Why do Nigerian business love to buy on credit from local producers but pay in full when importing the SAME product from foreign countries?

This is very terrible.

Anything that can be produced in this country should be banned outrightly if any company can show that it can be produced locally.

Producers and manufacturers should also be giving grants and incentives to import raw materials that can't be found locally.

I'm actually thinking of contacting CBN and Customs to show cause why they should ban the importation of a product that we produce here locally. How do I reach them efficiently?

Good question

Can't wait for answers

Is a business strategy especially when you don't have sufficient fund to acquire all you need for your business.

It also come handy.

There are some items you can't get on credit, so use your money to get those ones, then the ones available even on credit, go ahead and acquire as much as possible.

If you are familiar with online forex trading, there is this concept called "leverage".

Its actually a rainy-day strategy so they can always buy from suppliers whenever they're cash strapped and the chain of production is unaffected throughout the course of any business activity regardless of the economic realities at any given time.

It's leveraging the time and resources of suppliers to facilitate their production while they retain high amount of free cash that can be used to fix suddenlies in their businesses so they experience no down-time at the expense of the supplier who then takes up the pressure to maintain regular business activity.

Many businesses have crashed and collapsed trying to survive and thrive in harsh business times, so having a system in place where business can continue inspite of lack of financial resources is the masterclass strategy to keep business afloat, running and operational.


Though, suppliers go through hell to meet up. Today, most domestic manufacturers have now conditioned suppliers to make two supplies before getting paid. This means, after the first supply, let's say would last a week, another supply must be made the next week, before the previous week's supply is paid. Fail to meet up, they threaten with securing other suppliers. I know this first hand, cause I supplied a major franchise in Lekki for close to a decade

We should have this page on Frontpage mods

Cc:

Lalasticlala

Mynd44

Mynd44

OAM4J

LeoDeKing:
Is a business strategy especially when you don't have sufficient fund to acquire all you need for your business.

It also come handy.

There are some items you can't get on credit, so use your money to get those ones, then the ones available even on credit, go ahead and acquire as much as possible.

If you are familiar with online forex trading, there is this concept called "leverage".

Perfect bro. You captured it perfectly, " LEVERAGE " that's what it is. Using limited resources in this case, good will and name to get the resources needed.

Some years ago I found a way of locally producing a product Nigerians spend 1.2 billion naira every year to import from India. China and Europe. Through painstaking research and brute hardwork.

Though I still have to import some of the raw materials and packaging materials yet my own is way 40% cheaper but with better quality than the Asian brands of product.

I'm struggling to meet demand as cost of the local raws, freight and logistics have gone up but the same traders who pay N15 million, N30million, N,60 million etc to Indians, Chinese to import this product (even before supply), will take my goods, hold on to my money (even after selling off my goods) and give me stories for months for an amount that is way less than what they pay to Indian companies.

I have N13 million of my money scattered in the hands of these different customers for the past 4 months. One even gave me a post-dated bank check that bounced this morning. Yet the naira is falling freely as cost of production keeps rising.

I'm actually considering stopping local supplies and concentrate on exporting to West African countries, some of whom have tested the quality of my product already.

Veteran manufacturers, how do you guys do it pls?
How much time should you give a customer before they pay up?
Do you take post-dated checks?
How do you choose who to supply and not to?
Are there people who pay you in advance before you even produce and supply to them?
Some even request that I write on my product 'Made in UK' , 'Made in USA' and then they pay pre-production. How do you resist this?