Post by Trade Coach on Dec 8, 2020 17:44:24 GMT 1
6 Hidden Facts About Small Scale Export Businesses That Will Flood Your Bank Account With Dollars Immediately
This business guarantees that you will have an endless flow of dollars into your bank account right here in Nigeria.
Majority of upcoming and even established business people in Nigeria love that type of business which will flood their bank accounts with US Dollars. The reason is very simple, every businessman or woman in Nigeria today knows about the present precarious situation of the exchange rate of our currency, the Naira against major international currencies.
The exchange rate of the Naira to the US Dollar is very bad and there is no indication that it is going to get better in the foreseeable future. So, engaging in any business that will make you earn foreign exchange is going to be the best venture to be undertaken in your life. As at today, N450 exchanges for USD 1. Imagine how much you will earn by just making a profit of $500 to $1,000 in a single transaction.
The Federal Government is in dire need of foreign exchange to shore up the value of the local currency, the Naira. Let us therefore look at the reasons why you should start considering venturing into export business as a Nigerian. You can enter into the business from different levels irrespective of your financial capacity.
1. The Nigerian Government gives so much support for the citizens who are interested in going into export business. The government needs a lot of foreign exchange to fill up the gap created by dwindling inflow of receipts from crude oil exports. The country is highly dependent on crude oil exports and as a mono-cultural exporter of the product, any negative changes in price or quota affects the forex receipts of the country negatively. This will invariably affect the wealth of the country and the living condition of the citizens negatively.
2. There are many products that can be exported from this country; they are found in almost all the towns and villages in Nigeria. For example, if you travel to many towns and villages in the south East and South West you will see how the people play with cashew nuts, this fruit commands a very good price in the international market. This product being played with here is being sold in the international market for between $750 - $1,200 per ton depending on the quality and time of the year.
3. So many products like this are being wasted in all our towns and villages while they are sought after in many parts of the world. When discussing exports people always think of products like: Cocoa, Cashew nut, Sesame Seeds that cost a lot of money to purchase from the farmers, and this discourages them. This is not so, there are many products that we come across in our everyday engagements that can be exported with very small amounts of capital. Export business in Nigeria has grown from the stage where large sums of money need to be invested to ones that can be done by mini exporters. Mini exporters are those exporters with little amount of capital.
4. There are many importers all over the world that need small but consistent quantities of agricultural products from Africa. The following products can be exported by mini exporters: Ginger, Garlic, Bitter kola, Hibiscus Flower, Coconut and Coconut Oil. There are hundreds of agricultural products available in Nigeria that mini exporters can be involved in.
5. Export facility is one of the easiest loans that banks offer the business community because of the inflow of foreign exchange involved. Therefore, bank financing is not supposed to be a stumbling block to starting a mini exportation business in the country.
6. Rediscounting and Refinancing Facility (RRF) from NEXIM. Many Nigerian exporters are not aware that there is a short-term interbank facility which the Nigerian Export Import Bank (NEXIM) gives to commercial banks to enable them to refinance loans taken from them by exporters. The loan can be taken for up to one year. The interest rate is pegged at 6% per annum for export. What this simply means is that, if an exporter borrows from a commercial bank at the rate of say 27% per annum for export, the commercial bank can apply to NEXIM on behalf of the exporter to refinance and rediscount the loan at a cheaper rate than 27%.
From the above explanations you can see the need and benefits that will accrue to any Nigerian who starts an export business at this period. The government is ever ready to support anybody who is ready to invest in the export of agricultural produce. Go to Mile 12 market in Lagos and see how exportable produce are being wasted daily. The only problem new entrants are afraid of is how to start and who to help them. Be not afraid, our company is ever ready to train new people who are interested in venturing into the export world.
This business guarantees that you will have an endless flow of dollars into your bank account right here in Nigeria.
Majority of upcoming and even established business people in Nigeria love that type of business which will flood their bank accounts with US Dollars. The reason is very simple, every businessman or woman in Nigeria today knows about the present precarious situation of the exchange rate of our currency, the Naira against major international currencies.
The exchange rate of the Naira to the US Dollar is very bad and there is no indication that it is going to get better in the foreseeable future. So, engaging in any business that will make you earn foreign exchange is going to be the best venture to be undertaken in your life. As at today, N450 exchanges for USD 1. Imagine how much you will earn by just making a profit of $500 to $1,000 in a single transaction.
The Federal Government is in dire need of foreign exchange to shore up the value of the local currency, the Naira. Let us therefore look at the reasons why you should start considering venturing into export business as a Nigerian. You can enter into the business from different levels irrespective of your financial capacity.
1. The Nigerian Government gives so much support for the citizens who are interested in going into export business. The government needs a lot of foreign exchange to fill up the gap created by dwindling inflow of receipts from crude oil exports. The country is highly dependent on crude oil exports and as a mono-cultural exporter of the product, any negative changes in price or quota affects the forex receipts of the country negatively. This will invariably affect the wealth of the country and the living condition of the citizens negatively.
2. There are many products that can be exported from this country; they are found in almost all the towns and villages in Nigeria. For example, if you travel to many towns and villages in the south East and South West you will see how the people play with cashew nuts, this fruit commands a very good price in the international market. This product being played with here is being sold in the international market for between $750 - $1,200 per ton depending on the quality and time of the year.
3. So many products like this are being wasted in all our towns and villages while they are sought after in many parts of the world. When discussing exports people always think of products like: Cocoa, Cashew nut, Sesame Seeds that cost a lot of money to purchase from the farmers, and this discourages them. This is not so, there are many products that we come across in our everyday engagements that can be exported with very small amounts of capital. Export business in Nigeria has grown from the stage where large sums of money need to be invested to ones that can be done by mini exporters. Mini exporters are those exporters with little amount of capital.
4. There are many importers all over the world that need small but consistent quantities of agricultural products from Africa. The following products can be exported by mini exporters: Ginger, Garlic, Bitter kola, Hibiscus Flower, Coconut and Coconut Oil. There are hundreds of agricultural products available in Nigeria that mini exporters can be involved in.
5. Export facility is one of the easiest loans that banks offer the business community because of the inflow of foreign exchange involved. Therefore, bank financing is not supposed to be a stumbling block to starting a mini exportation business in the country.
6. Rediscounting and Refinancing Facility (RRF) from NEXIM. Many Nigerian exporters are not aware that there is a short-term interbank facility which the Nigerian Export Import Bank (NEXIM) gives to commercial banks to enable them to refinance loans taken from them by exporters. The loan can be taken for up to one year. The interest rate is pegged at 6% per annum for export. What this simply means is that, if an exporter borrows from a commercial bank at the rate of say 27% per annum for export, the commercial bank can apply to NEXIM on behalf of the exporter to refinance and rediscount the loan at a cheaper rate than 27%.
From the above explanations you can see the need and benefits that will accrue to any Nigerian who starts an export business at this period. The government is ever ready to support anybody who is ready to invest in the export of agricultural produce. Go to Mile 12 market in Lagos and see how exportable produce are being wasted daily. The only problem new entrants are afraid of is how to start and who to help them. Be not afraid, our company is ever ready to train new people who are interested in venturing into the export world.
