Nigeria’s $5bn furniture industry outlook positive amid bottlenecks

Local furniture makers are battling with a myriad of challenges ranging from skills shortage, high exchange rate to immigration (japa), however, the future outlook remains positive, Justice Okamgba writes

Aside from the high exchange rate, skills shortage and the ‘japa’ syndrome, Nigeria’s furniture industry is also battling with high operational costs caused by fuel subsidy removal in May 2023.

Other problems militating against the optimal development of this sub-sector include deficiencies in technologies and finance, lack of qualified manpower and rapid turnover, according to the Raw Materials Research and Development Council.

The Industries and Market Furniture Report 2023 obtained by The PUNCH noted this industry is valued at $5bn in 2023 and expected to grow annually by 12.10 per cent between 2023 and 2028.

The furniture industry revolves around crafting functional and visually pleasing pieces for homes, businesses, and institutions.

Industry watchers said entrepreneurs in this field often commenced with extensive research on market trends, customer tastes, and design advancements, allowing them to create furniture designs that meet market demands.

However, local furniture makers recorded significant growth in 2021, driven in part by the COVID-19 pandemic, as people spent more time at home and invested in making their living spaces more comfortable.

The market faced significant challenges in 2022 due to easing COVID-19 restrictions and rising inflation. Despite these challenges, analysts remain optimistic that the market will expand in 2023 as consumer spending has proven resilient in the first quarter of this year.

“The continued demand for comfortable and functional living spaces, coupled with the potential growth in the millennial demographic, presents a promising opportunity for furniture retailers who can adapt to changing consumer preferences and offer high-quality products at competitive prices,” they noted in the report.

Souring of raw materials

The production process starts with sourcing raw materials, often including wood, metal, fabric, and upholstery materials.

“I’m not certain if upholstery materials are currently manufactured or produced in Nigeria, and I’ll need to verify that,” the Chief Executive Officer of DO.II Designs Ltd, Ifeyinwa Ighodalo said in an interview.

The CEO who owns a 1400-square-meter showroom in Lagos with different furniture on display affirmed the company’s dedication to global standards, stating, “Our approach is not merely about assembling and putting furniture out there; it’s about ensuring quality, meeting international benchmarks, and maintaining a commitment to excellence.”

When delving into the specifics of material resourcing, Ighodalo emphasized, “Examining our input materials, take the sofa for example, the frame and foam are sourced locally, while the fabric is imported.”

She further disclosed the company’s ethos, revealing that…