Guide to Agro Export Business in Nigeria


E-Registration
When you want to export from Nigeria you are obliged to register at NEPC. You can only register as an exporter via the e-registration platform. This page presents all the information you need to know about obtaining an Exporter’s Certificate from NEPC.


Additional benefits
Besides the fact that you need an exporters certificate for exports, registering at NEPC gives you a lot of additional advantages:

You have the availability to trade promotion support services from NEPC
You are able to request NEPC administered (pre- and post-)export incentives
You can register for numerous trainings, clinics, seminars, and more
You can collaborate and exchange ideas through a network of exporters

Guidelines & Procedures
Before you can proceed and register as an exporter you have to take some preparations. There are documents required for completing the full registration process. The required documents depend on your type of company:


When you have all the documents at hand you can start the registration procedure on the e-registration portal (link at bottom of page). Register at the portal, log in and start the e-registration for exporters. Include all requested documents in your registration.


Fees & charges
Obtaining an exporters certificate involves some costs. Different charges apply for different situations:

New certificate registration – N13,500
Expired certificate renewal – N7,500
Late certificate renewal – N12,500
Lost / mutilated certificate – N12,500
Note: The E-registration platform was launched on the 3rd of April, 2017 and only companies registered after this date will be eligible for renewals. All companies registered before this date with expired certificates will need to migrate to the new platform by registering afresh for a new certificate.

Payment methods
After you filled out all the requested information you have to pay for your registration. There are several payment methods available, including:
Nigerian local cards
International credit / debit cards
Internet banking
Commercial bank branch in Nigeria


Payment confirmation
After you have paid for your registration, you should always confirm the payment:

Copy the Order ID from your certificate (see Transactions Log)
Input it in the field besides Get Status
Click on Get Status to confirm your payment
You will receive a notification of the status of your payment

Service timeline
The council aims to issue certificates as soon as possible. Normally within 1 working day after payment is confirmed by the system. Please note that issuance of your certificate could be delayed by payment delays, issues with documents or insufficient information supply.

Alternative options for registration
It is only possible to register online for an exporter certificate. Having any reservations? Please contact us directly via the online chat. Alternatively you can also visit the NEPC export assistance office closest to you. We are happy to assist!


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Understanding the Market
In order to develop your export business into a success, you should make sure that you understand your target market(s). This means you have to do some research about your export destination(s). It allows you to access market opportunities and the cost of capturing them.
Good market research should not be an academic way of only embedding assembled facts and figures. It rather has to focus on what drives your target market(s) and how to get the best out of it.

Top tips to understand the market
Gather basic market information, from import regulations to trade statistics. You can make use of several freely available Market Analysis tools.
Narrow the focus of your research to your product or service. This will make the whole process more specific.

Research competitor markets.
Find out what they are doing right and how they are doing it.
Attend market-specific seminars.
Seek out practical advice for experienced businessmen.
Develop direct contacts with potential buyers.
You can make use of several freely available online directories.
Try to understand the market environment.
Relevant trade fairs and embassies are good sources of information.

Research areas
The first step of market research includes gathering basic information, ranging from import regulations to trade statistics. You should include several areas in the first phase of your market research. The most important aspects are:

Trade statistics and trends
Trade policies
Regulatory framework
Business environment
Business culture
Distribution channels
Trade logistics
Risk assessment

Product specific market research
After you have gathered and analysed basic information, you should narrow down the research to your specific product or service. This also involves presenting your product or service to buyers overseas. Gather feedback on your offer by sending data or samples to buyers. Also pay attention to analysing the competitors of your target market(s) in this stage.

International buyer directories
You want to send out your product samples to get feedback from buyers. But how can you then find your buyers? Fortunately there are plenty of international buyer directories available (some free of charge, others with paid subscriptions).

Exporter advantages
While it will take some time, good market research gives you several great advantages in your further export process. The main benefits for you:
It helps you to identify your most promising market
It will include rich inputs for your export plan
It will give you full understanding of the competitive landscape of your target market
It will support you in minimising risks and maximising prospects

For a comprehensive Export guide, the Agro export Package has it all comprehensively covered. The Agro Export packs was written and compiled for intending and all those involved in the business options of these commodities and to give a sound footing, technical knowledge, all detailed Information and to serve as a guide for the practical phase on this Business. (Success)

Export Documents and Procedures
To export from Nigeria you should follow the appropriate export procedure. This is a formal process in conducting international trade in Nigeria. Certain export documents are attached to this procedure. Export documentation is necessary to facilitate exports of goods and services.

Importance and advantages
Following the structured export procedure will give you a better understanding of the full export process. Therewith your company will benefit from the right and up-to-date knowledge you receive by following the right procedure. Besides, it leads to:

Minimising your export risks
ensuring that exported goods conform to importing country specifications
meeting buyer requirements for export by providing evidence of origin and delivery
supporting you to formalise your export business
supporting you in qualifying for export incentives


For a full Export documentations and procedure, the Agro export Package has it all comprehensively covered

Export Plan
After you have researched your market opportunities, selected your target market(s) and gathered information with respect to these market(s) it is time to develop an export plan.

Five export plan tips
Keep your plan simple and to the point
Always include your unique value proposition. Describe what differentiates you from your competitors
Always develop a very concrete budget plan
Keep your target market in mind when defining your export plan
A good export plan guides you seamlessly through different export processes. It helps hugely when you are in touch with (financial) advisers, brokers and governmental bodies

Your benefits
A well-written export plan will assist you in defining export goals and match your resources to those goals. Focusing your resources allows you to provide excellent service delivery to your clients (importers). It makes your company stand out, projecting it as one that has realistic goals with outlined plans on how to achieve them. Last but not least, it will guide management on long-term commitment for exports.

Key elements
A good export plan consists of certain key elements. NEPC developed a guideline on export plan development for exporters. This includes the following key topics:

Company profile (about us)
Key features of target market(s)
Competitors’ analysis
Market entry strategy
Unique selling points
Promotional strategy
Branding (if relevant)
Logistical planning
Action plan
Resources required


For a full Export planning and procedure, the Agro export Package has it all comprehensively covered. The Agro Export packs was written and compiled for intending and all those involved in the business options of these commodities and to give a sound footing, technical knowledge, all detailed Information and to serve as a guide for the practical phase on this Business. (Success)

Logistics & Freight
If you want to export, make sure you understand the basic terms of shipping (including pricing and documentation). You must also understand the responsibilities of the major players for safe delivery of your products to buyers. Details such as duration of shipment, types of transport modes, conditions required for different products and the agreed terms for the export must be well understood.

Five tips
Understand the importance of freight forwarding for a seamless export process
Know the available range of logistics options
Conduct due diligence in engaging a freight forwarder
Know how to apply INCOTERMS (2010) in order to quote your price for delivery correctly
Familiarise yourself with export documents and documentation process for logistics


Freight forwarders & custom brokers
It is extremely important that you identify experienced custom brokers and freight forwarders. This would ensure that your products get to the buyer via the most appropriate conditions, costs and routes. Familiarise yourself with different transport modes required to deliver the goods to the buyer.

In order to be well prepared please:
conduct research on at least three freight forwarders / custom brokers
visit the online database of freight forwarders, custom brokers and cargo agents in Nigeria


INCOTERMS (2010)
INCOTERMS is an acronym for International Commercial Terms. These are internationally recognised terms in international transactions. It provides details on the responsibilities of buyers and exporters. The terms are important for the processing of shipping and payment documents during exports. Basically, INCOTERMS defines all obligations of buyers and sellers within the logistics chain.


Getting paid
After delivering the specified product to your buyer, you should make sure you will receive the payment. Take into account the following tips with respect to getting paid:

Familiarise yourself with the different modes of payments
Letter of Credit (LC) is a more secured mode of payment
To receive payment all delivery conditions mentioned on the LC must be satisfied
Be sure that you can adhere to all the requirements and requested documents listed in the LC
Discuss suitability of different options with your bankers / financial advisers
Always undertake due diligence on your buyers before exporting!

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Export Pricing
To become a successful export venture you need to have the right knowledge about export pricing methods. This always includes all items meant for costing and the way your products are provided. As (prospective or performing) exporter, always ensure basic knowledge regarding all activities constituting export pricing.

Top tips for export pricing
Ensure your prices are competitive
Ensure all export-related and -associated costs are covered
Know your break-even points
Set realistic profit margins
Know the INCOTERMS for pricing purposes
Try to negotiate best rates from service providers
Keep abreast of exchange rates
Review all of your cost elements periodically
Include appropriate currencies and HS code(s)
Include minimum order quantities

INCOTERMS
Be very clear about the obligations for seller and buyer. This includes spelling out where ownership is transferred between you as exporter and the importing party. Basically, knowing the INCOTERMS in detail is indispensable. Check our detailed explanation about INCOTERMS on the logistics & freights page.

Cost categories for export pricing
Make sure to cover all export costs when setting your export pricing. These include local export costs, international export costs and other associated export costs.

Pricing methods
The most common methods for price calculation are the ‘cost plus’- and ‘top down’-method. In order to achieve best results in setting your export price we recommend to use both methods together. This means that you calculate:

Outwards your ex-factory price to the end consumer (cost plus)
From the ideal end consumer price backwards (top down)
As both methods have is strengths and weaknesses, you should calculate both and combine these to find the optimum export pricing balance. Please note that this could be different per export destination!

Roles of NEPC
We offer numerous services to Nigerian exporters with respect to export pricing. To summarise we:

Provide regular capacity building programmes on costing and pricing for export
Offers tailor-made assistance to exporters (office, online media, etc.)
Provide top-down export market information (international commodity price)
Provide bottom-up export market information (local commodity market report)
Provide end-market information to exporter to aid export pricing


More comprehensive information on export pricing is available in the export package...........

Local Export Cost

All local export costs you should take into account are:
Sourcing cost
Packaging and labelling
Product modification
Logistics
Warehousing
Quality assurance
Documentation cost
INCOTERMS 2010
Product liability insurance or other insurances
Forwarding cost
Levies
Bank charges
Cost of funds

International Export Cost
International export costs to consider include:

Freight costs
Travel to overseas markets
Promotional costs
Import duties / taxes


Other Associated Export Cost
Lastly, other associated costs for exports could be:

Research into international markets
International communications
Productions of export literature (including translations)

Export Financing
As an exporter you have to make sure you get your export financing right. Keep in mind that you must be able to fund your export contract, make sure you get paid, and more.

Five tips for financing
Seek help from bankers, financial and export experts
Explore available government grants and loans
Know the grants and loans available from local government areas and private parties
Factoring is a funding facility to consider for increasing your cash flow
Protect your export proceeds against non-payment risk through Export Credit Insurance

Money needed
Export business requires sustainable funding over a period of time. The amount of money needed for export is largely dependent on your product and export destination(s). It includes components like marketing and market access, as well as (direct and indirect) working capital.

Marketing & market entry costs
Your export budget should cover all costs of marketing your products or services abroad, including the costs of market entry. The product components, requirements of the target market segment and different engagement / publicity needed to draw attention form the basis for marketing and market entry cost.

Specific costs involve:
Hire dedicated staff member(s) for the export business
Regular visits to your targeted export destination(s)
Provision of samples to bring to target market

Working capital costs
Additional working capital costs are always involved during the export process. This means the amount of money needed to be available to effectively run your business. In practice, payment for the contract is received mostly after delivering all of the goods / service. Thus keep in mind you have to make additional direct costs like: raw material purchases, packaging, transportation, laboratory services, certification(s). Extra indirect costs should also be taken into account: overheads, personnel, plants and equipment, building.

Payment methods
There are different payment methods possible between you and your buyers. The main options are:
Documentary credit (e.g. Letter of Credit)
Open account (e.g. advanced payment, cash against document, deferred payment)
Documentary collections
It is advised to always check and discuss your options for payment with a financial adviser. This ensures you to have the right agreements on payment in your eventual export contract.

Funding options
There are numerous funding options available to help you in funding your export costs:
Governmental export incentives
Factoring
Loanings (commercial banks / family and friends)
Support of financial institutions

Export incentives
One of these include governmental export incentives. Nigerian exporters could get access to multiple different incentives. NEPC is administrating two of these incentives: Export Development Fund and Export Expansion Grant. Find out all about these incentives including guidelines & procedures, service timelines, fees & charges and other requirements in the export incentives pages.

Factoring
Factoring might be an attractive way to help your cash flow. Factoring is a financial transaction where the receivables (such as the invoice) is given to a third party, called a factor for a fee.

Loaning
Other ways of funding include loaning of friends and family and a wide range of loaning options at commercial banks. If you want to request loaning at commercial banks you would have to write a bankable proposal.

When writing a bankable proposal take into account the following steps:
Familiarise yourself with the responsibilities of each financial organization
Prepare funding request based on their priorities
Get a copy of their template and use it to develop your proposal
Formally submit your proposal

Financial institutions
Financial institutions offer a lot of interesting funding options and are therefore a very important source of export financing. Find the main institutions for financial support to maximise and expand your export potential below.


For a comprehensive Export guide covering export financing, the Agro export Package has it all comprehensively covered. The Agro Export packs was written and compiled for intending and all those involved in the business options of these commodities and to give a sound footing, technical knowledge, all detailed Information and to serve as a guide for the practical phase on this Business. (Success)

Nigerian Export Import Bank
The Nigerian Export Import (NEXIM) bank offers a wide range of funding options for your export business. Among these:

Direct Lending Facility (DLF)
Export Credit Insurance Facility
Stocking Facility (for manufacturing exporters)
ECOWAS Interstate Road Transit Scheme
Foreign Input Facility (for manufacturing exporters)
Local Input Facility

Central Bank of Nigeria
In addition to the NEPC administered export incentives, the CBN offers two interesting incentives as well:
Export Stimulation Fund (access through your bank)
Rediscounting Refinancing Facility (access through NEXIM)

Legal Issues
When you export it is important to be aware of legal requirements of exports in Nigeria. This is to serve as a guide when planning for export as well as enhance smooth export transactions.

Five tips for exporters
It is wise to engage an experienced trade lawyer or expert in complex situations
Understand the market access conditions for your products
Protect your intellectual property (IP) rights, if you have one
Avoid trading on sanctioned / prohibited products
Check out information on frauds, scams and corrupt practices regularly

Export contract
An export contract is the agreement between an international buyer and seller.The exporter should be aware and attentive to details of the export contract documents agreed by both parties. International contracts can be complex. It is advised that you ask for advice on the legal implications by a professional.

Some important components of an international export contract include:

Terms of trade (Incoterms, 2010)
Mode of payment (e.g. letter of credit)
Mode of delivery
Trade enforcement organs
Agreed dispute resolution mechanism (which laws apply in case of disputes)
Presiding courts

Legal & Governmental Regulations
As an exporter, you should be familiar with government regulations. Some of these are:

Export prohibition – exporters should be aware of the list of prohibited items for exports. Detailed information can be found on the customs information page.
Export proceed repatriation – all proceeds from exports should be repatriated within the stipulated time.

Intellectual Property (IP)
In some cases you might want to protect your intellectual property. International protection of your IP is extremely important in protecting you business overseas.


For a comprehensive Export guide, the Agro export Package has it all comprehensively covered. The Agro Export packs was written and compiled for intending and all those involved in the business options of these commodities and to give a sound footing, technical knowledge, all detailed Information and to serve as a guide for the practical phase on this Business. (Success)

Export Guide
Exporting can be very rewarding in diverse ways, it involves selling your products / services in foreign markets.

Some of the benefits include;
Spreading your risks and reducing dependence on the Nigerian market
increasing your sales, productivity and makes you more efficient
Generating new ideas, marketing techniques and improve ways of doing business

Why buy from Nigeria
There are very good reasons to source your products from Nigeria. Our country has well developed export logistics, diverse and consistent production, international standard quality assurance. In addition we are an award-winning export country!

1. Award-winning sourcing country
We are developing and expanding fast in our product offer for international markets. Our trade performance is constantly increasing and improving through several projects. Investments in local capacity building enhances sustainable and high-quality Nigerian exports.

The Nigerian Export Promotion Council (NEPC) were the winners of the World Trade Promotion Organization (WTPO) Award 2018 (International Trade Centre, ITC): “Best initiative to ensure that trade is inclusive and sustainable”.


2. Quality is assured
There are three Nigerian competent authorities that ensures quality assurance:
NAQS (Nigeria Agricultural Quarantine Services) – issues the phyto-sanitary certificate for export after inspection for agricultural commodities
NAFDAC (National Agency for Food and Drug Administration and Control) – issues health certificate (sanitary) for export of processed and semi-processed food items
DVPCS (Department of Veterinary and Pest Control Services) – issues the international veterinary export document for products of animal and animal origin.
These authorities together ensure that products exported from Nigeria adhere to international standards. Besides the availability of these quality competent authorities, UNIDO has supported developments of quality products through the creation and implemention of:

Certification bodies
National accreditation system
Training institutes for quality assurance
An integrated export control plan (food safety standards, documentation, …)
Above all, the Nigerian environment guarantees an international recognised quality standard and it is only improving!


To be Continued ...............

For a comprehensive Export guide, the Agro export Package has it all comprehensively covered. The Agro Export packs was written and compiled for intending and all those involved in the business options of these commodities and to give a sound footing, technical knowledge, all detailed Information and to serve as a guide for the practical phase on this Business. (Success)

3. Diverse and Consistent Production
Nigeria’s large geographical size translates to a diverse range of climates across the country. These diverse agro ecological zones provide conducive conditions for the production of a wide variety of agricultural products in the country, while also ensuring consistent supply.

4. Well developed export logistics
Nigeria is amongst the top African countries in sea freight and cargo handling. Apapa port is the largest in West Africa. Tin Can port was among the top 5 largest ports of West Africa in 2017 as well, based on total cargo volume. Total cargo throughput at Nigerian ports reached over 70,000 kilotons in 2017, according to the Nigerian Bureau of Statistics (NBS).

Also other ports like Onne, Rivers, Calabar and Delta handle significant cargo volumes on an annual basis. The availability of several ports combined with government’s commitment to having dedicated terminals for agricultural products makes exports seamless. All major shipping companies are present at our ports.

Nigeria Business Culture
Nigeria, with over 180 million inhabitants is the most populous African country and 8th largest in the world. It has the strongest economy in Africa. The country operates a democratic government which has remained uninterrupted in the last 20 years. As a founding member of several economic blocs and international organizations, Nigeria is therefore a regional power house.

Do’s and Don’ts
A hand shake is the acceptable form of greeting. However, you may find people bowing to their superiors and the elderly as a sign of respect. Do not be surprised when a Nigerian exporter takes a bow during the greeting.
Greetings should always include some interest in your acquaintances, family and health. A common conversation opener: “how was your night”? It is just a polite sign of interest in your well being.
You may be treated to the Nigerian hospitality with your host paying the bill. Do not feel uncomfortable, but remember to appreciate the gesture.
The left hand rules apply here. Do not take or give anything with the left hand, because it might be perceived as disrespectful.
In timing, Nigerians are flexible due to its peculiar environment. Stay relaxed, be prepared and do not feel frustrated if appointments are delayed.
Complimentary remarks are appreciated, but be cautious and moderate.

Business communication
Communicating is generally very easy in Nigeria. English is the official written and spoken language. In addition, there are 3 major languages (Hausa, Igbo & Yoruba). “Pidgin” English is also spoken. It is widely accepted to communicate in a direct manner. Be clear and specific in agreements and avoid ambiguity. Make sure that the contractual conditions for both parties have been determined and that they are legally valid.

In an informal setting it might be easier to get the information you are looking for. Therefore, informal meetings are good for doing business and recommended to international buyers.

Hierarchy
Be mindful of hierarchy in your business meetings. Identify the decision maker and endeavour to identify different job positions and their roles. Start talking directly to Nigerians by using their title, as they like formalities.


Religion
There are three major religious practices in Nigeria (Christianity, Islam & African Traditional Religion). Don’t be alarmed talking about religion with Nigerian people. You can be open minded in your business dealings. In public, be careful with alcohol in certain areas because of the Islamic culture especially in the Northern states.

Leather
Nigeria is a consistent supplier of leather to European and Asian markets. Our leather ranks amongst the highest quality globally. Find out more below

Reasons to buy
We produce high quality leather. Our free-range rearing system of cattle, sheep and goat confers toughness on the hides and skins. This ensures durable, high tensile strength finished leather goods.
Nigerian leather comes from free-roaming animals rather than from large scale farming-practices. We ensure fair treatment of cattle.
Top 2 leather processing countries Italy and Spain source their leather hides from us. This highlights the quality and affordability of Nigerian leather.
Nigeria is home to the unique Red Sokoto goat skin leather. Acknowledged for it superior quality and high premium in the world market.

Sector information
Our leather industry can be categorized into the industrial sector (90% of exports) and the traditional / artisanal sector (10% of exports). Hides and skin belts are mainly produced in the Northern states. Most leather production and processing can be found in some of the poorer states of our country. Activities and sales within the leather industry are significantly supporting this region reducing poverty.

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Good afternoon

Companies and structure
Actors of our leather value chain include farmers, producers and processors, local buying agents and service providers. Both traditional and industrial tanneries export semi-finished leather products, or ship their products to Nigerian producers. These are then finalized into finished products and exported.

Leather from sheeps and lambs is mainly exported to Asian markets, while processed goat leather goes mostly to Europe. Our ability to satisfy both European and Asian markets for numerous years demonstrates the high quality of our supply.

Trade performance
Italy and Spain are the largest destinations of Nigerian leather in total, covering over 71% of total Nigerian exports. This mainly consists of goat leather, while sheep and lamb leather reached larger export values in Asian countries.

Role of NEPC
Our council widely supports cashew trade from Nigeria. Key activities include:

Exporters’ directory
The NEPC provides a platform for prospective buyers to source for information on reliable exporters of leather.
Exporter certificate verification portal
Being able to authenticate the export credentials of a company is a very important step in establishing confidence. The NEPC provides an electronic method of verifying the exporters’ certificate.
International Trade Shows
Periodically the Council presents opportunities for face to face contact between Nigerian sellers and international buyers of made in Nigeria products through participation in International Trade Fairs, Solo Exhibitions, Trade missions amongst others . This allows export deals to be concluded in a conducive environment.

Trade performance
Italy and Spain are the largest destinations of Nigerian leather in total, covering over 71% of total Nigerian exports. This mainly consists of goat leather, while sheep and lamb leather reached larger export values in Asian countries.

COCOA
As one of the global producers of cocoa, Nigeria offers large volumes and wide varieties of cocoa products. Find out more below.

Reasons to buy
Nigeria is a major exporter of premium quality raw cocoa beans renowned for its aromatic and smoother flavor, because of the variety stock from which it originates.
We can guarantee a reliable and sustainable supply base. Our large production base is reflected in being the fourth largest producer worldwide.
Our liberal cocoa market stimulates competition. This leads to competitive prices in the international market, compared to other significant regional suppliers.
We are in large development of substantial cocoa processing capacity. Our capacity of value-added products such as cocoa butter, powder, liquor, paste and cake becomes larger and larger.
Nigerian cocoa is ethically sourced with a strong advocacy in the sector against the use of child labour.

Export business is a lucrative business to venture. It holds vast potential that is highly untapped and its development in Nigeria has been a positive one. The uptrend is largely due to the advancement of Information Technology and the downside fortune of the crude oil market forcing investors and government to explore alternative markets. Now, the future is non-oil products like sesame seed, ginger, shea butter, cashew nut, gum arabic, bitter kola etc. You will have known the world is like a global village and anyone can communicate with one another in real time due to the globalization of business.

You have decided to venture into the export of agro commodity from Nigeria. Due to varied nature of the export trade, you won't want to make a financial mistake. You won't follow a linear pathway. You will need a broader perspective. You will need a guide. You will need a business plan, a bankable plan, a comprehensive plan that will give you a roadmap in this industry. A business plan that details on the financial analysis with in-depth profitability analysis that specifies the return on investment based on the local and foreign prices of the different commodities.

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