Last Updated on December 28, 2021 by Ope Quadri
Generally, the process of commercial export in Nigeria isn’t as easy as they seem online. There are several challenges from the packaging to the point of export. But the most important thing is for an exporter to play their card in a smart way and prepare ahead for the challenges that may come.
For instance, a bank will give you a list of requirements for the export, it goes beyond just the documents. If you’re exporting raw agriculture-related products, you’ll be mandated to obtain phytosanitary licence from the Nigeria Agricultural Quarantine Service (NAQS), an agency under the Federal Ministry of Agriculture and Rural Development.
Before starting off your export goods business, you must have crossed your “T” and dotted your “I” by:
- Doing market research on the products
- Have in place an export plan,
- Select your target market
- Have in place a marketing plan
- Determine the most efficient methods of delivering your product to your global buyers,
- Have in place a financial plan
- Understand the legal requirements,
It’s time to know the required documents for commercial export in Nigeria.
1) Register a limited liability company with the Corporate Affairs Commission (CAC).
If you already have a Business Name, you’ll have to upgrade to a company to qualify as an exporter.
2) Register with the Nigeria Export Promotion Council (NEPC) to obtain an exporter’s certificate
3) Obtain a valid Tax Identification Number (TIN) from the FIRS/JTB. With less than NGN3,000 you get have an accredited CAC agent get TIN for you. TIN is FREE!
4) Open an export domiciliary account with your preferred bank that can handle export proceeds
Look for banks have priority for export business e.g Stanbic IBTC, FCMB, Standard Chartered, and First Bank of Nigeria are some of the banks that are superb in handling commercial export proceeds in Nigeria.
5) You must ensure that export proceeds are fully repatriated and credited to your export domiciliary account within 180 days from the Bill of lading date for Non-Oil export and within 90 days for Oil export.
In the past, exporters were required to obtain NXP Form (Nigerian Export Proceeds Form) from their bank and could take days even weeks, but the deployment of the Trade Monitoring System platform (TRMS) by the Central Bank of Nigeria (CBN) has simplified application for NXP form.
The commercial exporter, after meeting all the requirements, needs their TIN to sign up on the TRMS, fill the NXP form in less than 30 minutes, upload the necessary documents and hit the submit button and wait for feedback from their bank where their dom export account is domiciled.
As mentioned, requirements for Commercial Export in Nigeria are not easy to obtain as they sound. Do due diligence on the specific products you want to export. Be sure that it isn’t on the prohibited export products.
- Photo By Chuttersnap On Unsplash
Ope is the Head of Content at InfomediaNG. He’s a researcher whose interests cut across real estate investment, stocks, financial technology, and youth empowerment. He’s awesome in Content Marketing and SEO. Favourite Tools: Google Analytics, Canva, UberSuggest