Daniel Gumm
7 November 2008
NEXPORTRADE Houses Ltd, an initiative by the various small and medium enterprises in Nigeria, has launched Nigeria into formal international trade, and the country is going to reap some benefits by way of revenue.
It all started with a trade delegation to Liberia, spearheaded by NEXPORTRADE.
The delegation, led by the organisation's chairman, Mr. Romeo Barberopoulos went into trade negotiations with the various Liberian marketing associations on the modalities of the two countries - Liberia and Nigeria coming together in the areas of trade facilitation for mutual benefit and to stem the menace of adultrated goods in circulation in the Liberian market.
At the end of the negatiations, NEXPORTRADE Liberia Inc. was launched. Besides, NEXPORTRADE Nigeria also organised a seven-day exhibition which started on Nigeria's Independence Day. The exhibition featured 17 Nigerian companies.
NEXPORTRADE, according to the organisers of the exhibition would provide trade facilitation institution and infrastructure to the West African sub-region as the idea is that small and medium enterprises in Nigeria could take advantage of the infrastructure put in place by NEXPORTRADE to be able to export their products to the West African sub-region.
Prior to NEXPORTRADE, major companies in Nigeria found it very difficult to export their products to the sub-region. The people that take advantage of the situation are the Lebanese and Chinese. And they have flooded the Liberian market with various substandard goods.
In the series of meetings that took place, NEXPORTRADE Chairman, Barberoupolos, who highlighted the benefits of the two countries coming together said the company would enjoy consular protection, being a quasi-governmental organisation which offers maximum comfort to trade facilitation.
He said NEXPORTRADE offers exporters a permanent exhibition space for Nigerian products and provides a credible export links, beside providing a safe hub for goods and consignments within the sub-region.
He also explained that the venture between Liberia and Nigeria would offer both countries the benefit of discount on freight charges on consignment and market intelligence and check-mating of faked Nigerian products in Liberia.
For Nigeria to derive benefit from this venture, it should develop strategies to counter the moves of the Lebanese members of the Liberian Chambers of Commerce to checkmate Nigerian products in Liberian market.
Lebanese traders, who are mainly importers and wholesalers are working surreptiously to stop Nigerian products from coming into Liberia. Nigeria should develop a strategy to pre-empt the Lebanese moves. The support of the Nigerian government is critical in this aspect of trade facilitation.
The visits to three Liberian markets by the some members of the delegation were instructive. Three categories of fast-moving Nigerian products - Household goods; Building materials and Hardwares, and Healthcare products - were in the open market. Liberia as at now is import-oriented. There is no industry in Liberia. Given that fact, the proximity of Nigeria to Liberia is linkable economy. There is nothing that they need in that market that the Nigerian market can not provide.
This NEXPORTRADE Liberia initiative, is to embrace the whole area in Liberia. The Liberia marketing associations as a stakeholders in NEXPORTRADE should continue to educate the Liberians because the position is now different from their previous perception about Nigeria. They have embraced the idea and that the company is jointly owned by Liberia and Nigeria. In the nearest future Nigeria will be a major player in the Liberian economy.
With good strategy of market penetration, good pricing, publicity and commitment on the Nigerian side, it has been taken for granted that NEXPORTRADE will be a success because what the Lebanese were bringing to Liberia are substandard goods. And since SON has signed an MOU with the Government of Liberia to standardise the commerce of Liberia, products that do not have certification, will not enter the Liberian market.
That is an edge for Nigeria because most industries in Nigeria have ISO certification, NIS certification and are NAFDAC approved. Nigeria has the edge already. What is left for Nigeria is managing the situation strategically by working with the right groups, right pricing, and good quality.
Nigeria shouid coordinate properly. If you are doing market penetration, price and price is an important factor because you have to be mindful of the purchasing power of the people. Besides, since the Federal Government has given Nigerian manufacturers an export exit - they should use that to give the right pricing for the export of their goods. Export prices are different from the domestic prices. The export incentive is for the exporters to do exportable pricing for good penetration of the market.
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