◦ General Framework
◦ Italian companies in Nigeria
◦ Treaties on economic and financial related matters
General framework
The overall trade exchange between Italy and Nigeria is quite remarkable. In 2009 it amounted to 1.6 billion Euro. Exports from Italy to Nigeria were equal to 861.300.000 Euro, whereas importations reached almost 780.000.000 Euro. In 2010 the export from Italy to Nigeria was around 803.500.000 Euro. Imports were equal to 541.000.000 Euro, for a total overall trade exchange of 1.35 billion Euro.
The overall trade balance is then positive on the Italian side for the second time since 2008.
Nigeria is indeed the main commercial partner of Italy in sub-Saharan Africa after South Africa.
According to European Union’s data, Italy is the major importer from Nigeria amongst the Countries of the Union with 23% of the overall E.U. importations. Italian importations from Nigeria are basically consisting in hydrocarbons, essentially crude oil (86.65% of the total import in 2009). Italy imports 4% of its total need of crude from Nigeria.
Italy is the third large exporter to Nigeria within the EU, after France and Germany, with the 14% of the total EU exportations. Its exports mainly consist of mechanical machineries and spare parts, electrical materials, components of steel and iron, besides refined hydrocarbons products.
Italian companies in Nigeria
The presence of Italian companies in Nigeria dates back to the aftermath of its independence in 1960 and in some cases prior to it. Tens of them were and are based throughout the Country, from Lagos to Abuja, from Port Harcourt to Jos, Kaduna, Kano and Katsina. Their engagement is manifold: oil and gas, civilian constructions, infrastructures, housing, engineering, electronics, besides, of course, restaurants, cafe’ and catering. Italian companies are proud of their contribution to the infrastructures realised in Nigeria, attending to the plans developed by the relevant Nigerian Authorities. It is worth noting that the city of Lagos counts innumerable buildings erected by Italian companies both in the housing and in the business sectors. They are renowned for good quality and durability of their works. Some of the most remarkable buildings in Abuja have also been either designed or fully realized by Italian companies, or are currently under construction, like the National Ecumenical Cathedral, the Transcorp Hilton and the National Library, besides airport runways, roads and bridges in other parts of the Country.
In the hydrocarbons sector, the activities are focused around the area of Port Harcourt in the south. They mainly consist in off-shore and on-shore extraction of crude oil and natural gas also associated with crude oil, besides their transportation. Italian companies and their Nigerian participated companies are also engaged in managing power plants which supply electricity to the national grid. Growing attention is dedicated to the aspects of social corporate responsibility by means of engagement in favour of the development civil society and services to the population.
Last September the Italian Foreign Trade Institute organized in Rome an event dedicated to illustrate the Collaboration Opportunities for Italian and Nigerian Enterprises, organized in collaboration with the Nigerian Embassy in Italy and the Nigerian Export Promotion Council. Tens of Italian companies attended and a thorough presentation on business opportunities, especially in the non-oil sector, was given.
The engagement of the Nigerian authorities in the fight against economic crimes is remarkable, especially with a view to prevent and repress frauds’ attempts perpetrated more frequently by means of internet facilities against international companies.
Italian companies suspecting to be possible victims of a fraud attempt should address their concerns to the Embassy and to the Nigerian competent authorities in particular to the Economic and Financial Crimes Commission-EFCC (www.efcc.gov.ng) and to the Independent Corrupt Practices and Other Related Offences Commission-ICPC (www.icpc.gov.ng).
Italian companies are invited, as a precautionary measure, to halt contacts with counterparts suspected of fraud, to refuse to make any advance payment and to release their banking or financial references.
The Inter-Agency On Illegal Fund Managers/"Wonder Banks", comprising the Central Bank of Nigeria, Securities and Exchange Commission, Nigeria Deposit Insurance Corporation, Corporate Affairs Commission, Economic and Financial Crimes Commission and the Nigeira Police, alerted the public on the resurgence of the activities of illegal fund managers or "wonder banks". These illegal operators offer extraordinary returns on deposits or investments placed with them, only to disappear after sometime thereby jeopardizing the funds. These operators are not licensed by neither the Central Bank nor by the Securities and Exchange Commission as "fund managers" or "investment managers".
Investors wishing to invest in any financial product are strongly adivsed to conduct necessary due diligence with the Central Bank or the said Commission to verify the actual status of the "fund managers". For further enquiry and clarification see www.cbn.gov.ng and www.sec.gov.ng.
Treaties on economic and financial related matters
Italy and Nigeria have signed on the 27th September 2000 a Treaty on the Reciprocal Promotion and Protection of Investments which has been subsequently ratified by both parties and entered into force on 22nd August 2005.
Italy and Nigeria have also concluded the following Agreements on economic related matters:
Agreement to avoid double taxation on revenues from maritime and aerial navigation, signed in 1977;
Agreements of financial characters for the settlement of Nigerian public and private debt within the terms of the Paris Club, signed in 1989, 1990, 1992 and 2004;
Agreement on cancellation of 1.5 billion Euro of outstanding Nigerian public debts signed in 2005.
Italy and Nigeria have a Bilateral Agreement on Air Services.
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