Trade Synergy between Nigerians at Home and Abroad

 Trade Synergy between Nigerians at Home and Abroad

It’s no more news that Nigerians are scattered all over the world and that out of every 4 blacks you see on the surface of the earth, one of them would likely be a Nigerian. This to me is a very big opportunity as far as the export business is concern but we are nowhere near tapping into these potentials as the Asians have done for over past 3 decades. The ever increasing population of Nigerians in different parts of the world (which are potential export market) is a great opportunity for the Nigerians at home to explore by simply working with other Nigerians abroad to develop the export markets.

Apart from the facts that most Nigerians and other Africans in all these countries are hungry for African foods, clothing and other items of African Origin, these countries are highly industrialized and they therefore need most of the Nigerian commodities (both Solid Minerals and Agricultural commodities) as raw materials to be used in producing various items in their factories. 

To the extent that trade synergy between Nigerians at home and abroad is of great benefit to both parties and our nation at large, it is also interesting to note that this trade synergy have weaknesses and threat which confronts the strength and opportunities respectively. The SWOT analysis below reveals the details of the Strength, Weaknesses, Opportunities and Threat of the proposed trade synergy between Nigerians at home and abroad.

1.       Strengths

a.       Seller understands the local market

b.      Buyer understands the export market

c.       Buyer and seller can easily do due diligence on each other

d.      Buyer and seller can get references and/or a guarantor if need be

e.      3T Impex will work as buyer’s agent to ensure that good quality products are supplied

f.        3T Impex will work with the seller to review the export contract and obtain a favourable payment terms

2.       Weaknesses

a.       Inadequate skill to better manage the business

b.      Inadequate finance

c.       Inadequate local market information

d.      Inadequate export market information

e.      Inadequate infrastructure for quality analysis

f.        Locating reliable suppliers in Nigeria and credible Nigerian buyers abroad

3.       Opportunities

a.       Inexhaustible export  market demands

b.      Multiple export markets

c.       Export market development for more Nigerian products

d.      Large array of exportable commodities in Nigeria

e.      Large deposit of solid minerals in Nigeria

f.        Large volume of exportable waste generate daily in Nigeria

4.       Threats

a.       Fraudulent buyers and /or seller

b.      Supply of low product quality

c.       Political unrest and country risk

d.      Buyer’s insolvency and payment risk

e.      Foreign Exchange risk

f.        Trade barriers strategies operational in different countries

To tackle most of the issues (weaknesses and Threat) raised above and thereby reducing the inherent risks in this synergy and thus making the proposed international trade business synergy feasible between Nigerians at home and abroad, 3T Impex Consulting Limited have designed a service called the  Nigerian Trade Synergy Service (NTSS).

For more information on how the NTSS works, kindly check our next blog posting titled 3T Impex Service: Nigerian Trade Synergy Service (NTSS).