Starting a mini-importation business from China can be highly profitable for Nigerian entrepreneurs and SMEs. However, navigating product sourcing, shipping, and Nigerian Customs can feel overwhelming.
This step-by-step guide breaks down the entire process, ensuring you have the reliable, practical knowledge needed to get your goods from China to Lagos (or any Nigerian port) smoothly.
Step 1: Market Research and Product Selection 📈
Don’t import products simply because they are cheap. Focus on high-demand items that solve a local problem and offer a good profit margin.
- Identify Demand: Look for “must-have” items (like phone accessories, specific household tools, or affordable electronics) rather than “nice-to-have” luxury goods.
- Check Legality: Ensure your product is not on the Nigerian Customs Service’s Import Prohibition List. This is non-negotiable.
- Calculate Profitability: Estimate your final “landed cost” (Product Cost + Shipping + Duties/Taxes) to confirm you can sell the item competitively while making a profit.
Step 2: Formalize Your Business & Get Documentation
While small-scale importers might skip this, CAC registration is crucial for building trust and accessing formal trade channels.
- Register Your Business: Registering with the Corporate Affairs Commission (CAC) boosts your credibility with suppliers and customs.
- Obtain a Form ‘M’: This is a mandatory document used to initiate the importation process in Nigeria and must be opened through an Authorized Dealer Bank (ADB).
- Acquire SONCAP Certificate: For most goods, you need the Standard Organisation of Nigeria Conformity Assessment Programme (SONCAP) certificate to ensure compliance with Nigerian industrial standards.
Step 3: Sourcing and Vetting a Chinese Supplier ✅
Your supplier is your partner. Vetting them carefully mitigates risk.
- Use Trusted Platforms: Start with platforms like Alibaba and Made-in-China. For smaller orders, platforms like 1688 may require a local agent.
- Verify Credibility: Look for suppliers with high ratings, gold supplier badges, and positive reviews, especially those with several years of experience.
- Request Samples: Always order a small sample before committing to a bulk order to verify quality.
- Negotiate Terms: Clarify the price, production time, and the Incoterm (e.g., FOB or CFR/CIF). For beginners, CFR/CIF Lagos is often simplest as the supplier handles delivery to the Lagos port.
Step 4: Payment and Order Placement 💰
Be cautious with payment, especially as a new importer.
- Secure Payment Methods: Avoid paying into personal accounts. Use secure methods like Alibaba Trade Assurance for protection or Telegraphic Transfer (T/T) for trusted suppliers.
- Avoid Full Upfront Payment: Negotiate a deposit payment (e.g., 30%) with the balance paid after production is complete or before shipping.
Step 5: Choose a Shipping Method and Logistics Partner 📦
The choice between air and sea shipping depends on your goods’ volume, value, and urgency.
- Use a Freight Forwarder: Partner with a reliable Nigerian freight forwarder who has experience with the China-Nigeria route. They manage consolidation and local customs clearance.
Step 6: Customs Clearance and Paying Duties 🧾
This is where preparation pays off. The Nigerian Customs Service (NCS) operates a destination inspection regime.
- Get Your PAAR: The Pre-Arrival Assessment Report (PAAR) must be filed online before your goods arrive to expedite clearance.
- Understand HS Codes: Your product’s Harmonized System (HS Code) determines the duty rate, which ranges from 5% to 35% (on the Cost, Insurance, and Freight/CIF value).
- Key Documents: Ensure your freight forwarder has the Commercial Invoice, Packing List, Bill of Lading (B/L) or Airway Bill (AWB), and the Certificate of Origin ready.
- Avoid Under-Declaration: Deliberately declaring a lower value to avoid duties is illegal and can lead to fines and cargo seizure.
Step 7: Final Delivery and Sales 🚚
Once customs clearance is complete, your forwarder will coordinate the release and final transport of the goods to your warehouse or location in Nigeria.
- Inspection: Always inspect your goods immediately upon receipt for quality control and to confirm the quantity matches the order.
- Start Selling: You can now begin marketing and selling your successfully imported products to the Nigerian market!
