Development

Despite Potentials, Forestry Sector Lives in Shadow

By Lynda Uzuegbu

March 28, 2022

The forestry sector in Nigeria has failed to live up to the expectation of the 2006 forestry policy.

Its contribution to the economy in Q4 2021 was less than one percent (0.26%). The goal of expanding the Forest Estate from 10% to 20% is yet to be a reality as well as all the other projections made in the policy.

The World Bank estimates Nigeria’s land area is about 91.1 million hectares (910,770 sq. km) with 23.75% estimated to be forest area.

The contribution of the forestry sector to the Nigerian economy has fluctuated over the last 5years. Forestry value grew by only 1.41% in Q4 2021 compared to  Q4 2020.

The value of Q4 2021 was at N52.02 Billion Naira which represented a 10.6% increase from Q3 2021.

Comparing Q4 2021 and Q3 2021 in terms of contribution to the Gross Domestic Product, they both contributed the same, 0.26%.

Nigerian forests play a role in the country’s economy, as forestry is a key contributor to the country’s foreign exchange revenues. 

The Forestry sector has great potential as its end products include paper and packaging materials, lumber for homes and buildings, composite materials for construction, renewable energy materials, high-value wood for furniture and flooring, structural materials for bridges amongst others.

According to the National Bureau of Statistics (NBS), forestry contribution or gross output is calculated by the value and quantity of timbers of various types (firewood, charcoal, uncultivated materials gathered), as well as other forest products obtained using the expenditure approach. Contributions from Sawn logs and other wood products are estimated made using the production technique, which involves multiplying the quantity of logs produced by the price per cubic of a log.

The challenges facing the sector

Forests lands are often viewed as locations that are to be cleared and cleaned to make room for agricultural crops to be grown. Trees are generally seen as harmful to agricultural output because they compete for water, sunshine, soil nutrients, as well as offer habitats for insects, birds and other pests, viewed as the farmers’ enemies. 

Poaching and illegal harvesting are rampant and cause the government to lose huge amounts of potential revenue. Forests have received little attention, and even less attention has been dedicated to the possibilities of integrating trees with the production of crops, livestock, or a combination of both in farming systems. Indiscriminate forest and tree destruction with detrimental effects to the forest life plagues the sector, and it affects food production and degrades the environment.

The Nigerian government established protected forest reserves in 2008 and declared a moratorium on timber in its most forested state, Cross River state. Despite these efforts, Nigeria continues to lose its forest cover annually at an annual rate of 3.5%.

How Forestry can Contribute to the Economy

Forests and trees help to ensure the long-term viability of agricultural production and, as a result, ensure food security. Forest contributions range from environmental protection such as maintaining and restoring soil fertility and soil improvement, maintaining biodiversity, erosion control, production of food, fuelwood supply and farm inputs as well as the generation of income and providing rural employment.