According to a Standard Chartered report, Nigeria’s exports are projected to reach $127 billion by 2030, with an average annual growth rate of 9.5% between 2021 and 2030.
Experts at the 2023 summit organized by City Business News in Lagos have called on the Federal Government to develop a practical strategy for Nigeria to boost its exports and reduce dependence on imported goods reported by BusinessDay.
Steps to every stage of the process, from careful planning to understanding the complexities of post-export documentation, are intended to support businesses and entrepreneurs as they embark on their road toward profitable international trade.
According to Dele Ayemibo, Export Doctor, Here are 10 steps on how to export from Nigeria.
Establish a Limited Liability Company (LLC)
To kickstart your export journey, set up a Limited Liability Company with “export” as one of its objectives. This will serve as the foundation for obtaining the necessary licenses and certificates.
Obtain an Export License
Process your export license or certificate online through the Nigerian Export Promotion Council (NEPC) website. The initial license is valid for two years, and subsequent renewals occur annually.
Determine Your Export Product
Select the product you intend to export. This decision should be informed by market research and potential demand. Consider factors such as quality, pricing, and market trends.
Promote Your Products Online
Explore various online platforms, social media, B2B platforms, and international trade fairs to promote your products. Establishing an online presence is crucial for attracting potential buyers.
Before approaching buyers, understand the Free on-board (FOB) pricing, which includes the cost and risk until the goods are loaded onto the vessel. This ensures accurate quoting when negotiating with potential buyers.
Secure Purchase Orders
After effective promotion, you should start receiving purchase orders from interested buyers. Ensure these orders align with the terms discussed and agreed upon.
Sign Export Agreement
Formalize the transaction by signing an export agreement with the buyer. This agreement should outline all details, including product specifications, pricing, payment terms, and delivery conditions.
Procure or Produce Goods
Depending on your business model, procure or produce the goods according to the agreed specifications. Pay close attention to the quality and quantity of the products.
Complete pre-shipment documentation, including the Nigeria Export Proceed Form (NXP) form and a proforma invoice. Submit these documents to your bank for review and approval, facilitating a smooth export process.
After shipment, handle post-export documentation, such as the bill for Nigerian Export Supervision Scheme Fees (NESS), lading or airway bill, invoice, packing list, certificate of origin, inspection reports, and any other documents specified in the export agreement.