How to start a charcoal export business in Nigeria
The cry for alternative energy source has put CHARCOAL in the forefront in the global market. A large market exists in EU, USA and ASIA with prices ranging from $170 to $500 per ton (FOB Nigerian Port), depending on mode of packaging. The charcoal industry is a multi-billion dollar industry and a money spinner for interested investors. The United Kingdom alone consumes more than 60,000 metric tons of charcoal annually, out of which about 70% comes from tropical Africa. Germany, Belgium, Greece the Netherlands, Italy, Poland, Spain, Bulgaria and UK are as substantial importers of charcoal. The total level of volume of exports from Nigeria can not satisfy the demand in the European market. Charcoal is mainly produced from tropical hard wood, although there are other sources like coconut shell. The process of production is called PYROLYSIS. This means burning of wood under high temperature in the absence of air.

The charcoal prepared for export must also be packaged to the buyer’s taste. They could be packaged in small sizes to enable local buyers purchase easily for their needs, or they could be packaged in bulk, weighing different sizes; anywhere from 25kg and above, and then placed in containers ready for shipment by a shipping company, and delivered to the buyer anywhere in the world.

Register Your Export Business: The first step to starting a charcoal export business is to register a legal business. To do this, you must first register a limited liability company with the Corporate Affairs Commission of Nigeria, then go on to register your business with the Nigerian Export Promotion Council. Registered business names are not allowed to register with the NEPC, and so, you can only function as an exporter with a Limited Liability Company registered under the laws of the Federal Republic of Nigeria.

The next thing is to source for international buyers for your products. You can do this by registering on websites like:www.exportersindia.com, www.alibaba.com, www.linkedin.com and several others. You can also build an influential social account on LinkedIn and market your Charcoals to a unique business audience you’d build over time.

The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. Where FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination.

Where Charcoal can be found: This product is virtually available all over Nigeria as many local communities have perfected the technology of charcoal production. Some known charcoal deports Made in Nigeria are found in places like Oyo, Isheyin, Saki Igbo-Ora, Ogbomoso- all in the western part of the country. We also have depots in Jebba, Omu Aran, Egbe, Kabba in the Central States. Charcoal is found in abundance also in Minna, Jos and Kaduna. Besides, an individual can produce his own charcoal wherever he/she is located.

Charcoal Season: Charcoal has a seasonal market, but the season differs from one country to another. For instances in Belgium, UK, Holland, France, Germany and Denmark, the Sales season is from May through August because that is their summer time. The Europeans give out their orders from September to May of the following year. In countries like Kuwait, Israel and other Asian countries, it is all-year round and order is placed from January through December. However, there are some big time importers in Europe who also order all year round.

Standard Requirement: There are certain standard requirements to be met in charcoal exports; parameters like fix carbon, Ash content, volatile matter, moisture content need to meet buyer’s specification. Some of the buyers use their local agents to inspect here when loading. Others sometimes request for presentation of sample of the product before shipment

Packaging: Packaging of charcoal is usually done to the specification of the buyer. Some want bulk packaging, in which case, the charcoal is tipped into open high cube containers while others prefer packaging into finished packs like 5kg, 10kg, 30kg and 45kg. Shipping is done through a reputable forwarding company and Terms of Trade can either be by letter of credit or Cash Against Document. The latter is however easier and less costly than the former. Packaging in bulk into containers is easier for beginners because capital investment is low

Start up Capital: For one 40 feet container, an initial investment of N4,000,000 will cover the cost of product sourcing, loading, Local revenue, transportation and documentation. The money will be enough to acquire enough charcoal that will fill a 40-feet high cube container, weighing 19 to 20 tonnes. But for Shisha charcoal a container cost between 5 to 6 Million naira per container. The rate of returns is high one can make between 2M to 5M naira on a container depending on the type of charcoal you are supplying

How small investors can catch on this opportunity: A small investors can actually make money either by producing the charcoal and sell to exporters or source for the charcoal from the bush and sell to the real exporters and earn a commission or finders fee. A small investor can also produce this charcoal and sell to local consumers

Opportunity for big Investors: You can act as an exporter in Nigeria and also an importer in Europe, all you need to do is to register a company in Europe, get a warehouse and start packaging your charcoal in small bags of 2kg to 10 kg. You will make over 70% profit .Some Europeans merchants import over 100 container from Nigerians every month, and they package the charcoal in small bags and make a gain of 10,000 Euros instead of 3,000 Euros

Don’t miss this opportunity to get started on your dreams! Take the first step towards making money and living the life you want. Existing small business owners who want to expand into new markets can also benefit from this lucrative charcoal export business opportunity

 Our full mentorship guide will allow you to start charcoal exportation immediately as we have trusted and reliable buyers that can give you charcoal contract immediately.

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