Want to start charcoal export business and receive your payment in Nigeria, read this guide

Want to start charcoal export business and receive your payment in Nigeria, read this guide

Raphael Orji Raphael Orji March 12, 2020

Charcoal export business – Are you aware that Nigeria exports 80,000 tons of charcoal for approximately $29 million as at 2007 only, till date, Nigeria stands one of the biggest exporter of wood charcoal to Europe and Asia respectively.

The truth is, there’s a lot of money to be made in charcoal business, depending on your projections and capital outlay, how much you make to a great extent is a product of who you sell to, where you sell it and how much fund is available to you to execute this business.

The business seems to be a dirty one, it has however continued to put food on people’s table, and will always do so long the need for wood charcoal does not go extinct, it has been with man for the past 30k years and counting.

Do not be deceived whatsoever, riches abide in dirt, people in this business can make honest revelation if you’re lucky enough to come in contact with them. Building and creation of wealth to eradicate poverty is our goal, thus why I’m introducing this business to you.

Some related searches include:

  • How much is a bag of charcoal in Lagos
  • International price of charcoal
  • Nigeria export promotion council
  • Charcoal dealers
  • Charcoal export contract

Why wood Charcoal in the first place?

Wood charcoal is a hard, porous, highly carbonaceous product formed during the heating of wood without access of air.

From a general perspective, wood charcoal is known as a cooking fuel, it’s better than wood given to the fact that:

  • It’s calorific value is greater than that of wood
  • It’s ignition temperature is less than wood
  • It causes less air pollution and smells better.

Other uses of wood charcoal

  • Wood charcoal is porous and can absorb liquids and gases on its porous surface, with that said, it is used in water filters, gas masks and antigastric tablets for people suffering from indigestion.
  • Used for silicate production in China

 

A handful of countries export wood charcoal to countries where they are required in large quantity, these countries include but not limited to:

  • Indonesia
  • China
  • Poland
  • Ukraine
  • Nigeria
  • Japan
  • Germany
  • South Korea
  • The United States and
  • Saudi Arabia

Before you delve into this business, it’s ideal you understudy the business carefully, this entails understanding the basics like

  • How to buy or produce Wood charcoal
  • Where to buy
  • Charcoal type according to buyer’s specification
  • Who to sell to
  • How to source buyers
  • Packaging
  • Export documentation and processes
  • Payment mode etc

These are the pivots of charcoal export business, learning and understanding the dynamics involved ensures you have a smooth sailing in this business.

Types of charcoal

  • Hardwood charcoal
  • Charcoal Briquettes
  • BBQ Charcoal
  • Shisha Charcoal

Where to source wood charcoal for export in Nigeria

It becomes necessary to have background knowledge of product source you want to export or sell for a profit, that being said, you may produce wood charcoal yourself if you stay in areas where trees and forests are located in abundance, it does not come without labor though.

You may produce wood charcoal by burning trees in the absence of air in earth for days or by large domestic or industrial operations like we have in bakeries those days before the arrival of the modern bakery oven. The former is however predominant for commercial and export purposes.

As a business fellow who has enough cash to throw around without going through herculean tasks of wood charcoal production, you may have to visit the following areas and states for your charcoal.

However, remember to buy or produce charcoal with specification to your buyer’s needs.

Consider the moisture, carbon and ash content of the charcoal according to buyer’s specification and demand, failing in any of these areas or supplying the wrong charcoal component could result to bad business as the buyer will reject the product, now you know.

You may source your charcoal in:

  • Kabba
  • Minna
  • Oyo
  • Jos plateau state
  • Nassarawa state
  • Cross Rivers
  • Kaduna
  • Enugu etc.

How to sell your charcoal

It’s either you sell your charcoal locally to users who may need it for varying cooking purposes, roasting foods, blacksmiths etc, you can sell to resellers who buy and may probably export them abroad if you do not have the ability to go through the exportation process.

For the purpose of this guide, exporting abroad is the real hack, so I will show you what you need to know.

To go into charcoal export business, you ought to have a registered business name with the Corporate Affairs Commission (CAC), thereafter register with the Nigerian Export Promotion Council (NEPC).

This is an institution saddled with responsibility to issue license for exportation of Agricultural products.

With the help of (NEPC) your export documents in Nigeria will be ready for business.

To sell your charcoal abroad, you have to start by preparing and getting your export documents ready.

Read: All you need to know about export documents in Nigeria

How to source buyers abroad for charcoal export business

This is about the highest hack, some persons would have love to start exporting, but who to export to is the problem.

You see, selling your charcoal to anyone abroad could be a problem, but getting your money is the real puzzle.

To get buyers abroad, you will have to use an agent, you will get to understand this better by attending seminars on trade-fare organized by Nigerian Export Promotion Council.

The most effective measure however entails having a business website and ranking it on Google/search engines, apart from searching for buyers yourself, it’s also important that buyers can find you, this will bring the buyers naturally because they’re online in search of you, it sounds so simple but about the most complex, a bit easy if you know how to wriggle out.

You may use direct emailing, use promotional emailing to contact buyers from detailed search, in the mail include a link to your website, follow up with phone calls or Skype call, with this approach your chances of success will increase.

How to receive payment for your charcoal export business

You can either do Letter of Credit (LC) or Bills for Collection (BC), it’s the responsibility of the buyer to go through these processes with minimal information from the exporter.

Read: How to receive payment with Letter of Credit

The scenario is, you are now the seller, while the buyer is in charge in his/her own country.

Charcoal dealers in Nigeria/Lagos

There are a handful of dealers, but the most trusted I could cite in this guide is Remfilson Export Ltd.

They value relationship through outstanding guaranteed products delivery.

Remfilson Export Limited deals primarily in the exportation of agricultural commodities. Hardwood Charcoal, Sesame seeds, Ginger, Kolanuts, Raw cashew nuts. Hibiscus Flower, African foodstuffs and solid minerals.

Remilson Export is incorporated and licensed by Nigerian Export Promotion Council to carry out exportation of agricultural commodities in Nigeria.

They poses operational experience in exportation industry, with a team well versed in all aspects of multiple logistics, from planning to implementing and maintaining business partnerships.

Contact: +2347038114924 or +2348033292339.

Conclusion

Charcoal export business is a viable one, it’s a line of income you should consider, like I said earlier, there are three dimensions which you can tap into this business.

  • It’s either you produce the charcoal and export it your self
  • You could buy from local sellers and sell to exporters or
  • You sell wood charcoal accessories like the charcoal stove etc.

Whichever entry you choose, rest assured you’ll make money continuously, have questions on charcoal export business, use the comment below, rest assured I’ll get back to you.

 

 

 

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