George George Idowu
The Processed Wood Producers and Marketers Association of Nigeria (PROWPMAN) has raised alarms that over six million Nigerians could lose their jobs if the federal government proceeds with its plan to suspend the processing and export of wood.
The warning was delivered by PROWPMAN’s legal adviser and environmental law expert, Barr. Folounsho Dada, in a letter to the Chief of Staff to the President, Hon. Femi Gbajabiamila.
Barr. Dada explained that a policy proposal is currently awaiting presidential approval, which would suspend wood exports to preserve natural resources and boost local production.
However, industry players argue that the decision could trigger mass unemployment and result in a significant loss of revenue for the country.
“The unemployment rate in Nigeria is expected to soar higher if this plan goes forward,” Dada said.
While acknowledging the government’s intentions, Barr. Dada and other stakeholders insist that a balanced approach, where both export and local production are supported, is more viable.
They argue that wood exports generate critical funds that could be used for afforestation and environmental projects, protecting Nigeria’s forests while also contributing to global climate change efforts.
He said: “Money earned from export can be channelled back into developing the local industry.”
The letter to Gbajabiamila also warned that Nigeria, already battling a 40% inflation rate, cannot afford the economic fallout from such a policy.
Barr. Dada argued that halting wood exports could undermine the sector’s potential to contribute millions of dollars to the economy.
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According to the environmental law expert, in 2023 alone, Nigeria earned over $50 million from wood exports, and this figure is projected to rise significantly if the sector continues to grow.
Barr. Dada also highlighted the global context, noting that countries like the U.S., Canada, and Germany are expected to earn over $20 billion from wood exports in 2024.
Meanwhile, developing economies such as Indonesia and Thailand will also see billions in revenue.
He stressed that Nigeria could join these nations in leveraging its natural resources for economic growth.
To counter fears about deforestation, the legal adviser pointed out that PROWPMAN, alongside the Tropical Wood Exporters Association of Nigeria, has been a leader in sustainable forest management.
He said their initiatives have mobilized over N11.2 billion for forest restoration and climate change projects.
“Our client has been at the forefront of sustainable practices, ensuring that our forest resources are preserved while contributing to the national economy,” he stated.
Barr. Dada also urged the government to explore the broader revenue opportunities that the wood export industry offers.
He pointed out that taxes and fees from logging permits, reforestation programs, and export duties could generate additional income for federal, state, and local governments.
PROWPMAN is calling for a town hall meeting with industry stakeholders to review the proposed policy, arguing that Nigeria must follow the example of countries using their natural resources to recover from post-COVID-19 economic challenges.
“Strong economies, including China, the United States, and Russia, are rebuilding through natural resource exploitation.
Nigeria can not be an exception,” Dada concluded.
