Charcoal Trading in Nigeria

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Trading in charcoal often looked down on and despised by Nigerians, is now a goldmine venture, according to operators.

They say that food sellers and caterers, who cook for large gatherings, as well as some women, make use of charcoal as an alternative source of energy needed for cooking because of its relative cheapness.

Whether as a retailer, wholesaler or supplier, the business is a flourishing venture, according to Mr. Raphael Ayantayo, who operates at all levels of the business.

He says, “I operate at all levels of this business. I sell in retail from my shop; I sell in wholesale as in large bags and I also supply truckloads of charcoals to other wholesalers. Whichever level a prospective operator chooses to begin, profitability of the venture is certain to a great extent.

“I think the point is that most people overlook this business. And you know, it is those businesses often overlooked by people that bring much returns. I have been in the charcoal business for 10 years now and I can make some authoritative comments on it.”

As good and lucrative as the business may be, however, Ayantayo stresses that a major challenge a new operator may face is getting customers.

Getting customers, whether as a wholesaler, retailer or supplier, according to him, requires leg walk, persistence and hard work.

In line with conventional business principles taught in schools, Ayantayo points out that new operators need to identify their target customers and devise means of reaching them with the product.

Once such an operator has been able to win customers, what remains is to map out business strategies on how to retain them.

He notes that like in most other businesses, the market is very competitive.

Ayantayo discloses that a wholesaler or retailer can make between N450 and N600 or more from a bag of charcoal, which sells for about N1,600 in the market.

He discloses that such the bag gets to the sell at the rate N1,000 or N1,150 from the supplier, depending on the quantity ordered.

“Often, we order this charcoal from the Western part of the country. They are usually brought to Lagos in pick-up vans. The quantity you order determines the discount you get from the suppliers. For instance, somebody that orders 60 bags may get a bag for about N1,150, while somebody who wants about 200 bags may get it for N1,000 a bag.

“And the good thing about this business is that supply comes immediately; what I mean is that it does not take time. Often, the product is always ready back in those villages where it is being produced,” he adds

Mr. Sola Ekundayo, who also deals in charcoal, says he started selling grinded charcoal when he realised that people were requesting for it.

He notes that some people prefer the grinded charcoal, which he notes, is more expensive.

Ekundayo, who is also into the supply and wholesale aspect of the business, advises prospective operators to always go for quality charcoal.

According to him, the quality of the woods used to produce the charcoals determines how well they will burn when the ultimate users put them to use.

He notes, “I buy from various sources and over they years, I have been able to know those producers that give priority to quality. The quality of the wood used to produce the charcoal will determine how well the charcoal will burn.

“One of the ways to determine this is through the weight of the charcoal. Often, good charcoals are usually heavy, while bad ones are likely to be very light.”

The charcoal business has no gender barrier, according to Mrs. Ibukun Ogunesan, who has since carved her niche for herself in the business over the last eight years.

Ogunesan, who has a large shop in Isolo, says she buys a truckload of charcoal containing 65 bags for sale every fortnight.

While describing the business as profitable, she discloses that she has been able to train her children and make considerable progress in life through proceeds from the venture.

She says, “I get my supplies from the producers and suppliers, who do this from the Western part of the country. I sell bags, quarter of a bag and half bags. I have never regretted being in this line of trade. I used to sell ready-made clothes. However, I had long wished to join this trade. So, I had to go into my savings from which I raised reasonable capital to start this business.”