Procurement Playbook • Sokora Intelligence
How to vet a new Nigerian supplier before your first order
A 4-tier diligence framework for Nigerian procurement managers: CAC verification, physical factory inspection, TIN cross-referencing, and bank credit history.
Sourcing from a new supplier in Nigeria is one of the highest-risk decisions a procurement manager can make. Between ghost entities claiming to own non-existent warehouses and open-market brokers pretending to be primary manufacturers, due diligence cannot be shortcut.
The 4-Tier Verification Checklist
- CAC Entity & Directorship Audit: Ensure the company is an active RC (Limited Company) or BN (Business Name) with up-to-date annual filings. Confirm beneficial ownership to avoid undisclosed conflicts of interest.
- FIRS TIN & Tax Status: Validate the supplier's Tax Identification Number on federal portals to ensure you can claim input VAT and comply with withholding tax obligations without regulatory penalties.
- Physical Factory & Capacity Audit: Never transfer funds based on photos alone. Confirm the supplier physically operates the machinery, warehouse, or distribution depot in industrial belts like Ikeja, Bompai Kano, or Trans-Amadi Port Harcourt.
- Bank-Grade Milestone Escrow: Never release 100% advance payment to an unproven vendor. Utilize CBN-regulated milestone escrow where funds are held safely until your quality control officer signs off on the delivered shipment.
On Sokora, every single one of our 1,450+ suppliers has already cleared these four rigorous hurdles, allowing your team to issue RFQs and issue purchase orders with complete peace of mind.
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