Export Guide

Are you considering exporting as a way to grow your business but feeling overwhelmed by the process? Our guide provides essential information and practical tips to help ensure your business expansion is successful. Explore the rewards and challenges of exporting and learn how to navigate the process with confidence.

Export Guide - Services
Export Guide - Goods

Readiness Assessment
Understand how services can be exported
Finding your target market and prospective buyer
Check how to benefit from an existing trade agreement
Access the requirements in your export market

Readiness Assessment

Before considering exporting your service to markets outside Nigeria, it’s essential to evaluate your readiness and ensure you have a solid foundation for success. Here are some engaging questions to help you assess your preparedness:

Have you achieved success in the Nigerian domestic market? It’s crucial to establish a strong presence in your home market or neighboring regions before expanding further.
Does your company possess the necessary capacity to offer your service in foreign markets? Consider factors such as having adequate staff, time, financial resources, and legal support to sustain operations in new markets.
Is your company’s management fully committed to expanding into export markets beyond Nigeria? Dedication and support from top-level management are vital for navigating the challenges and complexities of international trade.
If applicable, have you secured intellectual property protection abroad for your service? Protecting your intellectual property rights is crucial when entering foreign markets to prevent unauthorized use or infringement.
Have you developed a concrete strategy for exporting your service to other African countries? Consider different approaches, such as selling directly to companies or consumers in the target market or utilizing e-commerce platforms for wider reach.
Does your company possess the necessary capacity and expertise to adapt your service to cultural preferences and different standards in other African countries? Understanding local customs, preferences, and regulatory frameworks is essential for successful market entry and acceptance.
Have you created a comprehensive financial, marketing, and business plan with well-defined goals to support your company’s expansion into markets beyond Nigeria? A clear roadmap outlining your objectives and strategies will provide direction and guidance as you venture into new territories.

By thoroughly considering these questions and addressing any gaps or areas of improvement, you can enhance your readiness and increase the likelihood of success when exporting your service to markets outside Nigeria.

Understand How Services can be exported

When exporting your service to the AfCFTA market, it’s important to understand the different modes of supply. Here are the four main ways to export services:

Cross-border Supply of Services (Mode 1): The service is delivered online or through communication channels, with both the supplier and consumer remaining in their respective territories. Examples include market research, consulting services, telecommunications, and courier services.
Consumption of Services Abroad (Mode 2): The consumer travels to the supplier’s country and uses the services there. For instance, a Nigerian tourist staying at a hotel in Egypt is an example of consumption of services abroad.
Commercial Presence (Mode 3): Establishing a physical presence in a foreign market by opening an affiliate, subsidiary, branch, or representative office. This form of supply is common in sectors such as finance, telecommunications, and environmental services.
Presence of Natural Persons Abroad (Mode 4): Employees of a Nigerian company travel temporarily to provide services in another country. This includes intra-corporate transferees, business visitors, contractual service suppliers, and independent professionals.

It’s worth noting that a service can be supplied in multiple modes. For example, legal services can be provided through email (Mode 1), by an established affiliate abroad (Mode 3), or through the physical presence of the lawyer (Mode 4).

Understanding these modes of supply will help you determine the most suitable approach for exporting your service to target markets.

Find your Target Market and Prospective Buyer

When expanding your service exports outside Nigeria, it’s crucial to identify the right market and suitable buyers. Here’s a concise guide to help you navigate this process:

Market Research: Seek information from sources like Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), trade-specific news providers, and trade promotion agencies. They offer insights on different markets, potential business partners, and valuable reports on market analysis and opportunities.
Target Market Selection: Screen potential export markets to assess demand for your service and evaluate its competitiveness in the AfCFTA export market. Analyze trade statistics to understand import patterns and identify countries with a demand for your service.
Identify Trade Partners: Look for potential trade partners and business contacts in your target markets. Participate in trade fairs organized for buyer-seller interactions and sector-specific matchmaking events. Chambers of Commerce can also assist in establishing contacts with potential business partners.

By following these steps, you can effectively identify target markets and establish connections with potential trade partners for your service exports.

Check how to benefit from an existing trade agreement

Nigeria’s membership in AfCFTA presents an exciting opportunity to export services to African countries, particularly in the identified priority sectors. By participating in the agreement, barriers to services trade are significantly reduced or even eliminated in certain sectors, paving the way for expanded market access. This means that you can tap into emerging markets with greater ease and reach a broader customer base.

Moreover, the AfCFTA Investment Protocol offers specific provisions that provide legal protection for foreign investments in the targeted services sectors under Mode 3. The implementation of AfCFTA protocols brings several benefits to Nigerian businesses. Firstly, it establishes a more stable and predictable set of rules, creating a favorable environment for trade in African markets. This means that Nigerian companies can expect a level playing field and fair treatment, ensuring their services are not subject to discriminatory practices.

Furthermore, AfCFTA creates new and improved export opportunities for Nigerian businesses. With reduced trade barriers and a harmonized framework, it becomes easier to navigate the complexities of international trade and explore untapped markets. Additionally, the agreement facilitates foreign investment by providing safeguards and legal protections, instilling confidence in Nigerian companies seeking to expand their presence abroad.

In summary, Nigeria’s participation in AfCFTA brings forth a transformative landscape for services trade. It unlocks the potential for Nigerian businesses to thrive in African markets, offering enhanced export prospects and smoother investment opportunities while fostering fair and equitable trade relations within the region.

Requirements in your export market

To ensure a smooth export journey, it’s crucial to understand the specific requirements for each mode of export and target market. Let’s explore the key considerations to maximize your success:

Cross-border Supply (Mode 1) Requirements:

Authorization and licensing: Obtain necessary licenses to provide services within Nigeria.
Mutual recognition of diplomas and qualifications: Ensure your qualifications are accepted by the target country.
Sector-specific restrictions: Be aware of any limitations or equivalence requirements, particularly in sectors like insurance and finance.

Consumption Abroad (Mode 2) Requirements:

Similar to providing services within Nigeria, there are typically no additional requirements for consumers coming to Nigeria for service consumption.

Commercial Presence (Mode 3) Requirements:

Local presence: Some African countries may require establishing a local presence, such as through joint ventures, for certain services like insurance.
Foreign equity caps: Take into account restrictions on the maximum share of foreign equity allowed in certain countries.
Limitations on investments: Be mindful of limitations linked to specific licenses or the number of companies allowed.
Legal entity restrictions: Some markets may have specific legal forms for investment, such as joint ventures.
Supplier and nationality requirements: Certain licenses or acquisitions may be limited to individuals or companies of specific nationalities.
Tax and financial provisions: Consider country-specific tax frameworks and potential financial restrictions on foreign investments.

Presence of Natural Persons (Mode 4) Requirements:

Residency and citizenship requirements: Understand if residency or citizenship is necessary for service providers in the target country.
Licensing and certification: Determine if specific licenses or qualifications are required for service providers.
Business visa and work permits: Check if there are any visa or work permit requirements for temporary stays.
Economic needs and entry restrictions: Some countries may have labor market tests or entry restrictions for foreign service providers.
Educational and qualification requirements: Ensure that certificates and qualifications are recognized in the target country.

Additional Points to Consider:

Tax regulations: Familiarize yourself with local taxes and VAT payments in the export market.
Market-specific exceptions: Be aware of any exceptions or considerations based on your company’s permanent presence in the target country.

Where to Find More Information:

Investment promotion agencies, embassies, and customs offices of the target country.
Export consultants and merchant banks with expertise in international trade.
Ministries and regulatory bodies in the target countries.
Guides to selected trade agreements and background information on economic relations.
Ongoing negotiations for trade agreements to stay updated on potential changes.

By understanding and adhering to these requirements, you can navigate the export landscape with confidence, leveraging AfCFTA to unlock new opportunities and grow your business in African markets.

Ready to export your goods under the AfCFTA, watch this comprehensive video to guide you through the basics!

Exporting Under AfCFTA Scheme

Exporting under the AfCFTA allows you to expand your network and seize new market opportunities. Exporters need to satisfy certain conditions in order to export under the AfCFTA scheme. These conditions include the following:

Originating in Member States of the Community: Goods to be exported must originate from countries that are members of the AfCFTA. This ensures that the trade benefits are enjoyed by countries within the African continent.
Appearing on the list of products annexed to the decisions liberalizing trade: The goods being imported should appear on the list of products that have been approved for trade liberalization within the AfCFTA. This list helps regulate and streamline the import process.
Accompanied by Certificate of Origin or Declaration of Origin: To prove the origin of the goods and comply with customs requirements, importers need to provide a Certificate of Origin or a declaration of origin.
Exemption of goods whose value is not above $500 from documentation: Goods with a value below $500 may be exempted from certain documentation requirements, facilitating the export process for smaller shipments. However, it’s important to verify the specific exemptions and guidelines applicable to such cases.
Beneficiary of the Scheme must be resident within the AfCFTA region: To benefit from the AfCFTA scheme, importers must be residents within the ECOWAS region. This requirement ensures that the intended trade benefits are enjoyed by countries within the designated geographical area.