Exploring Opportunities in Wood Charcoal Export from Nigeria

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Charcoal Export
Wood charcoal is in high demand in different parts of the world especially Europe. It is about the easiest and cheapest to export in Nigeria. It cost an average of N680,000- N1,200,000 to export a 40ft container of charcoal(BULK). It is one of those products available in commercial quantity, several tons readily available for export especially during dry season. Wood Charcoal of Nigerian origin is no doubt one of the best in the world and it is highly sought after. 

Foreign Uses
Wood charcoal exported from Nigeria is used as fuel for cooking. Using it as fuel in preparation of barbeque and in restaurants.

Buying Countries
Some of the countries who import charcoal are United Kingdom, Belgium, Germany, Spain, Netherland, Greece, China etc.

Harvest Period
In Nigeria charcoal season commences from October – May. The most important thing is to buy in dry weather, moisture is the enemy of charcoal.

Supply Location
Charcoal can be found in commercial quantity in Benue, Kwara and Oyo. Of these three states Oyo is the major producer because of availability and proximity to Lagos.

Local Price of Commodity
N610,000- 830,000 worth of charcoal, equivalent to 23/MT will fill a 40ft container.

FOB Price
The FOB price of charcoal ranges from Euro 275-475/MT based on negotiation power. When the charcoal is Bagged price per metric ton could be 420 Euro or higher depending on the requirement of the buyer. The FOB price simply means that the buyer takes responsibility for the payment of  shipment , shipment  fee is not included in the price you are quoting. This is okay as most buyers tend to prefer this method.

ROI
Return On Investment on wood charcoal export is an average of 40% per transaction. The good part is you can easily calculate what your profit will be based on prevailing market price and international price per time. That helps you make an informed decision on whether the ROI is worth it per time.

Let’s do a simple calculation below

Total Cost =N880,000
FOB Price= 380 Euro/MT
No. of Tons= 23
Selling Price of Charcoal= 380 x 23=  8,740Euro
Convert to Naira= 8,740 x 789 = N6,895,860
Less Bank Charge= N769,400 - N8,740 = N760,660
Profit= N880,000 - N760,660 = N119,340

So exporting a container of charcoal can give you a profit of N180,000, meaning if you export 5 containers per time you can make a profit of N900k per transaction.

Duration
It takes an average of 6 weeks (all things being equal) to successfully complete this export transaction. Depending on payment method used, most times a good percentage of your money would have been paid even before ship gets to destination port.

Export business is real in Nigeria and it is growing everyday. Gradually more and more companies and the Federal Government are beginning to see reasons to look in the direction of the non-oil sector. Exporting of agricultural produce, solid mineral export  and commodities in general will be the next big thing in this country. The beauty of it is that it has the capacity to create more employment than we’ve ever known. I see a Nigeria in which people will be going back home instead of US, UK, Canada, Abuja, Lagos to seek greener pastures. I beleive now is the time to get on board before the band wagon effect sets in as usual.

If you have any export related question feel free to call 08065221373 (no SMS) You can also send an email to alexiraoya@gmail.com. Also if you desire Export Training or need Foreign Buyers you can call Blueflextavels & Freight forwarders 


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