V. MARKETING U.S. PRODUCTS AND SERVICES Affiliation with a qualified agent or distributor is essential for U.S. manufacturers and suppliers exporting to Nigeria. Such an agent must have the resources, however, to assure adequate market promotion,and must also be able to provide installation service, training-in-use, and the stocking and servicing of spare and replacement parts. A surprising number of Nigerian firms meet this criteria and can boast staffs of technicians as well as installation, servicing and training capabilities. Given the geographic size and ethnic complexities of Nigeria, foreign manufacturers sometimes elect to avail themselves of more than one agent or distributor. All such arrangements however, must carefully spell out relevant terms. Principles governing agency and distribution agreements are largely based on Nigerian case law established over many years. It is, therefore, a matter of good drafting to carefully define such issues as geographical area of representation, duration of the agreement and the conditions or circumstances under which the agreement may be cancelled or revised. Other areas which should be addressed with care as well, include specific assignments, rights to refuse orders, renumeration, limitations of authority, restraints after termination to solicit sales from previous customers, restraints on the use of registered logos, company or product or brand names and trade marks. In spite of such precautions, foreign companies can expect a great deal of difficulty in trying to enforce such contractual obligations should it be necessary to resort to judical processes. Imports into Nigeria valued at more than $1,000 and all containerized goods, regardless of value, are subject to pre- shipment inspection at the point of export, the expenses for which are paid by the exporter. Pre-shipment inspection agents, and representatives, have been appointed by the Nigerian Government for different areas of the world. A firm located in Houston, called Intertek Services International, handles inspections for exports to Nigeria from the United States. Intertek Services International 3741 Red Bluff Road Houston, Texas 77503 Tel: (713) 475-2082 Fax: (713) 475-2083 Contact: Ms. Susan Finchum If, upon inspection, no irregularities in price, quantity or quality are found, a Clear Report of Findings and an Import Duty Report (IDR) are issued. Both are mandatory to enable a Nigerian consignee to clear imports through customs. The IDR indicates the required amount of duty to be paid, based upon the CIF value of the imported goods. Reportedly, a large number of IDRs are challenged by Nigerian custom agents at the port of entry and debit notes are issued, thereby increasing the price paid by the consignee, which in turn is passed on to the ultimate consumer. In its 1994 budget, the Nigerian Government made the use of letters of credit compulsory for all imports valued at more than $1,000. In any event, U.S. firms supplying the Nigerian market are always advised to only ship on the basis of an irrevocable letter of credit confirmed by a U.S. or major international bank. A visit by a non-exhibiting U.S. exporter to an international Nigerian trade fair may help to identify, but not qualify, potential agents and distributors, essential for getting U.S. exports into the Nigerian market. See trade event schedule, Section E. There are a number of business magazines published in Nigeria which U.S. exporters may find useful: The Nigerian Economist c/o: Sahal Publishing and Printing Co. Ltd. 71 Oregun Road P.M.B. 21268 Ikeja, Lagos Tel: (234) (01) 965-411, 965-970 Fax: (234) (01) 269-3532 Marketing 10 Awofeso Street Honesty House, Palmgrove P.O. Box 256, Oshodi Lagos, Nigeria Tel: (234) (01) 821-0082 Credit News 1, Old Ojo Road P.O. Box 2708 Apapa, Lagos Tel: (234) (1) 881-523 Fax: (234) (1) 880-511 The Businessman Journal White House 23 Folawewo Close, Ikeja P.O. Box 72269, Victoria Island Lagos, Nigeria Tel/Fax: (234) (1) 523-299 Business Reporter 19, Ajegunle Street Near Awosike Bus Stop, Isheri P.O. Box 55126, Ikeja Lagos, Nigeria Tel/Fax: (234) (1) 831-717 Another publication which U.S. manufacturers and suppliers may wish to consult, and in which they may wish to consider placing advertising for purposes of expanding market image, is the Africa Technical Review of Business and Technology. This monthly magazine has a circulation of about 25,000 and focuses on technological developments in various African countries. This makes the publication a source of information for foreign supplier on not just Nigeria, but other African markets as well. The magazine has a representative in the United States to facilitate inquiries from American business. African Technical Review of Business and Technology c/o: Mercury Airfreight International Ltd. 2323 Randolph Avenue Avenel, New Jersey 07001 Tel: (908)-396-9555 Fax: (908)-396-1492