In the heart of Lagos, Emeka Owolabi has been producing shea butter-based skincare products for nearly a decade.
His small business, once only a local favourite, now exports small shipments to Europe. Emeka’s journey from local trader to budding exporter highlights the opportunities and challenges facing many Nigerian entrepreneurs who see potential in global markets. But to truly transition Nigeria from a largely import-dependent economy to an export-driven powerhouse, what will it take?
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Scaling local businesses to meet international standards requires strategic investments, compliance with global regulations, efficient supply chains, and robust support systems. The Nigerian Export Promotion Council (NEPC) has outlined key requirements for local businesses to transition into export-ready entities, and in doing so, aims to make export an accessible goal for diverse sectors across the country.
Quality Standards and Certification
For any Nigerian business to succeed in international markets, stringent adherence to global quality standards is a necessity. This includes obtaining certifications like ISO 9001 for quality management, which many international buyers require before conducting business.
The NEPC has introduced programmes such as the ‘One State, One Product’ initiative, encouraging businesses to specialise and excel in specific products to build an international reputation. For instance, Nigerian honey producers who achieve organic certification can tap into the global organic honey market, which is projected to grow at a rate of 8.4 per cent annually by 2028.
Financing and Access to Capital
Scaling for export requires capital, yet many small businesses in Nigeria struggle to access affordable financing. NEPC’s Export Expansion Facility Programme (EEFP) offers some relief, providing grants to exporters.
Additionally, the Central Bank of Nigeria’s (CBN) Export Development Fund is another promising initiative aimed at bridging the financing gap. Nigeria’s total non-oil exports still contribute only about 15 per cent to foreign exchange earnings. Increasing this percentage means empowering local entrepreneurs like Emeka with resources to improve their manufacturing capacity and distribution channels.
Logistics and Infrastructure:
Efficient logistics are the backbone of any successful export strategy. However, Nigeria’s infrastructure deficit – particularly in transportation and port efficiency – remains a bottleneck.
According to a recent report, it takes Nigerian exporters over two weeks to move goods from production to export terminals, compared to less than a week in competitive economies. Investments in port modernisation and the completion of the Lagos-Ibadan railway are steps in the right direction, as they will significantly reduce transportation costs and delays, thus enhancing the competitiveness of Nigerian exports.
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Market Intelligence and Trade Agreements
Accessing the right information on target markets can make or break an export strategy. Platforms like the NEPC’s e-marketplace provide data on demand trends in sectors such as agro-processing, textiles, and crafts. Furthermore, Nigeria’s membership in the African Continental Free Trade Area (AfCFTA) opens doors for local businesses to access a $3 trillion combined gross domestic product market across Africa.
In the coming years, success stories like Emeka’s will be increasingly common as Nigeria channels resources into building a sustainable export economy. For ambitious entrepreneurs, the road is challenging but paved with immense potential.
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