Just like other businesses will be discussed, the charcoal business in Nigeria has been known to yield profit with the problem being that some people would not want to get dirty to make money.
However, there are other kinds of people that would prefer getting dirty and all that to earn that cash. Doing charcoal business in Nigeria and its exportation overseas has helped a lot of people to make money.
Charcoal exporters make a lot of money especially in dollars from countries in Asia Europe America and other cold western regions. For this Western region charcoal has been known as an alternative energy source no wonder they use it in powering most of the trains.
This charcoal industry that they are about to venture into is known to be a multibillion-dollar industry that gains enough grants from the government in order to maintain smooth operation on a daily basis.
Factors to consider before venturing into charcoal business in Nigeria
Charcoal business in Nigeria is worth investing in but in order to start this business, you must make sure you meet up with the requirements that are necessary for exportation especially from the government regulatory agencies on the exportation of charcoals. There are some rudiments and principles guiding the exportation of charcoal in Nigeria which you need to understand before going into this business.
Charcoal Quality for exportation
You should be able to know the standards that are required and also recognize the kind of charcoal that is eligible for exporting and all this is to avoid being underpaid or get rejected after going to the stress of exporting your charcoal.
The things that need to be in order and there volatile contents, moisture content, fixed carbon parameters, and Ash contents. The examination of all these factors before the exportation of charcoal is very crucial and hardly ignored.
These examinations are sometimes being done by someone who does a thorough examination.
It could also be done by a local agent that is available.
2.location of quality charcoal
several communities in Nigeria have a special way of charcoal production which is done locally for several uses. Charcoal is in high demand and is being used as a major substitute for kerosene whenever there is a shortage.
The kinds of charcoal which are technologically perfected and needed for exports can be easily found in locations like Oyo, Ogbomosho, Minna, Saki Igbo-Ora, Jebba, and Kebba. Babies listed locations you could easily detect that the production of charcoal is being done any northern and western part of Nigeria only.
I also want to bring to your knowledge that charcoal has a seasonal market and in some countries, they don’t run out of charcoal easily because they store it when it is its a season and in scarce period. They sell it.
Better locations for exporting charcoal
There are some countries where you easily make sales of charcoal and their countries like Kuwait, Isreal, and some other Asian countries. if you’re lucky enough to have buyers and some of these countries have listed then you’ll be in huge business taking a lot of orders because the real dealers are in those countries.
If you want to begin the exportation of charcoal as a newbie it is way better to start small and within the course of time improve and increase your shipments. This shows to your buyers that you can always handle more export orders if you are given the opportunity.
with that convincing notion, they can easily link you up to big companies and their countries and you will make it big.
The packaging of your consignment is being solely determined by the buyer and his taste
You can easily pack them in bulk packaging or package them in several in kilograms of 5 kg, 3 kg, and 10 kg
Make use of reputable freights
Exportation of charcoal has always been done using reputable freights companies with terms of payment being cash against documents or letters of credit.
for the newbies in this line of business it is also important to understand how these packaging works either in small packs or bulk but what is more crucial is that you should have sourced for funds and gotten bias for your intending products.
Get the required capital for this business
Just like every other business in Nigeria requires start-up capital this one also does and since you’re going for exportation to make more money it would also require some extra capital. Since the Nigerian economy is quite bad at the moment I would not give you the lucid dreams of acquisition of capital being easy.
But I also let you know that there are some financial institutions that are ready to lend money to exporters of charcoal because they have realized that it is more capital-intensive. For you to easily get this startup capital from a bank or other financial institution you have to present a valid order. Also, there is a venture capitalist that has enough funds but they are more interested in sharing the profits of any available businessman in a given ratio.
For you to have your request granted from these financial institutions you have to present an order from a reputable company that is in the country or outside and they should also present a valid document as this would help your request to be granted.
Network with exporters
In order to learn the best and new trick, you have to get closer to people that already in this business get hints that are expressed from them is there to help you in partaking in this lucrative business. You also have to make a lot of movement in order to gain connections and you shouldn’t just relax waiting for someone to take your hand to show you a price, buyers, and charcoal depot within and outside the country.
Always making inquiries another to follow up with the current situation of this business in Nigeria. Staying updated with information keeps you ahead of others because product knowledge is key and without it you cannot become successful in that field.
Request an advance payment
You should also know that one of the ways to doing the best of transactions is that if you’re good already on the way to their required destination you should have gained some percentage of the total money before delivering the goods. In the exportation of charcoal, it takes at least 6 weeks for a successful delivery to take place. if you have a container that is full of charcoal it might cost you up to 700 thousand depending on the quality of the woods you used. The profit in this business is like 30% transaction which will give you up to N200000 per container load.
There are big-time exporters of charcoal that do up to 30 containers within the smallest amount of time.