Manufacturer Optimizes Cash Flow with Strategic Import Planning

Background

A mid-sized industrial equipment manufacturer in Nigeria was facing persistent cash flow challenges due to its reliance on imported components. The company sources parts from international suppliers to assemble machinery locally, serving clients across Nigeria and neighbouring markets.

With around $4 million in annual imports, the business struggled with large upfront duty payments, frequent customs delays, and inefficient inventory practices. These issues limited its financial flexibility and slowed its ability to expand production.

The Challenge

• •Upfront duty payments—averaging over $250,000 per quarter—were straining working capital
• •Customs clearance times ranged from 10–14 days, causing production delays and forcing costly workarounds
• •Poor inventory visibility led to overstocking some components and running out of others, disrupting operations
• •The company was paying re-export duties on parts used in equipment, ultimately shipped to clients outside Nigeria

The Itana Solution

Itana Trade Support implemented a targeted import and logistics optimization strategy:

• Duty Deferment via Bonded Zone

  Imports were routed through Itana's bonded facility, allowing the company to defer duty payments until components were needed for production, improving day-to-day cash availability.

• Accelerated Customs Clearance

  Through Itana's priority customs channels, clearance times dropped to just 4 days, improving scheduling and reducing costly delays.

• Inventory Synchronization

  Itana's bonded warehouse enabled just-in-time inventory management, reducing holding costs and improving component availability on the production floor.

• Export Duty Waivers

  Itana structured a process to exempt duties on components used in machinery exported out of Nigeria, ensuring the company no longer paid more than necessary.

The Result

• •$250,000 in duty payments deferred in the first year, easing pressure on cash flow
• •20% improvement in working capital availability, supporting faster procurement and smoother operations
• •60% reduction in production delays related to stockouts and customs clearance
• •18% reduction in inventory carrying costs through better forecasting and bonded storage
• •Reinvested capital was used to upgrade key production lines, resulting in a 25% increase in output capacity