How to Export Palm Oil from Nigeria

Palm oil is edible oil used in the preparation of many dishes. It is common to West African countries, derived from kernel.

The major producers of the oil are Indonesia, Malaysia and Nigeria accounting for 40% of world’s production. To export palm oil you need to establish contact with foreign buyers.

Commodity export is very lucrative business with moderate challenges. You need finance, supply of the product, buyers, export license.

The good news is that the business is not saturated and has room for more investors. Last year (2017) Nigeria’s domestic consumption outweighed the production. Therefore investors could concentrate on local market or export opportunities.

Oil Palm Products

Before venturing into the palm oil business you need to differentiate different oil palm products. Common products derived from oil palm are Palm Kernel Oil, Deodorized Palm oil. Others include Palm Kernel Oil, Palm Kernel Shells, Palm wine, RBD-PKO/PO refined palm oil products.

• Palm Kernel Oil
• Deodorized Palm oil
• Palm Kernel Oil
• Palm Kernel Shells
• Palm wine
• RBD-PKO/PO
• Refined Palm Oil Products.

Opportunities in the Oil Palm Trade

Bulk Trading

Opportunities for investors in the palm business are bulk trading, palm oil processing, running a plantation. Bulk trading involves purchasing and stocking large quantities of the product. The trader earns on margin or during scarcity of the product.

Thing to consider as a bulk trader include good storage facility, funding. More requirements are purchase of quality products, transportation and handling. Palm oil is very durable with a long shelf life even under extreme weather conditions.

Palm Oil Processing

The shortfall in the product in Nigeria is due to outdated traditional processing methods. Modern mills produce high grade products using fabricated or branded equipment. The level of purity depends on the quality of the palm fruits, processing method.

Start a Plantation

The requirements for a successful plantation are quality seedling, good farm land. The investor needs startup capital, direct labor or mechanized equipment. It takes several years before the oil palm produces commercial quantity. This type of investment is long termed, recurrent.

How to Export Palm Oil

Documentation to Export Palm Oil

To export palm products you need some documentation. Documents are company registration, quality assurance and commercial documents. More include tariff concession, shipping documents.

• company registration
• quality assurance
• commercial documents
• tariff concession
• shipping documents

Register the Company

An individual looking to export palm oil could register as a sole proprietor. While medium/large companies can incorporate as a limited liability company.

The regulatory body for company incorporation in Nigeria is the Corporate Affairs Commission. Register your business name, pay required fees.

The Nigerian Export Promotion Council

Any exporter of goods needs to register with the Nigerian Export Promotion Council. They provide viable information on best practices for exporters. Members also get access to foreign buyers, learn regulatory requirements for export.

Quality Documentation

Europe, America and other export destinations have strict rules of compliance. The product should have quality assurance certification. The label should include address of processing company, NFDAC number, and date of production/expiration. The product should be properly packaged, sealed.

Shipping Documents

The mode of transportation determines the type of documentation. The most cost effective method is shipping.

Contact a good shipping company with experience in commodity export. They will provide useful information and handle the documentation. Some documentation involves customs, export agencies, buyers

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How to Start a Gold Mining Business

Gold prospecting requires a detailed geographical analysis of a site. The small scale enterprise searches for gold deposits for commercial purposes.

The business involves hard physical labor and specialized equipment. The process of mining also involves digging, sifting, panning and sluicing. The prospector is required to apply for a permit and lay a claim. To succeed as a prospector you need geological knowledge, training and equipment.

Gold Prospecting Business

Types of Minerals Mined

There are a host of minerals mined in small and large scale. The common minerals are platinum, antimony, diamond and gold. Others are silver, gypsum, kaolin, mineral sands and base metals like copper, zinc, lead.

• Platinum
• Antimony
• Diamond
• Gold
• Silver
• Gypsum
• Kaolin
• mineral sands
• base metals

osun gold miner-thenewsnigeria.com.ng

Gold Prospecting License

The requirement to obtain a prospecting license is different in most countries. However there are similar elements in the application procedure and processing.

The prospecting permit according to Queensland government is of two types. You can apply for a district prospecting permit or parcel prospecting permit.

The permit can be sought for any mineral other than coal. The district permit is applicable to all available land within a mining district.

The prospector should obtain a written consent by landholder. The parcel permit is granted for a particular parcel of land and permit does not exceed 3 months.

If granted the permit allows hand mining, mining claim and peg a mining lease. Small scale mining do not require an environmental authority intervention. There are also native title issues to be addressed.

Feature of Prospecting Permit

The feature requires the naming of the specified mineral. The duration not exceeding 3-12 months and size of land should be specified. The permit is one time, no rent payable and a small application fee is required.

• naming of the specified mineral
• duration not exceeding 3-12 months
• size of land should be specified
• the permit is one time
• no rent payable
• an application fee is required

The Application Form

The application form includes name and address of applicant and applicants company details. The next is the description of application area and the name/address of owner occupiers of the land.

The form has the native title section, application area licenses and license term not exceeding 5 years. You the have the proposed mineral mined in this case gold.

You then need to provide evidence of financial capability. State the expertise of the miners, experience and previous exploring activities. You then include work program details, pay application fee and declaration.

• name and address of applicant
• applicants company details
• description of application area
• name/address of owner occupiers of the land
• native title section
• application area licenses
• license term not exceeding 5 years
• state the proposed mineral (gold)
• evidence of financial capability
• miners experience
• previous exploring activities
• work program details
• pay application fee and declaration

Documents to Submit with the Application

There is some documentation to submit with the application. You need evidence of financial capability, work program, certificate of company registration. Others are survey of location, evidence of authorization, written consent of property owner

• evidence of financial capability
• work program
• certificate of company registration
• geological survey of location
• evidence of authorization
• written consent of property owner

Hand Tools

The hand tools you need are basic and low cost. However if you want to go into big time mining the equipment is very expensive. Hand tools permitted on a mine are windlasses and sieves. Others are shovels, gads, picks and jackhammers.

• Pickax
• Windlasses
• Sieves
• Shovels
• Gads
• Picks
• jackhammers

Large Scale Gold Prospecting Equipment

The equipment you need for large scale prospecting is sluices and pans. Others are dredges, fine gold recovery system, gold detectors, rock crushers and vacuum. More equipment’s are gold trammels, assaying picks, shovels, and smelting equipment.

• Sluices
• Pans
• Dredges
• fine gold recovery system
• gold detectors
• rock crushers
• vacuum
• gold trammels
• assaying picks
• shovels
• smelting equipment

How to Prospect for Gold

Prospect Site

You need to work with a geologist to study the site survey. You then search for the precious mineral in bedrock formations and waterways. Places to look are rivers, streams especially river bends.

Install Equipment

Setup your mining equipment for maximum efficiency. Use hand tools like shovels, diggers and shakers. The type of equipment depends on your permit.

Provide Living Quarters

The dig site is most likely in a remote are. So you need to provide habitable living quarters for yourself and workers. Build wooden cabins or put up tents and provide basic living utensils.

Provide Security

Security is very important in gold mines. This is because there are many people with bad intentions. If you have a permit to carry a weapon it is advisable to have one.

Find the Gold

Gold mining is hard work with no guarantee of success. You can work flat out without finding any gold. Gold miners tend to concentrate on the most productive sites for better result.

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Top 18 Items You Can Export From Nigeria

Exports attract foreign currency and huge earning. No nation in the world would survive without some sort of export.

The biggest revenue earner for Nigeria is exportation of crude oil. In line with the Governments expectation and investment in commodity export, business owners are cashing in on the trend.

To begin an export business you need to choose a commodity. Luckily Nigeria is blessed with a wide array of produce and raw material. Farm produce are a high revenue earner and there is abundance in the country.

Major Export Locations

There are some major destinations favored by Nigerian exporters. The top destinations are United States of America, United Kingdom, Canada and Europe.

1. Cosmetic and Soap

Cosmetic and soap export is a thriving business. However the manufacturer needs to conform to the ingredient requirements and other safety issues.

The soap manufacturer should use natural ingredients and provide information on the labeling. Before exporting your product study the destinations laws.

2. Fruit Juice

The country is blessed with abundance of fruits. Common fruits are mangoes, grapes, oranges and pineapple. We have coconut, lemon, banana and plantain.

Many countries do not have some of the fruits but have a huge craving for the juice. You could export the fruits to a juicing company or make it into a concentrate. Study the export laws of the destination before packaging and exporting.

3. Chili Pepper

You get huge amount of chili pepper in the northern parts of Nigeria. The peppers are very hot and ideal for pepper source manufacturers. Exporting the peppers is lucrative however adequate provisions should be made on the packaging.

4. Snail

Snails are a huge delicacy in Nigeria and around the world. The major advantage we have to European countries is our native snail. The snails in Nigeria are of the giant species and very delicious. Many European markets are eager to buy Nigerian snails.

5. Cashew Nuts

We have actually ventured into cashew business in the past. The business attracts huge returns and is very lucrative. The cashew has a huge local and international market. The nuts are used in manufacturing companies locally and abroad.

6. Cassava Flour

Another crop in huge abundance is cassava. The cassava can be processed into flour and exported to foreign countries. The major consumers of the flour are African in the Diaspora.

7. Cotton

Cotton is abundant in the northern part of Nigeria. A very minute amount is used in local product due to the lack of textile companies in Nigeria.

The majority of cotton finds its way to foreign markets. The product is used in the manufacturing of high quality fabrics and household covering. Cotton used to make shirts, trousers, skirts, drapes, tablecloths, napkins.

8. Yam Tubers

Nigerian yams are large white and delicious. There is a huge market for yams both locally and internationally. However the yams must pass destination inspection tests to enter the country. Problems facing yam export are use of pesticide, infestation and poor quality yams.

9. Charcoal

Charcoal export is another highly lucrative venture. The charcoals are processed and bagged following strict instructions. Foreign markets need the charcoal for home use during winter season.

10. Shrimp Export

There are many coastal regions that have big shrimp. The challenge to exporters is keeping the shrimp fresh on arrival. There is a high demand in Europe and America.

11. Garlic

Garlic export is lucrative and less challenging. This is because they are durable and attracts good prices.

To succeed make sure the garlic is high quality to meet up to export standards. The cash crop has many culinary and medicinal properties and found predominantly in savannah regions.

12. Honey

A highly treasured commodity is honey. To assure the quality of your product you might need to establish a honey farm. This would effectively cut out the middleman and ensure product quality. Honey is used in many products, food and medicines.

13. Palm Kernel Oil

Palm Kernel oil is different from palm oil. The kernel oil is the byproduct of the oil palm. It is used in cosmetics, confectioneries and pharmaceutical companies. Some soap manufactures add kernel oil in the manufacturing process.

14. Ground Nut

Although the ground nut pyramids are long gone the commodity is still viable. You can start a groundnut exporting business with appreciable result. However you need serious capital to source the product.

15. Cocoa Butter

The cocoa plant has high economic value and is abundant in Nigeria. The coca butter is derived from the cocoa plant as a byproduct. The major market for cocoa butter is the United States of America.

16. Sesame Seed

Exporting Sesame seed is slightly challenging. You need to find a foreign partner interested in your product. There are also export requirements to avoid rejection of the export.

17. Gall Stone

Gall stones are difficult to acquire since they occur naturally in some oxen or cows. The size, shape and color are of great significance to the buyer. They are common in pharmaceutical products and attracts premium price.

18. Ginger

This valuable crop is abundant in Nigeria. Like most of the products, Nigerian and foreigners buy the products for export. Nigeria is one of the top 5 producers in the world and there is a steady market. Popular locations are Asian countries and Europe.

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How to Start a Yam Business in Nigeria

Yam is abundant in Nigeria and there are different species. The food is a delicacy in many homes and has lots of culinary applications. Despite having different species of yam the white Dioscorea Rotundata is the most popular. The white yam is cultivated in most parts of West Africa.

Uses of Yam

There are many uses for yam especially in meals. Yam is cooked, boiled, fried, steamed or grilled. They are made into flakes, sliced or pounded to make pounded yam. Some are grated and ground to make commercial yam flour.

Types of Yam Business

There are basically four yam related sectors. There is the yam farm, sell wholesale and retail sector. The yam farmer needs a large parcel of land, adequate water and good soil.

The fresh yam is then bought buy wholesalers for export or the local market. The retailer purchases the yam from the wholesaler and sells directly to consumers.

Farming Yam

Secure fertile land, weed the ground and provide a water source. Plant the sett or yam ‘seeds’ early in the year. Harvesting is done late in the year around November.

Wholesale Yam Business

Wholesalers usually go to farms in villages to source the product. The yam are then gathered from many farmlands and transported in trucks to the major cities.

Yam Retailers

Yam retailers are market women in different locations. The market women work collectively in an association. The retailers purchase the yam from the wholesalers and distribute to members according to their financial involvement.

Yam Export Market

Yam is exported to many countries and it attract good price. In Africa, Ghana is the major exporter of yam. This is because farmers and exporters carry out strict compliance to international standards. Major export destinations are United Kingdom, USA and Europe.

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How to Start a Small Import Business in Nigeria with Less than N50, 000

Anyone can start a small import business from home. The world is fast changing and new technology is opening uncharted frontiers for everyone.

Before now, starting an import business was a herculean task. You had to contend with import duties, tax, quality assessment, letter of credit, and custom fees.

Although the old establishment still exists there are slight variations due to globalization. Formally only deep pocket individuals and businesses could go into importation.

Today any individual could join the bandwagon with little cash. Import business is about purchasing goods wholesale at low prices and selling for profit. This article will show you how to start an import business anywhere in the world.

Things to Import

The product depends on your business plan and niche. Top products imported into Nigeria are office equipment, kitchen utensils, phone and tablets.

Others are electronic gadgets, shoes, cloths, accessories and laptops. More are headphones, chargers, batteries and hair extensions.

• Choose a product
• Open an account
• Go online
• Search foreign stores
• Place order
• Pay for goods
• Take delivery of goods

How to start a Small Import Business

The Rudiments of Importation

It is good to understand the rudiments of importation business. The basics involve buying low, selling high. The margin between the purchase price and sales is your profit.

Buying at a low price is possible if the small business owner buys directly from manufacturers. Alternately they could buy from big importers. However the major challenge to small scale investors is finance.

Minimum Order Quantity

Every major supplier and manufacturer has what they call Minimum Order Quantity. The minimum order quantity is the lowest quantity of products they are willing to sell.

Some suppliers peg the minimum quantity for purchase at 1000 units. While manufacturers place a minimum order of 10,000 units.

This MOQ is the reason small investors without adequate capital are removed from the equation. Manufacturers love volume and are only interested in selling to big importers.

Import Business Flow Chart

The product is manufacturer then sold to big importer who sells to small business. The small business then sells to customers. The value chain is what affects the final price of the product and profit margin.

Factory – Big Importer – Small Business Owner – Customer

How Things Have Change

There is a big change in the import value chain in today’s reality. The internet has opened the world to commerce in an unprecedented way.

Small businessmen are able to reach manufacturers and skip the big importers. This is because the small business owner is not bound by demography or air travel.

They can reach manufacturers at very little cost and remove the middleman. They purchase the product at the lower unit price from manufactures and sells to customers at maximum profit.

Top Manufacturers

Top product manufacturers and suppliers are USA, Europe and China. China has in recent times become the marketplace of the world.

The reason is because of huge labor force, cheaper prices and technology advancement. The Chinese manufacturers dominate the world and are willing to do business with Africa. They produce billions of consumer good in mega plants at cheaper costs.

The Products Quality

The products quality depends on the standardization enforced by governments. Manufactures readily comply with each countries provision on quality. High quality products would always find eager customers and recommendations.

To ensure that you buy quality products study the feedback of customers on a product. Those with 4 to 5 stars are good products to consider. Other ways is to read the product description and search the net for information.

How to Start the Import Business

There are a few things you need to start your import business. You need a laptop, 3G/ 4G modem and smartphone. The modem is to facilitate internet connection 247.

You need a shipping address to receive goods, email address and bank account. Use your home address as your company address. You can buy a used laptop at N10, 000, universal USB modem N2, 500 and 1 month internet subscription at N1000.

Where to Buy Products

Once you have your computer and internet connection the next step is to find suppliers. There are many good supplier eager to do business. Your job is to find small scale importers especially from China. Here are some reliable importers for small business owners.

iPmart.com

The iPmart focuses only on electronic products. They offer buyers electronic products such as smartphone’s and phone accessories. The gadgets are numerous and high quality.

They can ship products from the United States, Malaysia and China. To purchase products all you need to do is signup on the website and become a registered member.

Aliexpress.com

Aliexpress.com is the number one destination for small importers. A subsidiary of Alibaba the site has 20+ product categories for importers. They have registered suppliers and buyers in 220 countries.

Dhgate.com

If you want to do business with medium and small enterprises in China look no further. The eCommerce website allows importers order products directly on the site. They offer a wide range of products, customer service, online chat and email messaging.

Amazon.com

Amazon.com is a top player in eCommerce business. They stock millions of products from suppliers and merchants. All you need to do is sign up and browse through the website. Select products into your shopping cart and make payment. Note that not all goods are shipped to Nigeria.

How to Pay for Products

There are many payment methods used to purchase goods. You could use a PayPal account, debit card or electronic fund transfer. Other methods include Escrow or letter of credit from your bank. Top website provide buyer protection to secure payment against fraudsters.

How do you get Your Goods?

There are many shipping options available to merchants. The goods are delivered either by mail, DHL.

The mail service is slow and your goods could get stolen. DHL or FEDEX mail are more expensive but very fast. While the mail may cost less and take about 60 days, DHL would take 2-3 days.

Sell your Products

Sell you products directly from your store or use the internet. You could build an eCommerce store or sell via social media. Start small by purchasing a few products to learn the tricks. As your business grows gradually increase inventory.

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Nigeria Prohibited and Restricted Imports

Nigeria Like most nations have many items restricted from imports. The restriction is to aid the growth of local manufacturing industry.   

As an import/export company to avoid catastrophic losses you need to get acquainted with the list of items. This is because such items irrespective of quality would be forfeited and heavy penalties paid.

You forfeit the goods, pay serious fines and could even face jail time. Some of the prohibited items are found  in the livestock industry and local manufacturing sector. The list also includes juice extracts, medicament's, cloths, edible oil products and washing agents.

Furniture

Although there is a ban on furniture imports there are certain items excluded from the list. Such items are laboratory benches, laboratory cabinets, stadium chairs, base sledge and seat frames.

Also excluded are upholstery, veneer chair, garden seats, microscope table and fume cupboards.

image source-americanira.com/

Furniture Items Excluded from the Ban

•  Laboratory benches
• Laboratory cabinets
• Stadium chairs
• Base sledge
• Seat frames
• Upholstery  
• Veneer chair
• Garden seats
• Microscope table
• Fume cupboards

CBN Forex Policies on Certain Exports

The central bank of Nigeria does not provide foreign exchange for importation of certain items. The policy is to encourage local manufacture of such items and discourage importation.  Here is a List of Items in this category.
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List of Items in This Category

• Polypropylene granules.
• Cellophane wrappers
• Tomatoes/tomato pastes
• Galvanized steel sheets
• Roofing sheets
• Meat
• processed meat products
• Palm kernel
• Palm oil products
• vegetables oils
• Cement
• Margarine
• Wheelbarrows
• Tinned fish in sauce(Geisha)/sardines
• Head pans
• Metal boxes
• Metal Containers
• Enamelware
• Steel drums
• Cold rolled steel sheets
• Steel pipes
• Wire rods
• Wood particle boards
• Panels
• Wood Fibre Boards
• Toothpicks
• Tableware
• Tiles
• Ceramic
• Textile
• Iron rods
• Wire mesh
• Steel nails
• Woven fabrics
• Vegetables
• Poultry
• Chicken
• Eggs
• Turkey
• Private airplanes/jets
• Indian incense
• Clothes
• Plastic products
• Soap
• Cosmetics

Medicament's

There is a ban on different types of pharmaceutical medicine allowed into the country. The country has a very powerful regulatory body in NAFDAC.

The National Food and Drug Administration duty is to certify and regulated drug manufacture including imports. The drugs have to go through screening, testing and certification.

They are also provide a unique NAFDAG number to identify the origin, date of manufacture and producer. Common medicaments on the ban list are intravenous fluids, penicillin, aspirin and Magnesium trisilicate tablets.

Others include Multivitamin tablets, capsules/syrups, Paracetamol and Chloroquine tablets.
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Prohibited Items

More prohibited items are sanitary pads, mosquito repellants, soaps and detergents. Others include re-threaded/used pneumatic tires, corrugated paper. In the list you find telephone re-charge cards, vouchers, ball point pens and incense.

Prohibited Items List

• Ball point pens
• Furniture
• Vehicles 15 years and below
• Used compressors
• Used Freezers and Refrigerators
• Hollow glass bottles
• Telephone recharge cards
• Carpets
• Textile floor covering
• Foot wears
• Suitcases
• Bags
• Corrugated paper
• Cartons
• Boxes
• Toilet paper
• Facial tissue
• Paracetamol tablets and syrups
• Bagged cement
• Cocoa butter, cakes and powder
• Spaghetti
• Refined vegetable oil
• Pork
• Bird eggs
• Frozen poultry
• Live poultry
• Re-threaded /used pneumatic tires
• Sanitary wear
• Chloroquine tablets and syrup
• Mosquito repellent coils
• Retail soaps/detergents
• Intravenous fluids
• Haematinic formulations
• Aspirin tablets
• Ointments
• Piperazine tablets
• Multivitamin tablets, capsules and syrups

Http://www.customs.gov.ng/ProhibitionList/import.php. 

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