Understanding the market
To develop a successful export business, a good understanding of your target market(s) is essential. This involves conducting research on your export destination(s).
A good market research should not be based on facts and figures only, It should also focus on factors that drive the target market(s).
Tips to understand the market
- Gather basic market information regarding import regulations, trade statistics, tariff regimes and much more. Various Market Analysis tools can be handy in this respect.
- Focus your research on a specific product or service.
- Research on your competitor’s market(s). Find out what they are doing right.
- Attend market-specific seminars.
- Seek practical advice from experienced exporters.
- Develop direct contacts with potential buyers. You can make use of authentic online directories.
- Understand the market environment (culture, demography, religion, currency…)
- Relevant Trade Fairs and Embassies are good sources of information.
Research Areas
Some of the important areas of market research include:
- Trade statistics and trends
- Trade policies
- Regulatory framework
- Business environment
- Business culture
- Distribution channels
- Logistics
- Risk assessment
Tools for market analysis
There are numerous online Market Analysis-tools available. Some of these tools can be accessed for free. These tools will enhance understanding of your target market(s)
Product specific market research
Having gathered and analyzed basic market information, you are to narrow your findings to the specific product or service. You can make an offer, send samples to buyers and await feedback.
Benefits of Market Research
A good market research enables you to:
- Identify your most promising market
- Obtain inputs for your Export Marketing Plan (EMP)
- Have good understanding of the competitive environment of your target market
- Minimize risks and maximize prospects
Step-by-Step Process to Export Goods from Nigeria
Step 1: Register Your Business (CAC & FIRS)
Before starting, ensure your business is legally recognized:
Register a Limited Liability Company or Business with the Corporate Affairs Commission (CAC).
Ensure your Memorandum and Articles of Association state export/trading activities.
Obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS).
Step 2: Register with the Nigerian Export Promotion Council (NEPC)
Registration with NEPC is mandatory for exporting non-oil goods.
Step 3: Open a Domiciliary Account & Register Form NXP
All export proceeds must be repatriated back to Nigeria via official banking channels:
Open a Domiciliary Account (USD, GBP, or EUR) with a Nigerian commercial bank.
Log in to the Central Bank of Nigeria Trade Monitoring System (TRMS) portal and complete the Form NXP (Nigeria Export Proceed Form) via your bank.
Step 4: Secure Product-Specific Certificates & Quality Clearance
Depending on the destination country and product type, quality control certification is required:
Agricultural/Food Items: Obtain a Phytosanitary Certificate from the Nigeria Agricultural Quarantine Service (NAQS). Processed Foods/Cosmetics: Obtain clearance/approval from NAFDAC.
Manufactured Goods: Obtain certification from the Standards Organisation of Nigeria (SON).
Pre-Shipment Inspection: Obtain a Clean Certificate of Inspection (CCI) from authorized inspection agents.
Step 5: Draft an Export Contract & Commercial Documents
Prepare essential commercial documents for your international buyer and customs:
Proforma Invoice / Commercial Invoice
Packing List (detailing dimensions, weight, and item counts)
Contract of Sale (outlining payment terms, Incoterms, and delivery schedules)
Step 6: Arrange Freight & Customs Clearance
Engage a licensed Customs Clearing Agent or freight forwarder.
Choose your shipping mode:
Air Freight: Ideal for high-value or perishable products.
Sea Freight: Ideal for large volume/bulk commodities.
Pay the Nigerian Export Supervision Scheme (NESS) fee (usually 0.5% of FOB value).
Complete Nigerian Customs Service (NCS) export clearance at the port or airport.
Step 7: Final Shipment & Repatriation of Funds
Your freight forwarder issues the Bill of Lading (sea shipping) or Air Waybill (air cargo).
Send shipping documents to the buyer or buyer's bank for destination clearing.
Your buyer pays through the agreed channel into your Domiciliary Account..