Do you wish to leverage the export business anytime soon? This guide will walk you through the process to start a small-scale or mini exportation business in Nigeria.
Exporting is a process that requires a lot of careful consideration and by no means should be taken lightly, therefore to become a successful exporter, adequate attention must be given.
Exportation is still a safe way for businesses and the government to sell their excess goods or services to other nations at prices higher than those available on their domestic market in today’s global economy. Furthermore, exporting increases access to a larger pool of potential clients and generates jobs that are good for the economy.
How To Start Small Scale Export Business in Nigeria
The business of exporting goods around the world is mainly concerned with procedures and documentation. For instance, the buyer needs to be sure that he is getting what he is paying for, and the seller/exporter needs to be sure that he will be paid.
Therefore, it is essential for an exporter to comprehend the necessary procedures and documentation, and today we highlight how to start a small ṣcale export business in Nigeria
1. Negotiating The Contract
The exporter must sign an export contract with the potential buyer once a market for the goods has been identified. These contracts typically include clauses about price, quality, quantity, packaging, duration, payment terms, dispute resolution, and other things.
2. Export Documentation
To carry out exportation in Nigeria an exporter is required to complete and register Form NXP with an Authorized Dealer (any Commercial or Merchant Bank) of his choice. Additional documentation required includes a Pro-forma invoice, relevant certificate of quality, Shipping documents e.g. bill of exit, bill of lading etc
3. Managing Product Sourcing and Shipment
A necessary part of exporting is dealing with vendors, logistics service providers, warehousing businesses, freight forwarders, and other business partners. It is crucial for the exporter to give this stage the attention it deserves because it can make or break your exporting experience.
To prevent misunderstandings and divergent views on what the parties agreed to, it is necessary to bind everything to documentation. Being prudent when spending money is also crucial.
4. Paying Attention to your Export Contract
You must give this phase extra attention because it is a crucial part of the export process. It is advised that you seek a professional assessment of the contract’s commercial and legal terms.
5. Know about Treaties and Legislation that Benefit Exporters
The Africa Growth Opportunity Act (AGOA), which was passed by the US Congress in 2000 and was recently extended to 2025, is one of many laws and treaties that are extremely beneficial to exporters but that a lot of people are not taking advantage of.
Its goal is to give Nigeria and other eligible African countries the chance to develop their capacity in global markets. In essence, the law permits some specific products coming from Africa to enter the USA without being subject to a tariff or quota.
Mercedes Benz was inspired to establish a plant in South Africa solely by this initiative, which has greatly benefited that nation. The ECOWAS Trade Liberalization Scheme is another agreement that aims to significantly increase the amount of trade in West Africa by removing both tariff and non-tariff barriers to the trade of goods from all ECOWAS member nations.
5. Adhering to all Export Laws and Regulations
Because buyers and sellers in international trade often are in different parts of the world and need assurance that their transactions are legal, the government has established processes and procedures that every exporter must follow. These include:
- Company Registration: A potential exporter must register their Limited Liability Company or Cooperative Society if one of their goals is exportation.
- Registration with NEPC: A company that wants to export must register with the Nigerian Export Promotion Council (NEPC), which is the organization in charge of registering new exporters by issuing them an export license.
6. Trade Studies
An exporter must conduct some kind of research to find market opportunities as well as potential clients and customers. All techniques a business can use to identify which international markets have the most potential for its products fall under the category of market research.
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Mini Exportation Business in Nigeria
These business export opportunities that can make you money outside of Nigeria are known as mini-exportation businesses.
Here are some products to consider for mini exportation business in Nigeria
- Beans Flour
- Melon seed (Egusi Ground)
- Ogbono, Cassava Flour
- Bitter leaf
- Palm Oil
- Dried Ugu leaf
- Palm wine
- Butter production
- Coconut processing
- Tomato paste
- Hibiscus flower
- Pap (Ogi)
- Ukazi leaf
- Hot Chilli Pepper – Grounded
- Kola nut
- Ginger beer
- Bitter Kola
- Ofada rice
- Pounded Yam Flour
- Fruit juice
- Plantain Flour
- Palm kernel
- sesame seeds, and others
- Nigerian-made shoes (aba shoes)
- Nigerian made fabrics
- Charcoal, etc.
How To Package Foodstuffs for Export
Starting an export business in Nigeria is typically more difficult than people make it out to be. To launch a profitable exportation business, you must take a lot of steps.
Nevertheless, International business is one of the most profitable businesses in Nigeria. But you need to arm yourself with the right knowledge if you want to package foods for export. Below are some of the foodstuffs you can package for export and how to go about doing it.
1. Dried fish /stock fish
- This item is highly sought-after as well.
- When sending smoke stock fish there are certain things you must consider
- Those carrying stones or sand should not be sent, make sure you buy from a good place,
- Avoid those mallams because their merchandise always contains stones.
- Honey is in high demand.
- When exporting honey, always send the original; if you are unsure of the original, don’t bother sending it.
3. Palm Oil.
Depending on the needs of the customer, you can package quantities starting at 5 litres. The maximum allowed 5 litres in Nigeria is ₦2,000. The southern region of Nigeria is where you can buy it.
According to your negotiations on the global market, it can be sold for between 18 and 20 euros for 5 litres (more than ₦10,000 Naira).
4. Bitter Kola
The demand for it on the global market will bring in actual cash for you. There is a LARGE demand! as in extremely HIGH Garcinia kola is the name given to it on the global market. It can be sourced cheaply in different places in Nigeria.
It’s being needed in the Food and pharmaceutical industries. Sells for ₦12,000 a basket at Osun but sold for ₦60,000 in the international market.
1kg of bitter Kola is sold for less than $2 in Nigeria. But, it’s sold for above $17 in the international market. Can you imagine the profit just from 1kg?
5. Melon (Egusi) Seed
On the global market, it is sold for $20 per kg. In the local market here in Nigeria, it can be purchased for under $3 per kg. Different states, such as Nasarawa and Benue, are where it can be found.
The demand for garri is also very high, but when sending garri, make sure it is of high quality and free of particles. I typically send ijebu garri because it is the most popular and costs $6 to $8 compared to common garri’s $4 to $5.
How to Export Foodstuff From Nigeria to Canada
Once you have the necessary funds, make sure your company is registered with the Corporate Affairs Commission and send your export-ready goods to Nigerian Aviation Handling Company Plc. If you can follow the stated guideline, you should be able to send foodstuff abroad or to Canada to be specific
How to Export Ogbono from Nigeria
It is required in the majority of foreign nations and costs $20 per kg. Exporting ogbono seeds from Nigeria overseas can increase your profit on ogbono exports from Nigeria by up to 100%. Edo state is where one can find ogbono seeds. It doesn’t spoil easily so far its dried up well before packaging.
How to Get Buyers for Export from Nigeria
Fo effective exportation, you need to have access to buyers who will be ready and willing to buy your goods. In some situations, an exporter has no known clients abroad to whom they can sell their products. In such a scenario, he or she is required to engage in significant advertising on well-known social platforms like Facebook, Twitter, Instagram, and even Whatsapp.
This will help spread the word about the existence of your goods and, as a result, will put you in contact with potential customers.
A channel of export must be chosen by the exporter in addition to contacting an exporting company in need. You need to decide these while taking delivery time and price into account. If an exporter doesn’t have a relative abroad, they can choose between NIPOST or air transport as their preferred method of delivery.
Do not be concerned about the cost of air travel. You must include transportation costs as part of the additional costs, which also include sub-costs such as packaging costs. When customers learn that you always meet deadlines, they will recommend you to other businesses in need of the kind of service you provide.
You’ll also need to have a design and packaging kit for your goods. It enables customers to distinguish your products from competing ones. The whole point of packaging is to present hygienic goods and to show clients that you respect them.
For instance, a stockfish exporter should thoroughly wash and package the stockfish before exporting them. The packaging for these food items will go a long way toward bringing you more deals down the road, though how exactly you never know.
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Conclusion: Mini Exportation Business in Nigeria
Conclusively, both Mini importation and exportation are goldmine businesses. However, most people pay attention to importation while neglecting the other side of exportation.
It is important to note that Nigeria is so blessed in Agriculture, therefore, getting started with a small-scale export business will always be a good venture.
Legacy is a serial Entrepreneur, SEO Expert, and Blogger who has won an award for excellence.
LegacyTips is his webspace where he shares helpful guides to help you make money both online and offline.
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