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Nigeria is richly endowed with a wide range of resources. These include petroleum, which is the country’s major money-spinner, agricultural produce, solid minerals, charcoal, and lots more. Starting an export business in Nigeria is one of the most lucrative business decisions you can make.
The reason is because most export commodities are worth much more in the international market than they do in the local market.The business offers unlimited opportunities and ultimately unlimited profits.
Though you can make money selling any of these resources and commodities to the local market, you can make much more by selling to foreign countries where the commodities are of greater value. This explains why the export industry is one of the most lucrative business sectors in the country. If you are based in Nigeria and are looking to start a profitable business in the country, starting an export business is one of the best business decisions you can make.
Business experts have been talking about how one can create solutions to problems instead of adding to the problem by joining the labor force. A lot of people are now beginning to listen. However, there is a problem; there is still a question on the heart of people on the kind of business to go into.
Making a decision to go into business is just as important as the kind of business to go into, if not even more important. No one can afford to spend so much time, resources and energy on a business and watch it not work out.
Guidelines for starting an export business in Nigeria.
1: Legal requirements for an export business in Nigeria2: How to make money in the export industry without exporting3: Characteristics of successful exporters in Nigeria4: How to find reputable product sourcing agents5: How to find foreign buyers online for your export product6: How to avoid being scammed as an exporter7: How the Nigerian Export Promotion Council can help you8: How to negotiate with prospective buyers as an exporter.
Examples of Hot-in-Demand Non-Oil Products You Can Export from Nigeria and other African Countries, Below are a few of them.
For a qualitative export business in Nigeria, you should:
1. Learn about the market
The export market in Nigeria is so complex, you will fail if you take a plunge without having gathered enough knowledge and experience. So, before starting out you need to take your time to learn vital details about the export business such as licensing requirements, port procedures, product sourcing, working with foreign agents and distributors, locating profitable foreign markets, and so on.
The best way to learn about the export business is to contact a seasoned exporter with years of experience in the business and ask them to teach you all you need to know before kick starting your own business. Practical teaching in a face-to-face setting is best.
2. Figure out what products you will sell
In Nigeria, there are more-than-countable commodities and resources that can fetch you huge profits in the international market. But you will fail woefully if you try to sell too many items at once. So, you should focus on only one product from the start. As you gain more experience, you can expand your scope to include other products.
As a recommendation, start with products that you can easily make available in the required quantity whenever there is demand for it. Cassava, cashew nuts, bitter kola, cocoa, charcoal, and kola nuts are very good examples of products to start with.
3. Decide how you will source the products:
After deciding which product you would like to export, you need to decide how you will source the product. Basically, you have two options: you can either produce the product yourself or buy from manufacturers or producers in wholesale quantities.
For a start, buying from someone else is the easier and cheaper option, as you might not be able to afford the cost of setting up and maintaining a production point. If you are going for this option, then you need to find suppliers or producers of the product. It is recommended that you have one or two ‘standby’ suppliers aside your main supplier, so you won’t have much worries if your main supplier suddenly runs out of stock.
4. Register your business
Legalizing your business is one of the most important steps towards starting any business in Nigeria—and the export business is no exception. You must register your export business with the Corporate Affairs Commission.
Aside giving you the legal permission to operate your export business, registering your business will boost your credibility. Before doing business with you, most foreign distributors will try to establish your credibility by requesting a certificate of incorporation and other documents showing that your business is legally registered in Nigeria.
5. Find your buyers
With the internet, export business has become easier than ever. You can find buyers for your products and seal trade deals right from the comfort of your room without necessarily holding a face-to-face meeting with the buyers. All you need to do is join trade websites, become an active member, and start sealing trade deals with interested buyers.
6. Exhibit your products
Trade fairs and missions provide great opportunities for exporters to showcase their products. As your export business grows, you will need to attend more of these events to create awareness about your export products. You have bright chances of meeting with potential buyers and sealing additional lucrative trade deals.
However, one major factor that stops most aspiring exporters in Nigeria from kick-starting their export business is funding. The cost of starting and running an export business in Nigeria is far more than what most people can afford—though this varies depending on the products to be sold and the foreign markets targeted.