Export Business In Nigeria.

 

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Do you know that Nigeria is one of the world's leading producers and exporters of sesame seed, with a long history of consistent production? 


Sesame seed demand continues to expand at a pace of 4% each year, mainly in the Middle East and Asia. Nigeria is the world's seventh largest producer of sesame seed, with roughly 80% of its produce going to export.


Do you know that bitter kola is in high demand in nations like the United States, Japan, India, France, United Kingdom, Germany, China etc and it is mostly found in Africa, with Nigeria being one of the top exporters?


I can go on to tell you about the high demand of processed products like chips, starch, pellets, flakes, etc, In the United Kingdom, Germany, France, Netherlands and these are byproducts of Cassava tubers produced in high volumes in Nigeria.



Export business in layman's terms is the interplay of demand and supply, where you look for a country who has a demand for what you are producing and set up the necessary infrastructure that will enable you to supply that demand from your country.


Not all countries have the resources and skill required to produce certain goods and services, therefore such countries would need to buy them from another country that produces them in abundance.


In essence, every nation depends on each other to survive which is why we have importation and exportation of goods and services.


HOW TO START AN EXPORT BUSINESS IN NIGERIA

The export business in Nigeria is highly lucrative but also has its fair share of challenges and one of the major challenge faced by entrepreneurs trying to venture into export business in nigeria is that of little or no information about the legal or regulatory guidelines on how to run the business in Nigeria,as a result several export businesses have crumbled by either falling into the hands of fraudsters or violating regulatory policies. 


Starting your export business in nigeria requires that you take note of the following steps :

  1.  Registration of Business:Irrespective of the kind of business you want to venture into, registering the business with the right authority should be the first step. In Nigeria, the Corporate Affairs Commission (CAC) is an authorized business registration agency. By registering your business, you join the league of certified business owners and can access loans as well as other benefits tailored to entrepreneurs.


  1. Nigerian Export Promotion Council:

Secondly, you will proceed to register with the Nigerian Export Promotion Council (NEPC) for an export license and document. This body serves as an exporters’ directory.

It provides a platform for prospective buyers to source information on reliable exporters. Also, it verifies the exporter’s certificate and represents the interest of Nigerian sellers before international buyers.In addition, the NEPC has procedures and documentation processes that enhance understanding of the export business. It provides prospective exporters with a guide arranged in 9 steps; E-registration, Export plan, Document and Procedures, Logistics and Freights, Pricing, and Finance and Legal issues, e.t.c.


  1. Structure

After procuring the licenses and permit, you are on your way to becoming a legit exporter. The permit gives you the access to ask questions and make clarifications on the business from NEPC. Also, you will need to set up a proper structure for credibility and accessibility. Therefore, you need a professional address or a virtual office address; You can use ReDahlia Workspaces virtual office address package. This way, your business will have a professional appeal and buyers can be confident to do business with you.


  1. Source For Direct Producers And Suppliers

As soon as you conclude on venturing into the export business, the next thing is to find the producers or suppliers of the goods you intend to export. You can also produce if you can meet the demands. But if not, try to establish a link with other producers and reach an agreement.To begin, you can visit the production site of the goods you want to export or establish a communication channel with the producers or farmers of the products you want to export.


  1. Invest In Advertisement And Online Marketing

Except you already have a sealed deal with buyers who will buy all you want to export continuously, there is a need to invest in online advertising and marketing, but if not then it is a vital way to promote your business and get real clients interested in what you are producing. Your online advertisement should be targeted to the countries you want to export to.

Before getting to this stage, you have already decided on the product to export and the product must be in demand in the country you are exporting to. Once the home work has been done, running targeted ads becomes easy.

Also, you should not leave out social media. On social media, you can use the right keywords and hashtags to run targeted ads that will get to your target audience.


  1. Export Your Products

To export your goods, you can use freight forwarders; they specialise in moving goods to different places in the world. You can also arrange that they do everything from arranging insurance to finding a reputable customs broker.

Also, you can use a custom broker; these people will clear your goods through customs. In several countries, only a local and registered official can do this.

The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. FOB means the buyer covers the cost and liabilities once the goods are shipped while CIF means sellers cover the cost of everything including insurance and transportation until the buyer receives the goods.


Conclusion

In conclusion, like every other business, the export business has its challenges but with the right team and knowledge you will navigate safely, so do you run an export business or do you intend to start an export business?  you can always start small. You don’t have to start with millions of Naira. Start small, learn the trade and gradually scale your business.This article  is not exhaustive, but it will get you started on your journey as an exporter.










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