Investors’ Guide to Exporting from Nigeria (I) 

PERSONAL FINANCE

Omolabake Fasogbon

Nigeria’s export boasts of massive opportunities for individuals and the economy at large. 

In fact, experts say by adopting export led-growth, Nigeria could reach its potential as an economic super-power.

“But this is only when attention is deliberately shifted to the non-oil sector, beyond paying lip service to economic diversification,” Chairman of Multimix Group, Dr. Obiora Madu said.

Unfortunately, Nigeria economy is still very much oil dependent, with the commodity still the country’s largest export accounting for 82.50 per cent and its major source of revenue.

Madu whose career in export spans from his days in a commercial bank as one of the pioneer staff on the export desk encouraged more investors to explore non-oil and services export to grow their businesses as well as economic growth. 

Exporting, according to the trainer cum consultant, is quite lucrative depending on the amount invested, stressing above all that skills and knowledge of the business are success determinant. 

Madu, who observed skills and knowledge gap in the business as far back in the 80s, said he was later compelled to exit banking where he had been guiding and putting people through. 

“People just want to export but they don’t know how to go about it. Realising this, I decided to leave banking in 1992 to set up Multimix. The idea is to establish export power house to educate people and help them to start export business. 

“Once a player myself, I realised the demand for knowledge from individuals and institutions was huge, hence focused on training alone”, he said. 

To make a good opportunity of the business, Madu said a new comer must be very familiar with the terrain and be committed such that they are not distracted by any other business. 

“You can’t do export as a side hustle or do another business with export, except you have a trusted partner which is very difficult to come by in this clime,” he stressed. 

He said of importance is also business registration, after which an investor then learn about the technicalities of the business and others. 

He added: ‘It is also compulsory that one registers with the Nigeria Export Promotion Council (NEPC), though they don’t issue licence but one must register with them, without which one may probably not be able to export.

“Like I mentioned earlier, export is capital intensive. For instance, exporting cocoa won’t cost you less than a N100 million, but then you have to look at your capacity and operate within your means.

“For those considering a low scale, charcoal is an area to look at costing about N10 million in capital. Other areas like processing food items is also less capital intensive”

“Know however that the higher capital intensive export will give you more money and the lower capital intensive one will give you less money. But you will definitely make money particularly if you handle your logistics well,” he clarified. 

He further enlightened that a determined entrepreneur who is cash strapped can look to the bank for support, but emphasised the need for knowledge so that an intending borrower would be able to sell himself and convince lender. 

On specific skills needed, he said, “you need to understand procurement, logistics and supply chain skills. You will also be needing skills on the technicalities of international trade as well as the processes at the port. All of these are needed to go far in the business. “

The trainer averred that like any other business, exporting comes with its own risk, identifying the greatest one as ignorance.

“Lacking in understanding of the technicalities of the field can actually destroy the business.  It is often said that any fool can import but no fool can export. 

“Any fool can import because all he needs is money in the bank, while the bank completes the task for them. He just needs to append signature and the goods come in. The reverse is the case in export, in that the business man will practically do everything himself, including goods preparation and documenting, amongst others.”