How To Export Agricultural Produce From Nigeria to Overseas: Before the oil boom in Nigeria, Agriculture was one of Nigeria’s major economic drivers. It created a very healthy economic relationship between the government of Nigeria and its citizens. However, the same cannot be said for Oil. It sort of severed this relationship, especially when corruption is put into perspective. A lot of years have passed and many Nigerians have begun going back to their roots, fanning a new zest for Agricultural business.
Exporting agricultural commodities is an essential aspect of Nigeria’s economic development. With its diverse range of natural resources and fertile land, Nigeria has the potential to become a major player in the global agricultural market. The Nigerian agricultural sector which employs two-thirds of the entire labor force is the largest sector of the economy. The sector contributed about 25.2 % (N10.50 trillion) to the nation’s GDP as of 2019.
However, navigating the export procedures can be a complex and daunting task for aspiring agricultural exporters. Worry less, here are detailed hints on how to export agricultural produce from Nigeria Overseas.
Before venturing into the exportation of agricultural produce from Nigeria to Overseas, there are prerequisites to meet:
a. Pre-Export Requirements. These requirements include:
- Register with the Nigerian Export Promotion Council (NEPC)
- Obtain an Export License from the Nigerian Customs Service
- Register with the Federal Ministry of Agriculture and Rural Development
- Meet phytosanitary and sanitary requirements
b. Understanding the Regulatory Framework
Exporting agricultural commodities in Nigeria requires compliance with various regulatory bodies and procedures. The primary regulatory agencies involved in the export process include:
a. Nigerian Export Promotion Council (NEPC): NEPC is responsible for the promotion, development, and facilitation of non-oil exports in Nigeria. It provides vital support and guidance to exporters and ensures adherence to quality standards and regulations.
b. Federal Ministry of Agriculture and Rural Development (FMARD): FMARD plays a crucial role in formulating policies, guidelines, and regulations governing the agricultural sector. It is responsible for promoting agricultural productivity and ensuring compliance with relevant export requirements.
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c. Standards Organization of Nigeria (SON): SON is responsible for the development and implementation of product standards, quality control, and certification processes. Compliance with SON’s standards is essential to gain access to international markets.
Now, Let’s delve to the steps on how to export agricultural produce from Nigeria to Overseas:
Step 1: Product Selection and Market Research
Before venturing into agricultural commodity export, it is crucial to conduct market research to identify viable opportunities. Consider factors such as demand, competition, pricing, and market trends.
Selecting the right agricultural commodities to export is equally important. Nigeria boasts a wide range of commodities with export potential, including cocoa, cashew nuts, sesame seeds, palm oil, rubber, and more. Choose commodities based on their export potential, market demand, and expertise in their cultivation or production.
Step 2: Business Registration and Licensing
To operate as an agricultural exporter in Nigeria, it is necessary to register a business entity. The Corporate Affairs Commission (CAC) is responsible for business registration and provides the legal framework for conducting business activities.
Registering a business entity ensures legal compliance, enhances credibility, and facilitates interactions with government agencies, financial institutions, and international partners.
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In addition to business registration, specific licenses and permits may be required based on the chosen commodity. For example, the National Agricultural Quarantine Service (NAQS) issues phytosanitary certificates, which are necessary for exporting plant-based commodities.
Consult the relevant regulatory bodies to determine the licenses and permits required for your specific agricultural commodity.
Step 3: Product Sourcing and Quality Control
Sourcing Quality Products is a vital part of importing agricultural produce from Nigeria to Overseas. And this can be possible by Building relationships with local farmers or cooperatives to ensure a consistent supply of quality products.
Furthermore, familiarizing yourself with the quality standards required by the importing countries ensures quality control. Therefore, ensure your products meet these standards (e.g., size, packaging, labeling).
Step 4: Compliance With Export Documentation
Still on the topic on how to export Agricultural produce from Nigeria to overseas
Export documentation is a critical component of the export process, ensuring compliance with regulatory requirements and facilitating smooth customs clearance. The following are key export documents necessary for agricultural commodity exports:
a. Proforma Invoice: A preliminary invoice that outlines the terms of the export transaction, including product details, quantity, price, and payment terms.
b. Export License: Obtain an export license from the NEPC, which demonstrates compliance with export regulations and allows access to certain export incentives.
c. Certificate of Incorporation: A document obtained from the CAC that verifies the legal existence of the exporting company.
d. Certificate of Quality: Commodity-specific certificates provided by relevant agencies, such as the SON or NAQS, confirming adherence to quality standards.
e. Phytosanitary Certificate: Required for plant-based commodities, this certificate is issued by the NAQS to ensure compliance with international plant health regulations.
f. Certificate of Origin: A document indicating the country of origin for the exported agricultural commodity. It shows where the products were made and packaged.
g. Bill of Lading: A receipt issued by the shipping company acknowledging the receipt of goods for transportation.
h. Insurance Certificate: This is a document that provides information on particular insurance coverage in case of any emergencies. You would have to prepare an insurance certificate for your shipment.
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The certificate is your proof of insurance policy and usually contains some detailed information on types and limits of insurance coverage, your insurance company’s contact information, policy number, and the insurance’s expiration date.
i. The Commercial Invoice: This type of document is provided by the exporting company. It serves as a customs declaration for exporting the products outside your country or overseas.
j. The Cargo Bill: This document plays the part of a receipt detailing a list of ship cargo, usually given by a captain of the ship to the person who ships the goods.
k. The Consular Invoice: As the name implies, this document is required to be submitted to the consulate or embassy of the country where the goods are to be exported. It is an important requirement.
l. The Inspection Certificate: This is one of the most important documents. Without this document, exporting those goods would definitely not be possible. This document helps in certifying that the products being shipped were in perfect condition at the time of inspection. This is required in many countries to help limit the movement of contraband goods/products.
m. The Dock Receipt: The document is issued by the sea freight carrier to prove that your goods are at the carrier’s shipping terminal.
n. The Warehouse Receipt: This document is issued when goods are stored in a warehouse. It is a document that states the ownership of export goods stored for safekeeping. It is a negotiable document anyway.
o. The Destination Control Statement: This is a document that serves the purpose of notifying the carrier and other foreign parties that the item can be exported but only to particular/certain destinations. It may be issued as part of the commercial invoice, air waybill, or ocean. It can be also in the Shippers Export Declaration (SED).
So, which of the documents above are more important for you?
Step 5: Packing, Labeling, and Quality Standards
Proper packaging and labeling of agricultural commodities are essential for export success. Packaging should be robust enough to withstand the rigors of transportation and ensure the preservation of product quality. Labels must provide accurate information about the product, including the name, origin, quantity, weight, ingredients (if applicable), and handling instructions.
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Adherence to quality standards is critical for maintaining customer satisfaction and meeting international market requirements. Compliance with SON’s standards, industry-specific standards, and international certifications such as ISO 9001 and HACCP (Hazard Analysis and Critical Control Points) can enhance the competitiveness of Nigerian agricultural commodities in the global market.
Step 6: Logistics and Shipping
Another important consideration is transportation. You want to get the most reliable means of transportation to convey your goods out of the country. Would you be shipping by sea freight, Air Freight, or other available modes? What shipping companies would be more reliable for us? You want to ensure proper channels for this aspect as it applies to other areas. Partner with a reputable freight forwarder to handle the logistics of transporting your goods.
Step 7: Payment
Agree on payment terms with your buyers (e.g., letter of credit, advance payment).
Step 8: Marketing and Sales
Build Relationships: Establish connections with potential buyers through trade shows, online platforms, and networking.
9. Promote Your Product: Utilize digital marketing, social media, and agricultural trade fairs to promote your products internationally.
Step 10: Compliance and Follow-up:
Keep abreast of changes in export regulations and maintain compliance with both Nigerian and international laws. Lastly, After the sale, follow up with your buyers for feedback and to build long-term business relationships.
To sum up, Nigerian agricultural exports to international markets have enormous potential for economic expansion, employment development, and poverty alleviation. Nigerian farmers, exporters, and stakeholders can successfully traverse the challenging export process and meet the demand for high-quality agricultural products worldwide by adhering to the detailed instructions that have been provided above.