Wood Processors, under the auspices of the Processed Wood Producers and Marketers Association, have warned that the planned suspension of wood processing and export activities could lead to a significant increase in unemployment and economic losses.
The association claimed that the proposed policy, which is expected to be formalized as an executive order, could jeopardize over six million jobs and result in the loss of substantial revenue for Nigeria.
The policy is intended to preserve the nation’s natural resources and boost the local wood industry.
However, industry experts argued that a well-structured export policy could work in tandem with protective measures to benefit both the local industry and the environment.
The Legal Adviser to the association, Barrister Folorunsho Dada, in a letter he addressed to the Chief of Staff to the President, Hon. Femi Gbajabiamila, called for a reconsideration of the proposed suspension.
Dada emphasized that the policy could have detrimental effects on Nigeria’s economy, which is already struggling with a 40 per cent inflation rate.
He highlighted the financial benefits of the wood processing and export sector, estimating its value at $500m, and pointed to the economic gains of other countries with significant wood resources, such as China, the United States, and Canada, which are projected to earn billions from this sector in 2024.
Dada noted that Nigeria, which earned over $50m in 2023, could potentially see its earnings reach the billion-dollar mark if the industry is allowed to expand.
He also mentioned the contributions of PROWPMAN and the Tropical Wood Exporters Association of Nigeria (TWEAN) to sustainable forest management and economic development.
The efforts, he noted, had generated over N11.2bn for the National Forest Trust Fund, supporting reforestation and climate change projects.
Dada urged the federal government to consider the broader economic implications of the proposed suspension and explore alternative strategies to support both the local wood industry and environmental sustainability.
He said: “Our dear country cannot afford the loss of jobs for 6.2 million Nigerians who depend on the wood processing and export value chain sector of the Nigerian economy.
“Following the lifting of the 014 blanket ban on wood processing in Nigeria, PROWPMAN, together with the Tropical Wood Exporters Association of Nigeria (TWEAN), became the leading voice for Sustainable Forest Management and has, within three years, contributed to the economy such that it was able to mobilise over N11.2bn as seed fund for the project.
“Our client mobilised financial support for Sustainable Forest Management and allied products in Nigeria and recommended payment on every container of wood exported out of Nigeria, and this effort alone pooled over N11.2bn into the coffers of the federal government to be utilised by the National Forest Trust Funds for aggressive forest restoration and climate change related projects.’’