Report Highlights:
The food processing sector has seen some growth over the last few years, especially in the bakery and snack food areas. Foreign investment is greatest in the soft drink (including water) and beer industries. Coca-Cola Co. invested in a fruit juice production facility. Bulk commodities such as wheat and sugar hold the major value of imports used in this sector. There is demand for imported beverage bases (especially, fruit juice concentrate, pre-mixes & syrup), ice cream pre-mixes, spices, flavors, and nutrients/additives. Post will assist interested U.S. food ingredient suppliers in establishing business relationships with local importers and processors.
SECTION I. MARKET OVERVIEW
Nigeria has a population of 130 million that is growing at an estimated three percent annually.GDP was estimated at $65 billion in 2004.Petroleum exports accounts for about one third of GDP, 98 percent of total export earnings and close to 80 percent of federal government revenue.(Economist Intelligence Unit, May 2005).
The GON has put together a reform-oriented economic policy outlined in the National Economic Empowerment and Development Strategy (NEEDS).Policy implementation has been poor due to the wide range of vested political interests in the country.Of particular concern to the US agricultural sector, is the protectionist policy with the wide range of bans and high tariff rates for many food items.
Despite a restrictive trade regime, Nigeria is a food deficit country.The AgOffice estimates Nigeria imported $2.5 billion of agricultural products in 2004.US agricultural exports to Nigeria increased to approximately $444 million in CY 2004, up from $322 million in CY2003.While the U.S. is the major supplier of wheat, Asia and Brazil supply products such as rice, and sugar, respectively.