Home - Corporate Profile - Our Services - Our Clientele - Management Profile - Contact Us - Resources - Links

Exploring Nigeria’s Export Potentials
by Olufemi Boyede MD/CEO Koinonia Ventures Ltd
A Paper Presented At Rotary Club Of Okota Main Town February 12 , 2005

In 2004 , Nigeria earned about $ US 27.2 billion from exports of oil and petroleum products 
That is equivalent to about $ US 2.26 billion per month
* Or about $ US 74 million per day (that would establish and maintain a couple of hospitals)
* Or about $ US 3 million per hour ( that would be enough to establish and maintain quite a few schools )
* As I speak , Nigeria is earning over $ US 50,000 every minute from oil 
Oil earning is estimated to grow to about $ US 30.6 billion in 2005 and $ US 32.1 billion in 2006 


Though oil provides around 98 % of Nigeria’s export , we cannot afford to depend on it as:

* Oil is a wasting (not everlasting) resource;
* You cannot add fertilizer to improve the yield;
* Deposits are divinely decided; 
* Prices are externally dictated ; and
* We have no control over any aspect of oil.


EXPORT OPPORTUNITIES AVAILABLE IN NIGERIA

For years now, oil export has been the hub of Nigeria’s revenue generation and foreign exchange earnings, accounting for more than 95% of national GDP.
However, fore-planning dictates that it is expedient to redistribute the resources accruing from oil to other sources of exports.
More than 3000 Nigerian products available for export, including:

----- Food & processed agricultural products such as cocoa beans, cocoa butter and cake, cassava feeds, cassava flour, vegetable oils, refined sugar, pastry, shrimp, sesame products, etc.
----- Solid minerals :Tin, iron ore, columbite, tantalite, zinc, charcoal, gold, bitumen, diamond, marble, etc. 
----- Arts and crafts: artifacts, sculptures, clothes and fabrics, etc.
----- Manufactured products: Pharmaceutical products, aluminium products, plastics products, etc.
----- Services : Insurance services, consultancy services, banking and finance services, tourism , etc.


PROCEDURES FOR EXPORTING FROM NIGERIA

Incorporation of Business with CAC
Registration as an Exporter with NEPC
Market Survey of Potential Buyers Abroad
Pro forma Invoice to Buyer to Effect Opening of Letter of Credit by Buyer’s Banker or Agreed form of Payment
Opening of an NXP Form by Exporter’s Banker
Pre-shipping Documentation (Certificate of Origin, Health Certification , Standard Certification, etc,) 
Pre- Shipment Inspection
Appointment of a forwarding agent
Documents for Some Destinations in order to enjoy incentives from Importer’s government. E.g. AGOA, ETLS, etc.
Repatriation of export proceeds
Evidence of Repatriation to Enjoy Nigerian Government Incentives


INCENTIVES AVAILABLE TO NIGERIAN EXPORTERS

Export Expansion Grant 
Manufacture- In Bond-Scheme
Export Processing Zones incentives
Export Processing Factories


PITFALLS TO AVOID

EXPORT FITNESS CHECKS
* Be export ready
* What am exporting
* Where can I export to ?
* At what cost?
* Selecting your agent 
* Are your staff ready for international sales
* Do you know the specifications of the importers
* Does your country have bi-lateral or multi-lateral agreement to make your goods competitive where you are exporting to? etc.


BENEFITS OF EXPORTS

A. Benefits to private companies doing export business.
* Earning of foreign exchange income
* Positive corporate reputation, visibility and image of export companies.
* Attraction of public sector incentives, support and attention
* Increase in scope of business activities
* Improved international management practices (Product quality, organization , operation , negotiation etc) 
* Creation of new export companies
* Powerful reference for other companies


B. Benefits to the National Economy
* Creation of export-oriented companies
* Creation of more jobs
* Creation of export-related activities
* International visibility of Nigeria’s Economy and products
* Integration of Nigeria’s Economy with global economy
* Earning of Foreign Exchange Income
* Improvement in the balance of payment
* Creation of an export sector
* Increase in aggregate national production
* Vector of economic growth ( export-led economic growth)
* Improved bi-lateral relations with trade partners 


C. Benefits to Nigerians Working in Export Sector
* Intelligence and speed needed in international market
* Courage to face international markets
* Pride to win new markets and retain existing ones
* Confidence in operations and logistics, management, spirit of adventure and taking calculated risks 
* Exposure to unique diverse culture and learning 
* International friendliness

© Copyright Koinonia Ventures Limited, 2006