Nigeria spent $1.646 billion to import wood and wood materials between 2013 and 2024, despite being Africa’s largest timber producer.
This is according to data presented by Trading Economics. The data shows that between 2013 and 2016, a total of $364 million was spent on wood and wood material imports. The period 2017 to 2020 saw a higher import value of $496.6 million (+36.4%), boosted by $254 million spent in 2020.
About $786 million was spent on wood imports from 2021 to 2024, representing a 36.8% increase from the previous four-year period also boosted by the $260 million spent in 2024.
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Import value for wood into Nigeria in 2013 stood at $139 million, declined to $92.2 million in 2014, and fell further to $78.8 million in 2015. The figure reached its 12-year low of $54 million in 2016.
This period was plagued by the global oil price collapse which began in mid-2014, weakening foreign exchange inflows into Nigeria and leading to revenue shortfalls for the government. The CBN responded with defensive FX management, causing delays in access to foreign exchange by importers.
These economic shocks continued and deteriorated through 2015, culminating in an economic recession in 2016. Wood, classified as a non-essential import, experienced a sharp decline due to severe FX shortages and surging import costs in naira terms.
Within the twelve years under review, 2020 and 2024 recorded the highest spending on wood imports – $254 million and $260 million, respectively.
The $260 million recorded in 2024 represents a 6.1% increase from the 2023 import value of $207 million. There was a gradual build-up from 2022, after the figure fell by 42% to $147 million in 2021, from $254 million in 2020.
After the 2016 collapse, wood imports resumed at a very low pace following slightly stabilized FX management, encouraging importers to cautiously return to the market between 2018 and 2019. By 2020, the CBN introduced stimulus measures following the pandemic, which saw credit flow into manufacturing and construction-related activities, leading to a rise in wood imports.
Prices Drove Up Import Value in 2024
The spike in import value of wood and wood materials in 2024 is attributed to both increased demand and higher prices, following global inflation that raised commodity prices across the board. This was compounded by the liberalization of Nigeria’s FX market in 2023, which led to a sharp depreciation of the naira and resulted in higher import values in dollar terms.
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Wood demand in 2024 was driven by a rebound in construction activity, especially in the real estate sector, and improved capacity utilization in manufacturing.
Nigeria Wood Processing Industry
Nigeria is Africa’s largest timber producer, with over 2,130,000 cubic metres of industrial roundwood produced in 2020. Thousands of small and informal sawmills process large volumes of mahogany, iroko, obeche, and African walnut in southern states such as Ondo, Ogun, Edo, Delta, and Cross River.
These small and informal sawmills operate mostly at the primary processing level (sawing logs into basic lumber such as planks and beams) using obsolete machinery and achieving low output per unit, especially in informal setups. The limited capacity for advanced processing prevents them from meeting local demand for processed wood, resulting in heavy reliance on imports.
Current domestic supply is estimated at 55,900 m³ per year, while demand stands at 965,000 m³ per year.
Most wood processed into logs and planks is exported to countries such as China, the United States, and Indonesia, with export values amounting to $526.86 billion between 2020 and 2024.
Nigeria’s wood and timber products market reached an estimated US$2.92 billion in 2024, reflecting strong domestic demand for sawn timber, plywood, and other wood products. The market is projected to grow to about US$3.95 billion by 2033, at a compound annual growth rate (CAGR) of 3.4%, according to Deep Market Insight.
