Post by Trade Coach on Feb 7, 2021 17:55:49 GMT 1
Before you decide to approach the international market, meaning you want to export any commodity out of Nigeria, there are a few things you should think about. Firstly, what do you want to export? There are many products that you might not think of that you can export. Have you also thought about exporting services? Many of us only focused on exportation "products", as in tangible products and totally forget services. Here is the classic list of Nigerian major export products as at few years ago;
Crude oil, Petroleum gas, Refined petroleum . These 3 categories are reserved for the government and few influential persons
Other conventional export products are Cocoa beans, Rough wood , then you also have Scrap Copper, Tanned Goat Hides, Cocoa Butter, Rolled Tobacco, Rubber. Nigerian exports has fallen sharply over the last five years, and so did the import too. We actually import palm oil, sugar, rice, which signifies that there is a massive market for these food within Nigeria.
What about an trade business within Nigerian first. Anything that Nigeria imports can become an tradable goods because the fact that Nigeria imports it, already shows you how big the market is within Nigeria. Also think about it, there are many other west African countries with very similar lifestyle to that of Nigerians. So if we buy these products, maybe there is also market to sell them else where.
Then you grow the business to export within West Africa and later expand your reach to outside the continent.
Find ways to get these products more effectively from the hidden regions where they are grown and sell them in the cities. How can you make the cultivation more sustainable and effective for the local farmers? The truth is that before you think about exporting, carry out intensive research about the market landscape of what and how Nigeria produces whatever it has to export. If you do not know how to carry out a research, you'll need to consult a researcher.
Another exportable categories are, fashion, herbal and information.
In this piece my goal is to share small scale export products in Nigeria, therefore I will duel more on out of the box idea! My number one product category would be tapping into the African natural herbal medicine.
Export raw herbs, semi processed herbs, fully processed herbal based products.
Fashion industry in Africa – Export services such as mass production of fabric. Export fabrics that are hand woven.
The communication industry – Export content created for digital consumption. Venture into documentary and show reality to a global audience. Export services such as photographs and art works.
On the herbal industry, there is practically zero engagement on it's exportation. All one could find was how the industry has remained unregulated and so on. Most superfoods are made out of natural herbs which has been scientifically tested to show its sustainable health benefits. Some are fully processed having extracts of the herbs, while others are semi-processed like being dried up.
Startups are making millions from superfood
Startup companies in Europe and in the USA have branded natural herbs and processed them into real trendy products, selling millions around the world. Now, here is a fact. Africa is home to over 4000 useful herbs with medical and health benefits. So when you want to start this business on a small scale, apply the right method.
Meanwhile, no doubt the export/import business in Nigeria is serving as another support, backbone of the country's annual turnover, and it will likely to increase over a period of time. Although the export industry is such that the big players make it harder or impossible for the smaller exporters to survive. That said, you can carve a comfortable living for yourself if you plan well to export any of the listed commodities. Again there are a few ways a small exporters, or entrepreneurs can handle their expenses upon starting an export business comfortably. By taking the time to learn, research and discover the most cost- effective ways, you can get your commodities exported and competing in no time.
As a small-holder, you can handle the biggest farm business and start exporting your farm produce with less stress. However, there are numbers of issues to contend with. For instance, prices of land are going up unabated, and the more you pay per acre, the smaller the profit margin for your labour.
You have to be diligent in your research and take time to evaluate your options. If you are serious about producing farm produce for export, a strategic location for land acquisition could be worth your time.
Look into the different levies that exist in different states, and consider which area support farming endeavour. There are plenty of local and state governments who may want to support/encourage farming business and are willing to assist.
Another important factor to be considered is farming equipment. When you think of farming equipment, you probably think of harvester, tractors, and other big machines, but farm equipment can also include smaller ones.
No farm is going to turn any profit without some form of equipment, but the difference between farm that sink and and swim often comes down to quality of their working equipment and experience.
Before embarking on commercial farming you should take careful look at your budget, think objectively and convincingly. It can be easy to get excited by grand ambitions, and over-investing in too many may lead to financial danger.
Remember exporting your commodities for once may likely not make you an instant millionaire, but if it's what you're passionate about, with consistency, you will surely carve out a comfortable niche for yourself.
It is advisable and important to always treat your business above board and make sure you get in the habit of managing your finances carefully from the start.
Crude oil, Petroleum gas, Refined petroleum . These 3 categories are reserved for the government and few influential persons
Other conventional export products are Cocoa beans, Rough wood , then you also have Scrap Copper, Tanned Goat Hides, Cocoa Butter, Rolled Tobacco, Rubber. Nigerian exports has fallen sharply over the last five years, and so did the import too. We actually import palm oil, sugar, rice, which signifies that there is a massive market for these food within Nigeria.
What about an trade business within Nigerian first. Anything that Nigeria imports can become an tradable goods because the fact that Nigeria imports it, already shows you how big the market is within Nigeria. Also think about it, there are many other west African countries with very similar lifestyle to that of Nigerians. So if we buy these products, maybe there is also market to sell them else where.
Then you grow the business to export within West Africa and later expand your reach to outside the continent.
Find ways to get these products more effectively from the hidden regions where they are grown and sell them in the cities. How can you make the cultivation more sustainable and effective for the local farmers? The truth is that before you think about exporting, carry out intensive research about the market landscape of what and how Nigeria produces whatever it has to export. If you do not know how to carry out a research, you'll need to consult a researcher.
Another exportable categories are, fashion, herbal and information.
In this piece my goal is to share small scale export products in Nigeria, therefore I will duel more on out of the box idea! My number one product category would be tapping into the African natural herbal medicine.
Export raw herbs, semi processed herbs, fully processed herbal based products.
Fashion industry in Africa – Export services such as mass production of fabric. Export fabrics that are hand woven.
The communication industry – Export content created for digital consumption. Venture into documentary and show reality to a global audience. Export services such as photographs and art works.
On the herbal industry, there is practically zero engagement on it's exportation. All one could find was how the industry has remained unregulated and so on. Most superfoods are made out of natural herbs which has been scientifically tested to show its sustainable health benefits. Some are fully processed having extracts of the herbs, while others are semi-processed like being dried up.
Startups are making millions from superfood
Startup companies in Europe and in the USA have branded natural herbs and processed them into real trendy products, selling millions around the world. Now, here is a fact. Africa is home to over 4000 useful herbs with medical and health benefits. So when you want to start this business on a small scale, apply the right method.
Meanwhile, no doubt the export/import business in Nigeria is serving as another support, backbone of the country's annual turnover, and it will likely to increase over a period of time. Although the export industry is such that the big players make it harder or impossible for the smaller exporters to survive. That said, you can carve a comfortable living for yourself if you plan well to export any of the listed commodities. Again there are a few ways a small exporters, or entrepreneurs can handle their expenses upon starting an export business comfortably. By taking the time to learn, research and discover the most cost- effective ways, you can get your commodities exported and competing in no time.
As a small-holder, you can handle the biggest farm business and start exporting your farm produce with less stress. However, there are numbers of issues to contend with. For instance, prices of land are going up unabated, and the more you pay per acre, the smaller the profit margin for your labour.
You have to be diligent in your research and take time to evaluate your options. If you are serious about producing farm produce for export, a strategic location for land acquisition could be worth your time.
Look into the different levies that exist in different states, and consider which area support farming endeavour. There are plenty of local and state governments who may want to support/encourage farming business and are willing to assist.
Another important factor to be considered is farming equipment. When you think of farming equipment, you probably think of harvester, tractors, and other big machines, but farm equipment can also include smaller ones.
No farm is going to turn any profit without some form of equipment, but the difference between farm that sink and and swim often comes down to quality of their working equipment and experience.
Before embarking on commercial farming you should take careful look at your budget, think objectively and convincingly. It can be easy to get excited by grand ambitions, and over-investing in too many may lead to financial danger.
Remember exporting your commodities for once may likely not make you an instant millionaire, but if it's what you're passionate about, with consistency, you will surely carve out a comfortable niche for yourself.
It is advisable and important to always treat your business above board and make sure you get in the habit of managing your finances carefully from the start.