When people think of billion-dollar commodities or international trade negotiations, charcoal rarely makes the list. It evokes images of open-air markets, village kilns, and weekend barbecues, not oil rigs and OPEC meetings. Yet imagine if Nigeria treated charcoal with the same seriousness as crude oil, complete with production quotas, export benchmarks, and even a national revenue allocation formula.
In Nigeria, the word “sector” almost always points to oil and gas. And for good reason. We have the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the almighty NNPC Limited, all under the Petroleum Industry Act and benchmarked against Brent crude. Every barrel is tracked from wellhead to wallet.
Cocoa also has its ecosystem: the Cocoa Farmers Association of Nigeria (CFAN), the Cocoa Research Institute, and the International Cocoa Organisation guiding prices and production. Gas has its Decade of Gas initiative, complete with aggregators, export targets, and policy blueprints.
But where does that leave charcoal?
Nigeria has the National Charcoal Producers, Dealers, Exporters and Afforestation Association of Nigeria (NACPDEAN) , an umbrella body advocating order in the trade. Yet beyond this, the sector is largely informal. What’s missing is a structured framework clear rules, enforceable standards, and a value chain that could transform charcoal from a rural hustle into a national asset.
How Other Countries Treat Charcoal
Nigeria is not alone in producing charcoal, but it stands out for not knowing exactly where the commodity belongs. Other African nations have already given it a home.
Kenya: Charcoal is part of the Forestry sector, regulated by law through Charcoal Producer Associations. Licenses are required for production, transport, and sale, with strict sustainability enforcement. Kenya sees charcoal not as a by-product but as a managed forest resource.
Uganda: Charcoal falls under the Ministry of Energy and Mineral Development. A National Charcoal Strategy links it to household energy, employment, and climate goals treating charcoal as energy, not just smoke.
Tanzania: Charcoal is jointly managed by Forestry and Energy because it provides over 80% of household cooking fuel. In Tanzania, charcoal is the kitchen’s lifeline—an essential energy commodity, not an informal trade.
Namibia: Charcoal is an export commodity under the Ministry of Agriculture and Forestry. The Namibia Charcoal Association ensures global quality certification, branding, and international sales. Namibia’s charcoal is packaged, standardized, and shipped worldwide.
Nigeria’s Grey Zone
In Nigeria, charcoal floats in limbo , not quite forestry, not quite energy, not quite agriculture. Officially, it sits under the Ministry of Environment for licensing, but there’s no dedicated policy framework or regulatory clarity.
If Nigeria borrowed models from Kenya, Uganda, Tanzania, or Namibia, it could finally “house” charcoal properly.
Forestry could claim it , tying it to afforestation and sustainability.
Energy could regulate it as a domestic fuel source.
Agriculture could oversee it as an agro-commodity.
At the very least, it deserves a defined home.
The Missed Opportunity
According to the FAO, the global charcoal market is worth about $5 billion annually. Nigeria exports roughly 1.9 million metric tons of charcoal (both legal and illegal) each year, earning an estimated $75–100 million. Compare that to crude oil’s $45–50 billion in annual revenue and it becomes clear: Nigeria is allowing a potentially valuable commodity to slip through the cracks of informality.
But charcoal isn’t just about money. Formalizing the trade could promote sustainable forestry, create rural jobs, and strengthen environmental governance in producing states like Kogi, Kwara, Oyo, and Nasarawa. Imagine headlines like:
“Federal Government Launches National Charcoal Strategy — Producing States to Receive 13% Derivation.”
Of course, challenges would arise. Overharvesting could trigger environmental concerns, and illegal exports would still demand enforcement. But with the right policies, monitoring, and incentives, these issues are manageable.
The Bigger Picture
Nigeria has a pattern of regulating only after a resource has already been abused. Oil theft drains billions. Cocoa and cashew flounder under weak policies. Charcoal, legalized for export since 2023, now suffers from poor communication and enforcement fueling underground trade instead of sustainable growth.
So, what if Nigeria gave charcoal just 20% of the seriousness reserved for crude oil?
We wouldn’t need an NNPC for charcoal. We’d just need clarity:
Assign it to a specific sector.
Define responsibilities.
Set standards.
Communicate and enforce consistently.
Charcoal doesn’t need to be the new oil. It only needs structure, transparency, and sustainability. Because in the end whether for cooking, heating, or export black gold doesn’t always come in liquid form.
~ Mr Akarah is the Chief Executive Officer/Founder, Bricks to Crib Company.
