Exportation Business involves selling goods produced in one country to another country or group of countries. For many countries and individuals, exportation is a sure way to earn foreign exchange. Nigeria is a country filled with vast agricultural products and minerals to mention a few that are in high demand in other countries. Exportation of these abundant resources in Nigeria will therefore result in large profits. This is one of the reasons why exportation is a very lucrative business in Nigeria today. In addition, there is a need for non-oil export alternatives in Nigeria due to the crash in oil prices. Therefore, the market is quite favourable at the moment.
There are several benefits of getting involved in export business. Since the business involves selling products that are readily available in your country to countries where they are scarce or have a higher value, you can generate way more profit compared to selling your product locally. Also, if you intend selling your own product, for example handmade bags, skincare products etc., export business will attract an international market for your product. You also get to compete in a global market
You can decide to start a big or small-scale export business depending on your budget. In this article, I will focus on the small export business. Although, you can also apply this information to large export business.
Eligibility
Provided that you have been licensed to do so, anyone can be involved in exportation business. However, having some of training in the business will be very beneficial. There are several agencies that offer such training. You can look out for these online or in your area.
Location
The beauty of exportation business is that you can decide to have an office space or work from home instead, depending on your preference or budget. What you do need is an address (preferably your home address) that will be used when registering your business.
Registration of the business.
Registration of this business is a bit complex. It will be helpful if you can get a lawyer to assist you with this. However if you can’t afford it, you can handle it yourself if you’ve got adequate information.
First, you need a unique business name, which should be registered with the Corporate Affairs Commission (CAC), Nigeria. For this step, you need an office address (for those who are working from home, you can use your home address) and you will also need to make some payments. You can do that by clicking here
Once this is done, you should register with the Nigerian Export Promotion Council (NEPC) here or you can visit their office. Details of their various office locations can be found on their website. Some of the documents required for registration include a Certificate of Incorporation, Memorandum and Articles of Association and a Current True copy of particulars of Directors of the company (Form CO7). The NEPC then issues a certificate (for a fee), which is renewable every two years. The type of certificate you are issued depends on the product you will be exporting and the destination of the product. Apart from issuing certificates, the NEPC also provides information on the exportation business. You can check out their website for more details. In addition to registering with the NEPC, you need to complete and register an NXP form with any commercial or merchant bank. You also need to register and get a licence from your target export country. The procedure depends on the Country in question.
Some other documentation that would be required once the business is running are a proforma invoice; a sales contract agreement and a Certificate of quality, which will be issued by the relevant agent e.g. Federal ministry of Agriculture and shipping documents. You can get more information about this by visiting the Nigeria Customs Service’s website You might also need to insure your goods in case of damage or loss. It is advisable to do so.
Exportation Business