Tony Ezekiel, Managing Director, ITEX Furniture

On the importance of exploiting national resources and growing local manufacturing

What natural resources are available in Nigeria? 

TONY EZEKIEL: Nigeria has an abundance of natural resources that need to be explored and unlocked in order to increase the value of locally produced products. Wood in particular abounds in the south, while the north provides high-quality skins, and we also have extensive metal deposits. Taking advantage of these materials reduces costs for producers, increases earnings and cuts the time and labour needed for production. 

How can the government and private companies encourage local production? 

EZEKIEL: Many products that could be manufactured in Nigeria are imported. This is often due to a lack of knowledge as to what resources are available here. Rubber shipped from Africa is turned into tyres abroad, which are subsequently imported at a high cost. Timber leaves the country and comes back as expensive furniture. Nigerians must acquire the know-how to turn their resources into finished products themselves. To promote this, political and business leaders must assert their leadership in strengthening the local manufacturing sector. 
Reliable power, roads and general infrastructure are also key. Another crucial factor is the financial sector. Low-interest loans provided via the Central Bank of Nigeria help entrepreneurs to develop their projects, but the loan system in the private sector still needs to be improved. 

In what ways can the trust of Nigerians in locally made products be strengthened?

EZEKIEL: In the past, local producers had to claim that their products were at least partly imported, but today that mentality has changed, and people are becoming comfortable with the idea that local products can achieve international standards. There remains, however, a lot to be done to raise awareness and make people proud to buy Nigerian products. Verification seals that show a product has been manufactured in the country will help build trust. 

What sectors of the economy offer the greatest opportunities for growth?

EZEKIEL: Industries like furniture production that rely on high-quality resources and skilled workers have a lot of potential for growth. Middle-class consumers do not accept the high prices and extended timeframes associated with importing furniture, so they rely on local producers. In addition, they attach more value to quality and durability than a cheap price. This is clear in the fashion sector, but the trend is also visible in relation to bigger investments, such as furniture. Well-established organisations that offer quality control can easily compete with imported products, and they provide greater security than roadside salesmen. 

What steps can Nigeria take to promote entrepreneurship?

EZEKIEL: Human capital development is one of the cardinal points for growth in any nation. Sharing knowledge allows competition to grow, which in the long run improves the quality of products. Giving people the possibility of working for themselves will develop the economy and promote entrepreneurial growth nationwide, as well as generate a social support system that helps alleviate poverty and unemployment. 

How is the implementation of Africa’s Continental Free Trade Area (CFTA) expected to impact manufacturing capacities across the continent? 

EZEKIEL: The CFTA will allow us to be more aggressive in our expansion plans and grow our manufacturing capacities. Free trade is advantageous for producers who are ready to export. To go international, a brand has to be represented at trade fairs. People all over the world are ready to embrace African design and products, since we have attained international quality standards.