How to Start an Export Business in Nigeria: Exporting is the process of transporting commodities manufactured in one country to another for sale. The exporter of such goods and services is referred to as the exporter, whilst the overseas buyer is referred to as the importer. Exporting commodities frequently necessitates the involvement of authorities due to the nature of international trade.
Exports are critical to the economies of both importers and exporters. Exports are critical because they provide a country with a larger market for its goods. Exports and imports are also critical because they help national economies develop and grow.
Because not all countries have the resources and expertise necessary to manufacture particular goods and services, such countries must purchase them from a country that does.
INTRODUCTION TO EXPORTING IN NIGERIA
Exporting is one of the most profitable companies you can start in Nigeria. Many have amassed multimillion-dollar fortunes through the exporting company. Numerous products and commodities are abundant in Nigeria, almost to the point of devaluation.
However, similar products are in greater demand in other nations and command a significantly higher price. This creates enormous profit prospects for those who take the risk of exporting such commodities. However, exporting a product takes sufficient study, knowledge, and finance to get started.
LIST OF NIGERIAN PRODUCTS AND GOODS FOR EXPORT
- Cassava flour
- Cashew Nuts
- Cosmetics and Laundry Soap
- Wigs and hair extensions
- Cocoa Butter
- Oil extracted from palm kernels
- Textiles and apparel
- Yam Tubers
While the export sector in Nigeria is extremely lucrative, it does not come without its own set of obstacles. One of the most significant issues confronting Nigerian exporters and those interested in the company is a lack of information about the rules and regulations governing business in Nigeria, as well as the legal requirements for beginning and operating a business. This has resulted in the demise of numerous exporting firms.
You should be aware of the legal conditions that must be met prior to entering the Nigerian export market. This is to prevent legal issues from arising during the course of your operation. Establishing an export business in Nigeria involves research and education. There are several factors that must be in place before you can launch a successful exportation business. This article will walk you through the process of starting and growing an export business.
International business is one of the most profitable ventures in Nigeria, as it exposes you to a vast new market. If your firm is legitimate and you follow all applicable laws, you will succeed in the exportation business.
HOW TO START AN EXPORT BUSINESS IN NIGERIA
REGISTER FOR AN EXPORT BUSINESS COURSE IN NIGERIA
The internet provides a variety of knowledge that will help you thrive in the exportation company. The first requirement is that you have an experienced mentor who can lead you through the process and assist you in difficult situations.
Your mentor should be someone who is already successful in the business. Additionally, you can apply for an export business course, which might take the shape of a seminar, a video instruction, or a private tutor. It is preferable to enter the business with foreknowledge and expert assistance than to enter the world of exports unprepared.
SELECT THE EXPORT PRODUCTS YOU WISH TO EXPORT
The following step in launching an export business is determining the products you wish to export. You do not have to be the manufacturer of the product to export it. You can purchase the product directly from the manufacturer for export.
LOCALLY SOURCE THE ITEMS
The following step is to locate a manufacturer who can supply you with the things you wish to export.
APPLY FOR TRADE INSURANCE AND REGULATORY CERTIFICATIONS
You must obtain trade insurance to protect yourself in the event that your goods are damaged while being stored or transported by air, land, or sea.
SEEK THE SERVICES OF AN EXPORT AGENT OR FORWARDER
Assemble the bank by first opening a domiciliary and a current account.
IDENTIFICATION OF AN UNIQUE BUSINESS NAME
One of the most critical procedures you must do when launching an export business in Nigeria is to register your company’s name with the Corporate Affairs Commissions. By registering your firm, you are adding it to the government’s list of officially recognized businesses. Additionally, this assures that no other business appropriates and utilizes your business name for their own. It is generally advisable to register your business name promptly, as you will not be permitted to register a business name that contradicts with that of another previously registered firm.
TWO MINIMUM DIRECTORS AND TWO MINIMUM SHAREHOLDERS
Additionally, while establishing an exportation firm as a limited or unlimited liability company, a minimum of two directors and two shareholders (maximum of 50) are required at all times. This does not apply if you intend to operate your export firm solely (as a sole proprietorship) or in collaboration with a business partner (partnership).
HAVE A REGISTERED OFFICE OR AN ADDRESS FOR AN OFFICE
In Nigeria, every export business is obliged to have a registered office or at the absolute least a ‘office address.’ You are not need to have an office structure, but it is critical that you have a traceable address. If you’re beginning a small export firm, you can use your home address as your office address. The government is more concerned about you having a business address.
APPLICATION FOR REGISTRATION WITH THE NEXP
According to the Nigerian Customs Service, everyone interested in exporting must register with the Nigerian Export Promotion Council. This Council was founded to promote and facilitate the export of goods in order to earn cash for the country. It is not difficult to register your firm with the Nigerian Export Promotion Council. Simply visit the Council’s website (www.nepc.gov.ng) and click on the ‘Register here’ option. Following that, you will be shown the complete method and prerequisites.
NEXP REGISTRATION PROCEDURES
Register online through NEPC’s e-registration portal. Additionally, you will be able to access yourself to determine if you are export-ready.
Additionally, NEPC provides broad market information and analyses to assist exporters in making sound business decisions.
ADDITIONAL BENEFITS OF NEXP EXPORT TRAININGS AND SEMINARS REGISTRATION
Additionally, NEPC provides exporters with customized training programs, seminars, and other export support services.
CONNECTING NIGERIAN EXPORTERS AND POSSIBLE BUYERS
Additionally, NEPC assists in connecting Nigerian exporters with prospective customers.
SUGGESTIONS AND COACHING
NEPC provides consultation and advising services in the areas of product development and market research.
MANAGEMENT OF EXPORT INCENTIVES
The Export Development Fund and the Export Expansion Grant are two export incentives offered by NEPC.
AID TO WOMEN IN EXPORTS
NEPC’s primary objective is to assist women-owned businesses in Nigeria.
FORM NXP REGISTRATION
To begin your export business, you must complete and register Form NXP with any authorized dealer of your choosing (commercial or merchant bank). The Nigerian Customs Service requires this. The dealer you select will be responsible for the management of your funds and transactions. Additionally, you will be needed to open and maintain a domiciliary account with the bank, which will receive your payments.
LICENSES AND PERMITS SPECIALIZED
The next critical step in starting an export firm is obtaining the necessary licenses and permits. This is proof that the government has approved your business. You will need the assistance of a business lawyer to determine which licenses and permits are required for your exportation business.
Your lawyer should be well-versed in the Nigerian business climate. Failure to get the necessary approvals may result in significant future complications and losses.
LICENSES ISSUED BY THE DESIRED FOREIGN COUNTRY
Export business entails the shipment of goods from Nigeria to other countries. Before you may sell your items to their citizens, every country requires you to obtain certificates and licenses. It is critical that you research the criteria for each country in which you wish to sell your items. Many countries require thorough inspection of your products before issuing a license. You will be permitted to sell your products only if they meet the requirements established by the foreign country’s government.
Additional documentation is required for export company.
- Incorporation certificate (for companies registered as corporations)
- Certificates of taxation
- Insurance protects.
- Ascertain that your products are not on the list of restricted goods.
- Ensure that your insurance is covered
SOURCE OF INFORMATION FOR CUSTOMERS
Customers are the lifeblood of the export business. Without consumers, the export firm will fail. You must be deliberate in your pursuit of customers. It is critical that you present a positive image of your company and products, as you will be dealing with international clients. One of your marketing methods should include effective advertisements and promos. This may cost you some money, but it may result in a higher profit margin than if you did not do it. You can create a website and market it via web search engines such as Google or social media platforms such as Facebook and Instagram. The manner in which you advertise is determined by the things you intend to export.
Ascertain that your website is multi-functional, displaying all products, as well as your contact information and any other information the client may require. This helps alleviate the customer’s worry and enables them to contact you simply. The internet is the ideal medium for connecting with clients and growing your business. Additionally, you might cooperate with other businesses to obtain the necessary connections.
HOW TO IDENTIFY BUYERS FOR YOUR EXPORT COMPANY
- Utilize professional-oriented applications such as Linkedin.
- Become a member of Export Promotion Councils (EPC)
- Locate local buyers who represent international businesses or export to international organizations.
- Become a member of International Trading Platforms
- Possess an Internationally Optimized Website
- Utilize Email Marketing
- Employ foreign agents on a commission basis
- Make contact with the chamber of commerce in the country to which you’re exporting.
- Take part at trade shows
WAYS TO GET INVOLVED IN THE EXPORT BUSINESS
Exporting is a capital-intensive endeavor. There are additional ways to get involved in the export business at the moment.
EXPORT OF DIRECT GOODS
Direct goods exporters are businesses that create things locally and then source international clients for the products they export. This kind of export is typically capital expensive, as you must either manufacture the products yourself or purchase them from producers in order to export them.
BROKERAGE OF EXPORTS
Entering the export business as a broker will cost you less than going straight. As a broker, all you have to do is tap into a vast network of local suppliers to round out your inventory. This manner, you’ll increase your sales and establish a thriving business. This is the most prevalent, safest, and most effective method of exportation in Nigeria. Indeed, you can serve as a broker for an importer or an exporter.
For instance, if the cost of white sesame seeds from Nigeria is $1,500 per ton, you may negotiate a price of $1450 per ton with a supplier or locate a buyer willing to pay around $1,550 per ton. This way, you profit.
Being an export broker is a risk-free yet lucrative method to get into the export market. Another advantage of being an export broker is that you can export a variety of products from a variety of industries and still earn a profit.