Description

Activated carbon, also known as activated charcoal, is a highly porous form of carbon that possesses a large surface area and powerful adsorptive properties. These features make it one of the most essential industrial materials for purification processes. It is used globally to remove contaminants from liquids and gases through adsorption — a process where molecules adhere to the surface of the carbon.

In Nigeria, the demand for activated carbon is increasing due to its applications in water treatment, air purification, food processing, pharmaceuticals, and environmental protection. This growing need, coupled with Nigeria’s abundance of suitable raw materials such as coconut shells, wood, and coal, presents significant opportunities for local production and industrial growth.

Activated carbon is produced from carbonaceous materials like coconut shells, wood, coal, or agricultural residues. The process involves carbonization and activation, either through physical methods (using steam or CO₂ at high temperature) or chemical activation (using agents such as phosphoric acid or zinc chloride).

These methods develop a complex pore structure that provides the material with its high surface area and strong adsorption capacity. Depending on the method used and the feedstock type, different pore size distributions are obtained, which determine the suitability of the activated carbon for specific applications.

There are several forms of activated carbon, commonly categorized by their physical characteristics and usage. Powdered Activated Carbon (PAC) consists of fine particles used mainly in water treatment and industrial processes for rapid adsorption of organic compounds, tastes, and odors. Granular Activated Carbon (GAC) is coarser and used in fixed bed filters for municipal water treatment, air purification, and industrial gas cleaning. Extruded or Pelletized Activated Carbon is produced in cylindrical form and is typically used in gas-phase applications because of its low dust content and mechanical strength.

There are also impregnated carbons that have been treated with specific chemicals to enhance their ability to remove particular contaminants, as well as specialized forms like activated carbon cloth and beads for medical and high-precision industrial uses.
Activated carbon’s versatility allows it to be used across multiple industries. In water and wastewater treatment, it removes organic pollutants, chlorine, color, odor, and taste compounds. In air and gas purification, it eliminates volatile organic compounds (VOCs), toxic gases, and odors, and it is a key component in gas masks and industrial air filtration systems.

The food and beverage sector relies on activated carbon for decolorizing and purifying sugar, oils, and beverages, while in pharmaceuticals, it is used for purifying intermediates, treating poisoning, and in medical devices. Other uses include gold recovery in mining, chemical processing, petroleum refining, and environmental remediation.

Globally, the activated carbon market has demonstrated strong growth, with its value estimated between USD 5.19 billion and USD 5.70 billion in 2024. Market projections indicate that it will reach approximately USD 10 billion to USD 11.31 billion by 2032–2034, expanding at a compound annual growth rate (CAGR) of about eight point one percent (8.1%) to eight point seven percent (8.7%).

This growth is primarily driven by the rising demand for clean water, industrial air purification, and compliance with stricter environmental regulations. The Asia-Pacific region, particularly China and India, leads global production due to easy access to raw materials like coconut shells and coal, while North America and Europe remain major consumers because of their stringent environmental policies and advanced industrial bases (Source: Global Market Insights, 2024).

In Nigeria, activated carbon production has existed mainly at the research and pilot scale. Academic and government institutions have conducted several studies demonstrating that local feedstocks such as sub-bituminous coal from Okpara, lignite from Ogwashi, and coconut shells from the coastal regions can be effectively converted into activated carbon using either steam or chemical activation.

These studies proved the technical feasibility of producing high-quality activated carbon locally. However, commercial-scale production has remained limited, and the country continues to depend heavily on imports to meet industrial and domestic demand (Source: Nigerian Raw Materials Research and Development Council, 2023).

According to the International Trade Centre (ITC) Trade Map, Nigeria imported approximately USD 2.1–2.35 million worth of activated carbon in 2023, totaling about 0.9 million kilograms. The major sources of these imports were China, India, and the United States. The imported products are used mainly in water treatment plants, breweries, food processing, pharmaceuticals, and oil and gas industries. This consistent import volume indicates an established market demand that can be gradually replaced by locally produced activated carbon if industrial-scale production is developed.

Some Nigerian firms and distributors are already active in the sector, supplying various grades of activated carbon for industrial use. A few small-scale producers and pilot projects exist, often linked to research collaborations with universities.

However, high-purity and specialized grades used in the pharmaceutical and food industries are still imported due to the lack of large-scale production facilities and testing laboratories to ensure compliance with international quality standards.

Regulation of activated carbon production and use in Nigeria involves several government agencies. The Standards Organisation of Nigeria (SON) sets quality and safety standards for products, while the National Agency for Food and Drug Administration and Control (NAFDAC) regulates activated carbon used in food and pharmaceutical applications.

Manufacturers also fall under the jurisdiction of the National Environmental Standards and Regulations Enforcement Agency (NESREA), which monitors environmental compliance related to emissions, effluents, and solid waste from industrial operations. Producers must ensure that their facilities meet environmental impact assessment requirements and maintain adequate control over chemical use and waste disposal to prevent contamination.

The Nigerian market for activated carbon is expanding, driven by multiple sectors. Municipal and packaged water treatment, beverage and edible oil processing, pharmaceuticals, and industrial gas purification are major users. Urbanization and the increasing demand for safe drinking water have heightened the use of water treatment systems in both public and private sectors.

Additionally, the food and beverage industry continues to grow, requiring reliable purification processes that depend heavily on activated carbon. Oil and gas processing and industrial wastewater treatment are also creating new market opportunities as companies seek to comply with environmental standards.

Despite this strong demand, the development of a robust activated carbon industry in Nigeria faces challenges.

The first major issue is the establishment of reliable, sustainable feedstock supply chains. While coconut shells and certain coal deposits are abundant, their collection, processing, and consistent availability at industrial scale remain underdeveloped. The second challenge involves technology and capital requirements.

Building modern activation plants demands substantial investment in high-temperature furnaces, steam systems, and quality control laboratories. Local producers also face competition from cheaper imports, primarily from Asia, where economies of scale and government incentives lower production costs. Furthermore, environmental compliance requirements and the need for technical expertise in process optimization can raise production costs and slow entry into the market (Source: Nigerian Investment Promotion Commission, 2024).

Nonetheless, the prospects for local production are promising. Nigeria has a comparative advantage in raw material availability, particularly in coconut-growing regions like Lagos, Ondo, Akwa Ibom, and Cross River, as well as coal deposits in Enugu and Benue States. Developing local production would reduce import dependency and conserve foreign exchange. The country could also become a regional supplier of activated carbon to neighboring West African countries that share similar industrial needs but lack raw materials.

Investment in research and technology transfer from established producers could help Nigeria build capacity for producing both standard and specialized grades of activated carbon. The establishment of public-private partnerships, coupled with support from government agencies and development banks, could accelerate industrialization in this field.

For Nigeria to fully harness the economic benefits of activated carbon production, stakeholders must focus on integrated industry development. This includes mapping raw material sources, setting up processing clusters, ensuring environmental compliance, and building quality control laboratories that meet international standards. The government can further stimulate growth by providing tax incentives, facilitating access to credit, and supporting export-oriented policies for locally manufactured activated carbon.

Activated carbon is a vital industrial material whose global demand continues to expand due to its environmental, industrial, and health-related applications. The global market is set to nearly double in value between 2024 and 2034, reflecting its importance in sustainable industrial processes. Nigeria possesses abundant natural resources suitable for activated carbon production and a growing domestic market driven by industrialization, urbanization, and environmental awareness.

This report is to examine the financial viability or otherwise of establishing an automated activated carbon production plant using palm kernel shell (PKS)/coconut shell as raw materials in Ebonyi State, Nigeria.