Until the late 1970’s when hydrocarbon was discovered in commercial quantity in Oloibiri, present day Bayelsa state, Agriculture remained the mainstay of the economy contributing over 90% of the Gross Domestic Product (GDP) of the country as against the less than 40% it now contributes with crop production accounting for an estimated 85%, livestock 10% and the balance made up by fisheries and forestry.
Any nation that requires economic development must look inwards to identify areas where it has comparative advantage over other nations and seek to develop the identified areas.
Apart from hydrocarbon, Nigeria has comparative in the Agricultural sector where a variety of products are produced due to the favorable climatic condition ,good soil condition and the fact that over 70% of the entire land mass of the country is arable.
Nigeria has comparative advantage in the production and export of hardwood charcoal in Africa over her counterparts due to the large arable land available and the conducive climatic condition for the production of hardwoods.
The cry for alternative energy sources due to the effects of global warming has put charcoal in the forefront of the global market. A large market exists in Europe and Asia with prices ranging from $170 to $300 per MT depending on the mode of packaging. The charcoal production industry is a multi-billion dollar industry and a money spinner for savvy investors to position themselves.
FACTS ABOUT HARDWOOD CHARCOAL
History: Historically, production of wood charcoal in districts where there is an abundance of wood dates back to a very ancient period and generally, consist of pilling billets of wood on their ends so as to form a conical pile, openings being left at the bottom to admit air with a central shaft to serve as a flue { Wikepedia}
Estimated National Production: There is no exactly figure of the national production of charcoal in Nigeria. It is however estimated between 1 million – 1.5 million MT {Foraminifera Market Research}
Export from Nigeria: Though the history charcoal production in Nigeria is not properly documented but it is not until the enthronement of democracy in 1999 that reinforced the implementation of many export policies that charcoal was first exported in Nigeria. At the moment, Nigeria exports hundreds of thousands of charcoal annually.
Types: Commercial charcoal is found in either lump, briquette or extruded form. Charcoal can also be classified as sparkling or non- sparklingly.
Uses: Though charcoal is commonly used as fuel, they are also used in purification / filtration, art, medicine and horticulture.
Areas of Production: In Nigeria, charcoal is produced in every state of the federation.
Production of charcoal is one that transforms raw logs into black coloured coal-like materials after disposing off the moisture and organic substances within. The remnant solid will retain the heat giving combustible materials.
Charcoal is mainly produced from tropical hardwood, although there are other sources. The process of production is called PYROLYSIS. This entails burning of wood under high temperature in the absence of air.
Charcoal is used as fuel in cooking, barbeque and heating and casting bronze and other metals.
Hard wood charcoal can be produced year round. However it generally advised that charcoal production and export should be done during the dry season (from November to May).
Production and export of charcoal during the raining season could be rejected by buyers because of the high moisture content (more than 10%) that usually characterized the charcoal produced during this period.
Charcoal is available in virtually every part of Nigeria as many local communities have perfected the act of charcoal production.
Some known depot in Nigeria includes Isheyin, Ogbomosho, Saki Igbo-Ora all in Oyo state, Minna in Niger State, Jos in Plateau State, Kaduna in Kaduna State, Kabba in Kogi State and Makurdi in Benue State.
Charcoal, because of it uses, is a seasonal product in some clime while in others they require it all year round.
In Europe, the sales season starts from May to August because this is their summer time. The Europeans starts giving order from September to May. Though some big time importers in Europe buy all year round.
In countries like Kuwait, Israel and some other Asia countries, it is all year round and orders are placed from January to December.
For the purpose of this write-up, the international standard specification of hardwood charcoal if given below
Ash content: 3% -4%max
Volatile matter: 5-10% max
Wood matter: 2-4% max
Size: 20-120mm
Carbon: 65%-80%
Moisture content: 8% max
The return on investment on the export of hardwood charcoal ranges from 10% to 25% per transaction.
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At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.
You can order our detailed feasibility report on the export of charcoal in Nigeria by clicking on the link below.
HARDWOOD CHARCOAL EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
Hardwood Charcoal Packaging And Export In Nigeria;The Feasibility Report.
Sawdust Briquettee Production In Nigeria For The Local And Export Market; The Feasibility Report.
GALLSTONE EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
GUM ARABIC EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
COCOA BEANS TRADING AND EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
HIBISCUS FLOWER EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
HOW TO MAKE HUGE PROFIT SUPPLYING COWPEA {BEANS} TO LOCAL INDUSTRIES IN NIGERIA.
COLUMBITE EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
RAW CASHEW NUTS EXPORT IN NIGERIA
RAW CASHEW SUPPLY TO LOCAL INDUSTRY IN NIGERIA
GROUND NUTS EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
DRY SPLIT GINGER EXPORT IN NIGERIA; THE FEASIBILITY REPORT.
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– MARKET RESEARCH REPORTS IN NIGERIA
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