Overview of the Nigerian Furniture Market
INSIGHT IN THE NIGERIAN FURNITURE MARKET
Up until recently that the federal government revised the embargo on the importation of Furniture and other sundry commodities into the country, which has seen a rise in the creative potential of our local manufacturers who were hindered by the lack access to loan, exorbitant duties on the importation of raw materials and other unfavorable government policies.
It will be recalled that the reason for this ban was because Government wanted to protect the local industries involved in the manufacturing of these goods and according to recent statistics and market trends, one must say it worked.
With the numerous calls for diversification of the Nigerian economy, the furniture manufacturing sector has experienced growth that has inaudibly been contributing to the earnings for investors and the overall GDP of the country.
The global furniture market has been on the rise, with analysts forecasting the compounded annual growth rate (CAGR) estimate of 3.53 percent over the period of 2012 and 2016. Nigeria has not been left out in this global. Information from Reuters showed that one of the key factors contributing to this market growth is the boom in real estate industry.
The furniture market in Nigeria has had its own share of challenges which include the shortage of timber supply often poses a challenge to the growth of this market but industry professionals have been hard at work to develop modern designs using contemporary material like wire mesh, Wicker or rattan furniture, Metal, Plastic, Glass etc. Another prevailing issue that is making the efforts of manufacturers go unnoticed is the access to reliable sources of power, Not only is this detrimental to the production of furniture and manufacturing but also the nation’s ability to possess a sustainable GDP.
The electrification of Nigeria and Sub-Saharan Africa as a whole will liberate many of the constraints that we face as a nation is regards to our overall productivity. This will also help in empowering local manufacturers’ abilities to produce more high-quality furniture at reduced prices.
Furniture manufacturers at the moment must rely on the electricity provided by the government as much as possible. Although these conditions are not ideal, it does not, however, impact on the ability to provide quality, affordable furnishing, and interior design solutions.
So in order to make the system more innovative, great care should be taken so as to ensure that the industry becomes more efficient and are capable of producing high-quality goods by utilizing the waste from the production process to create other goods.
With contributions from
- HOG Furniture