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Economic growth

Nigeria's Untapped Charcoal Industry Holds Key to Economic Power and Poverty Alleviation

Strategic Insights

— 1 min read

Entrepreneur Ebenezer Akarah has stressed the potential of Nigeria's charcoal industry to power the economy and lift citizens out of poverty. Akarah, CEO of Bricks to Crib Company, bemoaned the country's untapped charcoal industry, valued at an estimated $2 billion globally, yet relegated to the backburner of economic policies. He emphasized the need for the government to revisit charcoal export restrictions, citing the success of countries like Namibia, which exported 270,000 tonnes of charcoal worth $80.5 million in 2023. Akarah warned that failure to address the issue would lead to continued forest loss, driven by unsustainable practices and lack of regulatory structure.

Key Takeaways:

  • Nigeria's charcoal industry is valued at an estimated $2 billion globally, yet is on the backburner of economic policies.
  • The Federal Government's 2025 Forest Economy Summit aimed to unlock $2 billion from Nigeria's forest economy, but failed to address charcoal exports.
  • Charcoal export restrictions imposed by the Nigeria Customs Service in mid-2023 are conditional and lack regulatory structure.
  • Namibia, with a smaller population and semi-arid landscape, exported 270,000 tonnes of charcoal worth $80.5 million in 2023, compared to Nigeria's 443 tonnes valued at $119,470.
  • Charcoal is a biofuel, an export asset, and a source of livelihood for rural communities, and its regulation is key to sustainable forest management.
  • Failure to address charcoal export restrictions risks Nigeria missing the EU's December 2025 deadline for non-deforestation sourcing.
  • Nigeria has the potential to lead in sustainable biomass, but requires smart regulation and policy reforms.

Statistics:

  • Nigeria's charcoal industry is valued at an estimated $2 billion globally.
  • Namibia exported 270,000 tonnes of charcoal worth $80.5 million in 2023.
  • Nigeria exported only 443 tonnes of charcoal worth $119,470 in 2023.
  • The EU's December 2025 deadline for non-deforestation sourcing is looming.

Sources:

  • News Agency of Nigeria (NAN)
  • EBENEZER AKARAH, CEO, Bricks to Crib Company
  • NIGERIA CUSTOMS SERVICE (NIS) CIRCULAR NO. 8
  • 2025 FOREST ECONOMY SUMMIT

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