In a detailed analysis shared on LinkedIn, Nnamdi Ononiwu, CEO and business strategist, has provided a comprehensive breakdown of the real costs involved in importing a 20-foot container of rebadged iPhone XR from China to Nigeria. His insights shed light on the complexities of cross-border business, particularly in the context of Blord Business and the VDM apprenticeship model, which has become popular among Nigerian entrepreneurs venturing into importation.
According to Ononiwu, a standard 20ft container can carry up to 22,000 phones, but the total cost involved — from production to final delivery in Nigeria — far exceeds what many unsuspecting entrepreneurs anticipate. He emphasized that these are rebadged iPhone XR devices, not counterfeit phones, highlighting the nuanced nature of this trade.
Expenses in China
Ononiwu highlighted the following core expenses before shipping:
- Freight logistics from Chinese manufacturing sites to shipping company warehouses: $1,500 (≈₦2.25 million)
- Shipping from China to Nigeria: $8,000 (≈₦12 million)
- Port loading in China (e.g., Qingdao): $2,300 (≈₦2.4 million)
- Documentation fees: $300 (≈₦450,000)
- Chinese port fees: $3,500 (≈₦5.25 million)
- Value Added Tax (VAT) in China: estimated ₦5 million
- Miscellaneous expenses: ₦1.5 million
This brings the total estimated China-side expenses to ₦27.4 million, excluding the cost of purchasing the phones themselves.
Expenses in Nigeria
Once the container arrives in Nigeria, entrepreneurs face another layer of costs:
- Customs clearing: ₦28 million
- Port-related charges in Lagos (Agboros, road levies, etc.): ₦2 million
- Logistics from port to final destination: ₦3 million
- VAT and multiple taxations: ₦10 million
- Insurance for the container: ₦15 million
- Offloading at final destination: ₦500,000
- Warehouse rent (one year): ₦3 million
- Warehouse security (one year): ₦2.5 million
- Shop rent and security (one year): ₦2.5 million
- One-year salaries for 10 staff: ₦20 million
- Miscellaneous: ₦5 million
The total estimated Nigeria-side expenses reach ₦91 million, bringing the grand total to approximately ₦119.9 million. Ononiwu stressed that this figure does not include the actual purchase price of the rebadged phones, marketing, or advertisement.
The Role of Blord Business and VDM Apprenticeship
Ononiwu’s analysis also highlights the often-overlooked lessons from Blord Business strategies and VDM apprenticeship models in China. These approaches emphasize hands-on learning, insider knowledge, and real business experience — the critical “secrets” that successful importers leverage to survive in the highly competitive electronics trade.
He warned that entrepreneurs who bypass proper apprenticeship or underestimate the hidden costs of importation risk total financial loss. “VDM businessmen are not naive; they spend years learning the intricacies of the trade in China before executing,” Ononiwu wrote. “Anyone who attempts to replicate the business without understanding logistics, taxes, insurance, and port operations is bound to fail.”
Ononiwu further stressed that importation is not just about buying and selling — it requires mastery of global logistics, cross-border documentation, risk management, and post-import operations such as warehousing, staffing, and marketing.
Key Takeaways for Entrepreneurs
- The real cost of importing a 20ft container of rebadged iPhone XR is significantly higher than the purchase price of goods alone.
- Apprenticeship and mentorship are essential for understanding the hidden operational costs, especially in high-risk markets like China.
- VDM business principles emphasize knowledge, preparation, and network leverage, which can make the difference between profit and total loss.
Ononiwu’s report serves as a cautionary tale and a guide for Nigerian entrepreneurs seeking to enter the importation business. The breakdown underscores the necessity of financial planning, strategic mentorship, and operational readiness, particularly when dealing with rebadged devices and cross-border trade.
