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In the early 2000s, Nigeria became known as the epicenter for the woodwork industries in the West African market and created millions of private-sector jobs. The boom was the result of several converging factors. Firstly, construction activities were on the rise, leading to increased demand for wood products. In addition, many of the mainstream Nigerian banks were expanding, setting up branches and offices around the country, offering project opportunities to woodwork companies and making it easier for the companies to obtain loans and manage their capital. Finally, and perhaps most importantly, the federal government of Nigeria in 2004, under President Olusegun Obasanjo, introduced a new policy banning the importation of furniture into the country.

This policy was a response to stalling economic growth and to promote local production of furniture. After relying heavily on income from crude oil business between 2005 to 2015, the federal government was not prepared for the precipitous drop in oil prices in 2016. Not only has the country’s economic growth stalled, Nigeria now finds itself in deep fiscal crisis.

One of the biggest challenges affecting the economy is that it is import dependent. A number of companies that should have engaged in local production also were importing finished products for domestic projects, which, reduced gross domestic product and increased unemployment throughout the country. The effects were felt in all sectors, but the woodwork industry was one of the hardest hit. A similar dynamic played out in the textile industry in the late 1990s, when textiles manufactured in Asian countries were indiscriminately imported into Nigeria in alarming quantities, bringing the textile industry in Nigeria to its knees.

It was clear something had to be done. The government’s solution was to introduce structural reforms to keep jobs and sales within the country, with the ultimate aims of economic growth, fiscal stability, and reduced reliance on the oil business. One important aspects of the reform was the introduction of a policy that banned the importation of furnished furniture into Nigeria, mitigating the lost domestic income from this sector and giving the woodwork industry, among others, a much-needed opportunity for growth. Changes to taxes, tariffs, and interest rates were also beneficial for woodwork companies as they started to rebuild towards a stronger economic position.

The policy changes had a palpable impact within the Nigerian woodwork industry and throughout the country as a whole. The boom attracted a lot of investment capital into the country, and local investors also began to show more interest in the woodwork industry. Furniture factories were set up all over the country, most notably in Lagos state, which had the highest number of established furniture factories in the country. The rapid and significant growth in the industry created employment opportunities especially for the youths across the country.

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