I’ve met a lot of people who want to venture into exportation. When asked about what they want to export, most talk about shoes, bags, etc. Those things are not bad. Very few talk about exporting items like charcoal which could actually be a good source of generating revenue.
The fact is, many people don’t know charcoal is being exported from Nigeria. Even the few that know and want to start exporting don’t know how to start or go about it.
So, today, you’ll know how to start a charcoal export business in Nigeria.
Follow me…
First off, what is charcoal?
Charcoal is the remains of firewood after it has been exposed to fire in its solid state.
The remains of firewood after being exposed to fire can be in ashes.
Ashes are not charcoal.
However, some variations like charcoal briquettes are made from coconut shells…
Still talking about Charcoal, there are four types of charcoal you can export. They are…
- Charcoal Briquettes
- Hardwood Charcoal
- BBQ Charcoal
- Shisha Charcoal
You might be asking, “what is charcoal used for in Europe?”
Many Asian and European countries need charcoal to heat their homes. Remember, they live in cold and long winter seasons.
They have other sources like pellet stoves, geothermal heat pumps, etc, but Charcoal is cheaper.
Charcoal is also used as an additive for toothpaste production.
Why Nigerian Charcoal?
Well, Nigerian Charcoal is so much in demand in foreign countries because it is made from hardwood.
Charcoal from hardwood last longer and also produce more heat than charcoal made from other types of wood.
Okay! Now, to the nitty gritty.
How do you start your charcoal export business in Nigeria?
1. REGISTER YOUR BUSINESS: Let’s assume you have the capital, the first step to take in becoming a charcoal exporter is to register the business with Corporate Affairs Commission. You have to do this as a Limited Liability Company.
If your business is not a Limited Liability Company, you may not be allowed to register with the (Nigerian Export Promotion Council) NEPC, and so, you can only function as an exporter with a registered Limited Liability Company.
Registering your business with CAC makes you more credible than an unregistered member company.
Why Register with NEPC?
Well, NEPC supervises all export businesses in Nigeria. You must register with them.
2. PRODUCT SOURCE: If you don’t have access to trees or forests where carbonization can be done, it’s important to know places in Nigeria where you can get charcoal.
These places are Jebba, Kaduna, Jos, Minna, Egbe, Oyo, Nasarawa, and several others. Charcoal is produced in high quantity in these places.
When you’re sourcing for charcoal, make sure the ones you buy meet International standards. Some buyers check the moisture level, ash level, and other requirements.
3. KNOW YOUR EXPORT COUNTRY: This is mostly neglected by many. It’s important you research information about charcoal in the country you intend to export to.
Do they have laws or policies on Charcoal?
Do you know the policy of export in Nigeria?
These are what you should know to avoid breaking laws and going into trouble. Be well informed.
4. SOURCE FOR BUYERS: There’s no export without foreign buyers. So when you are looking for buyers, focus more on countries that have a high demand for charcoal. Most are in Europe and Asia and they demand more than other countries.
You can get International buyers on websites like:
www.exportersindia.com
www.alibaba.com
Note that you have to register on these websites.
There are other websites too. Social media platforms are also good if you’re in the right group. Source for them.
5. EXPORT YOUR PRODUCT: The final step is for you to start the exportation of the charcoal.
What this means is sending it to the countries where they are needed.
You can do these in two ways:
- Free on Board (FOB) basis: When you export using the Free On Board (FOB) basis, you will bear the cost of every expense up to the shipping point.
- Cost, Insurance, and Freight (CIF) basis: On the Cost, Insurance, and Freight (CIF) basis, you will bear the transportation and insurance costs up till the final destination.
Note that immediately after you receive an order, you’ll need a shipping company to work with to help you transport your product to your buyers.
Sometimes your buyer will tell you how to package the product.
Some may ask that you ship them in bulk while some others may decide that you package them in small units for them to handle easily. For instance, charcoal is being packaged in 25kg bags which is the standard in international export. But some buyers may demand you package them in 10 kg and 5 kg sacks
Finally, you might be asking, how profitable is Charcoal business?
Let’s do the Math…easy Math
A 40ft container of charcoal contains about 21 tons of charcoal. If packaged in 25 kg bags, a ton of charcoal contains 40 bags. A 40ft container carries 840 bags i.e 40kg bags multiply by 21 tons.
Locally, the price of charcoal depends on your location and strength in negotiations. A bag of unprocessed charcoal costs between N4,000 – N5,000 while a sack of processed charcoal costs N7,000 – N8,000.
In the International market, the prices range between $200 – $600.
I need my information von this subject
Good idea
Very good analysis of the charcoal export business in Nigeria. There are very few charcoal briquettes manufacturers in Nigeria but of note is Palmstar charcoal briquettes. Their charcoal is made from agricultural waste of palm kernel shell.
Please i need more comprehensive write up on this charcoal export . Thanks
Laudable business BUT the risk has been so high. Constant battle with regulatory bodies in their ever changing policies (in support of reduction in carbon emissions) has been a deterrent to the success of the business.
This is not a business to venture into with the deforestation law in place. In fact, the business may go into extinction if our deforestation law is well executed. Stop cutting down our trees please.
We in the tropics must take advantage of the market for charcoal in countries with cold climate despite the issue on deforestation. The answer lies in management of the forest. All the paper used world wide comes from the forest. We must replant the trees as they are cut down for processing. Cheers.Isaac
Kudos to the Nairametrics team for bringing this on.
Let me add few tips to this:
1. It’s very possible to start charcoal business without exporting. The local market is very huge and lucrative. All you need is to get a reliable supplier and a hungry market for the products;
2. Raining season is not a good time to go into (start) exportation of charcoal, local sales might still be okay but exports is not advisable. This is because the rural dwellers who work on Charcoal have mostly pivoted into farming, hence charcoal will be scarce. They go back to charcoal making when dry season sets in.
3. For exportation of charcoal, it’s a VERY lucrative one but you need to get a very reliable supplier. AYIN (hardwood charcoal) is usually the most sought after charcoal type and there are some suppliers or dealers of charcoal that will supply NON SPARKING (another type of charcoal of lesser quality compared to AYIN) as AYIN.
If you want to start the business and need a reliable supplier, you can reach us at Tijaara via:
Please I would be glad to get in contact with you
Same here
Hello please I will like to start a charcoal business and I need a supplier. How can I contact you?
Good business analysis however, you failed to also let us know if the ban on charcoal has been lifted on its still on. I believe no one wants to start this business only to get stuck in the hands of customs for engaging in the exportation of a banned product. The outcome is suicidal
Thanks for the info, well appreciated.
Nice one, God bless u, can we
Nice one, let’s talk more
Good analysis of charcoal business,
Keep it up in other businesses.
How can I get in touch with charcoal suppliers in Nigeria?
More details Please
Hello
This is CEO of Agric processing and supply Company we specialize in supplying agricultural products within Nigeria especially in the north
It a good business but how do l start it l and my colleague have a lot of charcoal here in Ghana but we want to export same to other countries.we have suppliers in Accra we supply to but we want to go higher.am from Ghana
Please it possible for one to start the charcoal business with a buyer where they can pay at least 50 percent for the goods before the goods delivered to the said country after the delivery the balance will be paid to avoid much loss on exporters parts too please enlightenment is needed on this please
I need suppliers of charcoal from Lagos hwre
“Locally, the price of charcoal depends on your location and strength in negotiations. A bag of unprocessed charcoal costs between N4,000 – N5,000 while a sack of processed charcoal costs N7,000 – N8,000.
In the International market, the prices range between $200 – $600.”
The 2 paragraphs above caught my attention. Are you saying a bag of unprocessed charcoal (hardwood) is between N4000-N5000 in Nigeria and internationally is $200-$600? Be elaborate please.