Nigeria’s forests can be divided into two principal categories: woodlands and forests of the savanna regions (fourfifths of the country’s forest area) that are sources of fuel and poles, and rainforests of the southern humid zone that supply almost all domestic timber and lumber, with fuelwood as a byproduct.
Nigeria’s forests have gradually shrunk over the centuries, especially in the north, where uncontrolled commercial exploitation of privately owned forests began in the late nineteenth century.
Nigeria stands to gain a lot from the cultivation, development and organized exploitation of her forest reserves especially in these days of global warming. Forest provides wood, foods, tourism and other industrial raw materials.
Some of the investment opportunities available in the forest industry include
-Production of pulpwood and paper.
-Establishment of sawmills
-Eco-tourism Development:
-Wood Processing and Allied Industries
– Establishment of Carpentry/Furniture workshops
– Mulberry Plantation/Sericulture
-Export of Processed Woods
-Honey Production
– Mushroom Production
This report seeks for establish the financial viability or otherwise of exporting processed woods { Teak, Gmelina and Eki} in Nigeria. The total cost of exporting a container load of Teak is estimated at N 1,076,000, Gmelina N 732,600 and Eki N 420,000. The estimated return in investment per container is between 20%- 30%.
The manpower required to run the project is between 1-2 persons with one purchasing the woods from the saw mills and the other selling to the buyers, though these process can be handle by one person.
Getting started with Burning Charcoal
It is not hard to export charcoal from Nigeria provided you want to get dirty for cash? Many would want to get even more than dirty as long as dollars are involved. To export charcoal overseas means getting dirty for real dollars. Exporters are raking in much dollars from Europe, America, Asia, and other cold western regions. Charcoal is known as ‘alternative energy source’ in the western regions.
The Charcoal industry in Nigeria is a multibillion dollar industry which on its own attracts enough grants from the government to the exporters in other to keep it running smoothly and on a regular basis.
To Export Charcoal, Here Are Factors to Consider
The business is worth going into but you must meets the exporting requirements from the government regulatory agencies on charcoal exports business. To start charcoal export, it is vital that you understand the rudiments and the principles guiding charcoal export in Nigeria.
· Quality of Charcoal to Export
Knowing the standards to be met and the types of exports-worthy charcoal is very important for an exporter not to risk getting rejected or under priced.
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.
· Where to Source For Quality Charcoal
Virtually all the Nigerian communities has their own local ways of producing charcoal for their various uses. Charcoal readily comes in handy any time there is shortages of 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.
· Where to Export Charcoal Oversea
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 are throughout the year. This is where a real dealer is proved.
Even if you are starting the charcoal exports newly, it is always best to keep increasing your shipments. This serves as an indication that you can handle more exports if given the opportunity. That is what usually gives exporters link to big companies in various countries to strike up better deals.
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.
· Ship Through Reputable Freights
Charcoal is always shipped through a reputable freights companies with terms of trade stated by letter of credit or CAD, Cash Against Document. Many prefer the former because of how easy it is compare to 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.
· Get Capital For Your Charcoal Export
I won’t give you the impression that getting capital for the business is easy. Though there are many financial institutions that are willing to participate in capital intensive business like charcoal exportation.
It is not easy but you can make it easy by sourcing for a valid order to present to any financial institution for consideration.
There are also 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.
· Network With Other Exporters
Get closer to those that are already into the business to learn the latest trick from them. Back yourself up with hints expressed here as you get ready to have your own share of this lucrative business of charcoal exportation to foreign countries.
Do not wait to be taken by the hand to show you the buyers, the prices, the charcoal deports in Nigeria or outside the country.
Make important enquirers about the current situation of the charcoal business in Nigeria. Doing that would enable you to have firsthand knowledge about the business. Besides, as an entrepreneurial, you are required to be equipped with genuine and up to date information about your business. It is always important to have fresh facts handy before sourcing for any fund for business.
· Request Advance Payment
Another good thing about the transactions is that once your goods is on the way to the destination, some percentage of the money would have been paid to your account before it is delivered.
Successful delivery takes 6 weeks on the average to round up. A container load of charcoal may cost N500k to N700k depending on the quality of the woods used. The profit margin is usually above 30% per transaction which is between N150,000 and N210,000 per container load.
Big time charcoal exporters ships between 20 and 30 containers within shortest periods of time. Do the calculations and find out enough reasons why you have to join charcoal export business.
