Feasibility Report On The Export Of Sawdust Briquette From Nigeria.

Sawdust briquette is compressed sawdust. They are produced from dry sawdust and the resulting compressed dust comes out in a solid and cylindrical shape. It can also be in different shapes. The conversation is done through the briquetting machine and the briquette does not require any binding agent or chemical adhesive.

They are used as cooking fuel in hotels, boarding school/hostels, eateries and factories where boilers are been used.

The product is marketed according to the grading briefly as follows:-

Grade “A”- void of cracks, hard with metallic sound when rolled and lengthly (not more than 4 pcs in a length of 390mm).
Grade “B”- with minimum cracks, hard and not less than 75mm in length.
Grade “C”- as “B” except the length is not less than 50mm in length.

During the era of late Gen. Sanni Abacha, sawdust ranked amongst the leading cooking fuel in Nigeria, due to the scarcity of kerosene. Sawdust, the chief raw material in the production of sawdust briquette, is produced as waste product in the processing and production of woods.

The market for sawdust briquette is both local and international though the international market is more developed than the local market.

The growing world population continues to fuel the demand for cooking fuel around the world and due to increasing awareness on global warming and its effects on the ecosystem, sawdust briquette is cheaper, faster and better than the regular firewood, natural gas, charcoal and kerosene. Opportunities exist in the production, sales and export of the product.

The exportable nature of this product makes it a goldmine for investors who wish to go into the export of the product or for existing exporters of charcoal to make greater profit as the demand is hot abroad.

The return on investment in the export of sawdust briquette is estimated between 10%-15%.

Table of Contents

Table of Contents 1. Introduction 1.1 Executive Summary 1.2 Business Opportunity 1.3 Country Background 2. Technical Analysis 2.1 The Project 2.2 Product Description 2.3 Product Location and Distribution 2.4 Legal Considerations 2.4.1 Pre-Export Documentations in Nigeria 2.4.2 Post-Export Documentations (Exchange Control Documents) 3. Opportunity 3.1 Market Overview 3.2 Demand and Supply 3.3 Customer Profile 3.4 Primary Competition 3.5 Competitive Advantage 4. Managing Contract Negotiations and Export Operations 5. Socio- Economic and SWOT Analysis of the Project 5.1.1 Generation of Employment 5.1.2 Source of Government Revenue 5.1.3 Foreign Exchange Generation 5.1.4 Technological Transfer 5.1.5 Increase in Gross Domestic Product (GDP) 5.2 SWOT Analysis 6. Risk Identification and Mitigation Strategy 6.2 Critical Success Factor 7. Financial Analysis

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