Charcoal is a source of foreign exchange that should be well managed —Jelili Olaniyan

Mr Jelili Olaniyan is the Chief Executive Officer of Jelap Resources and the patron of charcoal producers in Iganna kingdom. He speaks on charcoal export and opportunities. Excerpts:

How long have you been in the charcoal business?

I have been doing this business for the past 25 years

Is it hereditary?

Yes, it is hereditary and I learnt some aspects

How long does it take to learn this business?

At least, one must learn for six months

How profitable is the business especially the export aspect?

Charcoal business is very profitable. Though there are times, very few that one incurs losses but the profit involved ensures these periods do not turn to a setback. Many people do the business on a small scale but for there to be real profits, it must be on a large or medium scale. You sell in large quantities to Lagos and also export.

To which countries do you export your charcoal and what kind of charcoal can be exported?

There is no charcoal that can’t be exported though the quality of each product differs. We export to the United Arab Emirates especially Dubai, Turkey, Belgium and the United Kingdom. What is exported often to the UK is the charcoal dust, those powdery remnants and what they do is blend it with coconut chaff imported from Brazil which is mixed then molded into diverse shapes of charcoal.

What opportunities are there in this business for the unemployed?

The opportunities are enormous. Once they show interest, we tell them to find small capital and link them up with contracts. The way it operates is that we get contracts from foreign countries to produce a particular type of charcoal in a specific volume and we carry these new people along. And if it is local market, we show them the ropes. If you check that place where we are having meetings now, there are many graduates there that are in this business? It is no more a job for illiterates.

If one wants to start this business, what is the capital range?

It depends, if you want to engage in production and export, you will need between two million to five million naira. But if it is just supply, to supply a truck of the barbeque charcoal, that is the small one, you will need around N750, 000 while for restaurant, you will need N1.4 m.

What has been your major experience so far?

What I have found out is that we make more from local sales than from exportation due to the greed of many middlemen but if you create a direct link or come in contact with a fair person, you will smile to the banks. Whichever way however, in charcoal, you make money

Of what importance is the charcoal business to the state and Nigeria as a whole?

Well, it is quite important. Charcoal production, if well managed, can be a major source of earning foreign exchange for Nigeria, especially with the high demand for Nigerian charcoal from many countries. It is time government takes keen interest and explores the opportunities available through production and exportation of charcoal.