This post serves as a reliable guild to whoever wishes to start a manufacturing business in Nigeria. I shall take you through a detailed guild to set up a micro, small and medium (MSME) scale manufacturing enterprise in Nigeria. As an entrepreneur or prospective, it is important to understand how to set up a young business in Nigeria. However, there are Agencies of Government and regulatory institutions that you need to know how to work with in doing business in Nigeria. Furthermore, a proper guild to setting up an MSME business in Nigeria helps you to save cost, optimize Government incentives, source funds, explore target market, get proper mentoring, etc. Therefore, this article is for both young and experienced entrepreneurs to know everything about starting and succeeding in Nigeria. The business scope targets manufacturing businesses at micro, small or medium scale levels in Nigeria.
Basic Institutions That Helps you Start and Run a Manufacturing Business in Nigeria
In Nigeria, no production enterprise succeeds without going through agencies of Government or regulatory institutions such as;
- NAFDAC (National Agency for Food Drug Administration and control)
- SON (Standards Organization of Nigeria)
- Trademark
- CAC (Corporate Affairs Commission)
- Patent
- NEPC (Nigeria Export Promotion Council)
- NBTI (National Board for Technology Incubation)
- SMEDAN (Small and Medium Enterprise Development Agency)
The list of regulatory and supportive institutions are almost endless. However, there are basic organizations every entrepreneur requires to establish and develop. Every business, brands and products undergo regulations, certifications, institutional nurturing etc in order to succeed in the Nigerian market.
Furthermore, some organized private institutions are also stakeholders in the entrepreneurship development initiative in Nigeria. For instance, enterprises who manufacture technology or scientific products would always require exposure to technology providers. Some other essentials are incubation centres, technology parks, researchers, investors, market, private sector fund providers etc. It becomes a wholesome engagement with all stakeholders for a budding entrepreneur to succeed with any manufacturing enterprise in Nigeria.
Therefore, you need to understand the roles of these institutional stakeholders as well as the stages you need to engage them and how to engage them. To make it easy for you, I shall follow dissect these process of setting up a manufacturing business in Nigeria and these Agencies you need and how to work with them.
1st Stage of Starting a Business in Nigeria – Business Idea, Business Plan, Feasibility Study
Thinking of becoming an entrepreneur and starting a manufacturing enterprise begins with initiating a business idea. As a prospective entrepreneur, you must know what to produce. Do you wish to venture into inverter or solar panels? The idea of what to produce must be clear in your head. Furthermore, you must have the knowledge to manufacture such product. Whether an invention or innovation, your crude ability to produce it must be able to give you a workable finished product. It is okay even if it is at the prototype level.
Once you can have a prototype no mater how crude, you are ready to start the business of nurturing an enterprise to full maturity. At this point, Technology Incubation Centres which are present in all states of Nigeria can take you up. Nevertheless, you may proceed to conduct a feasibility study and Business Plan of your proposed enterprise. These are very necessary to help ascertain the business viability and cost implication of your venture.
Usually, the feasibility study is an integral part of the business plan. Therefore, doing a business plan also takes care of the feasibility study for your new manufacturing business. You may contact DTMEDIA TECHNOLOGIES to assist you with a reliable Business Plan for your business at a very affordable price.
2nd Stage of Setting up a Manufacturing Business in Nigeria – Register Business Name
Some persons may believe that you can start a micro, small or medium scale business first and then register the business name later. This approach is not only unprofessional but also posses both economic and security risk. Doing business without a registered business name lands you into trouble in Nigeria if anything goes wrong with the credibility of your transactions. Furthermore, it deprives you of opportunities, which includes not benefiting from Government and corporate incentives.
For instance, the Nigeria’s Government MSME survival Fund scheme dished out to small businesses in recent times past was only for businesses with registered names. to ensure many benefited, Government also opened a window to register new small business names free of charge. As a result, Free business name registration Certificate issuance is currently ongoing.
How to Register Business Name / Company with CAC
To set up your business n Nigeria, it is the sole constitutional responsibility of the CAC (Corporate Affairs Commission) to register new business names and all other classes of companies. This also includes sole proprietorships, enterprises, Limited Liabilities (LTD) and Public Liability Companies (PLC). Today, the CAC has simplified the process of registering business firms. Therefore, you can register your new firm and get the CAC registration certificate within two weeks.
Currently, it costs about 10,000 naira to register a Business name and about 25,000 to register a Limited Liability Company. Furthermore, the CAC has offices in all the Geo-political regions of Nigeria. However, you can also do an online registration by visiting the CAC official website.
The TIC – Technology Incubation Centres
While the process of your business registration is ongoing, you may now reach out to institutions such as Technology incubation Centres nationwide. these are Federal institutions present in all the States of Nigeria that nurtures budding technology-based enterprises. The TICs are instruments of the National Board for Technology Incubation (NBTI), which is under the Federal ministry of Science, Technology and Innovation.
The TiC welcomes all technology-minded entrepreneur and mentors them from infancy to maturity. It does this by supporting them to over the obvious challenges young enterprises face, while setting up manufacturing businesses in Nigeria. These include;
- Technical know-how and support staff
- Exposure to sources of funding
- logistical support – free production residency and attendant support services
- Exposure to market
- Linkage to knowledge and research-based institutions
- Product certifications made easy – NAFDAC, SON, TRADEMARK, PATENT, tec
- Laboratory services for product analysis
- Tax-free incubation season
- Pre and Post-incubation support extension services
The list of benefits from Technology Incubation Centres are almost endless. Furthermore, they ensure that your product and manufacturing business comes out stronger and virile. However, the TIC only nurtures businesses that use any form of technology with value addition. If you are confused, you may Call or contact DTMEDIA TECHNOLOGIES to direct you to the TIC in your state in Nigeria.
When TIC admits you, they provide you with production houses (units), bearing in mind your financial infancy status. You may now start your manufacturing business activities. Then you can start producing, selling as well as begin the process of product standardization and certification with NAFDAC, SON or as the case may be.
NAFDAC Registration and Certification – What Kind of Products?
NAFDAC only registers and certifies products that food, drugs, medical equipment, health and cosmetics, skin care and beauty and other related products. Therefore, an entrepreneur shall work in compliance with NAFDAC provisions to ensure quick product certification for public health and safety. To get a complete NAFDAC requirements for product registration and certifications, Call or contact DTMEDIA TECHNOLOGIES.
SON Registration and Certification
The Standards Organization of Nigeria (SON) has the sole responsibility to prescribe and regulate all product standards in Nigeria. In setting up manufacturing businesses in Nigeria, some people make mistakes to believe that SON only regulates standards for engineering products. This is misleading. Indeed, all Standards are under the jurisdiction of the Standards Organization of Nigeria (SON). Even firms that produce food and drug-related products are also under SON jurisdiction. Therefore, SON needs to certify you even after NAFDAC has certified your products.
MANCAP and SONCAP Certification
SON certification comes in two forms. They are;
- Mandatory Conformity Assessment Programme (MANCAP)
- SON Conformity Assessment Program (for all Exports and Imports)
How to Get your MANCAP Certification
As an entrepreneur who sets up a manufacturing business in Nigeria, getting MANCAP certification for your products ought to be your target. The MANCAP from SON ensure that all locally manufactured products in the country conform to the relevant Nigerian Industrial Standards (NIS) before such products are presented for sale in the market or exported.
Here is the process of getting MANCAP certification for your product.
- Go to the nearest SON state office and get the form
- Fill and submit accordingly, invite SON for inspection and pay the prescribed fees
- First inspection, SON takes random sample of your products to subject them to laboratory analysis.
- If result comes out passed, SON comes for second inspection.
- Meanwhile, passing the first lab analysis paves way for you to run an independent Lab analysis of that product with an IPAN Certified analyst.
- Proceed to SON office to finalize the process of issuing MANCAP certification and issuance of the NIS logo.
SONCAP Certification
While MANCAP is compulsory for all local products either consumed locally or exported, SONCAP is for all international products coming into the country. SONCAP stands for SON Conformity Assessment Programme. SONCAP ensures that all products imported into the country conforms to the Standards as prescribed by the SON for the health and safety of the Nigerian public.
All Products have standards. If you wish to start a manufacturing business in Nigeria, you must endeavor to get the standards for your unique products from the SON. This helps you to produce in conformity with the acceptable standards for both local and international market.
Standards Organization of Nigeria (SON) has the right to enforce and impound any breach of Standards anywhere within the country.However, SON seeks to guild young manufacturing businesses in order to see them succeed. Their policies and strategies are very friendly and reassuring. This is why SON runs an active collaboration with the TIC, which makes it easy for entrepreneurs undergoing incubation to get all products certified.
TRADEMARK and PATENT – Start a Manufacturing Business
When you start a new business, you must work towards protecting your brand name and logo. After the CAC registration, getting your product and brand trademark is the next most important thing to do. Trademark protects all forms of your business identity – name, logo, signage, etc. When you have Trademark for your product, no other person or entity can reproduce your identity without your express permission. Any violation attracts imprisonment to the offender. For a new manufacturing business, trademark is crucial to avoid product faking or outright stealing of your brand.
Therefore, every new entrepreneur should go for their product trademark registration now. The trademark office is under the Federal Ministry of Trade and investment. However, they have offices in all states of the federation.
While Trademark is essential for business and brand protection, new inventions need to be protected too. New inventions are Intellectual Property (IP) outputs that must be protected and all credit given to the inventor. This is what Patent does. An entrepreneur who starts a manufacturing business with a new invention needs to go for product patenting. You may wish to approach the NOTAP (National Office for Technology Acquisition Promotion) to assist you with the process. You may also contact any Technology incubation Centre in your state to assist any inventor of any product.
Summary of Starting Manufacturing Business in Nigeria
If you have a commercially viable product and wish to start a manufacturing business, the best place to receive mentoring and nurturing is the Technology Incubation Centres in all states of Nigeria. Every process and requirements of product certification and commercialization are made easy for you. You may contact me for further guidance on how to go about setting up a micro, small or medium scale manufacturing business in Nigeria.
