Nigeria sits on a forest economy that could rival oil in export earnings, yet its charcoal sector remains underdeveloped, fragmented, and undervalued. While charcoal exports from Nigeria are legal, weak communication and inconsistent enforcement have created confusion. Informal trade thrives, national revenue slips away, and opportunities are missed.
Countries like Namibia and Kenya have turned charcoal into billion-dollar industries, anchored on sustainability certifications and clear regulations. Nigeria, despite its vast forest reserves, lags behind with unverified exports and minimal oversight. The difference is not capacity, but structure and vision.
Regulatory Gaps Hold Nigeria Back
In January 2023, the Nigerian government formally allowed charcoal exports under specific conditions. Exporters must secure a support letter from the Ministry of Environment, obtain clearance from the Ministry of Finance, pay duties, and commit to reforestation.
Yet, most producers and traders remain unclear about the rules. Poor communication has forced many into informal channels, making the trade opaque. Without consistent enforcement, investor confidence has waned, and foreign exchange inflows remain a fraction of their potential.
Lessons from Namibia and Kenya
Nigeria is not short of resources, but it is short of order. Namibia exported over 270,000 tonnes of charcoal in 2023, generating N$1.3 billion in revenue. Kenya, leveraging community forestry and international certification, earns as much as $770 per tonne.
Nigeria, in stark contrast, managed just 443 tonnes worth $119,470. No standardized pricing exists, and oversight is weak. The difference lies in frameworks. Namibia and Kenya have embraced:
- Transparent licensing systems
- Sustainability certifications aligned with EU standards
- Digital traceability tools
By doing so, they have opened access to premium markets and unlocked national value.
Nigeria’s Missed Billions
In the first half of 2025, the Lilypond Command processed 27,721 containers, contributing to $1.586 billion in exports. On paper, this looks impressive, but experts warn that the growth is cosmetic. Weak institutions and trade distortions leak value at every stage.
Charcoal tells this story clearly. Without certification or quality assurance, most of the value ends up abroad. The United Arab Emirates, one of the largest buyers of Nigerian charcoal, often benefits more than Nigeria itself. Nigerian exporters sell low, while foreign distributors capture high-margin markets.
A Three-Pronged Framework for Growth
Nigeria can still turn the tide with a transitional plan that brings clarity, technology, and sustainability.
- Collaborative Regulation
Policies should be built with input from producers, environmental experts, and local communities. - Technological Enforcement
Digital permits, traceability platforms, and forest management systems must replace manual processes. - Export Certification
Certification aligned with global standards will grant Nigeria access to high-value EU and Middle Eastern markets.
With these reforms, Nigeria could generate $2–3 billion annually. Beyond revenue, structured growth can create jobs, empower women and youth through training in low-emission charcoal production, and restore investor confidence.
Nigeria has the forest resources and the production scale. What it lacks is structure and enforcement. The charcoal sector reflects a broken system that bleeds revenue and rewards informality. If Nigeria adopts clear rules, embraces technology, and aligns with global standards, the story could change.
The forest is already paying. The only question is whether Nigeria will start collecting.
