How Nigerians can start an import/export business between the US, UK, Canada and China — a detailed step-by-step guide
Introduction
If you’re reading this, you already know there’s huge demand for cross-border trade: low manufacturing costs in China, large consumer markets in the US/UK/Canada and a thriving Nigerian market for quality imported goods. But practical problems — unreliable suppliers, shipping delays, customs headaches and payment friction — can sink a profitable business before it starts.
This guide walks you through everything, from choosing products and finding suppliers to shipping, customs clearance and collecting payment from customers in the US/UK/Canada.
I’ll include checklists, supplier email templates, common pitfalls and diaspora-friendly payment options so you can start confidently and scale responsibly.
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1. Choose the right product and validate demand
Don’t fall in love with an idea; fall in love with evidence.
Pick a product that sells: small-ticket, repeat purchase items or high-margin niche goods work best.
Examples that work well for Nigeria: electronics accessories, fashion (wigs, textiles), cosmetics, spare parts, small household appliances and phone accessories.
Also consider what you could export (agricultural and processed goods) to Western markets. See exporters’ lists for inspiration.
Validate demand: use Amazon, eBay, Etsy, Google Trends, local marketplaces (Jumia, Konga) and diaspora forums to confirm search and purchase interest.
Calculate landed cost before you buy: unit price + freight (air/sea) + insurance + customs duty + local clearing fees + warehousing + last-mile delivery.
If your landed cost is comfortable under local retail prices and leaves room for returns and marketing, you’re in.
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2. Register the business (do it properly)
Operating professionally reduces friction with banks, customs and partners.
Register with CAC (Corporate Affairs Commission) — a sole trader can start, but a limited company builds trust.
Many importers register as an SME to open reliable business accounts.
Several Nigerian guides explicitly note registration as a recommended step.
Get a Tax Identification Number (TIN) and register for VAT if required — your accountant will help with this.
Open a business bank account (and, if possible, a foreign currency account or a domiciliary account) to receive USD/GBP/CAD payments and to pay suppliers.
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3. Source a reliable supplier in China (or the other market)
Where you source your goods matters more than price alone.
Platforms to use: Alibaba, 1688 (via an agent), Global Sources, Made-in-China and verified manufacturers.
For smaller runs, consider AliExpress or trade shows. Recent guides for importing from China to Nigeria explain these channels well.
Request samples and inspect quality before bulk ordering.
Use a random third-party inspection (e.g., SGS, Bureau Veritas) for larger orders.
Negotiate MOQs and payment terms: try to secure a small initial MOQ or sample order; negotiate partial payment on order and balance on shipment.
Use supplier vetting: check company registration, read reviews, ask for factory photos, request references — and watch for common red flags (unwillingness to provide documentation, pressure to pay by random channels).
Supplier outreach script (brief):
> “Hello [Name], I am [Your name] from [Company]. I’m interested in product [SKU]. Could you confirm unit price for 500 units, lead time, MOQ, and ability to ship FOB Shenzhen? Also please send photos, spec sheet and references. Thank you.”
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4. Choose the best payment method and reduce risk
Payment is where many new importers lose their money.
Escrow / trade platforms: Alibaba trade assurance or platform escrow reduces risk.
Letter of Credit (LC): for big orders, LCs protect both parties but have bank fees.
TT (telegraphic transfer): cheap but irreversible — use only with trusted suppliers.
Third-party payment providers: Payoneer, Wise, and specialised platforms enable cross-border transfers and tend to have lower fees for diaspora payments than banks.
Wise is useful for moving USD/GBP cheaply.
Wise and other guides discuss payments and fees for cross-border transactions.
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5. Choose shipping mode and understand timelines & costs
Shipping choice is a trade-off between cost and speed.
Air vs sea: air is fast (7–10 days door-to-door depending on routing) but expensive; sea is cost-effective for bulk (30–60+ days).
Guides show typical lead and transit times and how that affects cashflow.
Incoterms matter: FOB, CIF, EXW determine who pays for freight, insurance and where risk transfers. Choose Incoterms carefully in your contract.
Freight forwarder: hire an experienced freight forwarder who handles consolidation, customs paperwork and local delivery — they reduce surprises.
Several cargo providers publish step guides for China–Nigeria logistics.
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6. Documents and customs: what you must prepare
Missing paperwork equals delays — and high storage fines.
Essential documents:
Commercial invoice (buyer/seller details, unit price, total value)
Packing list (weights, dimensions)
Bill of lading / airway bill (proof of shipment)
Certificate of origin (if you’re claiming preferential tariffs)
Insurance certificate (if goods insured)
Import licences/permits (for regulated products; e.g., some food, cosmetics, drugs require NAFDAC or SON approvals)
Customs and duties:
Check Nigeria Customs tariff codes for duty rates and exemptions. Customs rules and any temporary measures (levies, bans) change — be aware of recent policy moves that affect imports/exports (for example, export restrictions on raw shea nuts). Always monitor government notices.
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7. Customs clearance and last-mile delivery
Use a licensed customs broker — they prepare the Single Goods Declaration, pay duties and get the release.
Budget for additional charges: port handling, clearing agent fees, VAT, demurrage (storage).
Plan last-mile delivery: integrate local couriers for e-commerce; for B2B, arrange palletised delivery.
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8. Quality control, insurance and dispute handling
Inspections: pre-shipment inspection reduces returns. Consider a factory visit, third-party inspection or video inspection for remote orders.
Insurance: cargo insurance covers loss or damage in transit. For higher-value shipments, insure at full replacement value.
Dispute plan: keep clear photographs, inspection reports and shipping records to file claims with suppliers or insurers.
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9. Selling to US/UK/Canada (if you export from Nigeria)
If you plan to export Nigerian goods to the West, follow these steps:
Comply with target country rules (food safety, SPS for agricultural exports, packaging and labelling standards). Check official import guides (e.g., CBSA for Canada).
Consider distributors or marketplaces (Etsy, Amazon, B2B buyers) for market entry.
Use trade-friendly packaging and clearly mark country of origin.
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10. Pricing, currency and bank flows (diaspora angle)
For diaspora customers paying from US/UK/Canada:
Quote in their currency and show converted Naira landed cost transparently. This reduces cart abandonment.
Offer low-fee remittance options (Wise, Remitly) or integrate Stripe/Paystack for card payments (where supported). Comparison guides show which remittance apps perform best for diaspora users.
Hedge currency risk where possible — if you buy in USD/GBP and sell in Naira, small shifts in FX can wipe margins.
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11. Practical checklist (ready to print)
Before you place that first bulk order:
1. Product validated with demand data.
2. Supplier vetted; sample inspected.
3. Business registered (CAC, TIN).
4. Bank/domiciliary account ready.
5. Payment method agreed (escrow/TT/LC).
6. Freight forwarder selected; Incoterm set.
7. Insurance and pre-shipment inspection booked.
8. All documents prepared (invoice, packing list, CO, B/L).
9. Customs broker retained.
10. Warehouse & local delivery arranged.
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12. Typical cost example (very rough)
For a small electronics accessory:
Unit cost: US$2.00
Shipping (sea, per unit): US$0.80
Duty & VAT (estimate): US$0.60
Clearing & local delivery: US$0.50
Insurance & misc: US$0.10
Landed cost: ~US$4.00 — price with margin: US$8–10 retail. Always run your own numbers.
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13. Avoiding scams — practical signals
Always test with a sample order.
Pay through trusted platforms where possible.
Use a freight forwarder with local presence — many scams occur after payment but before shipment.
Join reputable importer Telegram/WhatsApp groups and local networks for real-time alerts. Several recent guides recommend community groups for up-to-date clearing trends.
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14. How to attract diaspora and foreign buyers to your site (marketing pointers)
Create dedicated pages: “How to buy from us from the US/UK/Canada” with clear steps, fees and testimonials.
SEO with geo modifiers: include keywords like “send to Nigeria from UK”, “buy in Nigeria from Canada” and use schema FAQ for featured snippets.
Add payment calculators, remittance advice and downloadable checklists — these get shared on diaspora forums.
Use case studies: show successful shipments with dates, transit times, and testimonials — builds trust for diaspora customers.
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15. Final tips and recommended resources
Start small, test a single SKU, then scale once you’ve ironed out logistics. Global and local guides (Wise, Shopify, freight forwarders) are useful primers but adapt their advice to your model.
Keep records and build relationships — long term suppliers, forwarders and customs brokers are worth their weight in gold.
Watch regulatory news — exporters/importers have been affected by recent policy shifts (export restrictions, temporary levies). Stay subscribed to official trade notices.
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Conclusion
Starting an import/export business between China and Nigeria (and serving markets in the US, UK and Canada) is absolutely doable — but the winners are those who combine product validation, clean processes, protect themselves with the right documents and payments, and communicate clearly to diaspora customers.
Use the checklists above, start with a small tested shipment and scale as your processes and relationships improve.
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Sources Links
Practical import guides and step-by-step posts (Oze, D2D Cargo, Supplyia) for sourcing, shipping and customs processes. https://d2dcargo.trade/blog/import-goods-from-china-to-nigeria/
Shopify and Wise articles for business model and payment best practice.
Freight/ shipping guides for transit time & logistics considerations. https://theintechgroup.com/blog/transit-time-in-shipping/
Official import guidance for Canada (CBSA) and recent policy news (export bans / levy suspension) to highlight regulatory risk. https://www.cbsa-asfc.gc.ca/import/guide-eng.html
❓ Frequently Asked Questions (FAQs)
1. Do I need to register my business before starting import/export between Nigeria and the US/UK/Canada?
Yes. To operate legally, you need to register with the Corporate Affairs Commission (CAC) in Nigeria and obtain an Exporter’s Certificate from the Nigerian Export Promotion Council (NEPC). If you’re based abroad, you may also need a local business licence in the US, UK, or Canada depending on your business structure.
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2. How much capital do I need to start an import/export business from Nigeria?
It varies depending on the products and shipping method. Small-scale traders importing from China might start with $2,000–$5,000, while larger export operations could require $20,000 or more. The main costs include sourcing, shipping, customs duty, warehousing, and logistics.
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3. What documents are required for export from Nigeria?
Common documents include:
Commercial Invoice
Packing List
Bill of Lading or Airway Bill
Certificate of Origin
Export Proceeds Form (NXP Form)
NEPC Export Certificate
Some products may also need additional permits or health/safety certificates.
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4. Which goods are most profitable to export from Nigeria?
Popular exports include agricultural products (cocoa, sesame seeds, cashew nuts, ginger), solid minerals, and handmade crafts. Profitability depends on demand in the target market and your ability to ensure quality standards.
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5. What challenges should I expect in import/export trade?
Key challenges include:
High shipping and customs costs
Risk of delays at ports
Exchange rate fluctuations
International regulations and compliance
Risk of scams (especially when sourcing from new suppliers in China)
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6. Can Nigerians abroad start an import/export business without living in Nigeria?
Yes. Many Nigerians in the diaspora partner with local agents or logistics companies in Nigeria and China to handle sourcing, warehousing, and documentation. You can manage the business remotely while maintaining compliance through trusted partners.
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7. How long does shipping from China to Nigeria take?
Sea freight: 30–45 days (cheaper, suitable for bulk orders).
Air freight: 5–10 days (faster, but more expensive).
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8. What are Incoterms, and why are they important?
Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers in shipping contracts — such as who pays for freight, insurance, and customs duties. Knowing Incoterms (e.g., FOB, CIF, DDP) helps avoid disputes and unexpected costs.
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9. Do I need a licence to import goods into Nigeria?
Yes. Importers must register with the Federal Inland Revenue Service (FIRS) for a Tax Identification Number (TIN), and sometimes need additional permits depending on the product (e.g., NAFDAC for food & drugs).
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10. What is the safest way to pay suppliers in China?
The safest methods are Letter of Credit (LC) and Escrow services. For small businesses, many use Alibaba Trade Assurance or trusted third-party escrow platforms to protect against fraud.
You may also like to read about our content on: Invest, Build, Grow and Connect in Nigeria https://financialliteracy.com.ng/invest-build-grow-connect-in-nigeria/