Daropshipping Business in Nigeria

How To Start A Successful Dropshipping Business In Nigeria

Starting a dropshipping business in Nigeria is a great first step into entrepreneurship. You’ll be able to sell products to customers, set your own product prices, and market your very own brand. You don’t even need to pay for inventory until it’s sold to an actual customer.

This article’s purpose is to clear any doubt you may have, suggest dropshipping business ideas to you and give you actionable steps to starting a successful business.

What is Dropshipping?

Dropshipping is a retail method that involves the retailer NOT having items in stock, but rather purchases the items from a third party supplier which could be a manufacturer, wholesaler, or another retailer, and have it delivered directly to the customer.

How does dropshipping work?

The cycle of dropshipping is a pretty simple one. 

  • Step one: Customer places an order from your online store.
  • Step two: Your store automatically sends the order to your dropshipping supplier 
  • Step three: Dropshipping supplier prepares your customer’s order.
  • Step four: Dropshipping supplier ships the order directly to your customer.

Advantages of the dropshipping business

  1. You don’t have to worry about having a physical stock of products before you can sell something to your customers.
  2. The supplier is responsible for the products in his own stores and will take care of shipping or supplying the customers in your own name.
  3. Customers don’t have to know you are a middle man 
  4. It’s relatively quick and easy to start.
  5. Great opportunity to make passive income 
  6. You can start from home.
  7. It’s easy to scale up when your customer base increases.

What do you need to start a dropshipping business in Nigeria or anywhere else?

  1. A good business idea: A good business idea is necessary to start a successful dropshipping business. Ask yourself, what do you want to sell? Carve out a niche for yourself and determine the category of products you want to sell
  2. Choose a good supplier: Find a supplier who is dependable and reliable and also sells at affordable prices so you can make a profit.
  3. Create your online store: Get quality pictures of the products from your supplier and post them online. Always remember to check if items are still in stock!
  4. Open a business account: A business account will help your business be more financially capable. You çan place restrictions on the account to enable proper finance management. Click here to open a business account with ALAT.

A WEMA business account is highly suited for this. It is an account created to target small businesses and can be operated online for ease of business. It is designed to help small businesses grow. It has a minimum opening balance of just N10,000 and has the full benefits a current account has to offer. Charge rates on this account are affordable at a monthly turnover.

Some Dropshipping Niches Ideas

Here are some of the trending businesses online at the moment;

  • Men’s Clothing & Accessories Dropshipping Niches
  • Women’s Fashion & Accessories Dropshipping Niches
  • Health & Wellness Dropshipping Niches
  • Kids & Babies Dropshipping Niches
  • Home & Kitchen Dropshipping Niches
  • Phone Accessories Dropshipping Niches
  • Home and Pets
  • Cars and Motorbikes
  • Electronics
  • Hair Extensions and Wigs

How to Start A dropshipping business in Nigeria

 1. Find out what you want to sell: 

What kind of products are needed at the moment? What problem needs to be solved? This and more will influence your decision on the niche you want to carve out for yourself.

2. Find a supplier 

This is another important step. Find a supplier who will be willing to allow you to serve as an intermediary between him/her and the consumers. Also, find out if they will be willing to handle the logistics of delivery. 

3. Build your website: 

If you can do this yourself, great! If not, pay to get this done. Buy a domain name, host your site and you are ready to go! Simple websites can be created with sites like WordPress. Alternatively, you can market your products on social media platforms like Instagram, Facebook, and even WhatsApp for business.

4. Invest in marketing 

Marketing methods essentially depend on you. Nowadays, marketing is now digital. Beyond having a website, consider building your online presence via popular social media platforms like Facebook, LinkedIn, Twitter, etc. You can also use popular e-commerce platforms like Jumia, Konga, etc to host your products.

5. Keep proper financial records

While dropshipping can earn you a tremendous amount of money, it is important that you account for this money. Separate your personal finances from your business account records and ensure that everything is well documented.

That said, dropshipping is big money for those who can put in the work. While competitors may arise due to the minimal logistic efforts required, it’s important that one keeps up-to-date with the latest marketing trends in order to stay ahead of the competition.

Dropshipping FAQ

Below are some dropshipping business in Nigeria frequently asked questions (FAQ) by other people that might also be helpful:

  • Does dropshipping work in Nigeria?

Yes, dropshipping does work in Nigeria. Consider hosting your products on e-commerce platforms like Jumia or selling via social media.

  • How much profit can you make with dropshipping?

Considering the fact that you will be using very little capital to start the business in the first place, you’re bound to make a profit no matter how much you sell. The  amount of profit you make depends on how many products you sell and the width of your profit managing  

  • How can I become a drop shipper?

Quick and simple, just follow the steps above and you’ll be on your way to starting your own dropshipping business.

  • Is it worth starting a dropshipping business in 2021?

Yes! Due to the current economic crisis, many are looking for easy ways to make passive income, and dropshipping is one of them 

  • Is dropshipping free to start?

This largely depends on what you want to start with and the complexity of your business model. 

  • Can you dropship on Amazon?

Yes,  you can.

  • How much money do you need to start dropshipping on Amazon? 

Amazon has two packages, the first one which is charged at$0.99 and the second being the bulk package that cost $50.00

  • Why is dropshipping bad?

Dropshipping has both advantages and disadvantages (please see above). One of the major disadvantages is visibility. Because the client believes that the drop shipper is the retailer, any slip up on the part of the supplier can be disadvantageous to the drop shipper’s business.

7 Tips To Help You Network Profitably As An SME

I hope that since receiving our letter on The Nigerian Exporter, you have begun to make moves towards enlarging your market by taking advantage of the export opportunities we exposed you to. Whichever way this goes, trust that we in Wema Bank are rooting for you. Feel free to share your success stories and challenges (if any) with us at smehelpdesk@wemabank.com

This month, we will be addressing another important aspect of business growth, one that most small entrepreneurs tend to take for granted: Networking. 

We bet you have heard these sayings, “Your network is your net-worth,” and, “It’s not what you know, it’s whom you know.” All these are true, especially in our ever-competitive business world. Having a healthy network of business contacts can be one of your greatest assets as a business owner.

So how do you build this healthy business network? Ride with us let’s take you through.

Download ALAT For Business

What is Networking?

Meeting and interacting with people are an essential part of human nature. Hardly a day goes by without humans interacting with each other virtually, or in person. It is so commonplace that we often overlook the sheer force of power that this random act wields. It is this random act of interaction that the “pros” perfect and build a strategy around to propel them into becoming business tycoons.

Simply put, networking is making deliberate efforts to build connections with people whom you believe would contribute to the growth of your business.

For some people, networking comes easy. But for others, it can be a nightmare. The good news is that networking, just like any skill, can be learnt. So, if you are an introvert and would rather not be bothered about networking; or if you are one of those whose schedules are so tight that you can hardly make room for lunch, let alone networking, do not fret. With just a little commitment to the tips I will be sharing today, you will find yourself shining through.

Why you Should Care About Networking

If you are going to be spending time building a skill, especially one as daunting as networking, it’s only fair that you’re convinced of its worth. I have itemized some of the most compelling reasons why you should care about building a strong and healthy business network below. I hope you find them convincing.

  • To increase your inter-personal connections: People do business with people that they know, like and find dependable. Company decisions are made by people. Actual human beings. Being connected to someone who is in the room when important decisions that may be beneficial to your business are being made, gives you an edge.
  • To help with lead generation: Taking part in networking activities opens you up to meeting potential business partners and clients. You never know where or from whom your big break will come, but the wider your business network, the better your chances of catching a break.

 

 

  • To help with brand visibility: The more you network, the more people get to know about you and your business. The more known your brand, the more trustworthy it becomes, and the easier it is for existing connections to refer new clients/businesses.
  • To stay up to date: The business world is ever-changing. Networking with local business people can keep you up to date with the latest news or trends.
  • Friendship: Your connections might grow to become friends or even family. This is not emphasized enough, but it is very important because at the end of the day, what truly matters is whom we have in our tight corner.

How Can You Network Effectively?

Now that you know why networking is so important, I’m sure you are eager to get started. The tips below will be very helpful in your quest to building a formidable business network:

  1. Decide on a purpose: Do not fall into the trap of approaching networking in an ad-hoc way. It is a strategic business decision and should be treated as such. Decide on what you are looking for in a network (customers, contracts, fresh ideas, etc.) This will help you draw up a plan and show you where to focus your efforts.
  2. Use good networking etiquette: Upon meeting people, do not launch straight into speaking on end about your business. This is very off-putting. Rather, strive to make personal connections and build relationships of mutual benefit by listening to other people’s opinions, challenges and needs.
  3. Leverage social media: Social media can be a great place to start. You can join conversations and groups on LinkedIn or Facebook or whatever your preferred social media platform. However, keep in mind that physical meetings are very important in building long-lasting relationships. Work to achieve a balance between the virtual and physical aspects of maintaining relationships.
  • To help with brand visibility: The more you network, the more people get to know about you and your business. The more known your brand, the more trustworthy it becomes, and the easier it is for existing connections to refer new clients/businesses.
  • To stay up to date: The business world is ever-changing. Networking with local business people can keep you up to date with the latest news or trends.
  • Friendship: Your connections might grow to become friends or even family. This is not emphasized enough, but it is very important because at the end of the day, what truly matters is whom we have in our tight corner.

 

 

 

Do not limit yourself to the above list. Get creative about other ways that you believe will help you build and grow a professional network. Whatever strategies you apply, always remember the following when attending networking events:

  • Go with your business cards
  • Take care with your appearance—it matters
  • Do not spend all your time with people you already know. The idea is to meet new people, keep that in mind
  • Prepare a brief speech with which to introduce yourself and your business
  • Focus on what you can do for others, and not what they can do for you
  • Show genuine interest in what others do. Listen and ask questions
  • Always leave a conversation with an open opportunity to reconnect

Conclusion

People are the real wealth. This is as true of individuals as it is of nations. Networking allows you to maximize this wealth. Never pass it up.

Author – Ndianabasi Udondian

business ideas - pos business machine-4625847_1920

Business Ideas | How to Start A POS Business in Nigeria

Starting A POS Business In Nigeria

The Point of Sales – POS business began to spread in Nigeria in 2013 after the Central Bank of Nigeria (CBN) introduced the agent banking system in 2013. This opened up a new portal for financial services to reach bank customers in remote, unbanked, and underbanked societies. This means that POS businesses serve as a way to extend the services offered by financial institutions to relatively unreached parts of society. 

This is not the only problem solved by the agent banking services, however. Despite the push for a cashless economy in the world, Nigeria and other developing countries like it are still predominantly cash-based. The long queues and irregular network services at Automated Teller Machines (ATMs) encourage many customers to find alternative ways of receiving money or performing transactions. Asides from this, it also helps consumers withdraw money with ease when the nearest ATMs are far away. In other words, POS businesses make it easy for consumers to get the money they need in exchange for a commission. 

pos business machine

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Many individuals often express skepticism about the profitability of such a business. However, the market for this business is large and diverse – including anyone who has a bank account and needs to perform any transactions. It is indeed a lucrative business. Although they are a retail channel provided by banks, POS agents are not direct employees of banks and so hold autonomy over their businesses.

Services offered by POS businesses

Some of the services offered by these businesses include:

  1. Withdrawing money from any bank account
  2. Opening a bank account (read about how to open a wema bank account online)
  3. Depositing money into any bank account
  4. Paying utility bills such as electricity, airtime, water, and so on.
  5. Sending money into any bank account
  6. Enrolling for Bank Verification Number (BVN)

Advantages of owning a POS business

Two notable advantages of owning a POS business are:

  1. Low capital needed to start: Unlike most other businesses, the POS business does not require large sums of money in order to start. A minimum balance of N50,000 is adequate to begin the business. The cost of starting is also reduced by the fact that you do not need a fancy shop to host the business. Many of such businesses in Nigeria are simply a table and chair placed in a strategic location or a wooden shed. 
  2. The unlimited number of customers: Profit-making is relatively easy with this business as the target market is a large subset of the Nigerian population. The POS agent can make unlimited transactions in a day and run into large profits. 

How to Become a POS Agent 

The process of starting a POS business is easy and can be completed within 2 weeks to a month, provided you meet the requirements of the host bank. 

  1. Raise capital: As earlier mentioned, the capital required for the business is low. You also do not have to worry about extravagant furniture fittings for your shop. A humble store with a clear sign advertising your services works well. Get a business loan from WEMA Bank
  2. Get a good location: Densely populated areas work great for a business such as this. Look for crowded areas with pedestrian traffic such as markets, motor parks, residential areas, and so on. 
  3. Fulfill the official requirements: Financial services are a sensitive area of life to deal with and this is why the Central Bank of Nigeria has taken several precautions to ensure the integrity of those who will qualify to be agents. One of such requirements is that you must have an existing business of any type (in operation for at least 12 months) and have a shop or office from which you operate. 
  4. Approach a bank and apply for the POS machine: Decide on the bank of your choice and approach them to get the details of their requirement. By applying to become a POS agent, you can either get the POS machine leased, bought, or even for free. The official CBN guide allows you to be an agent for as many banks as you desire. Fill in the necessary documentation and wait for your application to be approved.

Documents Needed to Apply for POS Machines from Bank

Some documentation you may need include:

    1. Valid means of identification such as a Driver’s license, National ID Card, Voter’s ID Card, etc.
    2. Passport photographs
    3. Bank Verification Number (BVN)
    4. Current Account references
    5. Evidence of business registration (CAC Certificate)
    6. A minimum capital of N50,000

Once your application is approved, you will receive the POS machine and you may begin offering your services to customers. 

How do POS agents make money?

The POS business is very profitable in Nigeria. This is partly due to the lack of access to banks within rural communities and remote settlements.

Once you have a good location and have built trust with the locals, you can be making as much as 7000-10,000 Naira on average, daily.

This figure comes from the commission that is gotten from every customer that uses the POS machine. A percentage also goes to your POS provider while you keep the rest as commission.

Top Agency Banking Providers

Here are some POS agents you might like to consider; 

  • OPay POS
  • Bankly
  • Monie Point POS
  • Firstmonie POS
  • Kudi POS
  • GTB POS
  • Pay force
  • Paga
  • Zenith Bank mobile money agent
  • Access Bank CLOSA agent
  • Quickteller Paypoint
  • Ecobank Xpress point
  • Baxi Box
  • UBA POS
sports betting in nigeria

Sports Betting Business | How to Become A Sports Betting Agent

Sports Betting In Nigeria

sports betting in nigeria and how to become a sports betting agent

Nigeria, Africa’s most populous nation is also known to be one of the largest online sports betting markets in the world. It takes the 7th position among other African countries. In this article, we will be exploring the nitty-gritty of sport betting in Nigeria, popular sports betting agents, how to start your sports betting business, and some frequently asked questions.

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The History of Sports Betting in Nigeria

Sports betting is a rather recent phenomenon in Nigeria’s market. It was introduced in 2009 by a certain Akin Alabi. He was the creator of Nairabet, Nigeria’s first-ever legal online sports bookmaker. Until 2016, NairaBet probably had the highest online users.

Dotun Ajegbile was also another successful sports betting agent. He founded the famous 1960-Bet which gradually rose to number one in the industry.

Bet9ja officially launched in October 2012, building on the 1960’s foundation by opening company shops and creating agent/partnership portfolios. Bet9ja changed its strategy and decided to target viewing centers and to support them with materials and training where needed. They continued to look out for more opportunities and realized that betters spend long idle hours in company shops, and so the idea of instant games was born.

Bet9ja introduced a state-of-the-art virtual dog race into the market through an existing company and retail shops (outlets) and it became an instant success.

Since then, betting has become rather popular amongst the Nigerian lower and middle class.

The Pros and Cons of Sport Betting

Sports Betting, although now more technologically advanced, has its advantages and disadvantages. Winning requires the right strategies, skills, and tools. Here are some of the common pros and cons of sports betting people experience;

Pros of Sport Betting

  • Sports Betting doesn’t dwell in the realm of luck – well at least not all the time
    Like most things in life, sports betting gets better with time and experience. You have an opportunity to sharpen your skills by adding to your knowledge of the particular sport they’re betting on. Luck will definitely have a role to play, but there’s at least something you can control.
  • Many find it rather amusing
    The thrill and excitement that come from the game in itself are quite satisfying. While it can seem quite disappointing when one loses, it is still considered a fun game. But be sure to take baby steps before diving in fully!
  • Options are varied
    The good thing about sports betting is the number of available options to choose from. This can help you focus on your area of expertise or interest and increase your chances of winning.

Cons of Sport Betting

  • Sports Betting can be addictive
    One cannot deny the addictive power of sports betting or any kind of gambling for that matter. This is why having a plan and actual knowledge about any sport you’re going to bet on cannot be overemphasized.
  • It Gives a False Sense of Control
    Knowledge and information about a particular sport are great and may increase the chances of winning. However, it can be easy for people to become overconfident and think that they have a sure shot based on this. Discipline is key, regardless of how savvy one may think he is.
  • In the end, the odds are usually in the favour of sports betting agents.
    This may be in the “pro” category, particularly if you’re running a business. In the end, it is a business and has been fine-tuned for years to bring in profit for the sports betting agents. It is a viable industry that has been designed to reduce your chances of winning – unless you’ve cracked the code.

With a large number of options for punters in Nigeria in terms of both domestic and international betting platforms, deciding which bookmaker is the best is no easy task. Based on Alexa’s ranking, below are the top 20 sports betting websites in Nigeria.

  1. Bet9ja
    According to the rankings, Bet9ja is the No. 1 online betting website in Nigeria and the second most popular website in Nigeria after Google. Whether you are a fan of the Premier League, the online casino, virtual and racing products, or the Super9ja jackpot, Bet9ja is the bookmaker for you.
  2. Betking
    BetKing is the fastest-growing betting company in Nigeria. With headquarters in Lagos State, BetKing is working towards a nationwide expansion that places several physical shops across all states in Nigeria.
  3. Betwinner
  4. Sportybet
    One of the newest Nigerian betting sites is Sportybet. Sportybet offers all games betting which include basketball, football, tennis, rugby, cricket, volleyball, ice hockey, handball, darts, etc.
  5. 22Bet
  6. NairaBet
    Nairabet is Nigeria’s first online sports betting website. The platform was started by the popularly know Nigerian entrepreneur Otunba Akin Alabi.
  7. IrokoBet
  8. 1xBet
    1xBet is a Cyprus-based gambling company with outreach operations in Nigeria. The platform has managed to gain tremendous popularity within a short period of time.
  9. MerryBet
  10. BetWay
    Betway registered itself in the Nigerian market with the aim of offering a dynamic, easy-to-use betting product that Nigerians can access to win big off of small bets. This means that you can expect low minimum bet requirements with massive potential payouts above the industry standard.
  11. Melbet
  12. Betfair
  13. Access Bet
  14. Naija Bet
  15. Winners Golden Bet
  16. Lions Bet
  17. SureBet247
  18. Bet365
  19. Betdico
  20. BetW

Sports Betting Frequently Asked Question

Can sports betting be a business?

Yes! You can decide to start your own online betting company or you can become an agent for some of the big wigs in Nigeria’s betting industry.

Difference between a betting shop and a sports betting agent?

A Sports Betting Agent is a person (or company) who makes betting easy for you, by betting on your behalf. Rather than having an account with several bookmakers out there and betting with them directly, you can bet through a betting agent who has an account with multiple bookies.

A betting shop, on the other hand, is an establishment licensed to handle bets on races and other events. In simple terms, it’s a place you go to place bets.

Are sports betting a profitable business?

Sports Betting is extremely profitable, especially in a country like Nigeria. 

How profitable is a betting shop?

With a thriving youth population actively involved in sports betting, the profitability of betting shops in Nigeria is by far unquestionable. Punters spend an average of 3000 on betting because of the unifying power of football. A 2016 report by KPMG revealed that Bet9ja makes a whooping monthly turnover of $10m while its close competitor, NairaBet makes an average turnover of $3m to $5m with a 20-30% margin on profit.

How to start your own sports betting business

Starting your own sports betting business isn’t a piece of cake. Here are some of the processes to starting an online sport betting business 

  • Invest in professional software
    This is probably the most important decision you will make when starting your business. It is essential that you do proper research as this will be a long-term partnership.  Evaluate your available options based on what’s top-of-the-mind for you- in terms of quality of service and price. You want to choose a software provider that has a deep understanding of the online gaming industry and has launched successful online betting platforms.
  • Get licensed
    Before being able to operate your online betting business within Nigeria, you must acquire a gaming license from the Nigerian Investment Promotion Commission (NIPC), Special Control Unit against Money Laundering (SCUML), and the National Office for Technology Acquisition and Promotion (NOTAP). Some operators are also required to secure a Capital Importation Certificate and liaise with the Federal Inland Revenue Service (FIRS) to get a Tax Identification Number and register for Value Added Tax (VAT).
  • Choose a reliable payment system provider
    Your winning punters are going to have to be paid when they win, hence you must make a proper agreement with a payment service provider. Ensure you have several options so it is convenient for your punters. Also, remember to have clearly stated terms and conditions.
  • Invest in an attractive betting website
    One of the major selling points of leading betting businesses is an attractive website that is also highly responsive on mobile because this is what most people use to access the internet. Invest in your front-end development, it makes all the difference for players and helps your business stand out.  

SME Loans from WEMA bank

Wema Bank has a variety of small business loans that can get you started in your betting business. You can get working capital, asset finance, or even school fees or health loans to ensure you’re in top shape to run your business.

How to get an SME loan from WEMA Bank.

To apply for an SME loan or any other loan from WEMA Bank is very easy. Simply feel free to visit any Wema Bank branch closest to you, or visit ALAT By WEMA to take advantage of the instant loans without collaterals.

With ALAT, you can apply for loans quickly and easily, and with zero paperwork too! You can borrow up to two million nairas without collateral. 

Simple steps to get on ALAT;

  • Download ALAT App
  • Login to ALAT or sign-up if you don’t already have an account 
  • From the menu items, click on ‘’Loans’’
  • Read through and understands the ALAT disclaimer
  • Upon successful credit evaluation and checks, a loan offer is presented with duration and applicable interest based on the user’s current risk score
  • Read through and accept the Terms & Conditions which will contain consent to having your account debited for repayment at loan due date and provide your debit card details to be debited
  • Your account will be immediately credited.

At the payback date if the instant loan is still outstanding you will get a repayment notification after which your account will be automatically debited and you will receive a repayment notification. You may also wish to repay the instant loan before the payback date from the Bills Payment option on the menu.

What’s more?

If you’re a Bet9ja, Premier Lotto, Winners Golden Bet, or Merrybet staff member, you can also take a low-interest collateral-free salary loan! 

All you have to do step by step is:

    1. Download and sign up on the ALAT app
    2. Click on the “Take a loan” tab
    3. Input amount and loan duration 
    4. Select industry (gaming)
    5. Then select employer as KC gaming network and upload work ID
    6. Click on ‘Proceed’
    7. Now select an account where salary is domiciled 
    8. Accept offer if qualified or eligible 
    9. Proceed for disbursement of loan

The Nigerian Exporter

It's been a particularly busy month for us in Wema Bank. The first edition of the long-awaited Wema SME Business School, which we told you about in our last newsletter, kicked off successfully earlier this month, with an attendance list that featured 50 business owners, just like yourself! If you were a part of this first-class, we say a hearty congratulations! to you, and if you haven't been invited (or if you haven't applied yet), please keep an eye on this space for more details.

For the August edition of the SME newsletter, we will be moving back to our usual focus on identifying growth opportunities for our customers. On this note, we will be talking about exporting for Nigerian businesses.

With a population of over 200 million, Nigeria is perceived as the largest market in Africa. In theory, such a number of people offers up vast business and sales opportunities to business owners domiciled in the country, as they have access to more than enough potential customers that will allow them to attain a reasonable scale. The reality of things, however, is very different. Factors such as income distribution, regional behavioural characteristics, and other demographic qualities, mean that the actual available market size for any business owner is generally lower than the nation's total population, often by a significant percentage—and this figure varies by industry. This article by Stears Business breaks it down for the Nigerian market very clearly.

In light of this market reduction, the enterprising entrepreneur must seek out the means to maximize the obtainable market and create an entirely new one where possible. One of the ways to do this and remain in the same line of business is to look beyond the shores of your country (Nigeria) and explore other nations as potential markets for you to sell your goods and services.

Keep in mind that African countries have become more open to exporters from within the continent since the launch of The African Continental Free Trade Area (ACFTA) on January 1, 2021. In summary, this agreement opens up the entire African continent to local companies - an opportunity too good to miss.

Download ALAT For Business

As a business owner, exporting your products offers up benefits and opportunities such as:

  • Access to more customers and new markets, which will bring added revenues
  • Diversifying market opportunities beyond the vicissitudes and limitations of your home market
  • Increased brand recognition
  • More income in the form of foreign exchange or dollars

These benefits also filter out to the larger Nigerian state, as the nation as a whole earns much needed foreign currency, which can then be channelled to other equally beneficial activities.

With this in mind, this is how you become an exporter in Nigeria:

  1. Do some research: "He who fails to plan plans to . . ." When exporting products to other countries, make sure that you carry out your research correctly. Try to know everything about the export business itself, as well as the requirements or standards for goods you plan to export. This research also includes building a knowledge base of the applicable tariffs and the documentation that will be required.

Key points to note:

  • Try to determine how quickly you can establish contacts in your desired country and find enough customers there. Also, think about how you will advertise and promote your product in the new country.
  • Think about the cost involved (fees such as export duties add to this) and decide if your business will be able to stay competitive and profitable
  • You will also have to think about the means of transportation that you will use to move your products to the new country. Do some research on the most convenient (not necessarily the cheapest) shipping companies or cargo flights available.
  • When you are done with transportation and market research, look into the legal requirements within your home country and the export country. You need to find out the kind of documents required and the conditions your company must adhere to. This includes the certification process; in most cases, you will be required to certify your goods or register them somehow. The Nigerian Export Promotion Council (NEPC) is available for more professional support.
  • You can also learn by seeking out other individuals in this line of business and learning from them.

3. Register your business: All non-oil product exporters in Nigeria are required to have a Certificate of Incorporation and export licenses. There are two government agencies vested with the power to grant export licenses in Nigeria. The Nigeria Export Promotion Council (NEPC) issues out export licenses for agricultural commodities & manufactured goods, and the Federal Ministry of Solid Minerals Development, which grants permits for extraction & exportation in Nigeria.

An exporter must also complete the e-form NXP. Payments to the exporter will be credited to an account maintained with an Authorized Dealer Bank once the business is completed. If you need further clarification please email us via TradeServices@Wemabank.com and we will be happy to guide you.

4. Process your documentation: Note that the documents required will depend on the country of origin (Nigeria) and destination. Usually, the papers will have to be prepared in a particular way to comply with all the countries' requirements. For example, in Nigeria, the export documents need to be submitted to the customs authorities for cargo clearance. In addition, certain countries require a consular invoice, which is used to identify and control the movement of goods.

Generally, all countries have three stages of processing for exports; a one-time registration procedure to obtain an export licence, some documentation needed for exportation, and customs clearance formalities. You can also visit the NEPC website here.

 

 

 

 

In closing, here are some fun facts about the export business in Nigeria according to the National Bureau of Statistics:

  1. At ₦2.91 trillion, the value of total exports in Q1 2021 decreased by 99% against the level recorded in Q4 2020 and 29.26 % compared to Q1 2020.
  2. Nigeria's top five export trading partners in Q1, 2021 were India (₦488.1 billion or 79%), Spain (₦287.2billion or 9.88%), China (₦190.1 billion or 6.54%), Netherlands (₦160.billion or 5.50%) and France ((₦133 billion or 4.59%). ₦282.2 billion worth of goods were exported to ECOWAS countries.
  3. Nigeria had a trade deficit (in goods) of ₦3.94 trillion in Q1 2021.
  4. The value of Crude oil exports stood at ₦1.93 trillion, representing 38% of the total exports recorded in Q1 2021, whilst non-crude oil exports accounted for 33.62% of the total exports.
  5. Nigeria exported mainly mineral products, valued at ₦49 trillion, or 85.52% of the total export value. This was followed by Vehicles, Aircraft and parts, and vegetable products.
  6. The major traded agricultural products in the quarter are sesamum seeds, fermented cocoa beans, cashew nuts (in shell), coconuts, ginger, sesame oil, raw cocoa beans, cashew nuts (shelled), palm nuts and kernels, ginger (neither crushed nor ground) and shea cakes, in that order.

In conclusion, exporting your products will allow you to diversify your market, grow your customer base, improve your standards, and earn income in dollars (which is always a good thing). This is a business direction that every business owner should seek to explore.

A Bank? A University? Why Not Both?

In the five months of the publication of this newsletter, we have walked you through the African Continental Free Trade Agreement (AfCFTA); the 2020 Nigeria Finance Act; sourcing finances for your business; and even the intricacies of managing those funds once you have acquired them. If you have been following us on the journey thus far, we hope your businesses have begun to reap the benefits of your new knowledge. Click here to read Volume 1 and Volume 2

We have received your feedback and heard your reviews, and we can say that, to some considerable measure, we have done well. Happy customers mean a happy bank, and we are very happy, but your happiness raises a new challenge for us.

Put simply: what next?

What is the next thing that we can do for our customers? How can we continue to create value and exceed the expectations of our customers while doing so?

The needs of all business owners in Nigeria are very well known; access to finance, lack of knowledge around government regulations and market developments, power supply, dearth of suitable talent, and, in some cases, a simple lack of business know-how. We have made efforts to address the first two, through our services as a bank, and through our monthly publications. For the third, we have an attractive asset acquisition scheme that can provide the funds for customers to acquire items such as generators and inverters. For the fourth, well…please do not poach any of our amazing and world-class staff. This leaves us with the fifth challenge, and we have selected this as our focus for the next couple of months.

As the bank that is with you all the way, we are proud to introduce our first-of-its-kind training facility for business owners: the Wema SME Business School.

The Wema SME Business School is an initiative aimed at bridging key knowledge gaps for SMEs in Nigeria. It was birthed in the bank’s bid to identify and solve major problems plaguing SMEs in the country and is specifically designed to impact skills and knowledge that are relevant to players within the SME segment. We believe that the problems SMEs face in Nigeria can largely be curtailed with the right knowledge, skills and tools that enable effective business management, and a better understanding of the macro-economy within which they operate.

 

Wema Bank will be running a school for business owners. Talk about innovative customer service!

The Wema SME Business School is open to any business owner who is interested in managing his/her business more effectively to achieve any business goal. There are no academic prerequisites for admission into the program. The simplicity and versatility of the course plan ensure that SMEs with various academic backgrounds are accommodated. Furthermore, the business school is completely FREE! The bank will also provide writing materials, breakfast, and lunch for all participants for the entire duration of the program. A certificate will be issued to all participants at the end of the program.

For answers to any questions, you may have about the business school, please click here.

All interested parties are welcome to register here. Although the slots are limited, we will be running this program at least twice every year, with in-class and online sessions, so you will be considered for other editions if you do not make the cut for this one.

 

 

So, just in case you are still not convinced, here are a few of the benefits you will stand to gain from being a participant:

  • A robust curriculum covering the broad areas of finance, marketing/sales, leadership, technology, strategy, innovation, and business transformation.
  • The services of top-notch consultants from within and outside Nigeria who would be facilitating this program. This includes representatives from the Frankfurt School of Finance and Management.
  • Opportunities to network and rub minds with business owners and leaders from various sectors.
  • Did we mention that this will come at absolutely zero cost to you?

A Bank? A University? Why Not Both?

In the five months of the publication of this newsletter, we have walked you through the African Continental Free Trade Agreement (AfCFTA); the 2020 Nigeria Finance Act; sourcing finances for your business; and even the intricacies of managing those funds once you have acquired them. If you have been following us on the journey thus far, we hope your businesses have begun to reap the benefits of your new knowledge. Click here for Volume 1 and Volume 2

We have received your feedback and heard your reviews, and we can say that, to some considerable measure, we have done well. Happy customers mean a happy bank, and we are very happy, but your happiness raises a new challenge for us.

Put simply: what next?

What is the next thing that we can do for our customers? How can we continue to create value and exceed the expectations of our customers while doing so?

The needs of all business owners in Nigeria are very well known; access to finance, lack of knowledge around government regulations and market developments, power supply, dearth of suitable talent, and, in some cases, a simple lack of business know-how. We have made efforts to address the first two, through our services as a bank, and through our monthly publications. For the third, we have an attractive asset acquisition scheme that can provide the funds for customers to acquire items such as generators and inverters. For the fourth, well…please do not poach any of our amazing and world-class staff. This leaves us with the fifth challenge, and we have selected this as our focus for the next couple of months.

As the bank that is with you all the way, we are proud to introduce our first-of-its-kind training facility for business owners: the Wema SME Business School.

The Wema SME Business School is an initiative aimed at bridging key knowledge gaps for SMEs in Nigeria. It was birthed in the bank’s bid to identify and solve major problems plaguing SMEs in the country and is specifically designed to impact skills and knowledge that are relevant to players within the SME segment. We believe that the problems SMEs face in Nigeria can largely be curtailed with the right knowledge, skills and tools that enable effective business management, and a better understanding of the macro-economy within which they operate.

Wema Bank will be running a school for business owners. Talk about innovative customer service!

The Wema SME Business School is open to any business owner who is interested in managing his/her business more effectively to achieve any business goal. There are no academic prerequisites for admission into the program. The simplicity and versatility of the course plan ensure that SMEs with various academic backgrounds are accommodated. Furthermore, the business school is completely FREE! The bank will also provide writing materials, breakfast, and lunch for all participants for the entire duration of the program. A certificate will be issued to all participants at the end of the program.

For answers to any questions, you may have about the business school, please click here.

All interested parties are welcome to register here. Although the slots are limited, we will be running this program at least twice every year, with in-class and online sessions, so you will be considered for other editions if you do not make the cut for this one.

 

 

 

 

 

So, just in case you are still not convinced, here are a few of the benefits you will stand to gain from being a participant:

  • A robust curriculum covering the broad areas of finance, marketing/sales, leadership, technology, strategy, innovation, and business transformation.
  • The services of top-notch consultants from within and outside Nigeria who would be facilitating this program. This includes representatives from the Frankfurt School of Finance and Management.
  • Opportunities to network and rub minds with business owners and leaders from various sectors.
  • Did we mention that this will come at absolutely zero cost to you?

What are you waiting for? Sign up for the Wema SME Business School today!

Two New Non-Executive Directors Join Wema Bank

Wema Bank has announced the appointment of two Non-Executive Directors to its Board of Directors following the approval of the Central Bank of Nigeria. The two new directors are Prince Olusegun Adesegun and Mr Adeyemi Adefarakan, both of whom are bringing a wealth of corporate administrative experience to the bank. Prince Olusegun Adesegun is a Psychologist with a Masters’ Degree in Industrial Psychology from the University of Ibadan.

He worked in Pyramid Products Limited, starting as Manager in Training and rose to become the General Manager of the then Eastern Zone in 1988. Upon retirement, he engaged in private business and has over time garnered experience in marketing administration, management, and supply chain logistics solutions. He eventually became the CEO of Pecol Ventures Limited – a cash crop export and paper products company which he helped grow from a small producer to a large, world-class Agric-Export firm.

Between 2011 – 2015, Prince Olusegun Adesegun served as the Deputy Governor of Ogun State. He is currently a Career Counsellor and Consultant for high-quality investment decisions. In a career that spans 20 years, Adeyemi Adefarakan joins Wema Bank’s Board of Directors with valuable experience in global investment banking, portfolio risk, asset, and financial management exposure. He graduated with a BSc (Hons) in Economics & Accountancy from the prestigious City University, London, and holds a master’s degree in International Securities, Investment & Banking from the acclaimed ICMA Centre at the University of Reading, U.K. He is also an alumnus of the Emerging CFO: Strategic Financial Leadership Programme at Stanford Graduate School of Business, USA, and currently pursuing a Global CEO Africa Programme in the triumvirate of business schools comprising Lagos Business School, Strathmore Business School (Nairobi, Kenya) and Yale School of Management (Connecticut, USA).

He forged his career on the trading floors of some of London’s financial powerhouses including State Street Global Markets, DRW Investments, JP Morgan Chase, Deutsche Bank and HSBC Global Asset Management. In his years in London, he traded both vanilla and complex instruments and risk-managed multi-billion-dollar multi-asset portfolios. Mr Adeyemi currently serves as the Group Chief Financial Officer and an Executive Director on the board of CBSL (Continental Broadcasting Service Limited) alongside other board positions where he creates and extracts shareholder value through active board engagement. 

Speaking on the appointments, Mr Ademola Adebise, MD/CEO of Wema Bank said: “It thrills us to welcome the new appointees to the Board of Wema Bank. The decision to appoint Mr Yemi and Mr Olusegun is because of their wealth of experience in corporate and public administration which is key to the success of the Board of Wema Bank. We believe their skills and industry will be valuable to the bank as we work to actualize our goals of becoming the Most Dominant Digital Banking Platform in Nigeria.”

Wema Bank Rewards Customers in 5 for 5 promo

Leading innovative financial institution, Wema Bank, is fulfilling its promise to make this year as exciting as possible for its customers with the commencement of its newly launched reward scheme, 5 for 5, in which customers stand an excellent chance to win amazing prizes over the next nine months.

Beginning from the 1st of July, the bank will be rewarding its customers with cash prizes to appreciate them for their unwavering loyalty and patronage. The reward scheme, which will run for a record of 9 months, will see some customers move up the social status ladder as millionaires emerge in the promo draws that will cover many customers in different locations in the country.

In the mind-blowing promo, N31.5 million would be given away to customers in nine months by the bank marking its 76th anniversary this year. There is a monthly grand prize of N1,000,000 for 1 customer, N100,000 for 20 customers and N10,000 consolation prizes for 50 customers monthly. This gives a total of 71 people getting rewarded each month.

Explaining the participation process, Retail Divisional Head, Wema Bank, Dotun Ifebogun, disclosed that it is open to new and existing customers. “All they need to do to win is fund their accounts with at least N5,000 and carry out a minimum of 5 transactions on either ALAT, USSD or with their cards, monthly and maintain a minimum account balance of N10,000 at the end of the month,” Dotun said.

He further noted that the unique thing about the 5 for 5 promo is the equal chance it gives everyone to participate. It is open to new and existing customers and those who reactivate their accounts. To meet those needs, banks need to make customer experience the starting point for process design hence our desire to reward as they transact. According to him, 5 for 5 Promo is another way of putting a smile on the faces of its customers and changing their lives for good.

Dotun stated: “5 for 5 is unique because our customers nationwide have the chance to become millionaires every month after electronic draws. We are known for going the extra mile to give our customers the best, and this is just one of our numerous ways of appreciating them.”

WEMA Bank Plc, announces a 43.64% growth in Profit Before Tax (PBT), to N2.61billion for the 6 months ended 30th June 2019.

LAGOS, NIGERIA 26th July 2019 Wema Bank PLC (Bloomberg: Wema NL) (Wema or the Bank”), announces its unaudited results for 6 months ended 30th June 2019.

Financial Highlights

  • Gross earnings increased by 47% (Y-o-Y) to N40.83billion from N32.03billion in HI 2019.
  • Profit before Tax (PBT) grew by 64% Y-o-Y to N2.61billion in HI 2019 from N1.81billion in 2018
  • Deposit liabilities increased by 80% to N446.02billion from N369.20billion in 2018 FY
  • Net Loans increased to 96billion in H1 2019, an increase of 11.41% (N252.19 billion in 2018FY
  • Total Asset up by 40% to N632.53 billion (N488.80 in 2018 FY).

 

Ademola Adebise, MD/CEO of Wema Bank Plc, commenting on the results, stated that:

“The Financial Performance of the bank in the 1st half of the year is largely in line with our expectations and our strategic aspirations’

Despite the prevailing tepid economic conditions with GDP growing slowly at slightly above 2%, the bank has been able to grow deposits by 20.80% and increase its loan book by 11.41%. The Banks Loan to Deposit ratio (LDR) was above the new minimum threshold of 60% with NPLs below 5%. Gross Earnings increased by 27.47% to N40.83billion from N32.03billion reported in H1 2018 driven by a double-digit growth in Interest and Fee based income. Profit before Tax was N2.61billion, a 43.64% growth when compared to N1.82billion reported in H1 2018.

Regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 14.59% and Liquidity Ratio at 34.81%.

Within the 1st half of the year, inspired by the need for improvement of women and the society, the bank launched “Sara by Wema”, a female proposition designed to enable women benefit from growth opportunities that help maximize their personal or business goals. Also, within the period, the bank had its first Hackathon event with the aim of bringing the young and entrepreneurial mindset of Nigerian youths together to use technology to solve problems and to provide them with financial and advisory services. ALAT our flagship digital Bank now accounts for close to half-a-million customers on our platform’”.

Adebise further stated that, “the economy is still not growing fast enough and there are concerns that the fragile recovery can be derailed if key structural reforms are delayed”. For Wema Bank, our clear mandate of delivering on the Most Reliable, Convenient and Simple banking platform continues and we will measure our success by number of active customers and number of partnerships that we develop across the business landscape. We are positive that we will sustain the double-digit ROE numbers and provide better returns to shareholders.

‘Ademola Adebise (MD/CEO)

 

Financial Performance Review

Income statement (N’bn) HI 2019 H1 2018 (∆) (∆%)
Gross Earnings 40.83 32.03 8.8 27.47%
Interest Income 32.89 25.39 7.5 29.52%
Non-interest income 7.94 6.64 1.3 19.64%
Operating expense 16.40 13.57 2.83 20.93%
Profit before Tax 2.61 1.82 0.79 43.64%
Profit after Tax 2.25 1.57 0.68 43.31%
Earnings Per Share 11.60kobo 8.20kobo 3.4 41.46%

 

Balance Sheet (N’bn) H1 2019 FY 2018 (∆) (∆%)
Total Assets 632.53 488.80 143.73 29.40%
Loans and Advances (Net) 280.96 252.19 28.77 11.41%
Deposits 446.02 369.20 76.82 20.80%
Shareholders’ Funds 52.03 50.89 1.14 2.24%

 

Key Ratios (in %) HI 2019 H1 2018 (∆)
Return on Average Equity 10.57 7.39 3.18
Return on Average Asset 0.99 0.81 0.18
Net Interest Margin 5.69 7.24 -1.55
Capital Adequacy Ratio 14.59 13.27 1.32
Liquidity Ratio 34.81 32.05 2.76
Loan-to-Deposit Ratio 62.98 62.96 0.02
Non-Performing LoansRatio  3.55  3.31  0.24