Many people I’ve met want to try their hand at exporting. The majority of people mention shoes, purses, etc. when asked about what they intend to export. Those are not negative things. Few people discuss exporting goods like charcoal, which could be a fantastic way to make money.
The truth is that a lot of people are unaware that Nigeria exports charcoal. Even those few who are knowledgeable and want to begin exporting have no idea where to begin or how to do so.
You now have the knowledge necessary to launch a charcoal export business in Nigeria.
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You should be aware of these in order to follow the law and stay out of trouble. Be knowledgeable.
Let’s start by defining charcoal.
Firewood that has been subjected to fire in its solid state results in charcoal.
Ash is one possible form in which firewood might be found after being burned.
Charcoal is not ashes.
But certain variants, like charcoal briquettes, are manufactured from coconut shells.
Speaking of charcoal, there are four different kinds that you can export. The are…
Fireplace Briquettes
Hardwood Charcoal\sBBQ Shisha Charcoal, charcoal
What is charcoal used for in Europe, you might wonder?
For domestic heating, several Asian and European nations use charcoal. Keep in mind that they have long, bitter winters.
Although they have other options like geothermal heat pumps and pellet stoves, charcoal is more affordable.
Why choose Nigerian charcoal?
Given that it is composed of hardwood, Nigerian charcoal is extremely popular abroad.
Compared to charcoal generated from other types of wood, charcoal made from hardwood lasts longer and generates more heat.
Okay! Now let’s get down to business.
How do you begin your charcoal export business in Nigeria?
1. GET YOUR BUSINESS REGISTERED: Assuming you have the necessary funds, the first step in becoming a charcoal exporter is to register your company with the Corporate Affairs Commission. This must be carried out through a Limited Liability Company.
You might not be able to register with the (Nigerian Export Promotion Council) NEPC if your company is not a Limited Liability Company; as a result, you can only conduct business as an exporter through a Limited Liability Company that has been registered.
When you register your firm with CAC, you get credibility over unregistered member companies.
Why Register with NEPC?
Well, NEPC supervises all export businesses in Nigeria. You must register with them.
2. PRODUCT SOURCE: It’s crucial to know where in Nigeria you can buy charcoal if you don’t have access to trees or woods where carbonization can be done.
These locations include Nasarawa, Kaduna, Jos, Egbe, Minna, Kaduna, and several others. These locations produce large amounts of charcoal.
Make sure the charcoal you purchase complies with international regulations when you are sourcing it. Some customers examine the ash content, moisture content, and other specifications.
3. KNOW YOUR EXPORT COUNTRY: Many people largely ignore this. It’s crucial that you look up information on charcoal in the nation you want to export to.
Exist any laws or regulations about charcoal?
Do you understand Nigeria’s export regulations?
You should be aware of these in order to follow the law and stay out of trouble. Be knowledgeable.
4. SOURCE FOR BUYERS: Without international buyers, there can be no export. Therefore, pay extra attention to nations that have a large need for charcoal while you are seeking consumers. The majority are in Europe and Asia, and they have higher standards than other nations.
International buyers can be found on websites like:
www.exportersindia.com
www.alibaba.com
You should be aware that these websites need registration.
There are further web pages. If you’re in the appropriate crowd, social media sites are also beneficial. supply for them
The final stage is for you to begin the exportation of the charcoal.
5. EXPORT YOUR PRODUCT.
This entails delivering them to the nations where they are required.
Two methods exist for doing these:
When you export using the Free On Board (FOB) basis, you are responsible for paying all costs up to the shipping point.
Cost, Insurance, and Freight (CIF) basis: With the CIF basis, you are responsible for covering the costs of transportation and insurance all the way to the final destination.
Keep in mind that you’ll require a shipping firm to engage with as soon as you receive an order in order to assist you in getting your product to your customers.
Occasionally, your buyer will instruct you on 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.
FINAL ANALYSIS ON HOW PROFITABLE IS CHARCOAL BUSINESS
About 21 tons of charcoal are contained in a 40-foot container. A ton of charcoal includes 40 bags if it is packaged in 25 kilogram bags. A 40 foot container can hold 840 bags, or 21 tons of 40 kg bags.
Locally, the cost of charcoal is influenced by your position and negotiating skills. Unprocessed charcoal costs between N4,000 and N5,000 per bag, whereas processed charcoal costs between N7,000 and N8,000 per bag.
Prices in the international market range from $200 to $600.
