Ebenezer Akarah
(Exporting Value, Importing Loss: Fixing Nigeria’s Broken Charcoal Chain)
The recent clarification by the National Charcoal Producers, Dealers, and Exporters Association of Nigeria (NACPDEAN) confirms what many have misunderstood: charcoal exports are legal, provided exporters meet the regulatory requirements. Yet confusion persists among stakeholders and the public. This reflects a larger national problem: policies that exist on paper but are poorly communicated and weakly enforced. Instead of fuelling growth, such ambiguity stifles opportunity.
Contrast this with Namibia, a country with a fraction of Nigeria’s economy. By adopting clear regulations, transparent licensing, and robust monitoring, Namibia has turned its charcoal sector into a structured, profitable industry. Producers there can plan long-term, investors trust the system, and the government reaps steady revenue. Nigeria, meanwhile, continues to stumble through a haze of unclear rules and missed opportunities.
If there is no export ban and regulations supposedly exist, why then are we not seeing growth in production, trade confidence, or foreign exchange inflows from charcoal? The answer is simple: unclear communication and weak enforcement. Unless this gap is bridged, Nigeria risks forfeiting a valuable non-oil revenue stream at the very moment diversification has become a national survival strategy. With clarity, collaboration, and proper regulation, charcoal could generate jobs, boost foreign exchange, and promote sustainable forest use.
Consider the small bakery owner in Lagos whose Instagram page was suddenly restricted. Sales collapsed, but she had no idea why. Weeks later, she discovered the cause: a background music clip in one video violated an unfamiliar rule. By the time she resolved it, she had lost 40 percent of her revenue. That is Nigeria’s forest economy in miniature – crippled not by lack of demand, but by silent, unclear rules that cost billions.
Yes, Nigeria recorded $1.586 billion in exports and processed 27,721 containers at the Lilypond Command in the first half of 2025. But experts warn much of this “boom” is an illusion, propped up by weak institutions, currency instability, and trade distortions. Charcoal reflects this broken system. While Namibia exported 270,000 tonnes worth N$1.3 billion in 2023, at structured prices and with sustainability certification, Nigeria managed just 443 tonnes valued at $119,470, with no standard pricing or oversight. Kenya, too, sells at $770 per tonne thanks to community forestry and certification, while Nigeria’s poorly managed trade leaks value and delivers minimal state revenue.
The UAE still welcomes Nigerian charcoal as one of its few natural exports…a rare diplomatic opening. But where Namibia and Kenya send clean, certified shipments, Nigeria often delivers unverified consignments, leaving foreign distributors to profit at our expense.
NACPDEAN has been clear: since January 19, 2023, charcoal exports have been permitted. Exporters must obtain a support letter from the Ministry of Environment, secure Ministry of Finance approval, pay duties, and commit to afforestation. The rules exist. The problem is poor communication, inconsistent enforcement, and loopholes that push trade into informal and unregulated channels.
What Nigeria needs is a transitional framework that balances economic opportunity with environmental responsibility. A three-pronged approach is key:
Clear and collaborative regulation was developed with stakeholders, environmental experts, and community leaders.
Technological enforcement through digital permits, traceability systems, and community forest management.
Export certification aligned with international sustainability standards, enabling Nigerian charcoal to access premium markets.
With proper integration…clear HS codes, sustainable certification to meet EU standards, export benchmarks tied to global prices, and training for women and youth in efficient, low-emission production, Nigeria could unlock $2–3 billion from its forest economy.
The lesson from Namibia and Kenya is straightforward: regulated supply earns higher prices and credibility. Nigeria already has the production scale; what it lacks is management, enforcement, and vision.
The forest is paying. It is time for Nigeria to collect. By investing in clarity, traceability, and fairness, we can transform this smouldering potential into a vibrant, sustainable source of national revenue.
Mr Ebenezer Akarah, CEO/Founder of the Bricks to Crib Group of Companies, writes in from Abuja.
Source: Businessday.ng | Read the Full Story…
