Export Business in Nigeria – Complete Step by Step Guide for Beginners
Has it become obvious to you that people now invest their money into the exporting business? It has come to my notice that business men and women are always discussing about exporting goods whenever they are together.
For business men and women to be so serious about this business, this shows that export business is a lucrative one because business people have business-oriented minds and therefore knows a profitable business from the one that is not.
If you have money and do not know the business to start or invest on, then I tell you that export business in Nigeria is the one for you. Export business in Nigeria is very lucrative because there are many goods and products manufactured in Nigeria that can be exported to other countries.
Another reason why export business in Nigeria is lucrative is because Nigerian goods worth much more in the international market than the local market.
Some of the important things you need to know about export business in Nigeria are:
• High capital
• Lots of risks
• Legal requirements
• Export business training
• Getting customers i.e. foreign buyers
Export business in Nigeria requires a huge amount of capital. It is not a business that you can start with small amount of money. This is what stops most people from engaging in export business in Nigeria but let me tell you this, you do not need to have all the money required at hand.
You can get your capital by approaching family and friends that you know can afford the money you want to borrow, angel investors, venture capitalists and you can also get loans.
LOTS OF RISKS
All businesses have the risks they face and challenges they encounter along the way but some businesses’ risks are more than others. Export business in Nigeria is a business I can say is not easy to start and manage considering the risks it involves.
Some of the common challenges export business in Nigeria face are:
• Difficulty in getting reliable foreign agents
• Lack of capital
• Difficulty in getting quality information
• Difficulty in getting market information
• Financial risk
• Loss of goods (shipment)
• Rejection of goods in the foreign markets
One of the legal requirements of export business in Nigeria is registration. It is required of you as an exporter in Nigeria to legalize your business by registering it with the Corporate Affairs Commission.
Aside the fact that registration legalizes your export business, it also boosts your credibility because no foreign market will do business with you without first checking out if you are registered in Nigeria.
Registering your export business is a two-way thing because you also need to meet all demands imposed by the government of the foreign market you have targeted. You will also be given certain licenses and permits in Nigeria after registration.
EXPORT BUSINESS TRAINING
There are many seminars going all the nation that teaches about how to start an export business in Nigeria. It is important that you get trained when starting an import and export business in Nigeria because export business is so complex that without being trained or without having full knowledge of what it is about, you might end up a failure.
It needs lots of training and research. Some of the things you learn by being trained as a Nigerian exporter or by reading about it are: product sourcing, how to work with foreign agents and distributors, how to register your business legally, port procedures and so on.
You can also locate an experienced exporter who has been in the business for years to be trained, advised and taught all you need to know to start and be successful as an exporter in Nigeria. Research has even shown that this is the best training you can receive for export business.
Buying books that talks about export business in Nigeria might not yield any good result since most of the authors are not exporters themselves, they are only giving the theory aspect of export business. It is also important that you know the regulations and preferences of foreign products.
GETTING FOREIGN CUSTOMERS
This is all about locating potential buyers and profitable foreign markets which might be difficult for someone who doesn’t know how to go about it. It is now much easier to find foreign customers or markets without meeting face to face with the aid of the internet. All you just need to do is to join trade websites, introduce your business and seal deals with interested buyers.
Below are goods that can be the focus of your export business and that will also fetch you lots of money:
Ginger, cocoa butter, textiles and garments, honey, palm kernel oil, shrimps, gallstone, rubber, garlic, sesame seed, cotton, yam tubers, charcoal, cosmetics and soap, snail, cashew nuts, chili pepper, cassava flour and so on.