Export Pricing and Payments: Protecting Your First International Sale

CredaBiz Export Series · Part 6 of 6. Sources checked 30 October 2026. Requirements depend on your product, destination and shipment.

An export order can look profitable until you add the costs omitted from the first quote. Cleaning losses, inspection, bank charges, finance, destination handling and delays can consume the margin between your supplier’s price and the buyer’s offer.

Price the actual transaction, including who carries each cost and when money moves. Then test whether the business can finance it and survive a reasonable delay.

Start with saleable quantity

If you buy 1,000 kilograms but lose 5% during sorting or preparation, you have 950 kilograms to sell. Dividing costs by the quantity purchased understates the cost of each saleable kilogram.

Record usable yield and rejected material. Do not assume the supplier’s scale weight, the packed net weight and the buyer’s accepted weight will be identical.

Build an all-in cost sheet

NEPC’s export-pricing guidance emphasises covering associated costs, knowing break-even, using realistic margins and reviewing exchange rates and delivery terms.

Illustrative example only: these are invented planning figures, not commodity prices, freight quotes or government tariffs.

At 950 saleable kilograms, break-even is approximately ₦3,368.42 per kilogram. A target gross margin of 20% requires an invoice value of ₦4,000,000: cost divided by 0.80. That is approximately ₦4,210.53 per saleable kilogram.

Adding a 20% markup to cost would produce ₦3,840,000, which is a different calculation. Its margin is about 16.67%. Know which measure you are using.

This example’s margin is before any costs or taxes excluded from the model. Establish their treatment with your adviser and identify which destination costs the buyer pays.

Quote in a currency you can manage

If your costs are in naira and the invoice is in dollars or euros, record the exchange rate, its source and the quotation date. State how long the quote is valid. Recalculate when supplier prices, freight or the exchange rate move materially.

Do not promise a fixed foreign-currency price for months while leaving all your naira costs open. Discuss available risk-management options with the bank instead of speculating on future rates.

Name the delivery term and the place

Incoterms allocate defined delivery, cost and risk responsibilities; they do not settle every contractual issue, including payment or ownership. Write the chosen rule, named place or port and edition in the contract.

The ICC guidance on FCA and FOB distinguishes delivery to a carrier from delivery on board a vessel. FCA may be more suitable when a container is handed over at a terminal; FOB is a sea/inland-waterway rule. Do not use “FOB airport” or choose a term solely because it appears on someone else’s invoice.

Ask a qualified provider to explain the delivery point, who books carriage, who buys insurance and who clears imports. Avoid taking destination obligations you cannot lawfully or practically fulfil.

Match payment terms to buyer risk

This is a commercial decision framework. Ask the processing bank to confirm the appropriate instrument, documentary requirements and handling for the actual contract. A letter of credit with conditions you cannot meet can still leave you unpaid.

Never release goods or original controlling documents solely because someone forwards a payment screenshot. Confirm receipt and availability of funds through your own bank. Verify changes to beneficiary or bank instructions using an independent contact channel.

Keep export proceeds and tax records organised

CBN’s published reform guidance states a 180-day repatriation period for non-oil proceeds from the bill-of-lading date and notes the suspension of extensions from January 2025. Confirm the current applicable manual, circulars, shipment trigger and any product-specific treatment with your authorised dealer bank before signing payment terms. Do not confuse this with e-NXP validity.

Reconcile the invoice, bank receipts, fees, exchange differences and any agreed credit note. Maintain separate records for sales, owner transfers and refunds. A bank credit is not automatically sales revenue, and money collected for another party is not automatically your income.

Avoid a blanket claim that exporting removes all tax obligations. Product, supply, entity and current legislation matter. Have the relevant treatment checked and retain supporting records.

Finance and insurance are different from grants

NEXIM’s export credit insurance addresses specified non-payment risks, subject to eligibility and policy terms. It is different from cargo insurance, which addresses insured physical risks. Neither should be assumed to cover every loss.

The NEPC Export Expansion Grant is described as a post-shipment incentive for qualifying active exporters. It is not guaranteed startup cash. Confirm the current application window, conditions and settlement position before including any expected incentive in a funding plan.

Protect the name you are building

Use written supplier and distributor arrangements. Clarify the use of brand assets, territory, exclusivity, performance expectations and termination before granting commercial rights.

A Nigerian trademark filing does not automatically establish protection in every destination. Check the target market before a distributor registers your brand or you invest in a large packaging run. CredaBiz’s trademark and brand-protection service can help define the Nigerian filing scope; overseas rights require the appropriate route and advice.

Your first-order decision

Proceed only when the product is permitted, the buyer is verified, the batch meets the agreed requirements, the documents align, the payment arrangement is workable and the cash plan covers the cycle. If a gate fails, fix that gap before adding volume.

After a pilot, compare forecast with actual cost. Review losses, transit time, document errors, buyer feedback and collection. Use that evidence to decide whether to repeat, renegotiate or change the offer.

Build a business that can repeat the sale

CredaBiz’s advisory, compliance support, and business-plan tool can support clearer planning and records. Your bank, insurer, technical specialists and competent authorities handle their respective decisions. A strong export business earns repeat orders by combining credible presentation with reliable execution.

Return to: Part 1, How to Start Exporting from Nigeria.

Start with Part 1: How to Start Exporting from Nigeria.