Post by Trade Coach on Mar 27, 2017 6:43:06 GMT 1
The world indeed has become a small village. Some years back, who would have thought that as many people as we have now can be exporting goods directly from Nigeria to their overseas counterparts. Before now, a lot of people thought international trade was exclusively reserved for the rich and big men in the society who had strong connections with overseas partners, where individual, small scale businessmen and entrepreneurs in Africa can become part of the export business with very little capital investments.
With the right knowledge, you too can import and export variety of products and commodities. If you desire to start an exportation business, you first need to be good at identifying exportable commodities that are required at the other end (foreign countries). It is a business that can accommodate any honest business person regardless of size of his investment capital. It also offers the prestige of working and relating with international businessmen across the globe. Once you understand the basics on how to engage in the export trade, you will want to remain there because it is sure to yield recognition and profits
There are stern indications that the Nigerian economy is on the path to recover from the slump. Oil prices have again stabilized around 55 dollar per barrel. Government’s peace efforts around the Niger Delta region have significantly helped to raise oil production. In the last quarter of the year 2016, the GDP contracted by 1.3 per cent, an improvement over the 2.24 per cent in Q3 and 2.06 per cent in Q2. Moreover, various forecasts, including that of World Bank, agree that the country will experience a positive output growth in 2017.
The expected recovery will, at best take Nigeria back to that place of opportunity of the past years before 2015, when we could have built a foreign reserve level and financed non-oil export diversification. In the last two to three years, Nigeria has experienced the pains of external shocks to oil revenue. The pains are to lack of significant foreign reserves cover. But, fundamentally, the concentration on oil receipts to provide 70 per cent of government total revenue, or 90 per cent of its foreign exchange earnings, made the oil price crash much harder to bear for Nigerian.
It is now time for more determined efforts and actions on the diversification of the economy, and diversification of foreign exchange earnings through increased non-oil exports. Raising non-oil exports revenue is a key area government’s interventions are required. Analysts agree, that the economy is broadly diversified, given that oil accounts for just about 15 percent of the country’s output. Agriculture, services – including finance, ICT, entertainment, hospitality - and its extensive value chains are also major contributors to the GDP. Additional potentials are locked in the solid minerals sector of the economy.
We may ask ourselves, what is export? what significant role will export play and how can we as a nation increase our earnings through export. The Nigerian Export-Import Bank is statutorily mandated to facilitate the country’s non-oil export growth. NEXIM bank has a range of tools, including credit financing in both local and foreign currencies, risk-bearing services in the form of export credit guarantee and export credit insurance facilities, special funds, loans for foreign inputs, export advice, and market information, to support the non-oil export sectors.
Export is defined as a function of international trade between a country and another whereby goods and or services are shipped from one country to one another for future sale or trade. Documentation with the customs authorities in both countries of export and the country of destination is required in all cases.
Findings have revealed that the current leadership of NEXIM Bank has maintained its unwavering commitment to its mandates over a year ago. In February, the Federal House of Representatives’ Committee on Banking and Finance, embarked on an oversight tour of the businesses supported by NEXIM.
NEXIM Bank funds export producers and businesses with export potentials. It does this with the aim of increasing foreign exchange earnings for the country, boost industrial production and also to create jobs for Nigerians.
Make a decision
Why do you want to go into exportation? Are you prepared for the risk and are ready to bear the risk involved? Are you prepared to hassle with the manufacturers and the farmers or their agents, freight forwarders, customs, etc? Are you also detailed about the stress of exporting and the stringent commodities conditions of your foreign buyers? In fact, are you going to focus on importing and exporting, or do you possess the needed entrepreneurial skills to succeed? These are some of the questions you should honestly answer before deciding if the business is for you.
After you have made your decision, the next thing to do is to acquire the basic knowledge needed to succeed in the business of exportation. This is where you have to inquire about all the intricacies of running an export or import business. You need to possess the spirit of good negotiation and selling. Foreign consumers want a market from your country. You need to be able to identify these consumers or manufacturers, and try to establish a solid business connection and relationship with them.
Another strategy is to define your target commodity and the target exportable goods. This is where the need for a good feasibility study comes in. You must know what commodities are in greater demand in various destinations.
The main important lesson we should take from all of this is that diversification of foreign exchange earnings, through non-oil export growth, is the strongest way to build resilience against the future episode of oil price shock.
With the right knowledge, you too can import and export variety of products and commodities. If you desire to start an exportation business, you first need to be good at identifying exportable commodities that are required at the other end (foreign countries). It is a business that can accommodate any honest business person regardless of size of his investment capital. It also offers the prestige of working and relating with international businessmen across the globe. Once you understand the basics on how to engage in the export trade, you will want to remain there because it is sure to yield recognition and profits
There are stern indications that the Nigerian economy is on the path to recover from the slump. Oil prices have again stabilized around 55 dollar per barrel. Government’s peace efforts around the Niger Delta region have significantly helped to raise oil production. In the last quarter of the year 2016, the GDP contracted by 1.3 per cent, an improvement over the 2.24 per cent in Q3 and 2.06 per cent in Q2. Moreover, various forecasts, including that of World Bank, agree that the country will experience a positive output growth in 2017.
The expected recovery will, at best take Nigeria back to that place of opportunity of the past years before 2015, when we could have built a foreign reserve level and financed non-oil export diversification. In the last two to three years, Nigeria has experienced the pains of external shocks to oil revenue. The pains are to lack of significant foreign reserves cover. But, fundamentally, the concentration on oil receipts to provide 70 per cent of government total revenue, or 90 per cent of its foreign exchange earnings, made the oil price crash much harder to bear for Nigerian.
It is now time for more determined efforts and actions on the diversification of the economy, and diversification of foreign exchange earnings through increased non-oil exports. Raising non-oil exports revenue is a key area government’s interventions are required. Analysts agree, that the economy is broadly diversified, given that oil accounts for just about 15 percent of the country’s output. Agriculture, services – including finance, ICT, entertainment, hospitality - and its extensive value chains are also major contributors to the GDP. Additional potentials are locked in the solid minerals sector of the economy.
We may ask ourselves, what is export? what significant role will export play and how can we as a nation increase our earnings through export. The Nigerian Export-Import Bank is statutorily mandated to facilitate the country’s non-oil export growth. NEXIM bank has a range of tools, including credit financing in both local and foreign currencies, risk-bearing services in the form of export credit guarantee and export credit insurance facilities, special funds, loans for foreign inputs, export advice, and market information, to support the non-oil export sectors.
Export is defined as a function of international trade between a country and another whereby goods and or services are shipped from one country to one another for future sale or trade. Documentation with the customs authorities in both countries of export and the country of destination is required in all cases.
Findings have revealed that the current leadership of NEXIM Bank has maintained its unwavering commitment to its mandates over a year ago. In February, the Federal House of Representatives’ Committee on Banking and Finance, embarked on an oversight tour of the businesses supported by NEXIM.
NEXIM Bank funds export producers and businesses with export potentials. It does this with the aim of increasing foreign exchange earnings for the country, boost industrial production and also to create jobs for Nigerians.
Make a decision
Why do you want to go into exportation? Are you prepared for the risk and are ready to bear the risk involved? Are you prepared to hassle with the manufacturers and the farmers or their agents, freight forwarders, customs, etc? Are you also detailed about the stress of exporting and the stringent commodities conditions of your foreign buyers? In fact, are you going to focus on importing and exporting, or do you possess the needed entrepreneurial skills to succeed? These are some of the questions you should honestly answer before deciding if the business is for you.
After you have made your decision, the next thing to do is to acquire the basic knowledge needed to succeed in the business of exportation. This is where you have to inquire about all the intricacies of running an export or import business. You need to possess the spirit of good negotiation and selling. Foreign consumers want a market from your country. You need to be able to identify these consumers or manufacturers, and try to establish a solid business connection and relationship with them.
Another strategy is to define your target commodity and the target exportable goods. This is where the need for a good feasibility study comes in. You must know what commodities are in greater demand in various destinations.
The main important lesson we should take from all of this is that diversification of foreign exchange earnings, through non-oil export growth, is the strongest way to build resilience against the future episode of oil price shock.
