A quotation is a written offer that tells a potential customer what you will supply, how much it will cost and how long the offer remains valid.
A quotation is sent before the customer agrees to buy. An invoice normally comes later and requests payment for an approved or completed transaction.
What should a Nigerian quotation contain?
Include the following information:
- your business name, address and contact details
- the customer's name and address
- a unique quotation number
- the date and expiry date
- a clear description of every item or service
- quantity, unit price and total
- VAT shown separately where it will apply
- delivery or completion timeline
- payment terms
- important exclusions and assumptions
Quotation vs invoice
| Question | Quotation | Invoice |
|---|---|---|
| Main purpose | Offers a price | Requests payment |
| Sent when | Before approval | After approval or at an agreed billing stage |
| Document number | Quote number | Invoice number |
| Payment due | Usually no | Yes |
| Can it expire? | Yes | It has a due date |
Do not label a quotation as an invoice. Keeping the documents separate makes the customer's approval and payment process easier to follow.
Quotation example
QUOTATION
Quotation Number: QT-2026-0048
Date: 20 July 2026
Valid Until: 3 August 2026
From: Lagos Web Studio Limited
Prepared for: Amaka Retail Limited
| Description | Quantity | Rate | Amount |
|---|---|---|---|
| Five-page company website | 1 | ₦650,000 | ₦650,000 |
| Product photography | 20 | ₦12,500 | ₦250,000 |
| One year web hosting | 1 | ₦75,000 | ₦75,000 |
| Subtotal | ₦975,000 | ||
| VAT at 7.5%, where applicable | ₦73,125 | ||
| Quoted total | ₦1,048,125 |
Payment terms: 50% deposit after acceptance. The balance is due before the website goes live.
Timeline: Three weeks from receipt of the deposit and all required content.
Exclusions: Domain renewal after the first year and additional pages are not included.
How to describe your work clearly
Avoid descriptions such as "website work" or "consulting". They leave too much room for disagreement.
Use descriptions that state the deliverable:
- five-page responsive company website
- monthly bookkeeping for July 2026
- supply and installation of three air conditioning units
- four social media designs and captions each week
If the customer asks for additional work, prepare a revised quotation before you continue.
How long should a quotation remain valid?
Choose a period that reflects how quickly your costs can change. Many service businesses use 14 or 30 days. Suppliers dealing with changing material or exchange-rate costs may use a shorter period.
Write the expiry date clearly rather than saying "valid for a limited time".
Should a quotation include VAT?
If VAT will apply to the final sale, showing it separately on the quotation helps the customer understand the expected total. It is still an estimate until the taxable supply takes place and the VAT invoice is issued.
Do not collect VAT unless you have confirmed your VAT obligations.
How to turn an accepted quotation into an invoice
When the customer accepts:
- keep a record of the acceptance
- create an invoice with its own sequential invoice number
- reference the quotation number
- copy the approved descriptions and prices
- add the invoice and supply dates
- add payment instructions and a due date
- show VAT correctly where it applies
If the buyer sends an LPO, place the LPO number on the invoice too. See our LPO vs invoice guide.
Quotation checklist
Before sending your quotation, check that:
- the customer's name is correct
- the scope is specific
- every amount adds up
- VAT is clear where relevant
- the validity date is shown
- delivery and payment terms are practical
- exclusions are written down
Once the customer accepts, create the matching invoice online. You can also read our sample invoice guide and invoice numbering guide.