How to Export from Nigeria: A Step-by-Step Guide

Exporting from Nigeria presents a lucrative opportunity for businesses looking to tap into international markets. With abundant natural resources and manufactured goods, Nigeria offers various export possibilities. However, many entrepreneurs face challenges in navigating the complex process. This guide simplifies the steps required to successfully export from Nigeria, covering legal requirements, logistics, and best practices.

1. Registering a Business for Export

Before engaging in export activities, it is essential to establish a legal business entity. The steps include:

• Registering a Limited Liability Company: The company must have “export” as one of its business objectives.
• Obtaining an Export License: Businesses must acquire an export license from the Nigerian Export Promotion Council (NEPC). This can be done online, and processing takes approximately 24 to 48 hours.

2. Selecting the Right Export Product

Choosing the right product is critical to success in the export business. Consider the following factors:

• Market Demand: Research international demand for Nigerian products.
• Export Regulations: Ensure compliance with Nigerian and destination country regulations.
• Profitability: Assess costs, including procurement, processing, packaging, and logistics.

3. Finding International Buyers

Securing international buyers requires strategic marketing and networking. Effective methods include:

• Online Promotion: Utilize social media, B2B platforms, and export directories.
• Trade Fairs and Exhibitions: Attend international trade events to connect with potential buyers.
• Agents and Representatives: Partner with export agents to facilitate sales and negotiations.

4. Pricing and Incoterms

Determining the right price for export products involves understanding Incoterms (International Commercial Terms):

• FOB (Free on Board): Price includes product cost and transportation to the Nigerian port.
• CFR (Cost and Freight): Price includes shipping costs to the buyer’s designated port.
• CIF (Cost, Insurance, and Freight): Price includes shipping and insurance.

Accurate pricing should account for production costs, logistics, duties, and profit margins.

5. Export Documentation and Compliance

Proper documentation ensures a smooth export process. Essential documents include:

• NXP Form (Nigeria Export Proceeds Form): Required for all export transactions.
• Proforma Invoice: Specifies transaction details between buyer and seller.
• Certificate of Origin: Confirms product origin and may be required by the importing country.
• Inspection Certificates: Ensures compliance with quality and regulatory standards.

6. Packaging and Labeling

Products must be properly packaged to meet international standards. Consider:

• Packaging Requirements: Different products require specific packaging materials (e.g., jute bags for agricultural commodities, cartons for manufactured goods).
• Labeling Compliance: Ensure labels meet destination country requirements, including language, weight, and ingredient details.

7. Pre-Shipment Inspection and Certification

Before shipping, products undergo inspections by government-approved agencies. Steps include:

• Pre-Shipment Inspection: Conducted by agencies like SON (Standards Organization of Nigeria).
• NES (Nigerian Export Supervision Scheme) Fee: A mandatory fee (0.5% of FOB value) for export supervision.
• Clean Certificate of Inspection (CCI): Issued after successful inspection, ensuring compliance.

8. Shipping and Logistics

Coordinating logistics ensures timely delivery of goods. Key considerations:

• Freight Forwarding: Engage a reliable freight forwarder to handle documentation and shipment.
• Customs Clearance: Ensure compliance with Nigerian Customs regulations.
• Bill of Lading: Issued by shipping companies, serving as proof of shipment.

9. Payment and Post-Export Documentation

Secure payment for exported goods through the following methods:

• Letter of Credit (LC): Ensures secure transactions between banks.
• Bills for Collection: Documents sent to buyer’s bank, ensuring payment before goods are released.
• Direct Payment: Agreed-upon payments between buyer and seller.

Post-export documentation includes invoices, packing lists, and other agreements as required by the importing country.

To wrap it up, exporting from Nigeria is a structured process that, when properly executed, can lead to significant business growth. By following the outlined steps—registering a business, selecting the right product, finding buyers, ensuring compliance, and handling logistics—entrepreneurs can successfully navigate the export market. With diligence and adherence to best practices, Nigerian exporters can thrive in the global marketplace.