How To Start Small Scale Exportation Business In Nigeria Easy Guide

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mini exportation business

The number of people leaving the shores of Africa particularly Nigeria keeps increasing by the day, it is estimated that about 20 million Nigerians reside outside the country, with a greater percentage residing in America and UK.  This is one of the reasons for the serious demands in African foods. But the foodstuff quantities exported out is not enough due to large number of consumers to cater for. That is why exportation business would continue to remain a hotcake.

This is where you can come in, some people thinks until they have millions of Naira before they can start the business. Others frown at the business when they think of the hassles they will go through in Nigeria Export Promotion Council (NEPC), Customs and the rest of them. You can start the business in a small scale as you grow you do the necessary registrations and enter into it in a larger scale. The reason for this post is to show you how to do exportation business in a small scale.

To start this business in a small scale you have to contact dealers of African foodstuff in your country of interest. But if you have someone that can stand in as middleman maybe a relative the better for you. Exportation business is very profitable but yet to be engaged by many maybe due to lack of knowledge on how to start the business.

There are steps to follow in exportation business

  • Get the customers address
  • Open a website for customers to reach you
  • Have a bank account, it could be current or savings but domiciliary account is preferable.You can give out your Nigeria bank account but there must be some level of trust before a buyer will pay into such account. Sometimes it also depends on the size of the expected exportable products and they money involved.
  • Own an email address

This will make your business to be very transparent and open. People are always afraid not to deal with scammers. By these steps you will be taken serious and very genuine.

OTHERS ARE:

  • Always get buyers down before starting.

This is very important because there must be an agreement before commencing any transaction. Choose the country of your interest, contact a dealer or buyer and open up conversation. State the quality of your product and the quantity. Agree on mode of payment and let him/her know the number of waiting days before receiving the parcel.

  • Full address of buyers, this is very important
  • State the quality of the product, don’t play a fast one, make sure you supply the exact quality your client bargained for.
  • Packaging/branding;: don’t package your product from home, an officer must be there to ascertain that you are expoting non prohibited item.

LIST OF EXPORTABLE PRODUCTS

  • Groundnut
  • Ginger
  • Cassava
  • Charcoal
  • Coffee
  • Cashew nuts
  • Cotton seeds
  • Rubber
  • Sesame seeds
  • Fufu
  • Palm oil
  • Ogbono
  • Melon
  • Tiger nuts
  • Onions
  • Bitter collar
  • Palm kernel
  • Crayfish
  • Pepper

The list seems to be endless just chose any product that interests you which you can be supplying in small quantities.

LIST OF NON EXPORTABLE PRODUCTS

Raw hides and skin, unfinished leather, maize, unprocessed rubber latex, sawn or rough timber, artifacts and antiquities, rubber lumps.

Elephant, eagle, zebra, crocodile, monkey, lizard and any other endangered species.

Currency

Hard drugs

 WHY YOU SHOULD START EXPORTATION BUSINESS

It is very simple and straight forward, it is a do it yourself kind of business

You can start with little amount, yes with #20,000 you can start exportation business

The business is very interesting and profitable especially now that Federal Government is increasing foreign income generation through agriculture and business.

HOW TO PACKAGE YOUR PRODUCT

Be sure to use lighter materials that would not add more weight to the goods, nylon is preferable. Use transparent white nylon to put the goods depending on what you are sending. Use foil paper to wrap round it then put it in another in an envelop.  Packaging is very important so don’t take it lightly, westerners take it more serious than we do.

Remember that it is a business and several people are going into it resulting in greater competition, that’s why you don’t have to leave room for lapses, if not your client will look for a better alternative.

COMPANIES TO USE

  • FEDEX
  • DHL
  • NIPOST
  • IFEX
  • UPS etc.

Nipost is the cheapest, they provide 2 kinds of services; the conventional which is very cheaper when compared to the express delivery, goods will take 2 weeks to deliver. EMS is their express delivery; goods take 3-4 days to deliver.

You have to find out what each of the courier companies accepts. The last time I was in DHL to send food supplement, I asked them if they accepts crayfish, the lady at the reception said no, they dont also accepts fish.

Learn how to calculate shipping charges so you wont be sharing part of your gains.

HOW TO GET BUYERS FROM ALIBABA

Open alibaba.com site

Look for the search bar

Type importer/the country of your choice/the product you want to export. Example; importer/China/ogbono

Press enter. The list of people that import ogbono will pop out. Check to see a genuine buyer, this you will know from other people’s feedback.

HOW TO RECEIVE PAYMENT FROM A FOREIGN BUYER

There are many ways to receive payment but some are safer than the others. Make sure you agree on a particular mode of payment before sending out your goods.

Cash in advance/wire transfers via banking channels

Collecting money in advance via wire transfers through banks. The sellers collect money in advance maybe because they don’t know the buyer nor made transaction with them. To be on the safe side exporters make use of this method In some cases a client will not want to pay until the goods enter their hands and are confirmed to be in order.

Credit sales: this involves buyers obtaining a documentary letter of credit from their bank to the seller via her bank for confirmation. The credit letter stands as an obligation for the bank to guarantee the buyers’ payment Sometimes bank refuses to give buyers this letter if they are not sure of their financial solvency. Also the issuance involves charges which the buyer may not want to accept.

Draft documentary/document against payment (D/P). Here the sellers make use of bank services for payment.  She/he would ship the goods with a bill of lading and a draft through her bank, her bank will then forward it to the buyers bank in her country. The buyers bank would then collect payment from the buyer before releasing the product. If she is not able to pay the goods will not be released.

Time draft/document against acceptance. Another way is through a time draft, this is known as document acceptance (D/A) transactions. Here the bill of lading and draft are forwarded through banks but the buyer agrees to pay within a stipulated time (could be in a months time or so)after receiving the goods. If the buyers refuse to pay you may have to file a law suit which make this option very risky for the seller.

Open account  (payment on delivery)

Here the seller forward the goods and a bill of lading with a commercial invoice directly to the buyer for payment. The buyer will receive the goods whether the payment is made or not.

Counter trade

Here goods and services are exchanged, it is a kind of trade by batter thing. It could be sending a product to get another product from the buyers country.

CONCLUSION

These are the list of things you can export in small quantities; kola nuts, bitter colar, shea butter, melon seeds, crayfish, ogbono, bitter leaf etc. Check how much the product you are sending cost in international market. Fix your price in that line, maybe a little lower in other to attract clients. Take a step and start exportation business today.

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