How To Start A Lucrative Clearing and Forwarding Business In Nigeria

Clearing and Forwarding Business is a crucial aspect of the logistics and transportation industry in Nigeria and Africa. The Clearing and Forwarding Business involves the management of customs clearance and documentation, transportation, and warehousing of goods. In 2019, Nigeria’s trade volume was estimated at about $1.11 trillion, with exports accounting for $458.4 billion and imports accounting for $648.6 billion. The high volume of trade in Nigeria and Africa has made the Clearing and Forwarding Business a vital aspect of the economy.

Who is A Clearing and Forwarding Agent?

Clearing and Forwarding agents are intermediaries who facilitate the transportation of goods across international borders by managing the logistics, customs clearance, and documentation required for import and export. They play a crucial role in the supply chain by ensuring that goods are delivered safely and efficiently.

The global Clearing and Forwarding Business market size was valued at $166.1 billion in 2020 and is expected to reach $215.6 billion by 2028, growing at a CAGR of 3.3% from 2021 to 2028. The demand for Clearing and Forwarding Business services is driven by increasing global trade, rising demand for specialized logistics services, and the growing popularity of e-commerce.

In Nigeria, the Clearing and Forwarding Business sector has been growing steadily, with an estimated market size of N100 billion ($250 million) annually. The country’s strategic location as a gateway to West Africa makes it an attractive destination for Clearing and Forwarding Business. Additionally, Nigeria has signed several bilateral and multilateral trade agreements that have boosted its exports, presenting significant opportunities for Clearing and Forwarding Business.

Register Your Business: Register your business with the Corporate Affairs Commission (CAC) in Nigeria or the appropriate regulatory body in other African countries.

Obtain Required Licenses and Permits: Obtain the necessary licenses and permits required by government agencies such as the Nigeria Customs Service (NCS) and the Nigerian Ports Authority (NPA).

Most people who are new in the industry tend to confuse a lot of terms and rightly so. The line between a freight forwarder and a clearing Agent is so thin. Technically speaking, the Freight Forwarder is that company that mediates importers/exporters of less-than-container loads and the shipping companies while a Clearing Agent is a company or person that works with relevant authorities to ensure the release of imported goods.

The work of an agent is basically that of declaring the cargo and relevant documents. Hence, when we use the term cargo clearing, we mean the process of declaration to the Customs Authority, of goods detail with relevant documents. Clearing Agents are also called Customs brokers.

You can actually combine the two to form a clearing and forwarding business so as to make all the profit from a particular shipment.

Clearing and forwarding business is a very profitable business to venture into. It is capable of generating millions of Naira for you on a monthly basis. Any adult can be a clearing agent. It does not require capital once you are a registered agent.

The Peak Season For The Clearing and Forwarding Business In Nigeria and Africa

The peak supply and demand season for clearing and forwarding business in Nigeria and Africa varies depending on the commodity being cleared and forwarded. For instance, the peak season for agricultural produce such as cocoa, coffee, and cashew nuts is between the months of September and December, while the peak season for petroleum products is between the months of January and June. Additionally, the peak season for electronics and other consumer goods is between the months of October and December, leading up to the Christmas holiday season.

It is important to note that the licenses and permits required may vary depending on the country or region where you plan to operate your clearing and forwarding business. It is recommended that you consult with the relevant government agencies in your country for more information on the licenses and permits required.

The clearing and forwarding business has immense potential in Nigeria and Africa. With the right approach and adequate support, entrepreneurs can overcome the challenges and tap into the opportunities available in this sector.

Clearing and forwarding business is a very profitable business to venture into. It is capable of generating millions of Naira for you on a monthly basis. Any adult can be a clearing agent. It does not require capital once you are a registered agent

Get our resource informationon how you can set up a lucrative clearing and forwarding business. This guide has taken the time to compile all of the information you will need to succeed in this business. Its for both beginners and those already in the business who are experiencing some challenges in clearing goods.

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