You are interested to know how to start an export business in Nigeria and I will show you in this special post on exportation.
There are importers (read my guide on importation business) and there are exporters, what they have in common is theta they both make a lot of money form the foreign exchange trade.
Take a closer look at exportation business in Nigeria, and you will realize how profitable is in its generality.
You may not believe it, but some goods that sell very cheap here is very expensive in other countries and that is what exportation business is about, exploiting the cheapness to your profit.
Before you proceed, you must carry out proper research on those commodities that are needed and can be exported easily outside of the country. There are products in every sector, just think well and hit jackpot.
It could be pepper export business, cashew nuts export business, wood, export business, bitter kola export business, vegetable export business, ginger export business, fruits export business, food export business etc.
Starting an export business simply requires you do your research well to have a key-down on most of those commodities that are being exported at a higher rate outside the country.
These products are spread across every sector in every state in the federation and present a wide opportunity for any adventurous investor with the aim of processing them into raw materials or semi-finished goods for exports, as these products are mostly in high demands in the country where they are being exported to.
- HOW TO BEGIN EXPORT BUSINESS IN NIGERIA FROM SCRATCH
- List of 20 Exportable goods You Can Export from Nigeria and Make Dollars
HOW TO BEGIN EXPORT BUSINESS IN NIGERIA FROM SCRATCH
The processes involved in running a successful export business are broken down into ten (10) different but sequential steps. Let’s check them out.
Get Adequate Training:
No matter how rich you are, it is simply impossible to just wake up and decide to start an export business.
The export business is more complex than that. As a newbie, it is important you get some basic knowledge as to how the export market actually works, licensing, documentation, guidelines, port procedures and regulations, product sourcing, etc.
Workshops, seminars and so on have recently been organized by various companies and agencies, for entrepreneurs looking to try their hands on export business, especially in Lagos state. You need to look out for one and attend.
Choose Your Products of Interest
You can’t be an exporter of all products. After receiving training, you sure need to specify what products you can easily export and turn your focus on those products.
They should be products that you can easily make available in any required quantity at any time there is demand for it. Examples of regularly exported products include: cocoa, cashew nuts, cassava, bitter kola, etc.
Choose a Unique Business Name
After selecting your product of interest, it is imperative that when starting out as an exporter in Nigeria, you register the name of your export business with the Corporate Affairs Commissions (CAC).
Doing this will add your business to the list of businesses officially recognized by the government, and it enough to ensure that another business cannot use your business name for their own business.
Note: Every business name must be unique and you can’t be allowed to use the name of a business that is already in existence.
If you are running your export business all alone (sole proprietorship) or as someone’s business partner (partnership), then this doesn’t apply to you but if aren’t starting your export business as a sole proprietorship but rather starting out as a company (limited or unlimited), then you must have a minimum of two shareholders and two directors. (You can have a maximum of 50).
Register Your Export business in Nigeria office
Registration of your export business in Nigeria must have a registered office attached. Don’t stop reading at this point if you’re just starting out and you don’t have an office yet.
There’s hardly any form of physical verification so what you really need is ‘office address’, and you might not have an office structure. As a start-up, you can put in your home address. The important thing is that there’s an ‘office address’.
Get Registered With NEXP
It would be illegal for you to start carrying out any form of export trade without first registering with the Nigerian Export Promotion Council (NEXP).
It is an important rule from the Nigerian Customs Service. Registration with the Nigerian Export Promotion Council is now easier, as you can simply log on to their website, (www.nepc.gov.ng) and click on the ‘Register here’ link on the right sidebar of the page. You will be shown the full details of the requirements and procedure.
Registration of Form NEXP
To run a hitch-free export business, the Nigerian Customs Service also requires that Nigerian exporters complete and register Form NEXP (It has to do with funds).
You can register with any authorized commercial or merchant banks of your choice.
Your funds and transactions would be handled by your chosen authorized dealer, as you will be mandatorily required to open and maintain a Domiciliary Account with them, to which your payments will be deposited.
Obtain Licenses and Permits
Asides obtaining registration forms, starting an export business in Nigeria requires obtaining licenses and permits as a means of the government’s approval of your export business in Nigeria.
There are general licenses and permits for owning and running an export business in Nigeria, and there are some specific licenses and permits for operating an export business.
Obtain Target Foreign Country Licenses
Exporting from Nigeria means importing into another country; and virtually all foreign countries has licenses and certification that must be obtained by businesses planning to sell their product or commodities to their citizens.
You would need to find out about governing rules and regulations for each country you target to import to, so you won’t have any legal issues.
Market To Your Customers
Your number one customers are no other people than importers.
That is, those who import into those countries you’re targeting. You need to tell them the importance of your product if it’s new or implement some competitive strategy if it’s not. Overall, you need to create a good rapport with foreign countries’ importers.
Note: Have it at the back of your mind that your products would only be properly scrutinized and only allowed into the foreign country if all it meets their own required standard and all the paperwork is complete.
Also, don’t downplay the importance of any license or paperwork, as the one that seems the least significant might be the one that would land you some real legal headache.
Some additional documents you might be required to produce include: Tax certificates (which can be obtained from tax offices), Insurance covers, and Certificate of incorporation (required for companies registered as corporations).
List of 20 Exportable goods You Can Export from Nigeria and Make Dollars
Export business in Nigeria to other countries of the world is very lucrative and can build the country’s economy overnight.
Why we are not exporting enough products from Nigeria to other countries is a mystery. Here we present to you the top 20 items you can export from Nigerian and make dollars.
Many people used to think that its only Oil related products that could be exported from Nigeria to other countries and make money. That is not the truth.
There are thousands of items that can be exported. In fact, tt might really interest you to know that there are far too many other made in Nigeria goods that could be yielding more than enough foreign exchanges to the country.
2. Palm Kernel Oil
3. Textiles and Garments
4. Cocoa Butter
7. Sesame Seed
11. Yam Tubers
14. Cassava Flour
15. Cashew Nuts
17. Chili Pepper
18. Fruit Juice
20. Cosmetics and Soap
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