Exporting from Nigeria presents lucrative opportunities for businesses. But before you can tap into the global market, understanding the cost of export license in Nigeria is essential.
This comprehensive guide will break down the various fees and charges associated with obtaining an export license, giving you a clear picture of the investment required.
Why Do You Need an Export License in Nigeria?
An export license is a legal document authorizing a business to export goods from Nigeria.
It ensures compliance with trade regulations, promotes fair trade practices, and helps the government track export activities.
Without a valid license, you risk penalties, delays, and even the seizure of your goods.
So, understanding the cost of export license in Nigeria is not just about budgeting; it’s about ensuring your business operates legally and efficiently.
Decoding the Cost of Export License in Nigeria
The cost of export license in Nigeria isn’t a single, fixed price. It’s comprised of several components, each contributing to the overall expense. Let’s break down these costs:
1. Registration Fees
Before applying for an export license, you must register your business with the Corporate Affairs Commission (CAC).
This involves fees for name reservation, registration, and other related services.
While not directly tied to the export license itself, it’s a prerequisite, and therefore, part of the initial investment.
CAC Registration Fees
| Service | Cost (Naira) |
|---|---|
| Name Reservation | ₦500 |
| Private Company Registration (≤₦1M) | ₦10,000 |
| Public Company Registration (≤₦1M) | ₦20,000 |
| Stamp Duty (first ₦1M) | ₦8,500 |
| Same Day Incorporation | ₦50,000 |
| Certified True Copy | ₦6,500 each |
These vary depending on the business structure (sole proprietorship, limited liability company, etc.). Check the CAC website for the most up-to-date fee schedule.
2. Application Fees
Once your business is registered, you can apply for an export license through the Nigerian Export Promotion Council (NEPC). The NEPC charges an application fee, which is a non-refundable processing fee.
NEPC Application Fee
| Service | Cost (₦) |
|---|---|
| New Certificate Registration | 13,500 |
| Expired Certificate Renewal | 7,500 |
| Late Certificate Renewal | 12,500 (if renewed after three months of expiry) |
| Lost / Mutilated Certificate | 12,500 |
| Professional Registration Assistance | 50,000 – 150,000 (varies by service provider) |
This is a fixed fee payable upon submission of your export license application. Consult the NEPC website for the current fee.
3. Licensing Fees
If your application is successful, you’ll need to pay a licensing fee to obtain the actual export license. This fee can vary depending on the type of goods you intend to export.
NEPC Licensing Fee
The NEPC determines this fee and is subject to change. Refer to the NEPC’s official publications for the latest fee structure.
To obtain an Exporters’ Registration Certificate from the Nigerian Export Promotion Council (NEPC), the following fees apply:
- New Certificate Registration: ₦13,500
- Expired Certificate Renewal: ₦7,500
- Late Certificate Renewal (after three months of expiry): ₦12,500
- Lost/Mutilated Certificate Replacement: ₦12,500
These fees are exclusive of any remita or bank charges that may apply during the payment process.
Payment Methods
Payments for the registration can be made through various methods, including:
- Local credit/debit cards
- International credit/debit cards
- Internet banking
- Payments at commercial banks in Nigeria via the Remita platform.
Validity and Collection
The issued certificates are valid for an initial period of two years and can be renewed annually thereafter. Physical collection of certificates has been discontinued; instead, exporters can download and print their certificates directly from their accounts on the NEPC e-registration portal.
4. Other Associated Costs
Beyond the direct fees, several other expenses can impact the overall cost of export license in Nigeria:
- Consultancy Fees: Some businesses opt to hire consultants to guide them through the export licensing process. These consultants charge fees for their services, which can vary widely.
- Documentation Costs: Preparing the necessary documents, such as product certificates, quality assurance reports, and packaging details, can incur costs.
- Logistics and Transportation Costs: While not directly related to the license, you’ll need to factor in the costs of transporting your goods to the port of export.
- Clearing and Forwarding Fees: These fees are paid to clearing agents who handle the customs documentation and logistics of exporting your goods.
Read also: Latest Requirements for Export License in Nigeria
How To Minimize the Cost of Export License in Nigeria
While some costs are unavoidable, you can take steps to minimize the overall cost of export license in Nigeria:
- Prepare Your Documentation Thoroughly: Ensure all your documents are complete and accurate to avoid delays and additional processing fees.
- Utilize Online Resources: Leverage the NEPC website and other online resources to access information and guidance on the export licensing process.
- Consider Consulting Services Wisely: If you choose to hire a consultant, research and compare their fees and services before making a decision.
- Plan Your Export Logistics Efficiently: Optimize your transportation and clearing processes to minimize costs associated with exporting your goods.
Step-by-Step Guide to Obtaining an Export License in Nigeria
Understanding the cost of export license in Nigeria is just one part of the process. Here’s a step-by-step guide to obtaining your export license:
- Register Your Business with the CAC: Complete the necessary registration procedures and obtain your certificate of incorporation.
- Register with the NEPC: Register as an exporter with the NEPC.
- Gather the Required Documents: Prepare all the necessary documents, including your CAC registration certificate, product details, and other relevant certifications.
- Submit Your Application: Submit your export license application along with the required documents and application fee to the NEPC.
- Pay the Licensing Fee: Upon approval of your application, pay the licensing fee to obtain your export license.
- Obtain Your Export License: Once the licensing fee is paid, you will receive your export license.
Top Tools and Resources for Nigerian Exporters
- Nigerian Export Promotion Council (NEPC): The official government body responsible for promoting and regulating exports in Nigeria. (nepc.gov.ng)
- Corporate Affairs Commission (CAC): The government agency responsible for the registration of businesses in Nigeria. (cac.gov.ng)
- Federal Inland Revenue Service (FIRS): The government body responsible for tax collection in Nigeria. (firs.gov.ng)
Read also: How to Generate Remita Receipt: A Step-by-Step Guide
Conclusion: Investing in Your Export Future
Understanding the cost of export license in Nigeria is a crucial first step for any business looking to venture into international trade.
While there are costs involved, obtaining an export license is an investment in your business’s future.
Don’t let the perceived complexity of the process deter you.