Starting an import business in Nigeria can be exciting, especially when you find products overseas at prices that look much lower than what they sell for locally. But many new importers discover that buying cheaply from a foreign supplier does not automatically mean making a profit.
The biggest problems usually happen before the goods even leave the supplier’s country. A wrong HS code, incomplete documentation, poor supplier verification or an inaccurate landed-cost calculation can turn a promising shipment into an expensive problem.
Here are some of the common mistakes new Nigerian importers should avoid.
1. Choosing a Product Without Checking Demand
One of the first mistakes is importing a product simply because it is cheap abroad.
Before placing an order, research how much the product sells for in Nigeria, who your competitors are and whether customers actually want it.
A product may cost very little in China but become expensive after freight, customs duties, taxes and local transportation. If customers are unwilling to pay the resulting price, the shipment may sit in your warehouse.
2. Buying Too Much on the First Order
New importers sometimes see a product selling well online and immediately place a large order.
That can be risky.
You have not yet confirmed the supplier’s quality, the actual demand in your market or the complete cost of importing the product.
Starting with a smaller test shipment can help you understand the process before committing more capital.
3. Choosing a Supplier Because They Are the Cheapest
The cheapest supplier is not necessarily the cheapest option after everything is considered.
A supplier may offer a very low price but have poor product quality, high minimum order quantities, weak packaging or unreliable production times.
Before paying, check the supplier’s business information, reviews, product specifications, sample quality, payment terms and shipping arrangements.
4. Failing to Check Whether the Product Can Be Imported
This is one mistake that can become particularly expensive.
Nigeria has an import prohibition list, while individual products can also have specific regulatory requirements. The Nigeria Trade Information Portal provides product-specific information covering procedures, documentation, costs and regulatory requirements. (NTIP – Nigerian Trade Information Portal)
Do not send money to a supplier before checking whether your particular product is allowed and whether additional approvals are required.
5. Using the Wrong HS Code
The HS code is used to classify imported goods and is important for determining applicable customs duties and regulatory requirements.
Using the wrong classification can result in incorrect duty calculations, clearance delays and other customs problems. (NTIP – Nigerian Trade Information Portal)
Do not simply accept whatever HS code a foreign supplier gives you. Make sure the classification matches the actual product and Nigerian customs requirements.
6. Calculating Profit From the Product Price Alone
This is probably one of the most common mistakes among beginners.
If you buy an item for ₦10,000 and plan to sell it for ₦15,000, that does not necessarily mean you have ₦5,000 profit.
Your actual cost may also include:
- International freight
- Insurance where applicable
- Customs duty
- VAT and other applicable taxes or levies
- Clearing charges
- Terminal or shipping-related charges
- Storage or demurrage
- Inland transportation
- Final delivery
The official Nigerian Trade Information Portal’s duty calculator itself considers factors such as HS code, cost price, freight and insurance when estimating customs duties and taxes. (NTIP – Nigerian Trade Information Portal)
Calculate your landed cost before deciding what you can afford to pay your supplier.
7. Ignoring the Exchange Rate
An importer who agrees to a foreign-currency price without considering exchange-rate movements can underestimate the eventual cost.
If your supplier quotes $5,000, for example, calculate what that amount means in naira and consider the exchange rate that will actually apply to your payments and relevant import calculations.
Leave enough room in your budget for exchange-rate changes instead of calculating everything using an unrealistic rate.
8. Sending Money Before Properly Verifying the Supplier
Fraud is another risk for first-time importers.
Do not assume that a supplier is legitimate simply because they have attractive product photographs or a professional-looking profile.
Verify the business, request samples where practical, check transaction history and use safer payment arrangements where available.
For a large order, spending more time verifying the supplier can be considerably cheaper than trying to recover money after a failed transaction.
9. Getting the Documents Wrong
Import documentation needs to be accurate and consistent.
Depending on the shipment and product, documents can include the commercial invoice, packing list, transport document, Form M, PAAR, Single Goods Declaration and product-specific certificates or permits.
The Nigeria Customs Service identifies Form M, PAAR and the Single Goods Declaration as important parts of the import process. (Nigeria Customs Service)
Errors in product descriptions, values, quantities or classifications can create problems during clearance.
10. Forgetting Product-Specific Certifications
Some goods have additional regulatory requirements.
For example, products regulated under SONCAP can require a Product Certificate and SONCAP Certificate as part of the import process. (Son)
Other categories may require approvals from different government agencies.
Always check the requirements for your specific product before shipment rather than discovering them after the cargo has arrived.
11. Assuming Customs Duty Is the Only Extra Cost
Import duty is only one part of the total cost of getting goods into Nigeria.
Depending on the shipment, you may also encounter taxes, levies, terminal charges, shipping-line charges, clearing fees, storage, demurrage and inland transportation.
The official customs calculator separates import duty from other taxes and levies, showing why an importer should not treat the duty rate as the complete import cost. (NTIP – Nigerian Trade Information Portal)
12. Waiting Until the Goods Arrive Before Planning Clearance
Some beginners only start thinking about customs clearance after receiving a notification that their goods have arrived.
That can create unnecessary pressure.
Your documentation, customs arrangements, regulatory requirements and expected charges should be considered before the shipment leaves the supplier.
For formal imports, the process can involve Form M, PAAR and customs declaration before the goods are released. (Nigeria Customs Service)
13. Not Planning How the Goods Will Leave the Port
Clearing the cargo is not the final step.
Once your goods are released, they still need to reach your warehouse, shop or customers.
For example, cargo arriving through a Lagos port may need a truck or other transportation arrangement to move it to a warehouse in Lagos, Ogun, Abuja or another state.
Plan the onward movement before the shipment arrives.
14. Choosing the Wrong Shipping Method
Air freight and sea freight serve different purposes.
Air freight can make sense for smaller, urgent shipments, while sea freight can be more practical for larger or heavier consignments.
Choosing purely because one option has a lower quoted freight price can be misleading. Compare the complete landed cost, delivery time and cargo requirements.
15. Treating Every Importer or Agent as an Expert
A friend who has imported clothes successfully may not necessarily understand the requirements for importing electronics, food, machinery or regulated products.
Similarly, someone offering to “clear everything” should be properly verified.
Where you need customs clearance assistance, use the appropriate licensed customs professionals. The Nigeria Customs Service describes customs agents as licensed professionals who help economic operators navigate customs clearance. (Nigeria Customs Service)
How Travo.ng Can Help New Importers
Travo.ng can support the logistics side of an import operation once the importer has arranged the relevant international shipping and completed the required customs process.
For example, after goods are cleared at a Nigerian port or airport, Travo.ng can help with transportation, delivery coordination and vehicle hire where appropriate.
Travo.ng is not Nigeria Customs Service and does not replace a licensed customs agent. Customs declarations, duty assessment, regulatory approvals and formal clearance remain subject to the relevant authorities and licensed professionals.
For a new importer, this distinction is important: customs compliance and physical transportation are separate parts of the wider import process.
A Simple Checklist Before You Pay Your Supplier
Before sending money for your first shipment, ask yourself:
- Have I confirmed that the product can legally be imported?
- Have I researched Nigerian demand and selling prices?
- Have I verified the supplier?
- Have I checked the correct HS code?
- Have I calculated the complete landed cost?
- Have I checked product-specific permits or certificates?
- Have I prepared the required import documentation?
- Have I chosen the right shipping method?
- Have I planned customs clearance?
- Have I arranged transportation after the goods are released?
If you cannot answer these questions confidently, it may be better to resolve the missing information before placing the order.
The goal for a new importer should not simply be to buy cheaply. It is to understand the complete journey from supplier to Nigerian customer and know the real cost at every stage.
