How To Benefit From The Coming Export Boom In Nigeria
About one month ago, I started a thread titled “13 National Strategic Export Products and Why we Must Diversify the Nigerian Economy”. In that post, I discussed how the Minister of Industry, Trade and Investment, Olusegun Aganga, has revealed some products that have strategic export value for the augmentation of revenue from crude oil.
I also mentioned some three benefits of diversifying the economy. The three benefits include economic stability, infrastructural developments and the generation of employment opportunities.
More Products Added to the Export Commodity List
In line with the Federal Government’s initiative to diversify the revenue stream of the country, the Federal Government has added some products to the national export commodity list. The best part is that the FG in addition to adding the products to the export commodity list has embarked on plans for the export of these commodities to France, United Kingdom, and the Netherlands among other countries.
The Punch reports that the Director-General, Nigerian Export Promotion Council, Mr. Olusegun Awolowo opened up on revelations about the new products that were added to the export commodity list. According toPunch, some of the new products on the list are soya meal, vegetable tanning extracts, brown beans, billboards and slug catcher. Others are carbon dioxide gas, aluminum sulphate, palm juice, barite, Heineken beer and strawberry filling.
As a testament to innovative forward thinking on the part of the Nigerian Export Promotion Council, other non-traditional products that are ripe for export include arts and entertainment (paintings, sculptures, and Nollywood movies) horticulture, aquaculture and Nigerian cuisine
Three Ways You can Benefit from the Export Initiative
The revamped export initiatives provide the Nigerian government a unique opportunity to diversify the economic base and to generate revenue from other sources other than oil. Interestingly, the revamped export initiative can also provide the enterprising Nigerian a unique opportunity to take part in the dynamic world of global trade.
Below are three simple ways by which you can strategically position yourself for the upcoming export boom.
Having listed all original commodities on the nation’s export commodity list and the newly added products, I posit that engaging yourself in the production of these export commodities is a great way to be strategically positioned for the upcoming export boom.
The federal government can make plans to diversify the economic base from now till eternity, but such plans would not leave the drawing board if a concerted effort were not applied towards the production of these goods and services.
However, if you want to produce any of the aforementioned goods for the export market, you should be ready to work with the industry-best practices that will ensure that your products meet the globally recognized industry standard. You should also consider operating on a large scale or banding with other producers in order to have the economies of scale on your side when you export.
2. International Business Facilitation
The second way you can be a part of the upcoming exporting boom is to develop an expertise in facilitating international business deals. Producers of potential export products are often caught up in the operational management of their business such that they are often unwilling to undertake the stress of selling to markets beyond their immediate reach.
However, you can fill the gap by searching for foreign buyers, sending samples, negotiating the terms of the trade for which both the buyer and seller will be willing to reward you with decent commissions. The best part of international business facilitation is that you need to invest your money in the production and you are basically making money from other people’s businesses.
3. Trading in Export Commodities
If you have deep pockets, you can be a part of the upcoming exporting boom by trading in export commodities. Many at times, producers of export products would not be able to produce goods in volume sufficient for profitable exporting. However, you can purchase the goods from a number of small producers in order to build up a volume of stock that will attract foreign buyers.
The key to profitable export commodity trading is to know how to negotiate favorable terms of trade, instruments of payments, trading policies and, of course, selling the products at a higher price than their cost price.