HOW TO START AN EXPORT BUSINESS IN NIGERIA | LOW COST
Introduction
Nigeria is a land of vast export opportunities, from agricultural products to manufactured goods. With minimal startup costs, you can build a profitable export business by targeting high-demand global markets. Compared to setting up in the U.K, Balbus found that Nigeria costed 85% less!
This guide will show you how to start an export business from Nigeria step by step while keeping costs low.
Why Start an Export Business in Nigeria?
✅ Huge Market Potential: Demand for Nigerian products like sesame seeds, shea butter, and processed food is rising globally.
✅ Government Incentives: The Nigerian Export Promotion Council (NEPC) offers grants and support to exporters.
✅ Low Startup Capital: You don’t need a factory—just proper documentation, suppliers, and logistics.
✅ Earnings in Foreign Exchange: Get paid in USD, GBP, or EUR, protecting you from naira fluctuations.
Step-by-Step Guide to Starting an Export Business in Nigeria
Step 1: Choose a Profitable Export Product
Not all products are in demand internationally. Here are highly profitable Nigerian exports:
✔ Agricultural Products: Sesame seeds, cocoa, cashew nuts, ginger, hibiscus flowers, palm oil, honey
✔ Solid Minerals: Limestone, lead ore, zinc, kaolin, lithium
✔ Processed & Manufactured Goods: Textiles, furniture, cosmetics, packaged foods, palm kernel oil, cheap machinery/equipment
➡️ Tip: Use Google Trends and platforms like Alibaba and Trade Map to research global demand.
Step 2: Register Your Export Business
To operate legally, you must register your business. Follow these steps:
1️⃣ Register with the Corporate Affairs Commission (CAC) – Get your Business Name or Limited Liability Company or LLC (at least 1 director must have a passport or an approved visa for indefinite stay).
2️⃣ Obtain a Tax Identification Number (TIN) – Required for international transactions.
3️⃣ Register with the Nigerian Export Promotion Council (NEPC) – This is MANDATORY for all exporters in Nigeria.
📌 Bonus Tip: NEPC offers training and export grants. Learn more at nepc.gov.ng.
Step 3: Find Reliable Suppliers
Your product quality will determine your export success. Follow these steps:
✔ Source from Farmers or Local Manufacturers – Visit farming communities or trade fairs.
✔ Verify Quality Standards – Ensure the product meets international specifications (EU, USA, etc.).
✔ Negotiate Bulk Purchase Discounts – Helps reduce costs and increase profit margins.
You will be surprised to find metal & plastic manufacturers in and around Lagos who have been well established for decades!
Step 4: Identify Your Export Market & Buyers
Finding buyers is key to success. Use these proven methods:
✔ Online B2B Platforms: Alibaba, Ebay & Tradekey (to name a few).
✔ International Trade Fairs & Exhibitions in your chosen export territory.
✔ Nigerian Trade Offices & Embassies
✔ Export Agent Services & LinkedIn Networking
🚀 Pro Tip: Join Facebook & WhatsApp group-chats/forums for global import-export networking. Also make the most of exploring tradeshows across Nigeria. Domestic tradeshows bring in international business people looking for their next investment.
Step 5: Arrange Logistics & Shipping
TIP OF THE DAY: Before shipping to customers, define your trade routes by conducting a test run from ‘door to door’. This will give you a close cost to analyse further. Lagos port is notorious for suddenly charging extortionate fees to import & export, depending on the item. Getting a recommended clearing agent is a must!
Decide how to ship your products to buyers. Choose between:
Air Freight – Fast but expensive (for perishable goods like food and flowers).
Sea Freight – Cost-effective for bulk shipments (palm oil, cashews, sesame seeds, etc.).
Courier Services – Ideal for small packages (DHL, FedEx, UPS).
📌 Documentation You Need:
Export License from NEPC
Proforma Invoice & Bill of Lading
SONCAP Certification (for manufactured goods)
Phytosanitary Certificate (for agricultural products)
Step 6: How much is it going to cost you?
If you are looking to manufacture or process a technical product or equipment in 2025 (like Balbus Nigeria) here is a breakdown:
💰 Warehouse/premises rent = ₦250,000 - ₦30m per annum (depending on size).
💰 Procurement of machinery for production is a variable, of course. But for your standard Engineering workshop you would be looking at = ₦12m - ₦160m+
💰 Power Generator is needed to power machinery (15kva+) = ₦5m - ₦16m
💰 Shipping costs for a single container is determined by weight = ₦16m - ₦28m (We managed to fit around 8 machines including a lathe, milling, drilling, grinder, guillotine, press, folder and roller). Here’s a blurry screenshot of what ours looked like: @marcus_balogun
Company Director assisting with the load (shown sat in the centre).
Estimated Breakdown Total = ₦33m - ₦234m (based on small production facility to a large one). That’s around £16,500 - £117,000
⚡ Before you question this breakdown…
Just the rental cost alone, for the average 1000sq/m warehouse in the U.K would cost a whopping = £123,000 per annum (not including energy costs)
vs Nigerian warehouse rental of = £15,000 per annum (max for a ‘Premium’ warehouse).
*Hint - We pay a lot less as we are not based in Lagos.
FAQs
Q1: What is the cheapest export business to start in Nigeria?
A: The cheapest export businesses are in agriculture (ginger, hibiscus, cashew nuts) because farmers supply these at low cost.
Q2: How much capital do I need to start exporting?
A: You can start small with ₦200,000 – ₦500,000 by focusing on low-cost, high-demand products like honey or dried hibiscus.(at the time of publishing this article the exchange rate is:
£1 - ₦2010
$1 - ₦1530
Q3: How do I find foreign buyers for Nigerian products?
A: Use Alibaba, LinkedIn, B2B trade sites, export agents, and embassies to connect with buyers.
Q4: What are the top Nigerian exports?
A: The most profitable Nigerian exports include sesame seeds, palm oil, ginger, cashew nuts, shea butter, and solid minerals.
Conclusion
Starting an export business in Nigeria is profitable and low-cost if you follow the right steps. With government support, global demand, and strategic product selection, you can build a successful export company with minimal capital.
🚀 Take Action Today! Register with NEPC, find buyers, and start exporting Nigerian products to the world! Balbus Nigeria also offers consultancy to any one looking to start-up in Nigeria. Contact Us Today