It is not hard to export charcoal from Nigeria to oversea and make money. Do you want to get dirty? That’s a question that no sane man or woman would ever want to give any attention to because it sounds least reasonable; but if the question is rephrased in another way like this, do you want to get dirty for dollars?
Though still with the same word ‘dirty’ but many will scramble for the later and would want to get even more than dirty as long as dollars are involved. To export charcoal to oversea means getting dirty for real dollars.
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That is just the way it is with charcoal business which many consider to be dirty man’s business but unknown to them, charcoal exporters are raking in much dollars from countries like:UK, USA, ASIA, and other cold western regions of the world. In fact, it is not even addressed with such demeaning name by the dealers, it is rather called, alternative energy source.
And so with enough energy to have their bank accounts heated up regularly. When you hear the word ‘money spinning’ always stretch your ears further to see if charcoal would be mentioned along the line.
The Charcoal industry in Nigeria is a multi-billion industry which on its own attracts enough grants from the government for the exporters to keep it running smoothly and on a regular basis.
The business is worth going into if one meets the exporting requirements from the government regulatory agencies on charcoal exports business. To start exporting the commodity, is vital for the individual to be equipped with the rudiments of the principles guiding charcoal exports.
Knowing the standards to be met for the types of exports-worthy charcoal is very important for an exporter not to risk getting rejected or under priced.
Important Factors To Consider In Export Charcoal
The Ash contents, moisture contents, volatile contents, and parameters of the fixed carbon are also needed to be in order. Serious works are usually required in inspecting all these before loading it into the ship for exports.
Sometimes this is carried out by the local agents, other times, a sample representation would be sent for proper examinations.
Virtually all the Nigerian communities has their own local ways of producing charcoal for their uses as it readily comes handy any time their are shortages of other cooking fuels, such as gas and kerosene.
You can get the technologically perfected ones for export in places like Ogbomosho, Oyo, Saki Igbo-Ora, Minna, Kebba, and Jebba all in western and norther parts of Nigeria.
Charcoal has a seasonal markets but in some countries that does not really affect the exportation as some dealers abroad use the time to store it against the next summer season when the demands usually go up.
If you have buyers in countries like Israel, Kuwait and other Asian countries, you are in a big business all year round as their orders is throughout the year and that is where a real dealer is proved.
Even if an individual starts charcoal exports newly, it is always best to keep up with his abilities by increasing his shipments, because it serves as an indication that he can handle more exports if given the opportunity and that is what usually gives an exporter a link to some big companies in various countries to strike up some good deals with.
How your consignments is packed are usually determined by the buyer either to have it in bulk packaged or to have it packed in variant kilograms of 3kg, 5kg, 10kg, etc.
It is always shipped through a reputable freights companies with terms of trade stated by letter of credit or CAD, Cash Against Document, which many prefer against the former because of how easy it is than letter of credit.
As for the new entrants into the business, going into details on how you would be packaging either in bulks or in smaller packs is important but that is usually best reserved till when you have been able to source for funds and buyers which would indicate the direction your business takes.
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We are not giving you the impression that getting capital for the business is easy even though there are many financial institutions that are willing to participate in capital intensive business like charcoal exportation.
It is not easy but the aspiring exporter can make it easy by sourcing for a valid order to present to any financial institution for consideration.
There are also many venture capitalists out there with enough fund waiting for businessmen that are willing to share their profits at a given ratio with them.
Once you have your valid documents and order from a reputable company within or outside the country, you are sure to have your request granted.
Get closer to those that are already into the business and back yourself up with some hints expressed here as you get ready to have your own share of the lucrative business of charcoal exportation to foreign countries.
Please do not wait until you are taken by the hand to show you the buyers, the prices, the charcoal deports in Nigeria or outside the country.
Make important enquirers into the markets about the current situation of the charcoal business in your area and outside your area because doing that would enable you to have first hand knowledge into the business yourself besides, as an entrepreneurial, you are required to be equipped with genuine and up to date information in what you are doing as that will always enable you have fresh facts handy before sourcing for any fund for business.
Another good thing of the transactions is that once your goods are on the way to the destination, some good percentage of the money would have been paid to your account before it’s delivered.
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Successful delivery takes 6 weeks on the average to round up. A container load of charcoal may cost N500 to N700k depending on the quality of the woods used and the profit margin is usually above 30% per transaction which is between N150,000 and N210,000 per container load.
Some big time charcoal exporters ships between 20 and 30 containers within shortest periods of time. Do the remaining calculations and find out enough reasons why you have to join this lucrative business and get dirty legally doing this wonderful business.