Charcoal Export as Money Spinner

  • Charcoal Export as Money Spinner

Not many people know that the charcoal industry is a money spinner. According to the United Nations, Nigeria exported 80,000 tonnes of charcoal worth €25 million ($29 million) in 2007, making it one of the biggest exporters of the product worldwide.

The call for alternative energy sources has increased the demand for charcoal with a large market for it in the European Union (EU), United States (US) and Asia where prices range from 200 Euro to 250 Euro per tonne.

An export consultant, Sunny Anjorin said Nigerian charcoal is in high demand in EU countries because they are of good quality. He lamented, however, that not many Nigerians know this. Anjorin has promised to help exporters source charcoal from Iganna in Oyo State.

Charcoal from Iganna and Mokwa in Niger State are sold in Belgium, the United Arab Emirate, UK, US, Asia and Turkey.

Chief Executive, The Thy Consulting, Ismail Abdul Azeez said the demand for charcoal had grown across Europe. His company has been exporting on the average 200-300 co2ntainers of hardwood charcoal monthly to EU, adding: “EU customers want charcoal that is compliant with quality control in terms of size and moisture content,” he said.

Households, he said, are involved in the production of charcoal in Iganna with graduates starting on a large scale.

The export of charcoal is an all-year round business that with slight dips between July and September. But exporters make a lot of money during the summer (May to August), when demand is high.

Europeans place orders during this time of the year while in Asians order the product throught the year. The UK, followed by Dubai, remains one of the largest consumers of charcoal.

Azeez said charcoal production is a big business which though cumbersome, gives good profits.

Producers, he said, also export charcoal dust to the UK where it is blended with coconut shells from Brazil and used for molding refined charcoal blocks. These, according to him, are sold in big stores abroad.

He said charcoal production could only be done by anyone who could persevere, adding that it is for the hardworking people.

Abdul, who has been engaged in charcoal export for over seven years, said he gets requests for the supply of the product from Asia with restaurants, barbecue and industries as clients.

Charcoal is categorised. According to a research, those in the industrial category falls within the 20mm to 60mm size, others range from 20mm to 80mm and restaurant’s are between 20mm and 140mm.

He said one needs between N1.5 million and N2million to do a container export of charcoal.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

9 Comments on "Charcoal Export as Money Spinner"

  1. Enyioma Nwaokoro | October 22, 2018 at 8:31 am | Reply

    Dear SAMED OLUKOYA, there is a lot I would have wanted to say about this article but let me limit it to the fact that there are mainly facts stated therein. However the problem is that those already in the business work hard to ensure no new comers step in. Within the last one month, as a new comer, I was able to discuss with 2 Polish companies. One actually offered a contract document but in my bid to secure a hand holding from existing companies, NEPC, consultants. I discovered a lot I am ashamed to state here and in the end I lost both contacts. It is a shame really.

  2. Enyioma Nwaokoro, new entrants generally face hindrances from established players in most industries. However, have you tried doing it yourself? Source for products, arrange your own logistics and practically boycott the consultants.

  3. hi
    I’m Ibraheem 4r Lagos. I appreciate ur efforts. though I’m into it already supplying within my I understand better ur messages. But my customers do complain my stock is more expensive considering other co-distributor. is there any link u can give at least to c if I can get it a little cheaper.

  4. I need contact w
    here to get it at more cheaper rate. I actually supply within d country bt my customers do complain about high in cost

  5. Presently I do not have any link but if I do. I will get in touch.

  6. Ibrahim Shuaibu | April 25, 2019 at 12:56 pm | Reply

    That’s really an inspiring piece of write up.I never knew that charcoal is actually a lucrative business area.
    Where can one find charcoal makers or suppliers in Kaduna metropolis, please?
    The answer to the above question would be really helpful.
    Thanks for sharing you knowledge.

  7. Hi Mr Samed. I love your article as it has enlightened me on how lucrative this business is. Please are there places around Lagos State where one can get good quality charcoal for export purpose? I have a warehouse in Lagos where I can stock the product while it gets ready for exportation.Any where around Lagos like Iganna as you had earlier mentioned.

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