The restriction by the Central Bank of Nigeria (CBN) on the sale of foreign currency to importers of some 41 items seem to have taken toll on neighbouring countries’ markets as Ghanaian timber exporters risk losing N6billion ($30million) as a result of the restriction.
Part of the affected Nigerian importers are those that deal in timber products from Ghana which annually imports N6bn ($30m) worth of timber products.
The Chief Executive Officer of Ghana Timber Millers Organisation (GTMO), Dr. Kwame Asamoah, in an interview in Ghana, stated that the Nigerian central bank’s decision could impact negatively on the fortunes of an already ailing timber industry in Ghana
This, he said, is as a result of the fact that Nigeria is the main destination of plywood and wooden doors from Ghana within the ECOWAS and African Timber market, importing about 25 percent of Ghana’s wood exports. Records of Ghana’s export of timber and wood between 2014 and 2015 showed a significant drop in volume and value, painting a gloomy future for the country’s timber industry.
For instance, the volume of timber and wood products exported to Nigeria from January to June 2014 stood at 19,251.458 m³ whereas the figure for January to June 2015 is given as 9,904.665m³, representing 45.88 percent decrease. Asamoah said the best product that can be processed out of the type of timber species available in the country is plywood, the bulk of which goes to the Nigerian market; and that many jobs are on the line should the timber firms fold-up because of shrinking access to the Nigerian market.
He said already the number of buyers from Nigeria has reduced significantly, and fears that the situation will further worsen if government does not intervene immediately to address the issue. He said this development is completely beyond the industry and therefore appealed for government to act without delay. Per the Nigerian Authority’s new regulation, dealers in timber importers are barred from going to the foreign exchange market for hard currency to procure products – leaving the more expensive black market as their only option.
