The Nigerian Export Promotion Council (NEPC) has stated that the new initiative launched by SIFAX Shipping and ECU Worldwide to support exporters of less than container load of products (LCL) will enhance the country’s export capability and raise revenues. The partnership between the two companies, which was signed earlier in July, was praised by the Council, describing it as an endeavor that might revolutionize Nigeria’s export industry. Arnold Jackson, the director of NEPC’s State Offices Coordinating Department, revealed this information at the 2024 International Business Conference & Expo themed “Invest Nigeria”.
Key global players and Investors interested in making investments in Nigeria attended the two-day event which was organized by the Lagos Chamber of Commerce and Industry. Jackson went on to say that the provision of LCL export consolidation services will boost Nigeria’s export volume and foreign exchange revenues by making its products increasingly competitive on the international market. He gave assurances to SIFAX Shipping and ECU Worldwide that NEPC will advertise the service to exporters the agency works with and increase the number of exports from the nation, as part of effort to assist the export goals of the exporters
Small businesses will benefit from the LCL export service.
According to Adekunle Owobamirin, head of Groupage at SIFAX Shipping, the collaboration is a result of the Group’s dedication to offering commercial solutions that have the potential to strengthen the national economy. He further noted that small business owners will also benefit from the LCL export service and be able to cut expenses. Owobamirin added that this collaboration with ECU Worldwide is evidence of our dedication to offering modern and innovative top-notch Logistics solutions that will boost Nigeria’s Trade capacity and competitive advantages on the international scene.
Moreover, the launch of less than container load export services are expected to boost Nigerian exporters’ alternatives, lower their logistical costs, and eventually boost the country’s economy. August 2024 marked the start of less than container load cargo shipping from Nigeria, with the first shipment leaving Lagos for Antwerp, Belgium. Being the first service of its kind in the nation, this is a huge milestone. Owobamirin noted that as the first vessel had sailed smoothly, the firm looks forward to supporting small and medium-sized Nigerian enterprises export their goods to key markets across the world.
ECU network will serve as a point of deconsolidation.
Nigeria’s rich crops, like cashew nuts and groundnuts, as well as small and medium-sized enterprises trading in agricultural commodities, will now have extensive and reasonably priced access to international markets with the launch of this new service line. Consignments will go from the ECU Worldwide hub in Antwerp to other locations throughout the world via the ECU network, serving as a point of deconsolidation in the cargo transmission process. Currently, ECU Worldwide is the only business in Nigeria providing outbound less than container load consolidation services.
Under the partnership, exporters’ consignments are now being accepted at the SIFAX Group’s Ijora Bonded Terminal by FMA-Line Nigeria Limited, a fully owned subsidiary of ECU Worldwide in Nigeria. Frequent departures to a variety of international locations, including Europe, Asia, North America, and other African states, are provided by LCL consolidation services. Even with smaller cargoes, Nigerian exporters can effectively reach foreign markets through this access. The LCL, which gives Nigerian small and medium-sized enterprises access to international markets, would strengthen non-oil exports, particularly those of agricultural and related goods, and thus promote the Federal Government’s efforts to diversify the country’s economy.
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For Nigerian companies wishing to enter or grow in foreign markets, less than container load export consolidation services offer a useful and affordable option. These services provide flexibility, financial savings, and increased market access, which makes them a worthwhile choice for smaller exporters despite certain difficulties. Nigerian exporters would be better able to navigate the intricacies of global trade, cut expenses, and maximize transportation efficiency when they take advantage of LCL services. For effective trading in Nigeria, exporters must comprehend the fundamentals of LCL shipping, including ports and customs procedures.