From Adanna Nnamani, Abuja
Experts in Nigeria’s interior design industry have highlighted severe obstacles hindering the sector’s manufacturing potential, including limited access to capital, unreliable power supply, and a shortage of skilled labour. At the forefront of this discussion is Black Pelican Group, a leading interior solutions provider.
During the recent celebration of its 20th anniversary in Abuja, Founder and Chief Executive Officer, Mr. Michael Owolabi shed light on these challenges.
Owolabi revealed that since 2018, Black Pelican Group has pursued an ambitious vision to enter the manufacturing sector. However, current banking practices impose exorbitant borrowing costs, severely affecting profitability. “For any appreciable return, you need to be making a minimum of 100% profit on anything you sell. The kind of capital required to build a factory and the gestational period from when you borrow the money to when the factory starts producing, is probably three years. It is very tough,” Owolabi explained.
Securing patient capital, which is crucial for the long gestation periods typical in manufacturing projects, remains a significant hurdle. Owolabi stressed the need for financial systems that support long-term investments rather than quick returns.
Another critical challenge is the access to reliable power. Industries like tile and ceramic manufacturing require uninterrupted 24-hour electricity. Owolabi noted that reliance on diesel generators as an alternative adds substantial operational costs, exacerbating the financial burden on manufacturers. “The continuous operation of ovens demands a constant power supply,” he emphasised.
The scarcity of skilled technical personnel further complicates the situation. “The availability of skilled people keeps shrinking as people emigrate to the West,” Owolabi remarked, underscoring the brain drain affecting the industry.
Despite these challenges, Owolabi assured that Black Pelican Group is committed to finding innovative solutions. The company aims to carve out a significant niche in Nigeria’s manufacturing landscape by exploring new strategies to overcome financial, technical, and human resource constraints.
The insights shared by Black Pelican Group reflect broader issues within Nigeria’s interior design sector. Addressing these challenges will require coordinated efforts between industry stakeholders and the government to create a more conducive environment for manufacturing. By tackling high borrowing costs, improving power infrastructure, and investing in skill development, Nigeria can unlock the full potential of its interior design industry.