Why You Should Get Into the Export Business: A Nigerian Perspective

Abubakar Group — Thu, 14 Nov 2024 10:23:50 +0000

Nigeria, renowned as the “Giant of Africa,” is a land of opportunity for entrepreneurs looking to thrive in the global marketplace. With its abundance of natural resources, strategic location, and increasing demand for its products worldwide, the export business offers Nigerian entrepreneurs a profitable pathway to sustainable growth.

At Abubakar Group Ltd., we’ve seen how exports can transform lives, communities, and businesses. From agricultural commodities to mineral resources, here’s why you should consider venturing into the export business with Nigeria’s diverse portfolio of products like charcoal, cashew nuts, coffee, and more.

1. Abundance of Exportable Products

Nigeria is rich in resources that are in high demand globally. Key exportable commodities include:

Charcoal: Nigerian hardwood charcoal is a favorite in European and Middle Eastern markets for its high calorific value and eco-friendly production.
Cashew Nuts: With its high-quality kernels, Nigeria is one of the top producers of cashew nuts, which are in demand in India, Vietnam, and the United States.
Coffee: Nigeria’s coffee, though lesser-known than its East African counterparts, is gaining traction in Europe and Asia for its robust flavor and organic qualities.

These products, among others like sesame seeds, cocoa, and solid minerals, position Nigeria as a global supplier of premium goods.

2. Lucrative International Markets

Global demand for Nigerian exports continues to grow. Major markets include:

Europe: A top buyer of Nigerian hardwood charcoal and coffee for its premium quality.
Asia: Countries like India and Vietnam are major importers of Nigerian cashew nuts.
Middle East: A key region for charcoal and sesame seed imports.

Entering these markets allows Nigerian exporters to earn foreign exchange and access premium prices unavailable in local markets.

3. Government Support and Incentives

The Nigerian government is actively promoting non-oil exports to diversify the economy. Entrepreneurs can benefit from various initiatives, including:

Export Expansion Grant (EEG): A program designed to reduce costs for exporters.
Nigerian Export Promotion Council (NEPC): Provides training, certifications, and market intelligence to exporters.
Export Development Fund: Offers financial assistance for pre- and post-shipment activities.

These programs help exporters compete globally and expand their operations.

4. High Profit Margins

The export business offers competitive profit margins due to global demand and currency advantages. For example:

Charcoal: Exporters can earn up to 40% profit margins when selling to European markets.
Cashew Nuts: Shells and kernels fetch premium prices, yielding profit margins of 25–30%.
Coffee: Organic and high-quality Nigerian coffee beans are increasingly sought after, offering consistent profit growth.

5. Personal and National Growth

Exporting is not just a business—it’s a catalyst for personal and national development. Entrepreneurs gain exposure to global markets and international business practices, while the economy benefits from diversification and foreign exchange inflows.

How to Start Your Export Business

Identify a Product: Focus on in-demand products like charcoal, cashew nuts, and coffee.
Ensure Quality: Invest in proper processing and certifications to meet international standards.
Understand Regulations: Register with the NEPC and adhere to export guidelines for each product.
Build Market Connections: Attend trade fairs, join export platforms, and partner with experienced buyers.
Secure Funding: Leverage government incentives and explore partnerships for capital.

Overcoming Challenges

While the export business is profitable, it comes with challenges. Here’s how to tackle them:

Logistics and Shipping Costs: Partner with reliable shipping companies to optimize costs.
Regulatory Barriers: Work with export consultants to navigate legal and certification requirements.
Market Competition: Differentiate through quality, competitive pricing, and exceptional customer service.

Conclusion

The export business is a golden opportunity for Nigerian entrepreneurs. Products like charcoal, cashew nuts, and coffee not only promise high returns but also position you as a key player in the global marketplace.

At Abubakar Group Ltd., we specialize in helping businesses succeed in the export industry. Whether you’re new to exports or looking to expand your reach, we’re here to guide you every step of the way.

Ready to take your business global? Contact us today at Abubakar Mall for expert advice and support!

The post Why You Should Get Into the Export Business: A Nigerian Perspective appeared first on Abubakar Group Co. Ltd.

Investing in the Profitable Sesame Seeds Export Business from Nigeria to Turkey

Abubakar Group — Thu, 14 Nov 2024 10:23:49 +0000

Introduction

Nigeria, known for its rich agricultural heritage, has become a significant player in the global sesame seed market. With Turkey emerging as a leading importer of sesame seeds for its thriving tahini, bakery, and oil industries, the export business offers immense potential for Nigerian entrepreneurs.

At Abubakar Group Ltd., we’ve analyzed the numbers and identified a lucrative opportunity in exporting sesame seeds. Here’s everything you need to know to dive into this profitable venture.

Why Invest in Sesame Seeds?

Sesame seeds are highly sought after for their nutritional value, versatility, and high oil content. Globally, the sesame market is projected to reach $15 billion by 2030, with Turkey accounting for a substantial share of imports.

By exporting sesame seeds, Nigerian businesses can tap into Turkey’s demand while boosting their profits. Our recent export operation involving 18 tonnes of sesame seeds highlights the profitability of this trade.

Financial Snapshot

Exporting 18 tonnes of sesame seeds in a 20DV container yielded the following:

Total Expenses: $20,881.00
Revenue: $27,000.00
Net Profit: $6,119.00
Profit Margin: 29.3%

This financial breakdown demonstrates the potential of sesame seeds as a profitable export commodity when managed efficiently.

Steps to Success

Maintain High Product Quality
Quality is critical when entering competitive markets like Turkey. Ensure your sesame seeds are clean, well-sorted, and comply with Turkish Food Codex standards. Obtaining certifications like ISO 22000 or HACCP can enhance credibility.
Optimize Supply Chain Logistics
Minimize costs by working with trusted logistics providers and using cost-effective packaging methods. A well-managed supply chain ensures timely delivery and reduces expenses.
Establish Market Connections
- Engage with Turkish wholesalers, tahini manufacturers, and distributors.
- Utilize platforms like Alibaba or attend trade fairs like the Istanbul Food Expo to connect with potential buyers.
- Build long-term relationships to ensure consistent orders and better pricing.

Why Turkey?

Turkey imports over $200 million worth of sesame seeds annually, driven by its growing demand for tahini, bakery products, and sesame oil. For Nigerian exporters, Turkey’s robust demand presents a steady and lucrative market.

Challenges and How to Overcome Them

Logistics Costs: Offset these by bulk shipping and partnering with reliable transport companies.
Market Competition: Stand out with superior quality and competitive pricing.
Regulatory Compliance: Work closely with local Turkish agents to navigate import requirements.

Final Thoughts

The sesame seeds export business from Nigeria to Turkey offers remarkable profit potential, as demonstrated by our operations at Abubakar Group Ltd. By focusing on quality, optimizing logistics, and leveraging market opportunities, businesses can establish themselves as key players in this thriving trade.

Whether you’re new to exports or looking to expand your portfolio, sesame seeds provide a gateway to consistent profits and global market impact.

Interested in learning more about sesame seed exports? Connect with us at Abubakar Mall for resources and insights!

The post Investing in the Profitable Sesame Seeds Export Business from Nigeria to Turkey appeared first on Abubakar Group Co. Ltd.