Business End - Why you Should Consider an Export Business in Nigeria

The Nigerian economy as we all know is somewhat unique and extremely volatile. It is unique in the sense that it has a vast array of natural and synthetic options that command a fine price in the international market. Despite this however, oil and gas still account for 95% of export earnings, making the 180million+ population having to rely on a commodity that is marred by volatility.

I guess the upside to it remains the fact that a downturn in the price of crude brings the need for diversification of export earnings to focus. This means that there is room for a whole lot of newcomers into the market, and make no mistake, opportunity hunters are already taking advantage. Foreigners from Europe and Asia are setting up factories here, While some are simply profiting by exploiting local producers to sell at ridiculous profits in other countries.

Starting an export business is neither difficult nor complicated. You do not particularly need to have a company to start one either. In lay man's terms, these are the 3 categories of people who engage in export trading

• Manufacturers
• Sourcers
• Wholesalers

This means that you do not have to produce anything in other to export, as a matter of fact, some people win export contracts first before they then proceed with the 'how'.

As a sourcer, you could buy raw materials from where they are locally domiciled or produced and either export directly or sell to middlemen (wholesalers).

Why you need to Export

The volatility of a monotonous economy also means that our currency is volatile and responds to oil prices. Exporting is not only a good way to earn consistent revenue in dollars (USD), but will also simultaneously generate foreign exchange for the country, increasing wealth.

Will it Cost me Millions?

No. Like I said, there are various roles in the export value chain, and the capital rerequirements for each varies. The cheapest role, of course is sourcing. Also, the type and quantity of commodity to be exported determines the price.

Returns on Investments

Returns on earnings range from 15 - 100%. Some commodities like gallstones from cows can be gotten and processed for virtually nothing and exported at a very high price.

Next time I will discuss commodities you can export and how to go about it.

Please if you find this useful I really do appreciate your upvotes and resteems.