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Step By Step Guide On How To Start Charcoal Exportation Business In Nigeria

Step By Step Guide On How To Start Charcoal Exportation Business In Nigeria
In this article, we'd be going through a step-by-step guide on how to venture into charcoal exportation business in Nigeria including the different types of charcoal and places charcoal can be found in Nigeria.
Wikipedia defines charcoal as a lightweight black carbon residue produced by removing water and other volatile constituents from animal and plant materials. It is usually produced by the heating of wood or other organic materials in the absence of oxygen.
To a layman, a charcoal can be the remains of firewood after it has been exposed to fire.

Charcoal can be found in various areas in Nigeria including Omu Aran, Enugu, Minna, Jebba, Jos, Cross River, Egbe, Kabba and Oyo.

Types of Charcoal

Charcoals are can be differentiated based on their grades. Some of them include:
• Hardwood Charcoal
• Shisha Charcoal
• BBQ Charcoal
• Charcoal Briquettes

Uses of Charcoal

Charcoal provides and alternative and low-cost of cooking for local communities in Africa and other parts of the world. Most of the residents of the small communities who cannot afford the cooking gas or kerosene opt for the charcoal.

Let's run through some of the uses of charcoal:

• Cooking

Step By Step Guide On How To Start Charcoal Exportation Business In Nigeria
Charcoal can be used as an alternative to the kerosene, cooking gas or electric cookers. It can be used for preparing almost all kinds of food, including bakes.
Charcoal also cook food within minutes without smokes. Some people even testify that foods cooked with charcoals and firewood taste better than the others. 

• Absorbent

Because of the ability to soak organic compounds embedded in liquid or gas, charcoal is being used as an absorbent in so many industries
It is known to adsorb a huge variety of substances including a variety of dyes, paints and many different kinds of ions.

• Warming house in winter

Step By Step Guide On How To Start Charcoal Exportation Business In Nigeria
Some parts of the world experience extreme colds during the winter seasons. Imagine a weather below −67 °F, you won't know how bad it is if you've not left the shores of Nigeria.
In times like these, you'd see that charcoals become important as they can be used to warm up the houses.

• Industrial fuel

So many industries depend on charcoal for fuel. It is more affordable, especially in areas that the electric supply is not so constant.
It can also be used for production of black powder, which is used for manufacturing fireworks.

• In toothpastes

Charcoal has been used for centuries as a teeth whitener. It helps in removing surface stains from your teeth. It is mildly abrasive and is also able to absorb surface stains to some degree.

• Metallurgical fuel

It can also be used as a metallurgical fuel when it comes to meting metals like steels and irons. It is commonly used by blacksmiths for tor this purpose.

• In cosmetics

Activated charcoal can also be used in beauty products like cosmetics and toothpastes. It is  amazing for drawing out toxins and removing impurities.

How To Start A Lucrative Charcoal Export Business In Nigeria

Having seen the uses of charcoal, there is no doubt that venturing into it would be a good bargain.

• Research

Take out your time to investigate on every fact about charcoals, including the countries you plan on exporting to, their policies and more. Also understand the rules and regulations guiding charcoal exportation in Nigeria, it'll help in saving you from a lot of troubles.

• Register your business

After you've done mapping out the things involved in this business, you can then proceed to the registration stage. This involves first registering your business (as a limited liability company) with the Corporate Affairs Commission of Nigeria. You'd also have to register with the Nigerian Export Promotion Council, as it involves exportation.
NOTE: 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.

• Get a supplier

The next step after registering your business is sourcing for a good supplier ie. a direct charcoal producer. This is one of the most important stages of this business, no foreign customer will want to patronise you if he notices that your products are in genuine.
You can get this by searching the internet for trusted charcoal dealers. Please, also endeavour to read reviews from other customers that must have patronised them before.

• Source for buyers

You can easily get buyers by registering on websites like alibaba.com, and exportersindia.com. Social networks like LinkedIn and Facebook can also go a long way towards landing you good customers.

• Start exporting

This is the last step in the exportation of charcoal from Nigeria and it involves sending it to your customers in various parts of the world.

Charcoal importation can be done in two ways:

  - Free on Board (FOB) basis: This involves the exporter covering the cost of the goods and every other thing till its arrival at the shipping point.
  - Cost, Insurance and Freight (CIF) basis: This involves the exporter taking care of the cost of everything including insurance and transporting the goods to the buyer’s port of destination.

Other Business Opportunities In Charcoal Exportation

There are various ways of earning from the charcoal exportation business in Nigeria, including:
• Charcoal production
• Charcoal exportation/distribution
• Manufacturing/selling of charcoal appliances like stoves 
• Export broker
• Product sourcing expert

What more? This article should be of a great aid to anyone interested in venturing into the charcoal exportation business in Nigeria or other parts of Africa.
What do you think? If this article helped you, don't forget to drop us a comment and share with your friends. Before you leave, also check out our next article on the top 7 cassava buying companies in Nigeria with their contact info and addresses.
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