he world of commerce has undergone various transformations over time, and exportation has become the cornerstone of modern civilization for prominent countries. Exportation brings value to a country’s foreign exchange when more countries transact in its currency. It would be unfortunate for the Nigerian economy to have more imports than exports. This is why the government has provided incentives for the export of certain products and for exporters in general, aided by relaxed regulations. These incentives are reflected in the amendments made to major legislation, such as the Finance Act of 2020, which caused amendments to several previous legislations. Additionally, as a party to the African Continental Free Trade Area Agreement (AfCFTA) of 2021, Nigeria has been making efforts to benefit from the agreement’s scheme.
Several legislations are central to exportation in Nigeria, namely: The Nigerian Export Promotion Council (NEPC) Act of 1988; The Export (Prohibition) Act of 1989; and The Customs and Excise Management Act (CEMA). While the NEPC encourages and spearheads the felicitation and creation of incentives, the Nigeria Customs Service (NCS) appears to be the controlling authority. The list of items prohibited from exportation can be adjusted by the President alone, and the Minister of Finance, together with the NCS.
Some of the items prohibited from exportation include:
- Maize
- Timber (rough or sawn)
- Raw hides and skin (including Wet Blue and all unfinished leather) H.S. Codes 4101.2000.00 – 4108.9200.00.
- Scrap Metals
- Unprocessed rubber latex and rubber lumps.
- Artifacts and Antiquities
- Wildlife animals classified as endangered species and their products
The requirements for exportation vary depending on the product. However, there are general requirements that are unavoidable, including: being a registered business or corporation in Nigeria; registration with NEPC for coordination and convenience; possession of an existing Tax ID number; having an appropriate insurance scheme in place to cover for products; possessing a domiciliary account with any Nigerian commercial bank; inspection of products by the appropriate authorities such as SON, NAFDAC, NACCIMA, and so on, depending on the product concerned; completing and registering Form NXP with an Authorized Dealer to ensure compliance with the buyer’s description as NCS duly certifies the form.
It is advisable to employ a lawyer who is experienced in commerce on either a contract for or a contract of employment, as the NCS can impose sanctions such as fines and forfeiture of products, resulting in criminal liability for non-compliance.
NEPC: Nigerian Export Promotion Council
SON: Standards Organisation of Nigeria
NAFDAC: National Agency for Food and Drug Administration and Control
NACCIMA: The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture
NXP: Trade Export Form (form NXP)
NXP is the Nigeria Export Proceed Form expected to be completed by Exporters when exporting out of Nigeria.