Japan and ten other countries import agricultural products, minerals, and commodities from Nigeria.
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.
This signals the immense potential for businesses and investors. Diverse goods, including sesame seeds, copper ingots, and aluminium products, are in high demand.
Dry hibiscus flowers are also making a name for themselves in the international market, and these examples only scratch the surface of the exciting opportunities in global trade.
According to Dele Ayemibo, Export Doctor, here are what these countries, and several others, have to offer in terms of exports from Nigeria.
Japan primarily imports different types of sesame seeds, copper ingots, and aluminium products like ingots and alloys from Nigeria.
Jordan primarily imports palm kernel shells, hibiscus flowers, sesame seeds, gum Arabic, stone flour, clear float glass, and blue reflective glass from Nigeria.
Kazakhstan primarily imports dry hibiscus flowers from Nigeria.
Kenya primarily imports from Nigeria zinc ash, dry split ginger, natural rubber, foodstuffs, dark gray reflective glass, and aluminium ingots.
Kuwait’s primary imports from Nigeria include cashew kernels and bird’s eye chilli.
Latvia primarily imports cashew kernels, pet flakes, hibiscus flowers, dry split ginger, and brown bale bottles from Nigeria.
Lebanon primarily imports sesame seeds, palm kernel shells, cocoa shells, cashew kernels, and bronze reflective glass from Nigeria.
Liberia primarily imports cosmetics, Star Lager beer, Legend beer, MPK fertilizer, Maltina Classic, locally made Aba slippers, hair attachment products, empty bottles, beverages, and baby diapers from Nigeria
Libya primarily imports cashew kernels, hair products, rub, Stella pomade, and dry split ginger from Nigeria
Lithuania imports dry split ginger, technically specified rubber, polyester table fiber, hull sesame seeds, and hibiscus flowers from Nigeria.
Malaysia Imports tin ore, tin concentrate, technically specified rubber, raw cocoa beans, fermented cocoa beans, lead ore and lead ingots, columbite, crude shea butter, dry cocoa beans, aluminium alloys, aluminium ingots, cassiterite ore, iron ore, and hull sesame seeds from Nigeria.
One of the major factors affecting exports is payment risk. Dele emphasized in a video the importance of addressing payment risk in international trade, a concern that often plagues importers and exporters, especially in the export business.
He underscored the significance of a letter of credit as a pivotal trade finance instrument, highlighting its role in mitigating payment risk and the variant called the “confirmed letter of credit,”.
Dele defined a letter of credit as “an undertaking of the buyer’s Bank given to the seller, which gives assurance of payment when the shipment is made, and documents are presented that confirm to the terms and condition of letter of credit.”
He further explained certain countries are exposed to political and economic risks, prompting the need for additional security in trade transactions. In such cases, a confirmed letter of credit from a third-party country is a safeguard.
For instance, if you’re exporting goods to Venezuela, the Venezuelan bank issues an LC to you as the exporter, but they initially send this LC to Citibank in New York. Citibank in New York forwards the LC to your bank, ensuring a reliable trade process.
“Confirmation involves another bank, otherwise called the confirming Bank in another country giving additional undertaking plus the undertaking of the import Bank.”