Nairametrics| While several companies are closing shop, scaling down operations or declaring declining returns, Alibert Furniture is profiting despite the recession. The company got a 3-year N1.2 billion loan from the Nigerian Export-Import Bank (NEXIM) to expand its production between 2013 and 2015. Managing Director of the company Mr. Taan stated that the company expanded its production by 30% in six months, and expects further expansion by 60% before the end of 2017. The firm also plans to extend its furniture exportation to Senegal and Ghana.
The expansion of the company adds value to the economy in several ways. The increase in production capacity means more jobs will be created. The government also benefits from increased tax revenue. Both are crucial for an economy currently in recession. Exporting furniture means the company will earn foreign exchange which, when converted to naira, will be more profitable. That serves as a buffer for the company when Nigeria, its home market, is facing a sales slump.
The company’s host communities, from where it sources wood and other raw materials, also benefit as the firm gets 90% of its materials locally. The NEXIM loan will go for much lower rates than what commercial banks can offer. It also opens the firm to technical advice on exports. Nigerian companies are often unable to meet export requirements, and are thus locked out of overseas markets.
Alibert Furniture Products Limited was founded in 1974 by Chief M. A. Taan. It presently employs more than 400 people in Nigeria and Ghana; with 7 showrooms in these countries. Its factory, which is located in Ikotun Egbe, has a production area of 20,000 square meters dedicated for production, quality control, and logistics. The company prides itself as one of the largest family owned furniture manufacturers in West Africa.
The Nigeria Export-Import Promotion Bank (NEXIM) was established in 1991, with a share capital of N50 billion held equally by the Ministry of Finance and the Central Bank of Nigeria (CBN).