Employment and Entrepreneurial

Opportunities in the Wood

Products Industry in Nigeria

By

Prof. M.A. Onilude

University of Ibadan
Introduction
 Development of societies around the world has
since dependent on growth of wood and wood
products industries
 In a developing country like Nigeria, as the
population increases, the demand for wood
products increases; thereby:
 Contributing to national economy
 Generating employment opportunities

 Providing increased forest and land management

opportunities
 Improving future potentials of Nigerian forest
 Employment Structure in
WPI in Nigeria
SECTOR JOB OPPORTUNITIES

 Primary  Management
 Supervisors
 Secondary  Skilled traders
 Production workers
 Tertiary (provides  Professional,
goods and services to technical and
the WPI) support staff
Categories of Job Opportunities

 Management: These are people that run the

affairs of a wood products industry. They
include:
 Chief Executive Officer (CEO)
 Managing Director
 Quality Manager
 Engineering Manager
 Sales Manager
 Planning manager
 Marketing Director
 Advertising and Trade Show Manager
 Manager of Logistics and Systems
 Production Manager etc.
Categories of Job Opportunities

 Supervisors: They usually oversee the day to

day running of the operation in the industry.
They include:
 Quality Control Supervisor
 Finishing End superintendent
 Yard Supervisor
 Quality Process Coordinator
 Maintenance Superintendent
 Capital Project Safety Coordinator
 Production Supervisor
 Supervisor Trainee
 Shop Foreman etc.
Categories of Job Opportunities

 Skilled Traders: They are staff who fix, build

and maintain machines, electrical systems and
other production machines. They include:
 Electrician
 Welder/fabricator
 Carpenter
 CabinetMaker
 Upholsterer
 Machinist etc.
Categories of Job Opportunities

 Production workers: These staff move wood

through production line until it becomes a
finished product. They include:
 Sawyers
 Lumber Grader
 Kiln/Energy System Attendant
 General Labourers
 Machine Operator
 Moulder Operator
 Finished Product Grader
 Forklift Operator
 Optimizing Saw Operator etc.
Categories of Job Opportunities
 Professional, Technical and Support Staff:
These workers help WPI stay on the cutting edge as
they are professional experts in their fields. They
include:
 Engineer
 Consultant
 Computer Expert
 Researchers
 Personnel Manager
 Product Planner
 Furniture Engineering Draftperson
 Statistical Analyst
 Project Manager
 Mechanical Engineering Technologist
 Wood Products Engineer
 Production and Freight Coordinator etc.
Entrepreneurial Opportunities
in Wood-based Industries
 Lumber Production
 Sawmilling was introduced to Nigeria in 1789.
 The number of sawmills in Nigeria is ever
increasing with about 160 in 1945 - 1950 to
around 3000-3500 in 2010 - 2015.
 It is the most dominant and viable wood-
based industry in the country, and it
 Utilizes about 95% of log input into wood
sector.
 Employs well over 30,000 workers, both
skilled and unskilled.
Entrepreneurial Opportunities
in Wood-based Industries
 Plywood Production
 The industry is one of the oldest in Nigeria,
with about 8 mills though most of them are
not working at full capacity.
 Plywood mills are especially located in
South-South and South-West areas of the
country.
 Though plywood production is highly
sophisticated in developed countries, it is
still labour intensive in Nigeria, thereby
providing employment opportunities for
people.
Entrepreneurial Opportunities
in Wood-based Industries
 Particle Board Production
 The industry started in Germany in 1940, with
boards produced through utilization of wood waste.
 The first mill in Nigeria was established in Sapele,
Delta State 1976 by African Timber and Plywood
Nigeria Ltd.
 The number rose to FOUR in 1980 with additional
mills at Ibadan, Ologbo, Benin City and Epe.
 The industry has contributed immensely to the
national economy and generation of employment
opportunities because of its ability to utilize all
forms of waste.
 Entrepreneurial Opportunities
in Wood-based Industries
 Particle Board Production
Forest Harvest Furniture
Manufacture

Sawmilling Residue
Building Industries

Plywood Residue

Transport industries
Particle
Furniture Residue
Board

Other wood
Residue Agricultural Building

Chemical
Industry
Other Manufacture

Petroleum
Industry

Fig. 1: Forward and Backward linkages of Particle Board

Entrepreneurial Opportunities
in Wood-based Industries
 Pulp and Paper Production
 Pulp production stated in Nigeria with Nigeria Paper
Mills Ltd Jebba, in 1969 with production capacity of
up to 65000t/yr.
 Two other mills started in 1975, each with 100000t/yr
capacity:
 Nigerian Newsprint Manufacturing Company, Oku-Iboku.
 Nigerian National Paper Manufacturing Company, Iwopin.
 Several other paper producing companies especially
paper converters are scattered all over the country.
 The industry provides employment for Nigerians and
foreign nationals, and also a source of foreign
exchange.
Entrepreneurial Opportunities
in Wood-based Industries
 Wood Treatment
 Wood treatment plants are found all over the world
and are saddled with the responsibility of protecting
wood members (beams, columns, wall panels etc.)
against deterioration.
 In Nigeria, these plants are found in South-Western
areas mainly to treat transmission poles for
electricity and telephone.
 The industry is becoming lucrative due to more
demand for poles by Government for rural
electrification, thereby proving job opportunities for
rural and urban dwellers.
Entrepreneurial Opportunities
in Wood-based Industries
 Wooden Match Production
 The first match production plant in Nigeria
was established in Ilorin, kwara State in 1963,
and the number rose to FOUR in 1970.
 The industry was erroneously classified
under miscellaneous chemical products due
to its lumping together with Splint Industry,
thereby limiting its contribution to national
economy.
 The match industry is moderately labour
intensive.
Entrepreneurial Opportunities
in Wood-based Industries
 Furniture Production
 Itis one of the major wood-based industries
recognized in Nigeria, and the most widely
distributed.
 As at 1999, about 200 large scale wooden scale
furniture industries are operating in Nigeria.
 The industry generates employment for numerous
people and protects the existence of wood
processing industries such as sawmills and
plywood mills.
 The annual consumption of lumber for furniture
making over 200,000 cubic metres.
Entrepreneurial Opportunities
in Wood-based Industries
 Canoe and Boat Building
 The industry is often neglected especially
with respect to contribution to national
economy.
 Boat building is more popular than canoe
building.
 The trade of building canoes is confined to
coaster communities in Nigeria.
 The industry provides employment
opportunities for people living along the
coast.
Entrepreneurial Opportunities
in Wood-based Industries
 Charcoal Production
 Wood is a source of fuel energy for both domestic
and industrial heating.
 Charcoal is more common to people in the urban
areas, while fuelwood is common to the rural
dwellers.
 Sizeable number of people are in the production,
marketing and utilization of charcoal both in the
rural and urban centers.
 Charcoal production especially generates high
employment opportunities.
Specific Industrial Development
Opportunities
 Wood Waste Recycling
 Considering the average lumber recovery of
Nigerian sawmills being about 53%, the quantity
of wood residues/wastes generates is high.
 Wood wastes include tree bark, slabs, off cuts,
mis-manufactured lumber and sawdust.
 Presently these wastes are grossly under-
utilized.
 One of the ways to put them into use is through
production of briquettes for fuel energy
generation.
Specific Industrial Development
Opportunities
 Waste Paper Recycling
 Paper and paper products usually is part of our daily
lives.
 The demand of paper keeps on growing as the
population increases.
 Trees in the forest have been over-exploited for
various domestic and industrial purposes.
 Recycling of waste paper to conserve the limitedly
available trees in the forest is important.
 Pulp laps can be formed and sold to paper mills for
manufacturing tissue paper, serviette paper, egg
trays, flower pots etc.
Specific Industrial Development
Opportunities
 Hardwood Dimension Stock and Furniture
Parts including Export Opportunities
 These are wood stocks that have been processed
into sizes and are of good quality for assembly.
 They are used by wood-based sectors to produce
furniture, cabinets, mill work, toys and other
specialty products.
 The market is growing more around the South-
Western part of Nigeria
 Producers of these stocks market them within the
country and also export them into international
markets.
Other Opportunities of Potential
Development
 Wood Derived Fuel
 Forest and tress provide a significant share f global
energy in form of biofuel, and their use is expanding
 Biofuel is a renewable source of energy which is
useful for household, industrial and commercial
sectors.
 Though energy sector in Nigeria is dominated by oil,
investment in biogas production and utilization will
boost economic growth and development.
 Opportunities abound in the bioenergy industry
because of the vast forest resources in the country.
Other Opportunities of Potential
Development
 Bamboo Utilization
 Bamboo is fast becoming an important forest
resource for industrial purposes because of the
difficulties in securing commonly used timbers.
 Bamboo has been used for foof, handicraft,
furniture, charcoal, household utilities and other
products.
 It is now been processed into boards, panels,
parquets and laminates.
 Its utilization has the potential of generating varying
levels of employment opportunities and enhancing
socio-economic status.
Other Opportunities of Potential
Development
 Non-Wood Fibre Products
 The use of non-wood fibres for papermaking can
resuscitate paper industries in Nigeria by ensuring
continuous supply of high-grade fibres for the mills.
 Non-wood fibres include straw, bamboo, hemp,
sisal, kenaf, miraculus berry etc. and are of great
significance to Nigeria.
 They usually have the advantage of more yield per
hectare, and other numerous merits for paper
industries.
 They have huge potentials for employment
generation.
Conclusions
 Forest products in Nigeria is very large and
cut across several zones.
 The industry employs different categories of
both skilled and unskilled personnel.
 Sawmilling is the most active sector in the
industry.
 Employment generation in the industry is
quite encouraging.
 The industry support for economic growth
cannot be overemphasized.
 There are still lots of potential areas that
have not been fully tapped in the industry.
Thank you
for
listening