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By Chinwendu Obienyi and Chukwuma Umeorah
The interior design and decoration business in Nigeria has consistently displayed immense potential, with experts projecting its contribution to the nation’s GDP to exceed $40 million over the next. Within this sector, both individual designers and companies have capitalised on the growing consciousness about style and interior designs to not only boost local content, but to increase employment and business opportunities thus contributing significantly to the economy of Nigeria.
In this interview with Daily Sun, Mejire Arubayi, a highly experienced economic development consultant with over 18 years in Programme and Project Management and the current contract manager at Woodstyles Ltd, Nigeria’s leading indigenous luxury furniture manufacturer discusses some of challenges in the sector and ways to maximise its contributions.
He also spoke on the need for the current administration to introduce tax rebates to aid the growth of SMEs in the country.
Excerpts:
Inspiration behind the luxury business
I have always loved beautifully and well-designed spaces and I have always wanted to be part of that process and to explore the many ideas I have developed over the years. I have had the opportunity to work on various design projects, ranging from private residences to luxury hotels and collaborations with renowned architects globally. I joined Woodstyles because of their ability to execute projects at a level that resonates with my own standards. I believe in the power of design to transform spaces and improve people’s lives, and working with Woodstyles gives me the chance to bring these ideas to life for our clients.
Challenges, achievements so far
Challenges, in my view, are opportunities for growth. One of the basic challenges is that some clients have a vision but find it challenging to express their desires. As experts in the field, we are skilled at asking the right questions to bridge this communication gap, ensuring we can deliver on their vision. However, operating in Nigeria, like many industries, comes with certain difficulties such as the high cost of production, inconsistent power supply, inadequate infrastructure, high exchange rate and other economic challenges. These issues affect everyone across the board, from the “Okada” man to the local bread and tomato sellers. But I believe these are temporary issues, and with time, the economic situation will improve. On the positive side, Nigerian-based furniture companies like Woodstyles benefit from these challenges because they encourage clients to seek quality items locally instead of importing. Nigeria possesses the skill sets, and at Woodstyles, we have cultivated a high level of quality to rival imported furniture. So, these challenges present us with an opportunity to demonstrate that we can surpass imported products in terms of quality.
Industry’s wealth generating opportunity towards Nigeria’s economy
Woodstyles has been in operation for almost eight years, and we are experiencing rapid growth. We continue to innovate, consistently raising the bar in terms of design and quality. Our annual exhibitions garner praise from visitors who note our dedication to pushing the boundaries of design. This growth leads to more business, which, in turn, generates employment opportunities, corporate social responsibility efforts for the community and environment, increased tax revenue, and other positive economic impacts. So, yes, I agree that the industry is making a substantial contribution to the economy in multiple ways. That is why promoting local production is essential. Moreover, we are committed to promoting employment within Nigeria. Our workforce is predominantly Nigerian, and we actively share our technical skills with the community by offering internships and training to technical school students, which contributes to human capital development in the country.
Local sourcing
We follow a hybrid approach. But I want to assure you that a significant percentage of our materials are sourced locally. Nigeria offers excellent wood options, like iroko and a host of others, but certain projects require a variety of woods, and for those, we do import some materials from other African countries, Europe, Asia, and elsewhere. Our material choices depend on the project’s specifications and the client’s demands.
FX scarcity
The funny thing is that even the materials that we source locally are also impacted by forex. It means that we are getting burnt from both sides of the candle. Our local suppliers keep telling me every day, “Oga dollar don rise’ and everything, so therefore my price has gone up.” Whether it is dollar denominated or not, everyone keeps leveraging on the increase in exchange rate to increase their prices. It is a major challenge for us, but we must continually purchase raw materials to stay in the furniture business, regardless of the cost. For certain materials, like ironmongery, we have no alternative but to import because they are not available locally. We would not compromise on the quality of our products, so we accept the challenges posed by FX rates. No matter the cost of sourcing for the raw materials, we do not drop the quality of our items because our watchword is “quality” and our clients do not joke with that.
Exhibitions at the forthcoming Design Week Lagos 2023
The items that we put on display for this year’s edition of DWL define our commitment to forward-thinking innovation. While growing up, we used to have very bulky furniture designs, particularly our wardrobes where we play hide and seek and all that. However, you will notice that our designs are futuristic and align with the evolving landscape of furniture. Traditional, bulky designs have given way to more streamlined and space-efficient options, especially as living spaces become smaller. We are committed to delivering convenience and aesthetics, regardless of the available spaces, while ensuring our clients’ satisfaction and luxury. Our statement item on display at this year’s edition of DWL was our 4 metre by 2.8 metre-high door that provides our client with security, and breathtaking aesthetics. Our exhibition at DWL is one of many other exhibitions that we embark on to showcase the beauty and quality of Made-in-Nigeria furniture.
Policy reforms needed in the manufacturing sector
My recommendation to the government would be to implement business-friendly policies. For instance, providing tax rebates for small manufacturing companies can be highly beneficial. Additionally, addressing the issue of stable power supply is crucial to reduce businesses’ dependence on costly diesel or fuel. These measures would go a long way in supporting local manufacturers and promoting economic growth. That is not to say that the government has not been trying. The policy that they came up with against importation of furniture has contributed to the growth of our sector because it has made people look inwards, thereby promoting our local manufacturers. We hope to see more such initiatives that promote local industries.
ESG strategy
We are doing a lot in that regard, as We take our environmental and social responsibilities seriously. Concerning the environment, we partner with organizations committed to tree planting and afforestation, both within Nigeria and internationally. We actively participate in “World Tree Day” and ensure that we contribute to planting new trees to offset those used in furniture production. On the social front, we have played a significant role in community development. For instance, the area where our factory is located was essentially a forest with no residents within a two-kilometer radius. We constructed roads, brought electricity, and transformed it into a thriving community today. Additionally, we collaborate with technical schools within the community to provide internships and training to students, some of whom eventually become full-time employees at Woodstyles. We are deeply committed to our environmental and social responsibilities.
Expansion plans
Our business operates differently from a factory that mass-produces items. We are not selling 1000 tables to 50 clients; we are selling 50 different tables to 50 different clients. We specialize in bespoke, tailored designs for individual clients, and each project is unique. Our primary focus is to grow organically and solidify the Woodstyles brand. We want to ensure that our commitment to quality is unwavering before we consider listing on the Nigerian Exchange Limited (NGX). Rushing into expansion can be a mistake that many businesses make. Our aim is to reach the level of European companies in our sector and even surpass their standards before contemplating a public listing.
