A quotation (or quote) is often the first formal document exchanged in a business deal. It tells your potential client what you will deliver, at what price, and under what terms — before any work begins. In Nigeria, writing a professional quotation can be the difference between winning and losing a contract.
This guide covers everything you need to know: what belongs in a Nigerian business quotation, how to format it correctly, and how it differs from an invoice.
What Is a Business Quotation?
A quotation is a formal price offer from a supplier or service provider to a potential buyer. It is not a request for payment — that comes later on an invoice. A quotation simply says: "Here is what I will do and what it will cost you."
When a client accepts your quotation (verbally, by email, or by signing it), it becomes a binding agreement. That is why the wording and terms in your quotation matter.
Other terms you may see used interchangeably:
- Quote
- Price proposal
- Cost estimate (less formal — does not imply a fixed price)
- Proforma invoice (a quotation formatted like an invoice — see our proforma invoice guide)
Quotation vs Invoice: Key Differences
| | Quotation | Invoice | |---|---|---| | Purpose | Price offer before work begins | Request for payment after work is done | | Timing | Sent before the job | Sent after delivery | | Payment obligation | No payment due yet | Payment is due | | Document number | Quote number (e.g., Q-2026-012) | Invoice number (e.g., INV-2026-041) | | Validity | Usually 14–30 days | Due within agreed terms | | VAT | Should show estimated VAT | Must show actual VAT if registered |
What to Include in a Nigerian Business Quotation
1. Your Business Details
- Business name, address, phone, email
- TIN (Tax Identification Number) — especially important for B2B quotations
- RC number if your business is registered with CAC
2. Client Details
- Company name, contact person, address
- Reference to their RFQ (Request for Quotation) number if applicable
3. Quotation Number and Date
- Assign a unique number: e.g., Q-2026-015
- Include the date the quote was prepared
- State the validity period: "This quotation is valid for 14 days from the date above"
4. Itemised Description of Goods or Services
Be specific. Vague descriptions lead to scope disputes later.
Good example: | Item | Description | Qty | Unit Price | Total | |---|---|---|---|---| | Website Design | 5-page responsive website (Home, About, Services, Portfolio, Contact) | 1 | ₦450,000 | ₦450,000 | | Domain Registration | .com.ng domain, 1 year | 1 | ₦12,000 | ₦12,000 | | Web Hosting | cPanel shared hosting, 1 year | 1 | ₦35,000 | ₦35,000 | | Subtotal | | | | ₦497,000 | | VAT (7.5%) | | | | ₦37,275 | | Total | | | | ₦534,275 |
Bad example:
Website work — ₦500,000
5. Payment Terms
- Deposit required (e.g., 50% upfront)
- Balance due on delivery or within X days of completion
- Accepted payment methods: bank transfer, Paystack, etc.
6. Delivery / Completion Timeline
State when you will deliver. For services: "Work to commence within 5 working days of deposit receipt and be completed within 3 weeks."
7. Terms and Conditions
Keep these concise but cover:
- What is excluded from the price
- Revision/amendment policy
- What happens if scope changes
- Cancellation policy
8. Authorisation
For formal B2B quotations, include a signature line:
Prepared by: [Name], [Title] Signature: _______________ Date: _______________
Some companies also ask clients to sign and return the quotation as acceptance.
Quotation Validity and Price Escalation
Always state how long your quote is valid. Prices for labour, materials, and foreign-currency software tools change — especially in Nigeria's volatile economy. A quotation with no expiry date could leave you locked into a price that no longer makes commercial sense.
Recommended validity periods:
- Services (design, consulting, software): 14–30 days
- Construction and supply: 7–14 days (materials prices fluctuate)
- Long-term contracts: price review clause after 3–6 months
Include this clause for USD-priced services: "Prices are quoted in Naira at the exchange rate of ₦[X]/$1. Significant currency movement may require a revised quotation."
VAT on Nigerian Quotations
If you are VAT-registered with FIRS (annual turnover above ₦25 million), you must include VAT at 7.5% on your quotation. Show it as a separate line item — do not roll it into the total and hide it.
If you are not VAT-registered, do not include VAT on your quotation. Charging VAT without a valid FIRS registration number is a compliance violation.
How to Send a Quotation in Nigeria
Most Nigerian businesses communicate over WhatsApp and email. Best practice:
- Prepare your quotation as a PDF — never a raw Word document or screenshot
- Send via email for formal clients; follow up on WhatsApp
- Reference the quote number in all follow-up messages
- Set a calendar reminder to follow up if you have not heard back within 3 days
From Quotation to Invoice
Once your client accepts the quotation:
- Reference the quote number on your invoice (e.g., "Re: Quotation Q-2026-015")
- The invoice amount should match the accepted quotation (unless scope changed)
- If scope changed, issue a variation order or amended quotation before proceeding — do not just change the invoice amount without documentation
Use InvoiceGenerator.ng to quickly convert an accepted quotation into a professional invoice with VAT, payment terms, and a Paystack payment link — all in one place.
Free Quotation Template for Nigerian Businesses
Here is a simple text format you can adapt:
QUOTATION [Your Business Name] [Address] | [Phone] | [Email] | TIN: [Your TIN]
Quotation No: Q-2026-XXX Date: [Date] Valid Until: [Date + 14 days]
Prepared for: [Client Name / Company] [Client Address]
| Description | Qty | Unit Price (₦) | Total (₦) | |---|---|---|---| | [Service/Product] | | | | | Subtotal | | | | | VAT (7.5%) | | | | | TOTAL | | | |
Payment Terms: 50% deposit. Balance due on delivery. Bank Details: [Bank] | [Account Number] | [Account Name]
This quotation is valid for 14 days. Prices exclude any costs not listed above.
For a complete guide to invoicing in Nigeria including FIRS requirements, VAT compliance, and payment terms, see our Nigerian Invoicing Guide.