Uniwood set to drive premium wood market in Nigeria

Onome Amuge

L-R: Edmond Raffoul, Business Development Manager, Hijaziwood Starwood; Jacqueline Aki, Director, Design Week Lagos, Titi Ogufure, Founder, Design Week Lagos; Christopher Tarka, Chief of Staff to the Secretary of the Government of the Federation; Osaru Alile, Director, Design Week Lagos; Roland Tannoury, Managing Director, Uniwood Ltd, at Starwood booth during the just concluded Design Week Lagos 2024

Amidst the flourishing Nigerian market for high-end wood materials for furniture, a host of wood companies are vying for a stake in this rapidly expanding industry, seeking to capitalise on the growing consumer demand for premium products.

This new market trend represents a shift from the past, when Nigerians were less inclined to embrace luxury wood materials for furniture. However, with increased international exposure and exposure to modern design trends, more Nigerians are seeking out diverse textures and color combinations, driving demand for premium wood materials in the furniture industry.

Roland Tannoury, managing director of Uniwood Ltd, one of the leading wood suppliers in Nigeria, spoke on the growing market trend in a recent chat with Business a.m. at the just concluded Design Week Lagos 2024, where he revealed that there has been an uptick in demand for premium wood among Nigerian consumers. 

Design Week Lagos 2024, with its showcase of at least 100 interior design companies, created the ideal environment for exploring the evolving landscape of consumer preferences in Nigeria. 

Tannoury, in this setting, shared his analysis of the increased demand for high-quality wood materials in furniture production. He explained how the preference for premium wood reflects a developing trend among Nigerian consumers who are increasingly discerning and sophisticated in their choices, reflecting a greater appreciation for craftsmanship and luxury.

 The managing director of Uniwood Ltd identified the expansion of the Nigerian market as an opportunity, explaining, “In the past, the Nigerian market for high-quality wood was limited to Lagos and Abuja, but now it’s expanding to other regions. As people travel and see the latest trends, they are becoming more receptive to the new designs. 

“This is driving demand for premium wood, even in areas where hardwood was traditionally preferred. People are now willing to pay more for quality that will last for 20 or 25 years. So, the market is acceptable.”

Explaining the success of Uniwood, Tannoury stated, “We have been in business for 14 years, and I joined the company seven years ago. We have many brands, but Starwood was launched this year, and in just one year, it has become the number one brand in Nigeria.”

According to Tannoury, the company is based in Turkey, but adheres to European standards for its materials.

Speaking further, he noted that the company imports its woods for supply in Nigeria because the wood used is not available locally, adding that the company has a future plan to build a factory in Nigeria, although not immediately.

Tannoury explained that due to the current state of the country, most companies are hesitant to invest in Nigeria. However, he highlighted Uniwood’s confidence in the country, having invested over $10 million. 

Tannoury identified customs duty as an area for policy improvement. According to him, “When we import a container of wood, customs charge us based on an inflated price of $50,000 to $60,000. Even with proof, they refuse to accept the actual price, which is $15,000. So we end up paying more in duties, and that cost is passed on to our clients and the end user. 

“As a result, we have to sell the same wood at double the price in Nigeria compared to countries like Lebanon and Egypt, where duties are lower.”

Christopher Tarka, Chief of Staff to the Secretary of the Government of the Federation, was also in attendance at the  Lagos Design Week, where he praised the potential of the Nigerian design industry, citing the presence of many brilliant minds within the sector. 

Addressing potential government support for the Nigerian design industry, Tarka stressed the need for legislative changes to reduce tariffs on imported raw materials. 

He also dwelled on the importance of the government’s understanding of the work of designers, including interior and industrial designers, in order to better facilitate access to funding and resources for young entrepreneurs and aspiring designers seeking to establish themselves in the industry.

Tarka spoke further  on the present administration’s effort to shift focus from government reliance to business development, with a particular emphasis on nurturing young entrepreneurs in the design sector. 

He highlighted the value of exposure to diverse ideas and innovations at events like Lagos Design Week in helping to identify means of providing financial support for aspiring designers, enabling them to launch their careers and contribute to the growth of the industry.

Tarka commented on the government’s efforts to reduce operational costs for businesses in light of inflationary pressures and other challenges. He explained that the government is seeking to liberalise the market by opening it up to market forces in order to bring down costs, particularly in the energy sector, where high electricity prices have been a major issue for manufacturers. However, he acknowledged that the process of liberalisation is not occurring as quickly as the government would like, leading them to consider alternative intervention strategies. 

Tarka also touched on the importance of developing raw material production within the country, particularly in the textile industry, to provide local materials and fabrics for domestic markets. 

He highlighted the need for a collaborative approach between the government and industrial designers to address challenges facing the industry, such as tariffs and consumer sensitisation. 

Tarka commended Uniwood’s displays at the exhibition, stating, “I was really impressed by their woodwork, and the quality was excellent. I think the market will readily embrace their products,” he said.

Also speaking, Osaru Alile, director of Design Week Lagos, this year’s position is centered around the goal of designing economic evolution, with a focus on educating both the government and industry stakeholders on the ways in which design can contribute to economic growth. 

Alile explained that Design Week Lagos is showcasing the financial potential of the design industry and the immense talent emerging within it, stressing the importance of investing in the sector’s development. 

According to her, education and policies, specifically those addressing raw materials and other factors, are critical to enabling the industry to reach its full potential. 

Alile noted further that the feedback from attendees this year is especially positive, with people recognising the need for action to support the industry’s growth.

The event director identified the need for comprehensive design education in Nigeria’s universities, but also the potential of creating intermediate training programmes to bridge the gap. She noted that Rhode Island School of Design, a renowned institution in the United States, is partnering with Design Week Lagos to train Nigerians into design. Alile also emphasised the role of design in building the economy, spanning a range of disciplines including textile, industrial, and interior design.