How to Start Gemstone Business in Nigeria

The rare mineral sector is very challenging and capital intensive. You need proper training to identify the material, find merchants and international buyers.
There are some challenges such as obtaining permits, funding and sourcing the precious stones. Gemstones have radiant properties and are used as adornments.
They exhibit different characters such as hue, tone, saturation and luster. The size, cut and finish is of great importance in the precious stone industry. Here are some ideas on how to start a gemstone business.
Starting a Gemstone Business
Write a Business Plan
The first step is to write a gemstone business plan. The plan should focus on obtaining permit, supply and international buyers. Then carry out a feasibility study and survey. Find out the best locations, mining demography and supply chain.
  • focus on obtaining permit
  • find international buyers
  • Find best locations
  • mining demography
  • supply chain
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Choose a Niche
Focus on a specific product and specialize. You can become an exporter, retailer or wholesaler depending on your business template. To succeed you need the services of a gemstone cutter especially in retail.
Seek expert advice and always verify the purity of the stones. It is essential you build trust, invest time, money and strategize. Focus on a target market and sales options.
Types of Gemstones
Nigeria is blessed with an abundance of precious stones. Basic characteristics are carat-weight, color and clarity. You find precious stones such as sapphire, tourmaline, and topaz in Nigeria.
  • Sapphire
  • Tourmaline
  • topaz  
How to Obtain a License to Trade Gemstone
To trade gemstones in Nigeria you need permits and operational licenses. The three categories of license are export permit, purchase permit and permit to export mineral samples.
  • export permit
  • purchase permit
  • permit to export mineral samples
Permit to Purchase and Posses Minerals
To acquire the permit to purchase minerals you need to incorporate your company as a limited liability entity. The regulatory body is the corporate affairs commission.  This is mandatory under the companies and allied act.
The investor should send an application to the director of mines inspectorate at the ministry of solid minerals development. The application should be accompanied by several documents.
PPPM Documents
The documents you need are evidence of technical competence and three (3) years tax clearance certificate. Other documentation includes bank reference, an attestation of non conviction of a criminal offence and payment of fees.
  • evidence of technical competence
  • three (3) years tax clearance certificate
  • bank reference
  • non conviction of a criminal offence
  • payment of fees
Obligations
To own a permit to purchase and possess minerals there are some obligations. The holder of precious stones should maintain a book of all purchases, sales and transactions. This book is periodically inspected by the authorities to assess conformation to permit guidelines.
Permit for the Commercial Exportation of Minerals
The investor is required to hold an extant mineral title or license to purchase and possess minerals. The application is directed at the director of minerals and inspectorate, ministry of solid minerals development.
PCEM Documents
Documents that accompany the application are evidence of source supply, three (3) years tax clearance certificate and contractual agreement with buyer. Other requirements are evidence of royalty payment to the Nigerian export promotion council and certificate of incorporation.
  • evidence of source supply
  • three (3) years tax clearance certificate
  • contractual agreement with buyer
  • evidence of royalty payment
  • certificate of incorporation
Permit to Export Mineral Samples
the permit to export mineral samples is made to the director mines inspectorate, ministry of solid minerals development. The purpose for this permit is to send samples for analysis and verification of purity.
PEMS Documents
Documents needed during the application process are evidence of supply. Others are evidence of correspondence with foreign partners and certificate of incorporation.  You need to also pay the prescribed fees.
  • evidence of supply
  • evidence of correspondence with foreign partners
  • certificate of incorporation
  • pay the prescribed fees
Identify your Target Market
You need to identify your target market for better efficiency. The target market depends on the type of stone foreign or local market.
Make sure your prices are competitive and follow market trends. The business of gemstone is rather challenging and capital intensive. To succeed you need adequate planning and networking with experts in the industry.

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