How to Start Charcoal Export Business in Nigeria

Have you ever thought of charcoal deportation to other countries from Nigeria?

If your answer is; YES!

Then you are in the right place because you will learn everything you will need to know about setting up the business.

So in this post, we will discuss how to start a charcoal exportation business in Nigeria.

Without wasting time, let’s dive in.

The Fact Behind Charcoal Exportation Business

When it comes to anything that has to do with exploitation, many people only put their minds to exporting mineral resources (crude oil, gold, etc) and agricultural products (like groundnut, cocoa, cowpea, etc) because they think these guarantee them profit.

If today you’re looking for what to export to other countries outside mineral and agricultural products, then it should be CHARCOAL.

You heard me right, charcoal is a low-cost cooking method for local communities in developing nations because it serves as an alternative to using electric cookers, kerosene, not even gas.

America, Europe, and Asia are where to get a large charcoal market that is worth billions of dollars in market value and this shows a huge market opportunity for anyone interested in the business.

According to research, about 70% of more than 60,000 metric tons of charcoal used in the United Kingdom yearly are from Africa. Now, imagine how much an exporter from Nigeria, who is exporting 5,000 metric tons of charcoal, would be making yearly.

Steps to Starting Charcoal Export Business

1. Market research

Any business one intends to venture into, it’s always advised that market research be carried out. It helps to determine the success of the business.

So you need to carry out proper market research before starting your charcoal export business.

The market research will give you insight into the business. And you will be able to know mad different the different types of charcoal to export and there include the following:

Shisha charcoal
Hardwood charcoal
BBQ charcoal
Charcoal Briquettes

Knowing these different types will help you in marketing your business to prospective customers. You will be able to tell them the type you have or deal on and why it’s the best.

While carrying out market research, you will be able to know where to get charcoal producers and buyers respectively.

Let’s discuss more on the buyers, they are reasons why you want to venture into this business because without them there is no business.

So how do you get these buyers since you plan on selling to foreigners?

Simple, through the internet. Things have become much easier for us that we communicate with that we have not known before through the internet.

There are platforms you can register with that have the prospective buyers you’re looking for. These platforms include the following:

www.alibaba.com
www.exportersindia.com
www.linkedin.com

And more.

2. Register the business

The next step is to register the business as a legal business here in Nigeria. The business will be registered as a limited liability company with the Corporate Affairs Commission (CAC).

After registering with CAC, you will also register the business with the Nigerian Export Promotion Council.

However, understand that you won’t be allowed to register with the Nigerian Export Promotion Council if it’s not registered as a limited liability company.

3. Find and negotiate with producers of charcoal

You have registered the business, the next step is to find and negotiate with a charcoal producer to produce for you.

This means you may be required to give them part payment for them to produce the charcoal for you. This way you won’t be producing it yourself or even buying from middlemen.

You must have gotten their contacts during the market research which will help to reach an agreement with a producer.

Some states where you can find charcoal producers include Kaduna, Oyo, Niger, Nasarawa, Plateau, and a few other states.

4. Set up business structure and branding

This can be done before or after registering the business. Setting up the company structure that will have international standards.

So you need to get a business address, get a website, create your company profile, and get a customized letter heading that will be sent out to buyers that request products.

You have to make sure that your email is a professional one like info@yourwebsitename.com.

You need an office for meetings or if you can’t afford that at the beginning of the business, then you need to rent a space at any coworking space for such meetings.