6m Nigerians Risk Job Loss As FG Mulls Suspension Of Wood Processing, Export
By Sunday Etuka, Abuja
At least six (6) million Nigerians will loss their jobs if the plan by the Federal Government to suspend the processing and exporting of wood from the country is not jettisoned.
This was disclosed by the Processed Wood Producers And Marketers Association of Nigeria (PROWPMAN), in a statement issued by its Legal Adviser, Barr. Folounsho Dada at the weekend.
The association warned that the rate of unemployment in the country would soar higher in the coming months if the federal government goes on with the plan.
It said, the move is capable of throwing over six million Nigerians into the unemployment market and inevitably foisting on the nation the loss of several millions of dollars that the industry would have brought into the coffers of the nation.
PROWPMAN said, there are strong indications that a policy proposal that will emerge as an executive order has been submitted to the President seeking his executive approval for the suspension of the processing and exporting of wood from Nigeria.
It noted that while government’s decision for such move was predicated on the need to preserve the natural resources of the nation and encourage the local wood industry, industry watchers and stakeholders are, however, of the view that a robust export policy for the industry can successfully run side by side with a carefully designed and implemented policy of protection for the local industry, with the export policy providing the critical funds needed to pursue an aggressive afforestation programme that will ensure the beautification of the environment, prevent desert encroachment, replenish the forest reserve of the nation while contributing to global efforts on ozone layer depletion, climate change and associated issues.
Such approach, the industry players said, would ensure a better and more beneficial protection for the local industry than the suspension of export as money earned from export will be channelled back into the development of the local industry.
The association in a six (6) page letter
addressed to the Chief of Staff to the President, Hon. Femi Gbajabiamila urged him to step into the matter immediately in order to prevent what it described as an ill-wind that will blow no one any good as the multiple effects of such decision is too weighty to be contemplated, given the current economic and social realities of the country, which is currently battling with an inflation rate put at 40%.
“Our dear country’’, it said, “cannot afford the loss of job for 6.2million Nigerians who depend on the wood processing and export value chain sector of the Nigerian economy.’’
Copies of the letter, according to PROWPMAN, have also been delivered to the Chairmen of the Senate Committee on Environment as well as his counterpart in the House of Representatives.
In the letter sent to the Chief of Staff to the President, the association argued that Nigeria cannot afford to disregard the huge financial benefits accruing from the processing and exporting of wood whose capital base is put conservatively at USD500million at a time when developed and developing economies like China, the United States of America, Canada, Germany, Indonesia, Finland, Poland and Brazil with whom Nigeria shares the same wood asset potential are reaping billions of dollars for the development of their economies in a post COVID 19 era.
It posited further that given the dire state of the Nigerian economy especially in the area of earning foreign exchange, the federal government must take advantage of every opportunity available to it to shore up the foreign reserve and the value of the naira, which can be achieved by taking advantage of the opportunity presented by wood processing and exporting value chain.
PROWPMAN said, while large economies like China, the United States of America, Canada and Germany are expected to make over $20billion each from wood processing and exporting alone in 2024, countries like Sweden, Finland, Russia, Indonesia, Thailand are expected to improve their foreign financial opportunities by a minimum of 5billion USD each from the same source. In the case of Nigeria, the country in 2023 made over USD50m and is expected to leap into the billion dollar group in the coming years if the industry is allowed to grow.
In allaying the fears of depletion of the forest asset and the perceived threat to local industry, it disclosed that “following the lifting of 2014 blanket ban on wood processing in Nigeria, PROWPMAN together with the Tropical Wood Exporters Association of Nigeria (TWEAN) became the leading voice for Sustainable Forest Management and has within three years contributed to the economy such that it was able to mobilise over N11.2billion as seed fund for the project.
In the letter, the association said, it “mobilised financial support for Sustainable Forest Management and allied products in Nigeria, recommended payment on every container of wood exported out of Nigeria, and this effort alone pooled over N11.2b into the coffers of the federal government to be utilised by the National Forest Trust Funds for aggressive forest restoration and climate change related projects.’’
It also drew the attention of the Chief of Staff to the President to the opportunity of the three tiers of government – federal, state and local government having access to greater funds that can be used for infrastructure development in the country.
“Generation of revenue into the coffers of the tree tiers of government – federal, state and local government through various tax regimes such as concession/allocation payment, logging license and permit payment, stumpage royal and hammering fee, re-forestation fee, log clearance fee and payment, haulage, obtaining of letter of support including various payments at the port of exit constitute the different sources through which the three tiers of government can shore up their revenue base”, the association said.
PROWPMAN reiterated that while it recognises the driver for the suspension proposal sent to Mr. President for his ascent, a townhall meeting of industry players and other stakeholders will provide an invaluable opportunity for a more holistic review of the industry and its potentials as a funnel for the critical funds that the nation needs at a time of global economic challenges when nations are using what they have to rebuild their post COVID 19 economic challenges.
“Strong economies including the likes of China, United States of America, Canada, Germany, Russia, United Kingdom and several others are quietly using their natural resources to rebuild their economy and the lives of their people. Nigeria cannot be an exception”, it said.
I still don’t understand how our political leaders reason. A Minister that gave stakeholders support letters valid for 1 year, just wake up one morning to say it want to ban wood export. What will happen to those who took loans from Banks based on reliance on the support letter? Very wicked people.