103, Lagos Tel. : 24112 Johns-Manville International Corporation 31/33 Martins Street P.O.B. 1742, Lagos Tel. : 21967/02 Arthur D. Little Group P.O.B. 1247, Lagos Tel. : 26281 William H. Metcalf, Architects P.O.B. 1549, Lagos Mobil Oil Nigeria, Ltd. 60 Broad Street P.M.B. 2054, Lagos Tel. : 25411 Modern Signs (Nigeria) P.O.B. 2499, Lagos Mosler International, S.A. % A. G. Leventis Technical P.O.B. 159, Lagos General Motors P.O.B. 2852, Lagos Goodyear International Corporation 75 Marine Road P.O.B. 1953, Apapa Tel. : 55520 Halliburton, Inc. Port Harcourt National Cash Register Co. ( W.A.) , Ltd. Wharf Road P.O.B. 1038, Apapa Tel. : 56047 NBC International, Ltd. Nigerian Television Service Victoria Island P.M.B. 12005, Lagos Tel. : 26201 IBM World Trade Corporation Barclays Bank Building, Marina P.O.B. 1083, Lagos Tel. : 20571/2 Ingersoll-Rand International P.O.B. 2594, Lagos International Drilling Co. P.O.B. 538 Port Harcourt International Harvester Export Co. 4 Commercial Road, Apapa P.O.B. 388 Jasmine Development Company, Ltd. Division) 26 Commercial Avenue, Yaba P.O.B. 2473, Lagos Tel. : 43820 ( Pharmaceutical Nederlandse Boormaatschappij N.V. (Drilco) Port Harcourt *New York University % University of Lagos The New York Times P.O.B. 1573, Lagos Nidoco, Limited 4 Labinjo Lane P.M.B. 2708, Lagos Tel. : 23881 Nigerian American Surveys Associates 21/25 Broad Street, Lagos Tel. : 26371, Ext. 16 Nigerian Buying Services, Inc. 2 Sanni Adowale Street P.O.B. 1100, Lagos 66 Nigerian Gulf Oil Company Investment House P.M.B. 2469, Lagos Nigerian Textile Mills Ikeja Industrial Estate Tel. : 33392/3 NAAFCO (Scientific Supplies), Ltd. 243 Iddo-Ijora Causeway, Apapa P.M.B. 2734, Lagos Tel. : 55410 Oceana Publications, Inc. 26 Commercial Avenue, Yaba P.O.B. 1159, Lagos Pan African Airlines ( Nigeria ) , Ltd. P.M.B. 1054, Ikeja Tel. : 33098 Pan American World Airways Investment House P.O.B. 2311, Lagos Tel. : 21762 Pfizer Products Ltd., Nigeria P.M.B. 1031, Lagos 10 Coats Street, E.B. Tel. : 45296 Modern Nigerian architecture in a Lagos suburb. 67 Price Waterhouse and Company 25/28 Broad Street P.O.B. 2419. Lagos Tel. : 26384 Texaco Africa, Ltd. 241 Igbosere Road P.O.B. 166, Lagos Tel. : 24061 Radio Corporation of America, International P.O.B. 913, Lagos % Mandilas and Karaberis Upjohn International, Inc. % ICI, 24 Commercial Road P.M.B. 1004, Apapa Rexall Drug Co. % Barclay's Bank 40 Marina, Lagos SAMCO ( Subsidiary of Foremost Dairies, Inc. ) P.O.B. 367, Mushin Tel. : 33370 Singer Sewing Machine Company 26 Jebba Street, West, E.B. P.O.B. 3000, Lagos Tel. : 44774 E. R. Squibb & Sons, Limited P.O.B. 514, Yaba Stanley International, Limited 4/6 Oil Mills Street P.O.B. 2258, Lagos Tel. : 22210/23781 Sterling Drug, International P.M.B. 1075, Apapa Tennessee Nigeria, Inc. 40 Marina P.M.B. 2119, Lagos Tel. : 25551 Utah Construction and Mining Co. % American Consulate Enugu, Nigeria Walsh Construction Company % Ferrell Lines P.M.B. 1151, Apapa Tel. : 55544 Wayne Tank and Pump, Ltd. P.O.B. 103, Apapa West Africa Services, Inc. 6 Labinjo Lane P.O.B. 1503, Lagos Tel. : 25371 Westinghouse Electric International, 25 Broad Street P.M.B. 2118, Lagos Tel. : 20111 Williams Brothers Company Mile 10 Aba Road P.O.B. 649, Port Harcourt Wyeth International c/o Federal Palace Hotel, Lagos Tel. : 26691 S.A. 68 APPENDIX C Buying Offices in the United States for Nigerian Firms This list has been compiled from information supplied by American Foreign Service officers abroad under the direction of the Secretary of State. While every effort has been made to in- clude in the list only firms of good repute, no re- sponsibility can be assumed in connection with any persons or firms listed herein, nor for any transactions had with such persons or firms. Balfour Guthrie & Company ( United Africa Company ) 351 California Street San Francisco, California, 94104. K. Chellerams & Sons, Inc. 70 Franklin Street New York, N.Y., 10002. Compagnie Francaise de L'Afrique Occidentale (CFAO) 17 Battery Place New York, N.Y., 10004. Dizengoff International, Ltd. Room 1408 67 Wall Street New York, N.Y., 10005. Export Union Witten (Wiedemann & Walters (Nigeria) Ltd.) New York, N.Y. John Holt, Inc. 375 South Rich Street Columbus, Ohio Intercontinental Trading Corporation (Union Trading Company) 90 West Street New York, N.Y., 10006. Nigerian Buying Services, Inc. 32 East 57th Street New York, N.Y., 10022. North American African Corporation (NAAFCO (Scientific Supplies) Ltd.) 120 East 41st Street New York, N.Y., 10017. Societe Commercial de l'Ouest Africain (SCOA) 170 Broadway New York, N.Y., 10038. C. Tennant & Sons (Vivian Younger & Bond (Nigeria) Ltd.) New York, N.Y. Sculpture at base on independence Building, new Federal office building, Lagos Elements of traditional Nigerian wood carving one of the oldest of Nigeria crafts— merge well with the soaring lines and grace of a modern structure. 69 J. F. Trinkhaus Company ( Levintis ) 39 Cortlandt New York, N.Y., 10007. Universal New York (Triumph Enterprises (1957), Ltd.) 350 Fifth Avenue New York, N.Y., 10001. West African Services, Inc. 149 Broadway New York, N.Y., 10006. 70 APPENDIX D Bibliography This bibliography is not intended to be ex- haustive but, rather, to provide a selective list of references containing information on Nigeria of special interest to businessmen. Annual Abstract of Statistics, Nigerian Federal Office of Statistics, Lagos, about 160 pages, 10s ($1.40). Commerce in Nigeria, 1962, Lagos Chamber of Com- merce, Lagos, 140 pages, free on request. Digest of Statistics, (quarterly), Nigerian Federal Of- fice of Statistics, Lagos £1 ($2.80) annually. Directory of the Federation of Nigeria, 1962, Diplomatic Press and Publishing Co., London, 248 pages. Eastern Nigeria Newsletter, (monthly), Barnet and Reef Associates, Inc., New York, free on request. Economic Survey of Nigeria 1959, Nigerian National Economic Council, August 1959, 132 pages, 7s. 6d. ($1.05) from the Federal Government Printer, Lagos. Industrial Labor, An Introductory Guide for Prospec- tive Investors, Nigerian Federal Ministry of Commerce and Industry (Arthur D. Little, Inc., Technical Advisors), Lagos, 1962, 26 pages, free on request. Industrialists' Guide to Northern Nigeria, Northern Nigeria Ministry of Trade and Industry, Kaduna, 72 pages, free on request. Investment Opportunities in Eastern Nigeria, Eastern Nigeria Information Service, % Barnet and Reef As- sociates, Inc., New York, 32 pages, free on request. National Development Plan, 1962-68, Nigerian Federal Ministry of Economic Development, Lagos, 1962, 362 pages. Nigeria, An Economic Survey, Barclays Bank D.C.O., London, October 1961, 39 pages. Nigeria, Determinants of Projected Level of Demand, Supply, and, Imports of Farm Products in 1965 and 1975, Economic Research Service, Foreign Agricultural Service, U.S. Department of Agriculture, August 1962, 149 pages. Federal Nigeria, (monthly), Embassy of Nigeria, Wash- ington, free on request. Guide to Government Regulations for the Foreign In- vestor in Nigeria, Checchi and Company, Washington, 1963, 8 pages, free on request. Guide to Trade and Investment in Eastern Nigeria, Eastern Nigeria Information Service, % Barnet and Reef Associates, Inc., New York, 16 pages, free on request. Handbook of Commerce and Industry in Nigeria, Ni- gerian Federal Ministry of Commerce and Industry, 1962, 397 pages plus map supplement, $6 from the Nigerian Consulate General, New York. Industrial Directory, A List of Major Manufacturing Plants in Nigeria, Nigerian Federal Ministry of Commerce and Industry (Arthur D. Little, Inc., Technical Advisors), Lagos, 1962, 35 pages, free on request. Nigeria Trade Journal (quarterly), Nigerian Federal Ministry of Information, Lagos, $1.50 annually from the Nigerian Consulate General, New York. Nigeria Trade Summary (monthly), Nigerian Federal Office of Statistics, Lagos, 36 shillings ($4.05) annually. Nigeria Yearbook (annual), the Times Press, Apapa ( Lagos ) , 35 cents. The Nigerian Grower and Producer (6 issues per year), Journal and Magazine Production Services ( West Africa ) . Ltd., Lagos, 95 cents annually. The Nigerian Journal of Economics and Social Studies (3 issues per year), University of Ibadan, Ibadan, $4 annually. Nigerian National Accounts, 1950-57, P.N.C. Okigbo, printed by the Government Printer, Enugu, Eastern Nigeria, 1962, 206 pages, $2.80. 71 Nigerian Official Publications, 1869-1958: a Guide, Li- brary of Congress, Washington, 1959, 153 pages. One Hundred Industrial Possibilities in Nigeria, An Introductory Guide for Prospective Investors, Nigerian Federal Ministry of Commerce and Industry (Arthur D. Little, Inc., Technical Advisors), Lagos, 1902, 42 pages, free on request. Population Census of Nigeria, 1952-53, Nigerian Federal Office of Statistics, Lagos, 13 pages, 5 shillings (70 cents). Port Harcourt, Port Harcourt Chamber of Commerce, Port Harcourt, 1962, 73 pages, free on request. Report on Employment and Earnings Enquiry, Nigerian Federal Office of Statistics, Lagos, September 1960, 34 pages, 5 shillings ( 70 cents) . Road Transport in Nigeria, E. K. University Press, 1958, 99 pages. Hawkins, Oxford Selling in Africa, Henry Deschampsneufs, Business Publications, Ltd., London, 1961. Trade Report (annual), Nigerian Federal Office of Sta- tistics, Lagos, editions from 1953 through 1958, and from 1960 through 1961, approximately 240 pages per issue, $2.80 each. Urban Consumer Surveys in Nigeria, Nigerian Federal Office of Statistics, Lagos : Lagos (1953/54), Enugu ( 1954/55), and Ibadan (1955), December 1957, 70 pages, 5 shillings (70 cents). Kaduna and Zaria ( 1955/56 ) , 1959, 88 pages, 5 shillings (70 cents). Lagos (1959/60), 1963, 61 pages, 20 shillings ($2.80). U.S. Department of Commerce publications. See sec- tion, U.S. Government Services and Publications. West Africa (weekly). Overseas Newspapers Ltd., Lon- don, $7 annually. West African Builder and Architect (6 issues per year), Journal and Magazine Production Services (West Africa), Ltd., Lagos, $3 annually. West African Directory 1963-4, Thomas Skinner and Co. (Publishers). Ltd., London, 1963, 602 pages, 42 shillings ($5.88). 72 U.S. GOVERNMENT PRINTING OFFICE : 1964 O — 717-541 U.S. TRADE MISSIONS PROGRAM NOW th to fim< SUBSCRIBE NOW Read INTERNATIONAL COMMERCE Stirring changes in the world's markets could mean export sales opportunities not significant in your earlier surveys. Keep abreast of these changes in INTERNATIONAL COMMERCE, the U.S. D*partment of Commerce's authoritative weekly news magazine. Subscription Form Please enter my subscription to International Commerce D Annual subscription, SI 6.00 □ Via domestic oirmoil, S25 additional O Foreign mailing, S5 additional NAME ADDRESS. CITY STATE. Mail tc Sales Promotion Staff, Office of Publications, U.S. Depart- ment of Commerce. Washington, D.C. 20230. Enclose check or money order payable to the Superintendent of Documents. 32294-U.S.Dept.of Comm-DC-1964