Cassava export from Nigeria

1. EXPORTING CASSAVA FROM
NIGERIA
By: Ajakumbi Baba
Usman

2. WHAT IS CASSAVA
Root tuber crop
Grown in Africa, Asia
and the LAC.

3. Uses of Cassava
• Cassava is consumed as food only
in the developing countries
• Mixing in making Animal feed

4. PRODUCTION STATISTICS
World production of cassava root was estimated to be
184 million tonnes in 2002, rising to 230 million
tonnes in 2008 (FAO).
The majority of production in 2002 was in
Africa-99.1 million tonnes .
Asia-51.5 million tonnes .
Latin America and the carribean-33.2 million tonnes .
Nigeria is the world's largest producer of cassava.
Thailand is the largest exporter(FAO-UN). – 77%

5. EU MARKET
• The European Union feed market for dried cassava is
well established.
• The EU has allocated a quota of 145 000 tonnes to
World Trade Organisation members, excluding
Thailand, Indonesia and China.
• This quota has never been reached. But it is noted by
traders that the pig-feeding industry in Bretagne
could absorb as much as 10 000 metric tonnes per
month of chips from West Africa.
• The chips would of course have to be at appropriate
price, quality and supplied throughout the year

6. CASSAVA CHIPS
Specification of cassava chips for livestock feed
A general specification for
cassava chips intended for Parameter Percentage
export to the European
Community for use in
Moisture (maximum) 10-14
livestock feeds is given in
Table. Chips should be
white or near white in Starch (minimum) 70-82
colour, free from
extraneous matter, Total Ash (maximum) 1.8-3.0
moulds, insect infestation
and damage and possess
Crude fibre (maximum) 2.1-5.0
no peculiar odours. In
addition, shipments of
chips must not contain Sand and other extraneous matter (maximum) 3
significant amounts of
dust, as this is considered Cyanide (maximum) 100 mg/kg
unacceptable by European
importers.
Dimensions (maximum in cm) Lenght 4-5 cm
Thickness 1.5 cm

7. TCG Nig .
• TCG entered the cassava chip market in 1993 in
partnership with Tranex, a livestock feed brokerage
based in Belgium, that supplies feed ingredients to a
number of feed millers in Belgium and France.
• Initial exports were of negligible size but in 1996 the
company exported 19,725 tonnes to the EU.
• During this period the company purchased cassava
for US$30 per tonne (farm gate price) and sold
cassava chips for anything up to US$152 per tonne.

8. TCG Process of Exporting Cassava
Farmers forward
6states,where Farmers group of
batches to zonal
farmers produce TCG
buying centers
Broker takes
Transported by Transported by
responsibility to
Ship to TCG feed road to TCG
distribute to
broker in Europe warehouse
feedmillers

9. TARIFFS
Under Nigeria's Export Prohibition Act;
• export of certain agricultural goods is prohibited for purposes of domestic
food security and of local processing.
• Agricultural products banned from export include: raw hides and skin,
timber (rough or sawn), unprocessed rubber latex and rubber lumps, rice,
yams, maize, and beans.
• An administrative levy of US$5 per tonne applies to exports of cocoa
beans, and US$3 per tonne to exports of other agricultural raw materials.
• Zero tariff for cassava exportation.
• Exports are subject to a sanitary certificate (animals and related products)
or to a phytosanitary certificate (vegetal goods).

10. PAYMENT METHODS
• Exporter and Importer sign the purchase contract
• Importer requests for Letter of credit (LC) and release funds to its Bank
• Importer’s Bank Issue LC and sends it to the Exporter’s Bank
• Exporter’s Bank advises the LC the Exporter
• Exporter ships the goods to the Importer
• Exporter forwards shipping documents to its Bank
• Exporter’s Bank forwards shipping documents to the Importer’s Bank
• Importer’s Bank transfers the funds to the Exporter’s Bank
• Exporter’s Bank pays the Exporter
• Importer’s Bank release the shipping documents to the Importer
• Importer clears its goods using the shipping documents

11. DOCUMENTATION
The documentation is for all exporters, agencies that deal with exporting good from Nigeria.
Export business worldwide is mainly about documentation. This is because much reliance is placed on
documents relating to price, quantity, packaging, shipment/movement, origin etc., in a bid to confirm
adherence to stipulated procedures. The buyer for instance needs documents that would enable him
clear the goods in his country while the seller/exporter needs documents to ensure that he will get
paid. Consequently, goods may not be exported to destination outside Nigeria unless the exporter has
complied with the prescribed documentation requirements.
Anyone willing to engage in export business is required to register with the Nigerian Export Promotion
Council (NEPC).
An exporter is required to complete and register Form NXP with an Authorized Dealer (any Commercial or
Merchant Bank) of his choice.
The objectives of completing the Form NXP are to ensure:
That goods to be exported meet with the buyer’s expectation (order) since the goods will be subjected to
inspection, conducted by relevant Government agencies. Depending on the export items, these
include: Plant Quarantine, (Federal Ministry of Agriculture), Federal Produce Inspection Service
(Federal Ministry of Commerce and Tourism), National Agency for Food and Drugs (Federal Ministry of
Health) and Standards Organization of Nigeria (SON).

12. DOCUMENTATION CONT’D
That only goods that have satisfied the buyer’s order have been shipped – the Nigeria
Customs Service on shipment will duly certify a copy of the form.
That proceeds (payment) due to the exporter are duly repatriated within 90 days of
shipment of goods and credited to his Domiciliary Account maintained with the
Authorized Dealer that proceed or registered the Form NXP.
Exporters are allowed foreign exchange chargeable to their domiciliary accounts for the
following export promotion activities:
Business travel allowance
Export-oriented business trips duly certified and approved by the bank where the
domiciliary accounts is maintained.
Export-related activities such as trade missions, trade fairs, export marketing, research
etc.
The exporter is also to sell part or all of his export proceeds in this Domiciliary Account for
Naira to any Authorized Dealer at the prevailing buying rate in the Autonomous
Foreign Exchange Market (AFEM).
Export proceeds from Domiciliary Accounts could also be used by exporter for imports
provided the proceeds have been fully repatriated in the first instance.

13. LAW REGULATIONS
FEDERAL MINISTRY OF COMMERCE
The Federal Ministry of Commerce (FMC) is responsible for
articulating of trade policies for Nigeria within the world trade
organization framework.
It is also charged with the following responsibility:-
Export through the NIGERIAN Export Promotion Council (NEPC)
Import
Foreign exchange management
External trade
Domestic trade
Weight and measures
Trade malpractices
Consumer protection council.
Nigerian Export Processing Zones.

14. Other regulatory agency
NIGERIAN EXPORT PROMOTION COUNCIL
The Nigerian Export Promotion Council (NEPC) was established through the Nigerian
Export Promotion Decree No. 26 of 1976 with the following.
MANDATE
To promote the development and diversification of Nigeria's export trade.
To assist in promoting the development of export-related industries in Nigeria;
To spearhead the creation of appropriate export incentives;
To actively articulate and promote the implementation of export policies and programmes of the
Nigerian government.
it implements its mandate under four key tasks, namely:
- Export development
- Export financing and incentives
- Human resources training and development
- Coordination and cooperation with multilateral institutions

15. PROCEDURE AND DOCUMENTATION
REQUIREMENT
A duty completed Form NXP
A proforma invoice
A sales contract agreement, where applicable
NEPC registration certificate
Relevant certificate of quality as issued by one or more of the agencies
involved in exporting
Shipping documents e.g. bill of exit, bill of lading etc.
Other certificates e.g. Form EUR-1

16. THE END
THANK YOU
QUESTIONS??