the Way to Open up the African Market of 1.4 Billion People
Reports indicate that over the weekend, the Nigerian Port Authority (NPA) took control of a significant fire incident at a crane in the Apapa Port in Lagos.
Relevant parties have stated that the fire did not result in any casualties and did not affect the port's operations. The cause of the fire is still under investigation.
Resources and Opportunities in the African Market
Africa is rich in natural mineral resources,?with reserves of oil, rare metals, gold, cobalt, copper, diamonds, and more, ranking among the top in the world, and is gradually becoming an important role?in global trade. Africa has numerous world-class ports, among which Tangier Port, Said Port, Durban Port, Lekki Port, Ngqura Port, Abidjan Port, Casablanca Port, Mombasa Port, Doraleh Port, and Tema Port are the ten largest ports in Africa.
Due to abundant natural resources, a young population structure, and rapid urbanization, there are now a lot of fields of opportunity in Africa.?Industries such as mineral processing, agriculture and agricultural product processing, automotive manufacturing, textiles, building materials, chemical industry, pharmaceuticals, and new energy are becoming new frontiers for Chinese companies going global.
The emerging digital consumer market in Africa also provides development opportunities for Chinese internet companies in e-commerce, mobile payment, digital entertainment, and other fields.
Although both are emerging markets, the investment environment in the Middle East and Latin America is more mature compared to Africa, with more intense local industry competition. Africa, due to factors such as different national policies, laws, religions, ethnicity, and cultures, has a more complex investment environment, lower economic development levels and?consumer capacity. However, there is also less competitive pressure.
Expending trade with Africa, in addition to the dividends, also requires companies to have localization capabilities and global thinking abilities,?fully considering its complexity and challenges, such as political instability, incomplete infrastructure, security compliance, industry competition, and cross-cultural integration issues, with stronger market insight and localization operation capabilities.
South African Ports Facing Emergencies
According to South African media reports, the South African Border Management Authority (BMA) recently temporarily closed the operation of Lebombo Port due to vehicles being burned on the Mozambican side of the border. Relevant personnel have stated that the closure of the port is in the interest of public safety and have urged freight industry stakeholders to suspend travel through the port. In addition, the operation of Maputo Port has also been suspended due to riots, which will have a significant impact on cargo transportation in the region.
Nigeria's Lucrative Market
In addition to South Africa, Nigeria is also a major economy in Africa, and is China's second largest export market, third largest trading partner and major investment destination in Africa. Nigeria's trade commodity structure is relatively simple,?with crude oil and natural gas as the main export commodities, and major import commodities including machinery and equipment, transportation vehicles, chemical products, food, etc.
1.Precautions for going to Nigeria
The main ports in Nigeria include the Lekki Deep Water Port, Apapa Port, Tin Can Port, Koko Port, Warri Port, Harcourt Port, Calabar Port, and Sapele Port in Lagos, totaling nine major seaports. Lagos Port (including Apapa Port and Tin Can Port) is the largest and busiest port in West Africa, accounting for about 70% of Nigeria's import and export cargo transportation.?There are significant trade barriers in the customs clearance process at Nigerian ports, characterized by complex customs procedures and high berthing and loading/unloading fees. The Nigerian government implements a pre-shipment inspection system and a dual inspection system upon arrival at the destination port, causing port congestion and delays that can last for months. Companies should anticipate this and plan accordingly.
Especially in Africa, including Nigeria, due to unstable electricity supply, communication is often preferred via telephone.?Therefore, it is essential to keep detailed records during communication and confirm all details through email or other written forms.
Approximately 50% of Nigeria's population is Muslim, 40% is Christian, and 10% follows other religions. There is a clear hierarchy, with subordinates often addressing superiors by their job titles, academic titles, or military ranks. Before greeting, they are accustomed to lightly tapping the other person's palm with their thumb before shaking hands. When conversing, avoid direct eye contact to prevent unnecessary misunderstandings.?Additionally, the left hand is considered unclean, and it is taboo to pass things or food with the left hand. The number "13" is considered unlucky and should be avoided in interactions.
2.Nigeria-related Data Websites
Nigeria Customs Service:
Nigeria Customs Exchange Rate:
Nigerian Postal Service Inquiry:
Nigeria Yellow Pages:
Nigerian Trade-Related Government Departments and Organizations
Ministry of Industry, Trade and Investment (the department in charge of trade):
https://www.fmti.gov.ng/ (currently inaccessible due to server issues)
Ministry of Communications and Digital Economy:
Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA):
Nigerian Export Promotion Council (NEPC):
Nigerian Export Processing Zones Authority (NEPZA):
Nigerian Ports Authority (NPA):
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Nigerian Shippers' Council:
Standards Organization of Nigeria (SON):
Nigeria Trade Hub:
3.Taxes and Duties for Exporting to Nigeria
Both individuals and business entities engaged in the import of goods in Nigeria are required to pay import duties and other taxes. All import taxes and fees are calculated based on the freight value, i.e., the Cost, Insurance, and Freight (CIF) price.
Nigerian tariff rates range from 0% to 35%,?with an average rate of 16.96%. Some goods are exempt from duties, such as books.
Value Added Tax (VAT) = Standard VAT rate of 5% × (CIF price + customs duty + excise duty + other taxes).
There is no tax exemption threshold in Nigeria. Taxes are levied regardless of the size of the imported goods value.
Excise Tax: A tax is levied on certain goods?at a rate of 5%-30% based on the total of CIF price and customs duty.
Sugar Tax: A tax is levied at a rate of 10%-20% based on the total of CIF price and customs duty.
Rice Tax: A tax is levied at a rate of 20% based on the total of CIF price and customs duty.
Tobacco Tax: A tax is levied at a rate of 50%-100% based on the total of CIF price and customs duty.
Vehicle Tax: A tax is levied at a rate of 10%-20% based on the total of CIF price and customs duty.
4.Nigerian Customs Clearance Document Requirements
1) Cargo Tracking Note or Cargo Import Manifest (CTN NO.)
2) Original Bill of Lading
3) Packing List
4) Customs Invoice
5) SONCAP Certificate
6) Certificate of Origin
7) Inspection and Quarantine Certificate (for live birds and animals, a sanitary certificate must be attached)
8) Other documents
a. Risk Assessment Report (RAR tax payment voucher)
b. For food, cosmetics, and pharmaceutical products, a joint certificate of manufacture and free sale is required
c. For food, basic food ingredients, and feed, one radioactivity certificate and two ingredient analysis certificates are required
d. For alcoholic beverages, a certificate of brewing age is required
e. The complete company name and address of both the shipper and the consignee must be provided and displayed on the bill of lading.
5.Nigerian SONCAP Certification
The Nigerian SONCAP certification is a pre-shipment conformity assessment program implemented by the Nigerian Standard Organization for controlled products exported to the country. Imported products must be verified and tested in the supplying country and obtain a SONCAP certificate (SC certificate)?to prove that the products comply with applicable standards and regulations. Companies exporting to Nigeria need to perform two steps to handle this certification:
1)Apply for a Product Certificate (PC)
2)Use the obtained PC to apply for a single batch conformity certificate?SC(SONCAP Certificate).
It is important to note that companies must first apply for a PC and only after obtaining the PC can they apply for an SC.?After obtaining the PC, provide the PC to the Nigerian importer, who then applies to the local bank for the FORM M form; with the FORM M form, the company uses the FORM M form and the obtained PC to apply for the SC.
At present, China has established a production capacity cooperation mechanism with 15 African countries, and Chinese companies are involved in the planning, construction, and operation of more than 50 industrial parks in African countries, laying a cooperative foundation for more Chinese companies to go to Africa. More and more Chinese companies are looking to Africa, with hope and contemplation in their sights.