OSAS EMMANUEL
NIGERIA: Environmental law expert and Legal Adviser to the Processed Wood Producers and Marketers Association of Nigeria (PROWPMAN), Barr. Folounsho Dada, has warned that the Federal Government’s proposed suspension of wood processing and export is poised to worsen Nigeria’s already high unemployment rate
According to Dada, over six million Nigerians could lose their jobs if the policy is enacted, further straining an economy already grappling with an inflation rate of 40%.
Dada’s concerns stem from a policy proposal, soon to be an executive order, that is currently under consideration by the President.
The proposal seeks to halt the processing and exporting of wood outside Nigeria to preserve the country’s natural resources and protect the local wood industry.
While the government believes this will benefit the environment and local businesses, Dada argues that such a move could devastate the wood export industry, which has the potential to bring in millions of dollars in revenue for the country.
In a letter addressed to the Chief of Staff to the President, Hon. Femi Gbajabiamila, Dada pointed out that a more balanced approach would be to allow the export of wood while also pursuing policies that support local industry and environmental sustainability.
He emphasized that export revenues could be reinvested in afforestation programs to help combat desert encroachment, replenish forests, and contribute to global climate change efforts.
“Our dear country cannot afford the loss of jobs for 6.2 million Nigerians who depend on the wood processing and export value chain,” Dada stated.
He urged the government to reconsider its stance and explore ways to make the industry both profitable and environmentally sustainable.
According to Dada, PROWPMAN has already submitted copies of their position to the Senate Committee on Environment and the House of Representatives Committee on the same.
Dada also highlighted the financial benefits of wood exports, noting that Nigeria’s wood processing and exporting industry has a capital base estimated at USD 500 million.
He drew comparisons with countries such as China, the United States, Canada, and Brazil, which are all reaping significant financial rewards from wood exports. He argued that Nigeria should take advantage of its wood resources, especially in the post-COVID-19 era, to boost foreign exchange and strengthen the value of the naira.
While larger economies like China and the United States expect to make over $20 billion each from wood exports in 2024, smaller economies like Sweden and Finland are projected to earn at least $5 billion from the same. Nigeria, which made USD 50 million from wood exports in 2023, could see those numbers grow exponentially if the industry is allowed to flourish, Dada noted.
Addressing concerns about environmental degradation, Dada explained that since the lifting of the 2014 ban on wood processing, PROWPMAN, along with the Tropical Wood Exporters Association of Nigeria (TWEAN), has championed sustainable forest management. These efforts have already generated over N11.2 billion for the federal government, which has been earmarked for forest restoration and climate change initiatives.
Furthermore, Dada emphasized the potential revenue streams available to Nigeria’s federal, state, and local governments from various taxes and fees related to wood processing and export. These include concession payments, logging licenses, stumpage royalties, and reforestation fees, which, if managed properly, could provide much-needed funds for infrastructure development across the country.
While PROWPMAN acknowledges the government’s intention to protect local resources, Dada proposed a town hall meeting involving industry stakeholders to review the policy more comprehensively. He believes this will offer a platform to craft a sustainable solution that leverages Nigeria’s natural resources to revitalize its economy while addressing environmental concerns.
Meanwhile, Dada noted that many strong economies, including China, the United States, and Germany, are using their natural resources to rebuild after the global pandemic. Nigeria, he argued, should not miss the opportunity to do the same.
