Socio-Economic Implications of Charcoal Production and Marketing in Nigeria

Abstract

Charcoal has been an important domestic product for many years and, and has wide market acceptance. Charcoal constitutes the primary urban fuel in most of Africa and some developed countries and is a major source of income. The production, transport and combustion of charcoal constitute a critical energy and economic cycle in the economies of many developing nations. The objective of this paper is to discuss charcoal production and marketing in relation to place (distribution) and price in Nigeria. Charcoal marketing and cost-benefit analysis depends on a study of commercial possibilities as indicated by source and cost of raw material, availability and cost of labor, price, distribution and the market for the charcoal produced. Some known charcoal deports are found in places like Oyo, Isheyin, Saki Igbo-Ora, Ogbomoso- all in the western part of the country. We also have depots in Jebba, Omu Aran, Egbe, Kabba in the Central States. Charcoal is found in abundance also in Minna, Jos and Kaduna. Charcoal marketing and distribution is a sequence of business activities that involves the producer, supplier, wholesaler or retailer, and the consumer. Charcoal for export is graded and packaged to meet the international standard specification of hardwood charcoal. A large market exists in EU, USA and ASIA with prices ranging from £170 to £190 per ton depending on mode of packaging. A container load which contains about 23 tons of bulk charcoal cost between N450, 000 to N500,000 to process and be made ready for export. Charcoal production is one of the primary causes of deforestation leading to land degradation in areas involved in the business. The business is associated with the felling of both mature and nearly-mature trees. Deforestation is a serious problem leading to global warming, therefore, the business World must wake up to, especially to mitigate the effect of global climatic change.