Suppose you have a medium-sized business in Nigeria. In that case, there is a need for you to expand your experience beyond the local market and go into the export business. This article will help you to start your exportation business even now.
Starting an export business in Nigeria will be the key to unlocking your world of business opportunities. This comprehensive guide will help you through the Essential steps to kickstart your exportation business. It begins with the choice of the right products to export, finding buyers, and carefully trading on the complexities of international trade.
What is an Exportation business?
Exportation Business is defined as the act of exporting goods produced in one country and sold into another country or a service provided in one country for a national or a resider.
An exportation business is a business designed to open doors for increased revenue and worldwide recognition for your brand or business.
Benefits of starting an exportation business in Nigeria.
Reasons why you should consider exporting your products from Nigeria are as follows.
Diversification of revenue:
When you are about to enter a new market, you will be dependent on the local economy.
Access to the Global market of buyers:
When you export your product, and it goes globally, your business is opened to more than 95% of the world’s population, and by not exporting, you are open to less than 5% of potential buyers.
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Increased profit potential:
The international market is likely to have a higher margin for your products.
Global brand exposure:
Expectations can push up your brand reputation on a global scale.
Government incentives:
The Nigerian government offers a number of incentives and support programs to exporters. It can be easier and more affordable to begin and grow in the exportation business.
According to NBS, do you know that Nigeria’s non-oil export goods increased to 18 million in June 2024 from 14.5 million in May 2024? Non-oil exports in Nigeria averaged 34 million from 2008 until 2024, reaching an all-time high of 1823452.77 million in June 2024 and a record low of 29675.90 million in September 2008.
Examples of popular products you can export from Nigeria.
Let’s take a look at some exportation business ideas which small and medium size business owners in Nigeria can afford to pursue.
African fashion and clothing:
Nigeria gives the best fashion sense in the world, such as traditional attire and contemporary clothing, and goes viral in the Global market. Examples are Ankara, agbada, adire, kaftans, Kampala, Guinea Brocade, Senator materials etc.
Health and Beauty Products.
Natural products like shea butter, black soap, Palm oil, organic cosmetics and herbal remedies are highly demanded internationally.
Specialty foods and spices.
Nigerian spices, Snacks, Garri and beverages are highly profitable internationally when exported.
Eco-friendly products.
Handmade craftwork, eco-friendly homemade goods and recyclable materials are sustainable for exportation.
How To Choose The Right Product To Export.
Making a choice or Selecting of appropriate products is the utmost Foundation of a successful exportation business, here is how to go about it.
Make your resources accessible:
Access your production capabilities, resources, and capacity to meet international demand, and also ensure your production can scale effectively.
Consider the demand:
Do research for the demand for your product in the target market. Research and trained analysis can help you identify products that are needed in the international market.
Research the competition:
Understanding your competition in the target market is of good value, thereby studying their pricing marketing strategy and product quality.
Assess your resources:
Figure out your production capabilities, resources and ability to satisfy international demand. Make sure your production can scale efficiently.
Research the competition:
Proper understanding of your competition in the target market is very important, considering their price, marketing strategies and product quality.
Legal and regulatory requirements:
The conscious/mindful of the legal and regulatory demand for exporting your preferred or selected products. Adherence is essential to avoid setbacks and payment of fines.
How to find buyers and negotiate contracts.
However, if you have identified what to export, it is high time to look for buyers and established contracts.
Identify potential buyers:
In search for reputable buyers through online directories, Industry-specific trade shows and Industry networks. Platforms like Facebook, Alibaba, jumia or Trade India could be valuable resources.
Contract potential buyer:
Reaching out to potential buyers to introduce your products. Your pitch should be able to emphasise the exceptional or extraordinary selling point of your goods.
Negotiate contract:
Negotiating with buyers can be complicated, covering aspects like price, aims of payment and shipping arrangements. Make sure you review cautiously and understand all aspects of the contract before finalising on rounding up. A recent survey shows that 8% to 90% of Nigerian exporters found their international buyers through online channels and Industry networks. When discussing contracts, it is necessary to know your needs and expectations. Make sure you pay attention to get everything in writing, and do not be afraid, scared or tensed to ask for help from my lawyer or any other professional bodies.
Export Regulations And Procedures.
Exportation from Nigeria comes with specific regulations and procedures, and they are as follows:
Register your business:
Register your business with the Nigerian Export Promotion Council(NEPC). This step is essential to having access to resources and support.
Obtain licenses and permits:
Achieving the necessary export licenses and permits. The NEPC and guide you through this process.
Prepare your Goods:
Make your product ready for export. This includes proper packaging and labelling to meet international standards.
Custom declaration:
Make sure your goods are being declared to customs and shipping arrangements ready. Appropriate documentation is essential to clear customs smoothly.
Shipping and logistics:
Effective Shipping and logistics are vital to make sure your goods reach their destination without scuffling or stress.
Choose a shipping method:
An appropriate selection of shipping methods and carriers based on factors like the type of products, destination and urgency.
Book your shipment:
Once your choice has been made, book your shipment and arrange for pickup.
Track your shipment:
Your shipment has to be tracked appropriately so that you will know when it has arrived at the destination. This information will assist in providing regular updates to your buyer and encourage transparency and proper communication.
Resources and Support For Exporters In Nigeria.
Starting this journey alone shouldn’t be what a budding exporter should engage in without enough information. There are some useful resources and support you need to know that will help the exporter to scale through.
- The Nigerian Export Promotion Council(NEPC) offers a wide range of resources, training and support to Nigerian exporters. Visit their website or contact them for assistance.
- NEXIM provides financial and credit support to Nigerian exporters.
- Small and Medium Enterprise is a development agency in Nigeria(SMEDAN).SMEDAN offers resources and training which align with small and medium-sized businesses, including those involved in export.
Conclusion.
This is a complete guide to begin your exportation business in Nigeria. Could you put in your time to learn it? You can consider reaching out to the Nigerian Export Promotion Council (NEPC) for assistance.