- Charcoal exports from Nigeria are legal, but poor communication and weak enforcement of regulations have led to confusion, missed opportunities, and informal trade that undermines national revenue.
- Countries like Namibia and Kenya have built structured, profitable charcoal industries through clear regulations and sustainability certifications, while Nigeria lags behind with unverified exports and minimal oversight.
- Nigeria can unlock billions in forest-based revenue by implementing a transitional framework focused on clear stakeholder-driven regulation, digital traceability, and international-standard export certification.
Despite its vast forest resources and growing global demand for charcoal, Nigeria continues to miss out on a lucrative non-oil export opportunity.
Recent statements by the National Charcoal Producers, Dealers, and Exporters Association of Nigeria (NACPDEAN) confirm that charcoal exports are legal—provided exporters meet regulatory requirements.
Yet, confusion persists, and the sector remains underdeveloped.
Regulatory Clarity Still Missing
Since January 19, 2023, charcoal exports have been permitted under Nigerian law. Exporters are required to: Obtain a support letter from the Ministry of Environment,
- Secure approval from the Ministry of Finance,
- Pay applicable duties,
- Commit to afforestation efforts.
However, poor communication and inconsistent enforcement have pushed much of the trade into informal channels. This lack of clarity has stifled investor confidence and limited foreign exchange inflows.
Comparative Insights: Namibia and Kenya Lead the Way
Namibia exported over 270,000 tonnes of charcoal in 2023, generating N$1.3 billion in revenue. Kenya, leveraging community forestry and sustainability certification, sells at $770 per tonne.
In contrast, Nigeria exported just 443 tonnes, valued at $119,470, with no standard pricing or oversight.
These countries have succeeded by implementing:
- Transparent licensing frameworks,
- Sustainability certifications aligned with EU standards,
- Digital traceability systems.
Nigeria’s Missed Opportunity
Nigeria processed 27,721 containers at the Lilypond Command in H1 2025, contributing to $1.586 billion in exports.
Yet experts warn that much of this growth is superficial—driven by weak institutions and trade distortions. Charcoal reflects this broken system, where unverified shipments leak value and deliver minimal state revenue.
The UAE remains a key buyer of Nigerian charcoal, but without certification and quality assurance, foreign distributors capture most of the value.
What Needs to Change
To unlock the full potential of Nigeria’s forest economy, a three-pronged transitional framework is essential:
1. Clear, Collaborative Regulation
- Developed with input from producers, environmental experts, and community leaders.
2. Technological Enforcement
- Through digital permits, traceability platforms, and community forest management systems.
3. Export Certification
- Aligned with international sustainability standards to access premium markets.
Economic Potential: With proper integration—clear HS codes, EU-compliant certification, global pricing benchmarks, and training for women and youth in low-emission production—Nigeria could unlock $2–3 billion annually from its charcoal sector.
Final Thoughts: Nigeria has the production scale. What it lacks is structure, enforcement, and vision. The forest is already paying. It’s time for Nigeria to start collecting.
