Business

• Muna Tengi
• 6 Min Read
• 70 Views

7 Important Steps On How To Export Goods From Nigeria

Nigeria, Africa’s largest economy and most populous country, is rich in natural resources and agricultural products. The country's diverse economy, which includes oil, agricultural products, solid minerals, and a growing manufacturing sector, offers numerous opportunities for export. Exporting goods from Nigeria can be a profitable venture if done properly. However, like any other international trade activity, exporting requires knowledge of regulations, processes, and best practices to ensure compliance and efficiency.

This guide will walk you through the steps involved in exporting goods from Nigeria, from understanding the types of goods eligible for export to handling the necessary paperwork, logistics, and international trade regulations.

1. Understand the Types of Goods Eligible for Export

Before venturing into the export business, it’s essential to identify the types of goods that are most suitable for export. Nigeria is a resource-rich country with diverse sectors that offer export opportunities. Some of the primary categories of goods exported from Nigeria include:

• Agricultural Products: Palm oil, cocoa, rubber, cashew nuts, sesame seeds, ginger, and yams.

• Solid Minerals: Gold, limestone, lead, zinc, and coal.

• Crude Oil and Gas: Nigeria is one of the world’s largest exporters of crude oil.

• Processed Goods: Leather products, textiles, garments, and other manufactured items.

• Food and Beverages: Processed food products like snacks, beverages, and spices.

Identifying the demand for these goods in the international market and understanding which countries have a strong import demand for Nigerian products will help you choose the right product for export.

2. Register Your Business for Export

Before exporting, your business must be legally registered to engage in international trade. Here’s what you need to do:

• Register with the Corporate Affairs Commission (CAC): First, your business must be registered with the CAC, Nigeria's official business registration body. Whether you run a sole proprietorship, partnership, or limited liability company, registering your business gives it the legal recognition required for export.

• Obtain a Tax Identification Number (TIN): The Federal Inland Revenue Service (FIRS) provides a TIN, which is mandatory for all businesses in Nigeria. This number is required for customs documentation and tax-related processes in export activities.

• Join the Nigerian Export Promotion Council (NEPC): The NEPC is responsible for promoting and developing export trade in Nigeria. Your business must register with the NEPC to obtain an export license. The registration fee varies based on the size of your business, and you will need to provide basic documents like your CAC registration, TIN, and a detailed business profile.

3. Identify Potential Markets

To succeed in exporting, you must research and identify foreign markets with demand for your goods. The global market is vast, and different countries have different needs, regulations, and tariff systems. Some of the ways to research potential markets include:

• Market Research: Use online platforms, such as the International Trade Centre (ITC), the World Bank, and trade promotion organizations, to gather data on international demand for Nigerian products.

• Participate in Trade Fairs and Exhibitions: Attend trade fairs organized by the NEPC and other international trade bodies to connect with foreign buyers and gain insight into potential markets.

• Leverage Trade Agreements: Nigeria is part of several regional and international trade agreements, including the African Continental Free Trade Area (AfCFTA) and the Economic Community of West African States (ECOWAS). These agreements can help reduce tariffs and ease market entry in certain regions.

4. Comply with Export Regulations and Documentation

Exporting goods from Nigeria involves several regulatory processes and documentation requirements. Proper documentation ensures that your goods can clear customs without delays and helps you avoid penalties.

• Obtain a Proforma Invoice: This document outlines the buyer's intent to purchase and includes details about the quantity, price, and payment terms. It serves as an agreement between the seller and buyer and is necessary for customs clearance.

• Secure a Certificate of Origin: This certificate proves that the goods were produced or processed in Nigeria. It is typically issued by the NEPC and is required by customs authorities in the destination country to determine the origin of the goods for tariff purposes.

• Complete the Nigerian Export Proceeds (NXP) Form: The NXP form is required by the Central Bank of Nigeria (CBN) and must be filled out and submitted through a Nigerian bank before goods can be exported. The form tracks foreign exchange proceeds and helps ensure compliance with Nigeria's trade policies.

• Get Quality Certification: Depending on the product you're exporting, international buyers may require quality certification, especially for food and agricultural products. Institutions like the Nigerian Agricultural Quarantine Service (NAQS) and the Standards Organization of Nigeria (SON) provide certifications to ensure that products meet global standards.

5. Arrange for Shipping and Logistics

Once you’ve obtained the necessary documents, the next step is to arrange shipping and logistics. This involves choosing the right mode of transportation and handling the logistics to ensure your goods reach the buyer in good condition.

• Select the Mode of Transportation: Goods can be exported by air, sea, or road. The choice depends on the nature of the goods, the destination, and the urgency of delivery. For example, agricultural products are often exported by sea, while time-sensitive items may require air freight.

• Engage Freight Forwarders: Freight forwarders are logistics professionals who can help with the transportation of goods, customs clearance, and other logistics services. They can advise on the best shipping routes, handle paperwork, and ensure that your goods reach their destination safely.

• Ensure Proper Packaging: Packaging is critical to ensure that your goods arrive in good condition. The packaging should be durable enough to withstand rough handling during transit and meet the import regulations of the destination country.

6. Clear Nigerian Customs

Before your goods leave Nigeria, they must pass through customs clearance. Customs authorities will inspect the goods to ensure compliance with export regulations. Ensure that all the necessary documents are in place to avoid delays.

• Submit Required Documents to Customs: Documents like the NXP form, commercial invoice, packing list, and certificate of origin must be submitted to the Nigerian Customs Service (NCS) for approval.

• Pay Export Duties (if applicable): Some goods may be subject to export duties. Check with the NCS to determine whether your goods fall under this category.

• Obtain the Clean Certificate of Inspection (CCI): This certificate is issued by an independent inspection agency like Cotecna or SGS. It verifies that the goods meet the required quality and quantity specifications and is mandatory for certain products.

7. Receive Payment

Once the goods have been exported, you need to ensure that you receive payment for your goods. This is often done through international payment methods such as:

• Letters of Credit (LC): This is one of the safest ways to receive payment, especially for new buyers. A letter of credit guarantees that the buyer's bank will pay the seller once the required documents have been submitted.

• Bank Transfers (Wire Transfers): For established buyers, direct bank transfers are commonly used. Ensure that all payment details are agreed upon in the contract.

• Export Proceeds Repatriation: Nigerian exporters are required to repatriate export proceeds back to Nigeria within a specified timeframe (usually 90 days) as per CBN regulations.

Conclusion

Exporting goods from Nigeria is a lucrative business, but it requires careful planning, compliance with regulations, and strategic market research. From registering your business to navigating the logistics of international trade, following these steps will help you succeed in the competitive export market. With Nigeria's wealth of resources and global demand for its products, there is significant potential for profit in the export sector.

By understanding the processes involved, staying compliant with export regulations, and ensuring that you have the right partners, your export business can thrive in Nigeria's growing trade landscape.