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Sunday, April 16, 2017

Top 8 Countries and Regions to Export Nigerian Cash Crops, Commodities and other Products

In this article I’m going to be sharing details of how much Nigeria generates from exporting non-oil commodities and products to the top 8 countries and regional global markets and why if you are intending on exporting from Nigeria these countries should be of interest to you. You’ll need to know how much each of these countries spend and what commodities they order from Nigeria.

Nigerian non-oil Exports and income from top 8 Exports markets
Nigeria has a huge exports market of over $2.4 billion from sale of non-crude oil commodities such as cash crops (ginger, hibiscus, cassava pellets, cocoa, rubber, maize, cashew and fish) and Animal produce such as hides. Nigeria also exports shoes, handbags, fast moving consumer goods and other invisible services such as; Nollywood, music, fashion to name a few.  These 8 countries account for over 50%

Most of our exportable produce are cheap to procure locally from farmers but could sell for high amounts in dollars being that the naira is relatively weak likewise we export processed products such as detergents, toothpaste, electric bulbs etc to West and Central African countries. The return on investment for exporting from Nigeria is higher than most businesses which focus locally on the domestic market and with the possibility of making quicker sales due to less competition – depending on what you are exporting anyway.

Top 20 Non-Oil Commodities, Products and Cash Crops Exported from Nigeria

In no particular order – due to volatile global market demands and prices - these are the top 20 commodities exported from Nigeria besides petroleum and the countries with largest demands for them;
  • Cashew nuts (South Africa, Europe, China, USA)
  • Charcoal (China)
  • Gum Arabic (China, India, USA)
  • Sesame seed (China, India, USA)
  • Bitter Kola (China)
  • Ginger (China, India)
  •  Dried fish (UK, South Africa)  
  • Leather sandals/shoes (West and Central Africa, South Africa)
  • Leather bags (Central Africa)
  • Hibiscus flower (USA, Germany)
  •  Rice (Diaspora especially in UK, China, South Africa)
  • Cassava flour (India)
  •  Cassava pellets (China, Holland, USA)
  •  Timber (China, Europe, USA)
  • Hides (South Africa)
  •  Poundo Yam (USA, UK, South Africa)
  •  Rubber (Spain, Holland)
  • Fast Moving Consumer goods (West and Central Africa)
  • Nollywood (UK, US, West Africa, East Africa and Central Africa)
Which Countries top the list of Exports Markets for Nigeria?

The top 8 countries based on sales value for Nigerian exportable items are;

India and Bangladesh (imports over $300 million from Nigeria)
These are the top two markets for Nigerian exports of ginger as it is used for preparation of herbal teas and is popularly used in making condiments. India is Nigeria’s largest exports market and it alone demand for over 630 tons of ginger per annum whereas Bangladesh imports less than 100 tons of ginger from Nigeria but both countries can easily mop up our local ginger supplies. In addition India imports Cashew nuts and rubber from Nigeria.

China (imports between $250 to $300 million dollars annually)
China imports a lot of raw materials from Nigeria such as; charcoal, timber, cocoa, ginger, bitter kola, cassava pellets, kolanut, cashew, groundnuts and Palm fruits to name a few which runs into over $250 million dollars per annum and their local factories are ever expanding demanding for more raw materials which could make China Nigeria’s largest exports market for non-oil commodities by 2020.

United States (imports between $180 and $220 million per annum)
The USA is the largest importer of hibiscus flower in the world which Nigeria grows in abundance. In addition bitter kola, cashew nuts and cocoa are in huge demand from manufacturing companies in USA who order for hundreds of tons of these products running into over $105 million per annum - from ginger alone the US imports over $120 million annually but mostly from China. Nigeria also exports movies and entertainment, fashion (clothing, bags etc) and Arts to the US mostly to Nigerians living there.

United Kingdom (imports over $150 million worth of items)
Nigerians living in the UK love to buy some local delicacies, fashion accessories and made in Nigeria products mainly because of nostalgic feelings. There are Nigerian shops in the UK which sell mostly made in Nigeria goods serving an estimated 1.5 million Nigerians living and working in the UK.

Netherland (over $60 million)
This is the second largest exports market for Nigeria in Europe after the United Kingdom. The country imports mostly Cashew nuts, ginger and processed rubber from Nigeria but there is room for other commodities such as; hibiscus, cassava pellets and palm oil.

South Africa (over $60 million)
Is Nigeria’s leading trading partner in Africa accounting for over 85% of trade surplus between both countries - mostly due to its heavy reliance on Nigeria for petroleum - while we import paper, car parts and some industrial machines from South Africa, the remaining imports are mostly cashew nuts, cocoa, groundnuts, fashion, entertainment and lifestyle products from Nigeria. They of course have a large Nigerian population of over 800,000 who live and work there.

West African Countries (over $40 million worth of exports per annum)
Togo and Benin republic depend heavily on Nigeria for fast moving consumer goods such as toiletries, processed fruit drinks, others such as Liberia, Sierra Leone, Ghana and Ivory coast import body creams, pharmaceutical products, toiletries, processed rubber, Nollywood and other entertainment services

Central Africa (below $30 million)
Countries like Congo DR, Central Africa republic, Chad and Cameroun are ready markets for supply of made in Nigeria shoes, bags and electric bulbs. This is because of their low purchasing power per capital income, high costs of import logistics from Asia and the fact that Nigerian made products are cheaper and can compete in quality with many second hand products from Asia. Made in Aba shoes over 92% of them are packaged for exports rather than sold locally.

Are you looking to go into exports and need a convincing business plan to show investors or to a bank? Give me a call: 0803 206 4106 or email me: paulonwueme@gmail.com

Article Keywords:
Exports from Nigeria| Top global Nigerian exports market| Markets for 
Nigerian Exports| Best overseas Nigerian exports markets| Nigerian commodity buyers| Top importing countries for Nigerian Products| Made in Nigeria Exports| Nigerian Export commodities

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