By Chukwuma Umeorah
Nigeria’s wood and furniture industry has witnessed significant transformations over the past decade, driven by growing demand for modern designs, premium-quality products, and sustainable practices. Despite contributing less than one percent to the nation’s GDP, industry stakeholders envision its immense potential to play a more prominent role in economic growth and diversification. This optimism stems from evolving consumer preferences, increased exposure to global trends, and rising investments in innovative technologies. However, the sector continues to face pressing challenges, including high import costs, foreign exchange volatility, and restrictive customs practices, which threaten its progress.
In this interview with Daily Sun, Roland Tannoury, Managing Director of UniWood Company, a leading player in Nigeria’s wood supply market, highlights the opportunities within the sector, strategies for navigating the tough economic climate, and the critical interventions required to unlock the industry’s full potential.
Excerpts:
How would you describe the current state of the wood and furniture industry in Nigeria?
The Nigerian wood industry is growing rapidly and has become attractive to new investors and businesses entering the market. The industry usually follows trends—colours, decors, textures. In Nigeria, these trends were not widely accepted in the past. The market used to be dominated by the same old designs, but recent years have brought significant improvements. Manufacturers have now embraced new developments, and with the growth in the economy, people are traveling more and gaining exposure to global trends.
Therefore, on the part of the clientele, there have been this increased demand for new colours, textures and designs. This of course have increased sales and positively impacting the Nigerian economy. In essence the Nigerian wood industry is growing very fast and have become very attractive to new investors and business who are trying to come into the market.
What makes your company unique from other wood companies?
UniWood is the leader in Nigeria for wood supplying. We have raise the bar in terms if delivery. Every carpenter, wood factory, and furniture company in Nigeria is our client. If you are looking to source for the best quality at good prices, we are the wood company to go to. We also have sufficient stock to service a large customer base. If you have a project, you do not have to wait a long time for materials to arrive. We have enough stock to meet demand, enabling clients to carry out their projects on time.
Additionally, our prices are very affordable compared to competitors—20–25 per cent lower, in fact. As for quality, we offer the best products with assurance, earning the trust of all our clients.
How long have you been operating in Nigeria and what is your mode of operation?
This company has been operating in Nigeria for 14 years. We operate a Business-to- Business (B2B) and a Business-to-Customer (B2C) model which basically means that we engage with a lot industry players. Our clients are the carpenters, the furniture makers and the customers who may need our products for various other purposes. So, we import the raw material which is the wood and we sell to them. Some of the wood we sell is not available in Nigeria, so we have to import we have to import. We have future plans to set up our factory here in Nigeria. This company is originally from Turkey. But all the quality and everything is European standards. We have put in a lot of work and trust in this company, this has made us to achieve a lot and become this successful.
How has factors like inflation, exchange rate, high energy costs, FX unavailability among others affected your operations in Nigeria?
The exchange rate is affecting every business in Nigeria, but the impact is more on the manufacturing sector. For example, a furniture producer working on a long-term project might lose value or profit by the time the project is completed due to fluctuating rates. Most companies today are not focused on making huge profits; they are only trying to survive the harsh economic conditions.
To protect our company and customers, we conduct regular price reviews to ensure we do not compromise on quality.
Scarcity of FX is another issue. We constantly need foreign currency to import materials. Despite these challenges, we are committed to the Nigerian economy. Instead of taking profits out, we reinvest locally. For example, we have invested over $10 million in 2024 alone, even though many companies are hesitant to invest due to economic instability. This has formed part of our expansion strategy over the past 14 years.
What areas should the government intervene?
As wood importers, perhaps the most pressing issue would be the urgent review of custom duties. For example, when we import containers, they are meant to charge duty based on the actual price, which might be around $15,000. However, Customs often charges us based on inflated prices like $50,000 or $60,000. Even after presenting original receipts, we are overcharged. These exorbitant duties increase the cost of wood in Nigeria, doubling its price compared to other countries.
Another recommendation to the government would be to implement business-friendly policies, addressing the issue of stable power supply is crucial to reduce businesses’ dependency on costly fuel or diesel. Adequate security is also very paramount.
How have you leverage technology to guarantee quality and durability of your wood?
We use a new and advanced form of technology called “synchronization” in our wood production. It typically refers to modern technologies and machines to align or match various elements of the production process to ensure consistency, precision, and efficiency. We apply this to different aspects of our manufacturing process such as design, cutting, finishing, or surface treatment. This enables us to produce aesthetically appealing and durable products, including those with 3D glossy finishes.
Tell us about your exhibition at ‘made by design’ 2024 exhibition.
Every business, across all sectors need a platform that will provide more visibility both locally and internationally. Platforms such as ‘Made by Design’, the largest furniture exhibition show in Nigeria is very viable because of attracts a large number of investors, customers and creates an opportunity for different businesses to showcase their products, while connecting with other industry players. This of course translates to increase business activity and economic growth.
At this year’s edition, we have sampled some of our finest products and we are open to do business with potential clients. And of course, because it is a fair, we offer at discounted prices. By participating in this exhibition, we aim to generate sales and increase our customer base.
What is the size of your workforce, and how many local employees do you currently have on your team?
Our company places a strong emphasis on employing local talent rather than relying on expatriates. Currently, our team comprises over 100 Nigerians, supported by only two expatriate managers. As dealers, we primarily require salespeople and accountants, and we are proud that all our salespeople and our financial controller—a Nigerian chartered accountant—are locals. While our current workforce reflects the fact that we do not yet manufacture locally, we expect a substantial increase in employment opportunities, particularly for Nigerians, once our factory is operational in the country.
What training and development programs do you have in place for your employees?
Our company is deeply committed to the training and continuous development of our employees. We conduct regular weekly and monthly training sessions to ensure consistent skill enhancement. Additionally, we provide annual international training opportunities to expose our team to global best practices and emerging trends.
For instance, this year, we sponsored some to of them to training programs in Austria and to Salone del Mobile in Milan, the world’s largest furniture exhibition. These experiences allow them to gain valuable insights and bring innovative ideas back to the company. Our approach ensures that our employees are not only well-trained but also highly loyal, as they value the knowledge and opportunities we provide. Unlike some companies that limit knowledge-sharing, we are open in teaching and empowering our team with everything they need to excel.
What opportunities do you see in the nigerian furniture market?
The opportunities are huge. In the past, demand was primarily concentrated in Lagos and Abuja, but it is now expanding to other regions. People across the country are increasingly embracing modern designs and trends. Previously, in regions like the East or North, there was a preference for traditional hardwood and local designs. However, with more exposure through travel and the internet, preferences are evolving, and people are now seeking contemporary styles.
The market is also maturing in terms of quality awareness. In the past, many opted for cheaper, lower-quality furniture, but now, there is a growing understanding of the value of investing in high-quality furniture that lasts 20 to 25 years.