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Opportunities of agro export through dry inland port in northern Nigeria

Nigeria as a sovereign independent nation with a land mass size of about 927,763 square kilometres which the northern part is having the largest portion with over 65 percent of the total area.

In recent times, this land mass has produced more security concern to the nation than its agricultural advantages as it was in the past.

We have seen constant threat of life in some states by the armed bandits and constant fear by interested business investors with interest in the region. Also, concern of weak human development with 13.2 million out of school children in Nigeria with majority in the north. Poverty has become a constant disease with no immediate permanent cure in sight

A rich agricultural region with its own unique comparative advantage, e.g. soya beans cultivated in Kastina state, ginger in Kaduna, Bambara nut widely cultivated in Jigawa state and Sesame seeds predominantly dominated in Nasarawa state. Each state is capable of being the hub of particular agro product trading it internationally.

In a recent courtesy visit to the Kaduna dry inland port by Mr Fisayo Ajibona an international trade manager at cokodeal Limited; a foodstuff and agro commodities export platform. He emphasized more, on the gain of the dry port commissioned by the president Mohammadu Buhari on 10th march 2018, with full operation in 2019.

He emphasized that he witnessed goods loading and freight forwarders operation being carried out, as cargo Containers are being constantly sighted loading on train ready to be move to Apapa port for further shipment of the consignment to their foreign destinations. With presence of custom officers to provide necessary documentation for goods. This has cut down the logistic costs for any potential exporter and interstate traders, advices traders from the region to key into government incentives and infrastructural development for economic growth.

The opportunity that abound in the Kaduna dry inland port will drive the economic growth of the host region, thereby improve massive job creation, if effectively operated, it has potential to help government achieve part of its aim of diversification programme and to encourage northerner to tap into these great initiatives.

Fisayo A. – 08139078455

As featured on Daily Times Newspaper.

How to export agricultural product in Nigeria, terms and guidelines an export marketplace for foodstuff and commodities.

Cokodeal platform supports businesses to connect with international buyers and succeed daily. If you find this article valuable, kindly share with others. “We rise by lifting others”  SELL HERE



Please NOTE; This document is not a blog post, to be read once, It is a document that you may need to visit for reference and re – read often times. THANK YOU



Do you like the idea of running your own business? How would you like a tax deductible trip to foreign places a couple of times a year? The advantages of an export business are great.

Do you know that you can start and operate your own highly lucrative export business with little or no capital at your spare time and right from home?

What a good way to build up a successful business from nothing and have fun doing it? The export business may be your answer. You don’t need previous experience in the field but you should have a “GOOD HEAD” for organizing.

Not only does it require little or no financial investment, it also offers the prestige of working with clients from all over the world. This has been made possible due to the advancements in information and communication technology(ICT). Especially, the emergence of the INTERNET

The internet has transformed the world into a “GLOBAL VILLAGE” such that a commercial ginger farmer in KADUNA, NIGERIA can access the contact details of an importer of ginger based in HAMBURG, GERMANY.

Apart from accessing the foreign importers contact details, the farmer could still go ahead to call the product buyer with the aid of his GSM phone. The buyer and seller upon introduction and establishment of contact, could also go ahead to sign a sales contract for the export of a certain quantity of the product at an agreed price, convenient and secured method of payment without both parties seeing each other.



Fulfilling a successful export business requires constant attention even to the minutest details that concerns the transaction.

If you have an ability to sell and an air of transparency and diplomacy, the export business might be right for you.



As you progress in the business, many factors become obvious and easy to handle. For example, you’ll need to find a person to handle shipments called a “freight forwarder”.

And you’ll need to create solid contacts and strong relationships with reliable local product suppliers and also export merchants. But after a short time, you can be well on your way to making a sizeable income with a very low overhead.


Mobile phone

Bank account (savings or current)

Email address

Internet/ cyber café

Understanding of an export business process

The determination and desire to make it work




No need to have a registered public/ private limited liability company with (CAC)

No need to register with Nigeria Export Promotion Council (NEPC)

No capital investment required

You can operate as a part time business

A wonderful precedence before going into full time export business


It might interest you to know that the gap between you and the millions of naira waiting for you in this business is nothing but the “basic understanding of an export business process”. Understanding the fundamentals of an export business process especially as it concerns securing a

GENUINE EXPORT ORDER/ CONTRACT with a well secured method of payment, then you are on your way to making UNIMAGINABLE LOADS OF MONEY.

What you should do as an export entrepreneur is tosecure these contracts via the internet using the various trade portals listed in this manual and also aided with your GSM phone, you could start earning commissions which run into millions of Naira in few months depending on the size of the shipment. This manual contains all you may need to secure a “genuine export contract”. All you need to do is to read through, carefully understanding the elements of an export business process.



An export broker is a match maker. Becoming an export broker is one of the easiest and most rewarding ways any prospecting exporter can raise money to go into full time export business. The advantages are enormous.

Starting from a little or no capital, an export broker could earn large “finders fee” with absolutely unlimited income.

There is hardly another business requiring a negligible startup cost that can put you into a six figure bracket so quickly than online-based export business. It gives one the power, prestige and high respectability in his community.

Manufacturers of domestic goods seek foreign distribution of Nigerian commodities in the international market. You need to find the foreigners who want to buy the raw materials / goods of Nigerian origin. Make a solid connection and establish a business relationship with their companies.



It might be slow at first, and you will need to plan your moves, make contacts and SELL YOURSELF. But once you make a few sales and sign several contracts, you will know that your dedication was worthwhile.



The most important step in setting up your online based export business is finding the contacts of buyers. One of the ways of making contacts with foreign buyers of Nigerian commodities is by going online to establish instant contacts.

You can achieve this by signing up for FREE with! or With most of the international trade directories which are listed on the internet. Some of such directories are listed in subsequent pages of this manual.

Other sources of foreign buyers are the foreign

consulates (embassies)

Another way to establish contacts is through the chamber of commerce of every city you are aiming for.

are only a few of these businesses that’s

why there is plenty room for more.

Government agencies such as Nigerian Export Promotion Council (NEPC) are great places to find help. This agency promotes export business.












INTERNATIONAL COMMERCIAL TERMS (INCOTERMS) The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms, such as FOB, CFR and CIF, developed by the

International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a commercial term like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance, and other costs and risks.

TON (TONNE): This is the recognized international unit of measurement that is used in export. 1ton = 1000kg weight of any commodity. Hence if a foreign buyer orders for 10tons weight of goods, he is demanding for 10,000kg weight of the

product in question.

MT (METRIC TONNE): This incoterm could be used in place of the above as both mean the same thing in export.

EXW {+ the named place} Ex Works : Ex means from. Works means factory, mill or warehouse, which is the seller’s premise. EXW applies to goods available only at the seller’s premises. Buyer is responsible for loading the goods on truck or container at the seller’s premises, and for the subsequent costs and risks.

In practice, it is not uncommon that the seller loads the goods on truck or container at the seller’s premises without charging loading fee. In the quotation, indicate the named place (seller’s premises) after the acronym EXW, for example EXW Kobe and EXW San Antonio. The term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use the term Ex Factory, which means the same as Ex Works.

FCA {+ the named point of departure} Free Carrier: The delivery of goods on truck, rail car or container at the specified point (depot) of departure, which is usually the seller’s premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at seller’s expense. The point (depot) at origin may or may not be a customs clearance center. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the air shipment, technically speaking, goods placed in the custody of an air carrier is considered as delivery on board the plane. In practice, many importers and exporters still use the term FOB in the air shipment.

The term FCA is also used in the RO/RO (roll on/roll off) services. In the export quotation, indicate the point of departure (loading) after the acronym FCA, for example FCA Hong Kong and FCA Seattle. Some manufacturers may use the former terms FOT (Free On Truck) and FOR (Free On Rail) in selling to export traders.

FAS {+ the named port of origin} Free Alongside Ship Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at seller’s

expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks. In the export quotation, indicate the port of origin (loading) after the acronym FAS, for example FAS New York and FAS Bremen. The FAS term is popular in the break-bulk shipments and with the importing countries using their own vessels.

FOB {+ the named port of origin} Free On Board

CFR {+ the named port of destination} Cost and Freight

CIF {+ the named port of destination} Cost, Insurance and Freight

CPT {+ the named place of destination} Carriage Paid To The delivery of goods to the named place of destination (discharge) at seller’s expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the place of destination (discharge) after the acronym CPT, for example CPT Los Angeles and CPT Osaka.

CIP {+ the named place of destination} Carriage and Insurance Paid To The delivery of goods and the cargo insurance to the named place of destination (discharge) at seller’s expense. Buyer assumes the import customs clearance, payment of customs duties and taxes, and other costs and risks. In the export quotation, indicate the place of destination (discharge) after the acronym CIP, for example CIP Paris and CIP Athens.

DAF {+ the named point at frontier} Delivered At Frontier The delivery of goods to the specified point at the frontier at seller’s expense. Buyer is responsible for the import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the point at frontier (discharge) after the acronym DAF, for example DAF Buffalo and DAF Welland.

DES {+ the named port of destination} Delivered Ex Ship The delivery of goods on board the vessel at the named port of destination (discharge), at seller’s expense. Buyer assumes the unloading fee, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym DES, for example DES Helsinki and DES Stockholm.

DEQ {+ the named port of destination} Delivered Ex Quay. The delivery of goods to the quay (the port) at destination at seller’s expense. Seller is responsible for the import customs clearance and payment of customs duties and taxes at the

buyer’s end. Buyer assumes the cargo insurance and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym DEQ, for example DEQ Libreville and DEQ Maputo.


DDU {+ the named point of destination} Delivered Duty Unpaid The delivery of goods and the cargo insurance to the final point at destination, which is often the project site or buyer’s premises, at seller’s expense. Buyer assumes the import

customs clearance and payment of customs duties and taxes. The seller may opt not to insure the goods at his/her own risks. In the export quotation, indicate the point of destination (discharge) after the acronym DDU, for example DDU La Paz and DDU Ndjamena.

DDP {+ the named point of destination} Delivered Duty Paid The seller is responsible for most of the expenses, which include the cargo insurance, import customs clearance, and payment of customs duties and taxes at the buyer’s end, and the delivery of goods to the final point at destination, which is often the project site or buyer’s premises. The seller may opt

not to insure the goods at his/her own risks.

In the export quotation, indicate the point of destination (Discharge) after the acronym DDP, for example DDP Bujumbura and DDP Mbabane.

In practice, trade terms are written with either all upper case letters (e.g. FOB, CFR, CIF, and FAS) or all lower case letters (e.g. fob, cfr, cif, and fas). They may be written with periods (e.g. F.O.B. and c.i.f.).

In international trade, it would be best for exporters to refrain, wherever possible, from dealing in trade terms that would hold the seller responsible for the import customs clearance and/or payment of import customs duties and taxes and/or other costs and risks at the buyer’s end, for example the trade terms DEQ (Delivered Ex Quay) and DDP (Delivered Duty Paid). Quite often, the charges and expenses at the buyer’s end may cost more to the seller than anticipated. To overcome losses, hire a reliable customs broker or freight forwarder in the importing country to handle the import routines. Similarly, it would be best for importers not to deal in EXW (Ex Works), which would hold the buyer responsible for the export customs clearance, payment of export customs charges and taxes, and other costs and risks at the seller’s end.



In a bid to ensure a well documented export transaction, the federal government of Nigeria has approved the following documents to ensure a successful export transaction. These documents include:








Exporters incentives and address links is available on the next blog post, kindly check


Every exporter is strongly advised for their best financial interest to select product(s) which they intend to export based on accessibility and availability (such that it must be easily sourced). The said export products should be

procured from merchants who are based in rural areas where such products are either grown or produced. If the product is manufactured, hence the exporter should buy from the direct manufacturer. The reason for the above exercise is such that the exporter could procure the export goods at a very cheaper price for profit maximization and also for the exporter to remain competitive in the international market. With respect to the sensitiveness of export market requirements, prospective exporters are advised to source products from product merchant that understand the export market requirement of the commodity in question.



Nigeria’s export policy is focused on non-oil export sector which comprises the following categories:




Auto components

Alcoholic beverages

Baby clothes & other baby products

Bottles (empty)



Carbon black

Cocoa butter

Cocoa cake

Cocoa powder

Cocoa liquor


Cosmetics & Soaps



Doors (wooden)

Drilling equipment

Electrical wires

Furniture components


Glass sheets


Hoof powder



Malt drinks

Palm kernel cake

Peugeot cars

Leather & Foot wears

Tires & tubes

Textiles & garments

Wire rod coils

Rebars/ round steel

Flat sheets

Semi blooms

Structures (Iron)





Cashew nut


Chilies (Dried)

Cocoa beans


Cotton lint

Cotton seed

Cow horns





Gum Arabic

Kola nuts



Sesame seeds






Vegetable oil

Wheat pellets






Music and other services


Aqua marine


Columbite ore

Calcium carbonate






Iron ore


Lead ore

Marble stone




Tin metal ingot




Zinc alloy ingot

Zinc ore




Talking drums

Calabash carvings

Wood carvings

Raffia products

Metal carvings

Hand woven textiles



Paintings (color & canvass)




Disposable injections


Anti malaria

Anti histamine







Cassava flour & derivatives


Locust beans

Yam flour

Plantain flour

Ground rice

Ground maize

Ground crayfish

Bitter leaf

Ground melon

Dehydrated vegetables

Horticultural products


Mangetout (French beans)



Sugar cane

Cut live flowers



Since our major focus here is the export market, it is necessary to consider the processes involved in other to make it adequate for the export market. Some of the indexes which are of major focus when determining the quality of products to be exported include:



Sample of an export market requirement specifications for COAL



Moisture content………………………………………….0.1%

Ash Content………………………………………



Carbon Fix…………………………………………..80%.



Nitrogen …………………………………………………….4.0%






Subsequently, maintaining a good quality control is a prerequisite for a successful exporting business. This implies that products must be free of foreign matter such as stone, dirt, papers, nylon, etc. These will not only add unnecessary weight but might also contaminate the product especially such products that are useful for medical and food processes.



It is important to note that there is no standard packaging method for any export product. The reason being that it is only the prospective importer that can specify the packaging method approved for a particular product in their country home. Therefore, exporters must seek the consent of their buyer before packaging. As a matter of fact, the packaging requirement will be clearly stated in the export contract which must be strictly adhered to.

In practice, most agro and allied commodities meant for export could be packaged in JUTE or POLY PROPYLENE (PP)/ MESH bags. Commodities like charcoal could be packaged in BULK such that the product is tipped directly

into the container without need for any packaging material.


International commodity pricing


It must be acknowledged that there is an approved international price for all exportable commodities. It is the responsibility of both the exporter and importer to agree on a price that will serve their interest. You can check the NEPC international price catalogue for more information. The international price of commodities is dependent on the following factors:

  1. Quantity and quality
  2. Local cost of procurement and logistics

iii. Terms of payment and delivery

  1. Prevailing local economic factors



The process of exporting is incomplete without receipt of payment. Export income is considered earned only when payment has been received. Below is the most recognized method of payment in exporting:

Letter of Credit (L/C)

The most popular and a safer method of international payment is by a confirmed irrevocable letter of credit at sight.

The documentary creditletter of credit, documentary letter of credit, or commercial letter of credit—is an arrangement whereby the applicant (the importer) requests and instructs the issuing bank (the importer’s bank) or the issuing bank acting on its own behalf, pays the beneficiary (the exporter) or accepts and pays the draft (bill of exchange) drawn by the beneficiary, or authorizes the advising bank or the nominated bank to pay the beneficiary or to accept and pay the draft drawn by the beneficiary, or authorizes the advising bank or the nominated bank to negotiate, Against stipulated document(s), provided that the terms and conditions of the documentary credit are fully complied with. For purpose of maintaining uniformity in the text, the words “letter ofcredit“, “credit” and “L/C” are used on this website to refer to the documentary credit.


Irrevocable versus Revocable Letters of Credit A letter of credit (L/C) can be irrevocable or revocable. The L/C usually indicates whether it is an irrevocable or revocable letter of credit. In the absence of such indication, the L/C is deemed to be irrevocable. Irrevocable Letter of Credit An irrevocable letter of credit cannot be amended or cancelled without the consent of the issuing bank, the confirming bank, if any and the beneficiary. The payment is guaranteed by the bank if the credit terms and conditions are fully met by the beneficiary. The words “irrevocable documentary credit” or “irrevocable credit” may be indicated in the L/C. In some cases, an irrevocable L/C received by the beneficiary may become invalid without the amendment or cancellation of such L/C, for example, when the trade between importing and exporting countries is suspended such as in a trade sanction, or when the issuing bank has ceased operation. There have been cases of an irrevocable L/C being amended without the consent of the beneficiary in the. The beneficiaries affected were export manufacturers from a developing country.

The importers were able to convince and instruct the issuing bank to amend the latest date for shipment in the L/C,changing to a date earlier than the agreed upon date, at which time the beneficiary would not be able to ship the OEM products. The importers used sneaky tactics that aimed to cause the beneficiaries to default in the delivery.

The intention of the importers was to cancel the orders from the existing OEM suppliers and buy from other suppliers in another developing country where the prices had become lower. In the event of an amendment like the above mentioned case, the beneficiary must give notification of rejection of amendment to the bank that advised the amendment at once.

Irrevocable and Without Recourse Letter of Credit

The irrevocable letter of credit received from an advising bank may be indicated as “irrevocable and without recourse documentary credit”. The words “without recourse” mean that the advising bank will not be able to recover the money paid to the beneficiary in case the issuing bank does not pay the advising bank.



Revocable Letter of Credit

A revocable letter of credit can be amended or cancelled by the issuing bank at any time without the consent of the beneficiary, often at the request and on the instructions of the applicant. There is no security of payment in a revocable letter of credit (L/C). The words “this credit is subject to cancellation without notice“,”revocable documentary credit” or “revocable credit” usually is indicated in the L/C.

The revocable L/C was not uncommon in the 1970’s and

earlier when dealing with less developed countries. It is

rarely seen these days in international trade.

Confirmed Irrevocable versus Unconfirmed Irrevocable

Letters of Credit

Confirmed Irrevocable Letter of Credit

An irrevocable letter of credit (L/C) opened by an issuing bank whose authenticity has been confirmed by the advising bank and where the advising bank has added its confirmation to the credit is known as confirmed irrevocable letter of credit. The words “we confirm the credit and hereby undertake …” or “we add our confirmation to this credit and hereby undertake …

normally are included in the L/C.

An exporter whose method of payment is a confirmed irrevocable L/C is assured of payment even if the importer or the issuing bank defaults. The confirmed irrevocable L/C is particularly important from buyers in a country which is economically or politically unstable. In a confirmed letter of credit, the exporter or the importer pays an extra charge called the confirmation fee, which may vary from bank to bank within a country. The fee usually is added to the exporter’s account. The exporter may indicate in the sales contract that the confirmation fee and other charges outside the seller’s country are on the buyer’s account.

Unconfirmed Irrevocable Letter of Credit

An irrevocable letter of credit (L/C) opened by an issuing bank in which the advising bank does not add its confirmation to the credit is known as an unconfirmed irrevocable letter of credit. The promise to pay comes from the issuing bank only, unlike in a confirmed irrevocable L/C where both the issuing bank and the advising bank promise to pay the beneficiary.

Revolving Letter of Credit

When a letter of credit (L/C) is specifically designated “revolving letter of credit“, the amount involved when utilized is reinstated, that is, the amount becomes available again without issuing another L/C and usually under the same terms and conditions. The revolving L/C may be used in shipments of a wide range of goods to a buyer within a period of time (several months to one year usually).




Documentary collection is necessary when the draft is drawn on the importer. The exporter must give instructions to the collecting bank on what to do with the draft and shipping documents in documentary collection instructions, also

known as a collection letter or letter of instructions. Such letter provides the conditions under which the collecting bank can release documents to the importer and the actions to be undertaken. The format of the instruction forms and drafts may vary from bank to bank, but they basically have the same information. The forms and drafts are available at banks.

Uniform Rules for Collections

The Uniform Rules for Collections, ICC Publication No. 322, which describes the conditions governing collections  including those for the presentation, payment and acceptance terms), is issued by the International Chamber of Commerce (ICC) in Paris, France. The Uniform Rules for Collections and other ICC publications are available at your local Chambers of Commerce affiliated with the International Chamber of Commerce.


The tenor is the credit term of the draft. It can be at sight (in a sight draft) or after sight or after date (in a term draft).



The case of need is the party in the importer’s country named by the exporter who may assist in obtaining payment or acceptance of draft or who may be empowered by the exporter to act fully on his/her behalf—waiving of protest, allowing a discount, etc. Whether the case of need is ‘for guidance’ or ‘accept their instructions’, put an X in the appropriate box.


In the documents against payment (D/P) —documents on payment (DOP or D/P) —the documents attached to the draft (bill) drawn by the exporter and needed to obtain goods are deliverable to the importer only after he/she has paid the draft. The document against payment (D/P) applies to a sight draft.


In the documents against acceptance (D/A) —documents on acceptance (DOA or D/A)—the documents attached to the draft (bill) drawn by the exporter and needed to obtain goods are deliverable to the importer only after he/she has accepted the draft for payment later. The documents against acceptance (D/A) applies to a term draft.

“REMIT PROCEEDS … ” When the payment is received by the collecting bank, it remits the proceeds to the remitting bank. The remitting bank then credits the account of the exporter, less applicable charges.

” PROTEST ” and


The protest is the legal action to be undertaken by the collecting bank, at the instructions of the exporter, in case the importer does not pay a sight draft, or does not accept a term draft, or does not pay an accepted draft on maturity. In practice, the protest usually is required by the exporter and it is made within three (3) working days after the presentation or maturity date. In certain countries, failure to protest may cause the exporter to lose the legal rights against the importer.

In cases where the instruction is ‘do not protest’, such

instruction may encourage inaction or deferred payment by the importer. In some countries, particularly in the West, protest against the importer may spoil his/her credit standing. Hence, the importer is encouraged to act promptly if ‘protest’ is instructed by the exporter.


The interest charge, if any, normally is agreed upon between the exporter and importer. It is either built into the export price or collected separately. Under certain pre-arranged credit terms, a discount may be allowed on the early payment of a term draft.


In practice, the collecting bank may not collect some of their charges despite that instructions to collect all their charges is given.


In an open account trade arrangement, the goods are shipped to a buyer without guarantee of payment. Quite often, the buyer does not pay on the agreed time. Unless the buyer’s integrity is unquestionable, this trade arrangement is risky to the seller.


In a consignment trade arrangement, the seller ships the goods to the buyer when there is no purchase made. The buyer is obliged to pay the seller for the goods when sold.

The seller retains title to the goods until the buyer has sold them.


The cash in advance, which is the safest term of payment, most often is effected using the cheque or bank draft. In some cases, the CID term is paid using the telegraphic transfer (T/T).


Below are some of the means through which an exporter can repatriate proceeds of export:


In exporting to the offshore countries, payment by cheque and bank draft occur more often in a small order, ranging from a few hundred to a couple of thousand  U.S. dollars. Cheques and bank drafts are often used in open account and consignment trade arrangements. Both large and small companies may default in their payments, regardless of the amount involved. In times of economic uncertainty, both large and small companies may go out of business. It is important to receive the cheque or bank draft before releasing the shipment. Unless the integrity of the importer is known, it is very important to wait until the cheque or bank draft has cleared before the shipment. International clearing of cheques and bank drafts takes 3 to 4 weeks usually (except in a sight draft with a paying bank in the seller’s country).

Not all cheques and bank drafts are genuine, and not all genuine cheques carry a cash value.



The telegraphic transfercable transfer or wire transfer

–is the equivalent of a cash payment that can be credited directly to the seller’s account (the name and address of the seller’s bank and the seller’s bank account number are required by the buyer’s bank). It is fast and safe. Unlike a payment by cheque or bank draft, in which the mailing time alone may take several days to few weeks, plus the clearing time of 3 to 4 weeks for a total of about 4 to 6 weeks before the seller may receive the cash, by means of T/T the seller may receive the cash in a few hours or days. It is important to wait until the T/T has been received before making the shipment, especially when the integrity of the buyer is unknown.

For an exporter to successfully repatriate export proceeds, he must have an active cooperate domiciliary account with any reputable commercial bank in Nigeria. Such an account could be a Dollar, Euro or Pounds sterling. As a professional, I advise that every exporter should operate three currency accounts for flexibility. Upon opening of a domiciliary account, the exporter should request for his commercial bank’s offshore account details which must be presented to the foreign buyer in this format;














Sample Document:

Documentary Collection Instructions and Draft

(Collection Letter and Draft)




The terms of payment valid are:

Bank transfer by means of payment order

Bank transfer by T/T

Cash against document (CAD)

Cash against delivery

Prepayment of a certain % of the contract value

Any other type of payment agreed upon




Having understood the primary rudiments on how to embark on an export transaction, the next step would be to seek a genuine foreign buyer/ consignee/ importer of the product that you have selected to export. The prospective importer might place an order for your products upon receiving you proposal/ letter of offer to supply the product in question.

The demand/ order for your goods by a foreign importer is called a firm EXPORT ORDER and you as an exporter must ensure that it is genuine.

This order must be constituted by


Sales contract for export must contain the following elements.

Contract number

Full name and address of buyer and seller

Name of product/ goods

Product specifications

Quantity required

Packaging method and standard required by buyer

The agreed export price

Port of shipment (e.g. Tin can Island port)

Port of delivery (e.g. Antwerp port)

Terms of sale (FOB, CNF, CIF, etc.)

Method of payment (L/C, documentary collection, open account, etc.)

Shipment/ delivery term (e.g. Cargo to be shipped two weeks upon confirmation of payment instrument)

Contract value

Name and signature of representatives of both buyer and seller However, to get an export order or contract is the responsibility of the exporter.


The online method involves the use of online trade portals in locating trade leads posted on the internet indicating interest to purchase Nigerian products. It also involves the use of emails to respond to such offers to buy Nigerian products.


At this stage, I feel delighted to mention that the roles of the internet especially in international business cannot be over emphasized

It is the safest, fastest and cheapest means of communication.

You can freely source for the contact of interested buyers of any product.

Products can also be advertised to the whole world at a

peanut if not for free.

Considering the above therefore, the exporter must have a

valid and functional email address and must know how to

access it on the net, sending and receiving emails etc.




The most important step in establishing contact with foreign buyers in need of products of Nigerian origin is by signing up with any of the under listed trade directories


You can also search for more directories with the Googlesearch engine at



10th November, 2018

The director,

Commercial department

Dear Sir,

Letter of offer to supply hardwood charcoal

Please permit me to introduce our company. We are B.C. & Bros. Int’l Nig. Ltd an international trade outfit registered under the companies and allied matters act of the federal republic of Nigeria.

We are also licensed to embark on export transaction by the Nigerian Export Promotion Council.

We offer in principle hardwood charcoal with the following terms:

Product name: Hardwood charcoal

Country of origin: Nigeria

Specifications: moisture content 8% max, ash content 7%max, non volatile

matter 4%max, fix carbon 80% min, dimension 30-100mm (no dust below 20mm)

triple sieved with mesh, no unburnt wood.

Packaging method: Bulk

Port of loading: Tin can Island Port, Lagos

Price: 250euro/ton, FOB, Lagos

We look forward to a mutually profitable business relationship.

Best regards,

Your name


Tradolic Nigeria Ltd


Upon acknowledgement and acceptance of offer by the prospective buyer and a method of payment agreed by both parties, an export sales contract is signed between buyer and seller.




Contracted to be drafted with COMPANY LETTER HEADED

PAPER with contact details

7th September, 2008


This contract is for the sale of sesame seed and should be utilized solely for the purpose of this transaction

Contract number: KBS/0908/001

Buyer’s details

Company name: HASSAT GROUP

Address: 10 Hatam road by Tequila square

City: Abu Dhabi

Country: UAE

Phone/ fax: +98234564105, +98235678197

Contact person: Mr. Abdul Mohammed

Seller’s details

Company name: Tradolic Limited

Address: Suite 45, Isaac John, Ikeja Lagos.

City: Lagos

Country: Nigeria

Phone/ fax: +2348534785

Contact person: Mr. Akeem Okeke

Name of product: Sesame seed

Country of origin & supply: Nigeria

Specifications Color: white

Oil content: 48-50%

Moisture content: 12%max

FFA: 2%max

Admixture: 2%max

Packaging: 50kg pp bags

Quantity: 30MTS (2 X 20 feet containers)

Price: 2,000US$/ Ton

Contract value: US$60,000 (Sixty thousand naira only)

Incoterm: FOB, Lagos

Method of payment: 100% confirmed irrevocable letter of


Terms of payment: 100% payment to be effected upon

sighting of shipping documents

Method of delivery: By sea

Terms of delivery: Product to be stuffed into 20’ containers

two weeks upon confirmation of payment instrument.

Buyer’s signature/date……….. Seller’s




Summary of Export-Import Procedure


1 Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit).

2 Buyer applies to his issuing bank, usually in Buyer’s country, for letter of credit in favor of Seller (beneficiary).

3 Issuing bank requests another bank, usually a correspondent bank in Seller’s country, to advice, and usually to confirm, the credit.

4 Advising bank, usually in Seller’s country, forwards letter of credit to Seller informing about the terms and conditions of credit.

5 If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.

6 Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.

7 Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate.

8 Bank, if other than the issuing bank, sends the documents and draft to the issuing bank.

9 Bank examines the documents and draft for compliance with credit terms. If complied with, Seller’s draft is honored.

10 Documents release to Buyer after payment or on other terms agreed between the bank and Buyer.

11 Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.



Freight forwarder

This is a specialized firm and it performs the following functions on behalf of the exporter  advising on the best route to undertake and the relative shipping cost Booking the necessary space and containers with the shipping line

Arranging with the exporter for packaging and subsequent marketing of the goods Consolidating shipments from different exporters (Groupage)

Handling customs insurance abroad Arranging marine insurance for the shipment Preparing the export documents Arranging for transport that will convey container to and fro the stuffing warehouse back to the port of shipment.

In other words, the freight forwarder who in most cases is a customs broker is the one that actually tells an exporter the cost of shipping and insurance.




These include

Final commercial invoice:

This is the exporting firms invoice, addressed to the importer describing The goods shipped, Unit price of each commodity that was shipped and The total amount that must be paid

The exporter may also be asked to when providing an export quotation for the foreign buyer to supply a PROFORMA INVOICE to the buyer. This document shows the foreign buyer what the commercial invoice would look like if an order is placed. The exchange authorities in the foreign country some times require it before an import license is issued.

Certificate of origin:

This is a document which indicates the country in which the goods were produced. It is required whenever preferential duties are claimed.

Bill of lading: The shipping company that is transporting the goods to their foreign destination, listing items by items and the goods being shipped. It serves three basic purposes: To acknowledge the receipt by the carrier of the exporter’s

goods To indicate the carrier’s contractual obligation to transport the goods to their destination in exchange for payment To record transfer of title (or ownership) from the seller to the buyer when payment of the goods takes place

Certificate of quality and quantity: This is a document issued by a reputable inspection agency such as SGS, Alexis Stewart, Alfred Knight, Cotectna, Bureau Veritas etc. certifying the quantity and quality of shipment made by the exporter. The essence is to ensure that a third party confirms what the exporter has declared in his shipping documents.



According to federal government’s regulation stipulating that all export transaction must be well documented to ensure a comprehensive monitoring of all export activities in the non oil sector. Subsequently, such documentation will assist government in keeping a detailed statistics on the performance and impact of non oil export to our national

GDP. Official export documentation is necessary so as to ensure adequate sanity in the Nigerian export business environment. A well documented export transaction will also act as an evidence for the exporter when it files an application for the collection of government grant for all export.

To this end, all exporters are charged to comply strictly with regulations laid down by the relevant authorities as it concerns export.

To open an export transaction, an exporter approaches the foreign trade department (FT) of his receiving or advising bank where he has an active cooperate domiciliary accountand then completes Nigerian Export Proceeds (NXP) Form popularly called NXP from. This form is synonymous with “FORM M” for import. This form must be duly filled in sextuplicate and returned to the bank with the following accompanying documents





The receiving bank officer will then sign, acknowledging receipt of the NXP form, proforma invoice and other relevant documents from the exporter. The exporter after submitting the said documents is mandated to pay for NIGERIAN

EXPORT SUPERVISION SCHEME (NESS). In return, the bank officer issues the exporter photocopies of the Duly completed NXP form Proforma invoice

Ness charge receipt (original and photocopy)

These are the documents which the exporter will issue to his freight forwarder or customs broker for subsequent booking of container/ cargo space for shipping.




Seller (prospective exporter) incorporates company and subsequently registers business with the Nigerian Export Promotion Council (NEPC).

Seller approaches bank and opens a cooperate domiciliary account (USD/EURO/POUNDS) with which the company can repatriate export payments (payments).

Seller gathers information as it concerns the source for the procurement of the commodity intended for export.

Seller should try as much as possible to gather as per the export market requirement of the commodity for export. Seller must ensure that product is available in large quantity such that it would meet the minimum order that could be requested by buyer (foreign importer). At this stage the services of an export consultant/ facilitator/ manager would be both invaluable and indispensable because of the pitfalls it would save the new exporter from falling into.

Seller embarks on a massive search for the buyer of the commodity in question. The search could be done online or offline.

Buyer and seller conclude an export contract with a secured and confirmed method of payment.

Seller may investigate buyer’s genuineness

Seller approaches bank and opens NXP for the transaction. Seller approaches a reliable freight forwarder who advices on the best shipping line, routes and any other documentation that may be relevant for that transaction. Seller consolidates with credible suppliers of the commodity intended for export to ensure timely delivery of commodity for export.

Upon arrival of goods, freight forwarder arranges for transport and containerization of goods.

Loaded container is dropped at the shipping terminal for Subsequent shipment.

Upon sailing of carrier vessel, shipping line issues seller with debit note. Seller obtains bill of lading from shipping line after payment of charges as indicated in the debit note.

Seller deposits shipping documents with the receiving/ collecting bank that subsequently sends them to buyer’s bank for remitting of export proceeds.

Upon receipt of payment, seller prepares for another export transaction.


Thank you for completion.


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Businesses to start with small capital that makes good money returns.

Cokodeal platform supports hundreds of businesses to connect with international buyers and succeed daily. If you find this article valuable, kindly share with others. “We rise by lifting others”  SELL HERE

Starting a business could be risky and capital intensive

Understanding a good place to invest is a very good place to start. while you grow your investment over time

The recent diversification goals of the federal government have increased local production drastically and seen the importation of goods drop marginally.

This has made Nigeria more attractive as an investment destination and lucrative for offshore investors to bring their capital, skills and business trade into the country.

A good way to spur these investments is for government to provide incentives for companies that are engaged in production of export commodities, providing new jobs and increasing local production that is vital for growth of our nation.

Below is a look at investment opportunities for individuals and businesses to consider;


Foodstuff exports to African diaspora and neighbouring countries

With over millions of Nigerians living in diaspora and with continuous migration, there has been an increase for foodstuffs and ingredients to these regions United Kingdom, United States, Russia and Europe.

This opportunity creates a huge gap that needs to be filled with supplies from Nigeria to the foreign countries.

The advantage of it is that, once you secure a supply chain to the country, demand is usually throughout the year that creates a good cash flow for the business owner.


Fast moving export commodities.

The unrecorded trade volume in Nigeria is huge; the local commodities export market is in constant demand all year round for different commodities depending on its season, including Cashew nuts, Ginger, sesame seeds, groundnut, maize, charcoal, shea nuts and many others.

The recently launched inland port in Kaduna by the federal government creates a big opportunity for ease of goods movement from the northern part of Nigeria, where most commodities are sourced from for exporters.

The barrier to success for some of the exporters is securing trusted international buyers, which we have seen government agencies such as Nigeria export promotion council (NEPC) and private export technology companies such as bridging the trade flow between international buyers and local exporters.


Foodstuff Repackaging:

Many items in Nigeria that are not well packaged presents a big opportunity for a business owner, by repackaging it, ensuring top level hygiene, testing it and enlisting its nutrients, ingredients, storage instruction and application as may be needed.

With a well branded product, take it to where there is high demand and resell at a much higher price.



The diversification goal has spurred local production as it was seen in 2017, local rice, fertilizers and more. There is an increase in demand for food products locally and internationally. Businesses can invest in farming of palm oil, cassava, rice and other fast consuming agricultural products. According to CNN in a recent report, Nigeria is the largest supplier of cassava to tune of 50million metric tonnes annually. There is demand for agricultural produce in Nigeria globally.

Other investors that cannot afford to supervise and produce by themselves can explore platforms like farmcrowdy to help secure farmers that they can invest through and share profits.


Food processing:

The raw material produced in Nigeria is often exported or locally sold, providing reduced income for the owners, the opportunity this presents is sourcing locally and processing such raw material to finished goods that can be sold in local market or exported. A recent study shows that African cocoa producers only earn 3% of the cocoa market in the value chain, simply because the raw cocoa is not processed into other derivate that can generate superior returns.

Nigeria is fortunate as an investment hub that offer high returns on investment to local, international persons and companies that harness its opportunities successfully. The need to develop Nigeria economy offers investors’ diverse areas to explore for superior return on investment compared globally.


Compiled by: Raymond Agholor

Trade and Investment manager for


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How to become a product sourcing agent and make good earnings


An Ultimate strategy to get into the Nigerian export value supply chain

As a product sourcing agent you can conveniently plug into the export value chain, what a good way to build up a successful exportation business from nothing and have fun doing it? Not only does it require little financial investment to start, but it offers the prestige of working with Nigerian exporters spread all over the Country.


What you need to start: You don’t need previous experience in the field, but you should have a good head for organizing and constant attention to little details.


Making contacts with exporters: As product sourcing agents, you will need to make contact with the Nigeria exporters, you can register with some trade portals where you will have access to their chosen commodities, specifications and contacts details, you can send a mail to them and inform them that you can met their requirement, you will need to submit a product sample, and you can then go ahead to discuss the price and the terms of payment


You clients: As a product sourcing agent you will deal with farmers, you will need to go their farms and deal with them directly and you might need to transport the commodity to the city, you can also deal with the local buying agents and the commodity merchant, although, they are very expensive but they make product sourcing very easy.


The value chain:

The farmers – Local buying agent (LBA) – Commodity Merchant – Commodity Sales Agent – Exporters


Farmers: Cultivate and harvest the commodities: Nigeria, one of Africa’s most populous countries, has a highly diversified agro-ecological condition, which makes the production of a wide range of agricultural products possible. Agriculture is one of the most potentially viable sectors of the Nigerian economy, particularly in terms of its employment generation potentials as well as its contribution to Nation’s Gross Domestic Product (GDP) and export revenue earnings

The Agricultural sector is being totally transformed by the federal government to enable the country move from traditional farming to modern agriculture as a business both for small and large-scale farmers. The objective is to ensure food security whilst also promoting exports in agriculture value chains where we have a comparative advantage. A lot of Nigerian exporters are investing in large scale plantation of different agricultural product, making over 900% returns on their investment. As a small investors you can get involved in the export value chain by getting a land lease for a year at N5,000 per hectare or buying the land completely and start large scale agricultural plantation


Local buying agent (LBA): They Purchase commodities from different farmers and pre –process them for export. They make sure they have enough commodity in stuck before the market day The local buying agents (LBA) is divided into two parts we have the local commodity merchant and city or large commodity merchant..The local commodity merchant operate at the local level, for instance a local buying agents that operates in Jujunku in Taraba state will by from the farm and stock his shop with agricultural commodities before the markets day, The city commodity merchant are in Kano, Lafia, Kaduna, they are big players before you can buy from them you must have a big order, some Asians that come to Nigeria do buy from them made in Nigeria raw goods, because the city commodity merchant can arrange for five to ten containers within few days As a product sourcing agent, you can buy from them if you have big orders, especially when you have the financial muscle to buy in large quantity, dealing with them ultimately saves time of the sourcing agents because you will get your commodities at one point


Commodity Merchants: Purchase commodity from different local buying agents and farmers to process and sell to the sales agent and exporters. They are in Lagos and you will need to give them advance payment before they can supply you your chosen commodity. I will advice any new entrants into commodity sourcing to deal with the farmers, or the local buying agents, because commodity merchant are very expensive to deal with.


Commodity sales agent: Purchase the commodity from merchants and local buying agents to deliver to exporters’ warehouse. Some of them are in Lagos.


Need a point man: As a product sourcing agent often times you will need a point man, when you are sourcing for agro products, a point man will make product souring very easy for you they know the terrain and they now how to deal with the agents, they help in quick and effective coordination of your chosen agricultural commodity.


Exporters: They are the receiver of the products, they deal with the international markets In the export value chain an exporter can decide to deal with any of the agents or commodity merchants, he can decides to pay in advance or when the commodity is delivered to the warehouse. A lot of Nigerians are operating a highly lucrative export company and they are making a steady income of between N500,000 and N10,000,000 monthly, regularly, and at their spare time. The profit from the first transaction can be ploughed back and an investor will be able to build up his capital base. The cheapest exportable product is charcoal and the start up capital is N650,000 and the profit on investment is N150,000 per trailer, Nigerians cannot even met the demand coming from the Europeans Countries now. If you have an ability to sell, and an air of diplomacy, the export business might be right for you. All you need is the desire and determination to make it work.


Product sourcing for the local manufacturing company Do you know some local manufacturers looking for ways to increase their market for the goods they produce? You can help them source for their raw material, a lot of Nigerian companies are looking for cassava tuners, cassava flour, Shea butter, Cocoa, maize, Groundnut, you can get their LPO, I discovered that some of them pay on delivery being their regular supply can raise your income level.


Export Business Can Still Accommodate More Nigerians: The non-oil export business is still at its very primitive stage in Nigeria with a very high potential for growth. The market is, thus, inexhaustible (especially for agricultural commodities and other consumables). Therefore, there is space for everyone that will like to earn foreign exchange via the export business. If you are interested in the export business, you can start as a product sourcing agent and increase your skill in the export value chain.

The biggest advantage is the money you’ll make. Once you get the business underway, the commission for setting up sales is very profitable. And after you establish and maintain a number of exclusive accounts, you’ll find the time you spend is highly rewarded with money.