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CHAPTERS: Chapter 1-5
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ABSTRACT
This paper reported the analysis of the contributions of furniture enterprises to the economic development of kano state with adequate number of wood furniture industries were selected. Production cost and sales over five years were obtained from the wood furniture producers and carefully documented. The resulting data was analyzed with Frequency table, Benefit cost (B/C) Analysis, Rate of Returns on Investment (RORI) and Sensitivity Analysis (SA). Male respondents constituted 97.78% in wood furniture production and aged between 31-50 years (75.56%) while 46.67% were classified as cottage producers. Average experience of wood furniture makers in Kano was 13 years (46.67%) while 75.56% were married. Most of the wood furniture makers interviewed had high school education on the average. B/C showed viability (˃1) in all categories of wood furniture production. RORI was also higher than the prevailing interest rate; RORI was lowest for artisanal (148.78%) and highest (194.61%) for large scales production respectively. The SA on B/C showed a threatened investment at 100% (0.89) and 160% (0.93) increase in cost for medium and large scale production respectively. Similarly, SA on RORI showed that large scale production was more resilient to increase in cost up to 120% (33.92). Thus, wooden furniture industry in Kano provides employment, sustains livelihood, is highly profitable and viable. For artisanal, cottage and medium scale producers to meet up with growing demand, flexible loans with low interest rates from funding agencies and personnel training on modern equipment are required. Establishment of fast growing, suitable timber species plantations is a veritable tool in achieving sustainable raw materials supply for the growing wooden furniture industry in the study area
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigeria is a nation that is blessed with mineral resource in abundance. Furniture is one of the most important home accessories because it adds style and elegance beside their primary functional designs. Wooden furniture is usually present in homes, offices and social infrastructure buildings such as schools, hotels, hospitals, etc. They contribute to the beautification and aesthetics of the place. Furniture are in various forms, such as, doors, tables, chairs, decorations, cabinets and shelves, cupboards, beds, etc. Ngui et al., (2011) opined that furniture has the highest value-added component among the major wood-based products. Wooden furniture industries make a substantial contribution to development in tropical countries, producing important economic benefits and playing a significant role in promoting economic growth (ITTO/ ITC, 2005). Annualtrade in furniture between 2007 and 2009 globally surpassed US$100 billion (CSIL 2010 cited by Ngui et al., 2011)
table tool in poverty alleviation, because of their potency in revenue generation, job creation, investment attraction and creation of market for local products, (Olorunnisola, 2000). It represents the major market for wood products in Nigeria. Arowosoge and Tee (2010), noted that Nigeria furniture industry though operating at abysmal performance has been increasing in number. As wooden furniture sector develops, it creates employment, generates a trained work-force, and contributes to the development of physical and institutional infrastructure (ITTO/ ITC, 2005). Bello and Mijinyawa (2010) observed that wood furniture firms in Nigeria operate mostly at small and medium scale levels of production. Small scale producers are mostly artisanal furniture makers operating their workshops at roadside and within residential areas in cities and sub-urban settlements. Ogunwusi and Olife (2012) observed that a major characteristic of furniture industry in Nigeria is that most of the companies operate at cottage and small scale level with 3-5 men workforce and rely mostly on crude and old implements. Medium scale furniture makers operate in the cities with limited funds for expansion, in most cases average total workforce ranges from 5 – 7 personnel
The furniture makers are usually hindered by lack of modern and efficient equipment in addition to skilled personnel. Studies in Borno State, Nigeria showed that small and medium scale industries (SMI) are affected by inadequate infrastructure such as power supply; raw material shortage; limited access to finance and competent personnel (Ibrahim, 2008). Few industrial furniture producing companies operate in Nigeria and are located in large cities and cosmopolitan areas. Their presence in these areas is due to availability of elite consumers with high income as well as nearness to various industrial and government administrative headquarters, who are potential buyers. Arowosoge and Tee (2010), reported a significant positive relationship between income level and preference for well finished and quality wood furniture in Nigeria. Large scale furniture industries have capacity to solve some social problems by providing skilled and unskilled employment in the neighbourhood
Wooden furniture is one of the ten major wood- based industries currently recognized in Nigeria, it is the most widely distributed of all the wood- based industries with its tentacles spreading across the nooks and crannies of Nigeria (Alao and Kuje, 2012). Wooden furniture industries in Nigeria rely on raw materials from local sources. Timber from government gazetted forest reserves and forest outside reserves (free areas) are harvested and sawn in the two major sawn timber markets (Illabuchi and Marine base timber markets) in Port Harcourt. High quality timber supplies from plantations are limited in Port Harcourt and its surroundings compared to supplies from natural forests. Unsustainable timber harvesting have been reported in the forests of Nigeria (ITTO, 2013; Arowosoge et al., 2008), this could be a major threat to sustainable supply of raw materials, hence, serious forest conservation measures and sustainable management schemes are panacea for continuous existence of wooden furniture industries in Nigeria
1.2 STATEMENT OF THE PROBLEM
The furniture business is one of the most lucrative businesses in Nigeria; however despite the growth
experienced by furniture business owners there are still some challenges affecting the productivity and efficiency of furniture business. Some of the problems identified in the study are:
Shortage of skilled labour
cost of timber products
Fluctuating Customer Demand and Also there have been series of studies on furniture but not even a single study has been carried out on the economic effect of furniture business hence a need for the study.
1.3 AIM AND OBJECTIVES OF THE STUDY
The main aim of the research work is to determine the economic effect of furniture business. Other specific objectives of the study are:
to determine the relationship between furniture business and economic growth in Nigeria
to investigate on the factors affecting furniture business owners in Nigeria
to determine the effect of the cost of timber on furniture business in Nigeria
to determine the maintenance procedure for preservation of furniture in Nigeria
to proffer solution to the above problem
1.4 RESEARCH QUESTIONS
The study came up with research questions so as to ascertain the above stated objectives of the study. The research questions for the study are:
What is the relationship between furniture business and economic growth in Nigeria?
What are the factors affecting furniture business owners in Nigeria?
What is the effect of the cost of timber on furniture business in Nigeria?
What are the maintenance procedures for preservation of furniture in Nigeria?
What is the way forward to the challenges faced by furniture business owners in Nigeria?
1.5 RESEARCH HYPOTHESIS
H0: there is no significant relationship between furniture business and economic growth in Nigeria
H1: there is significant relationship between furniture business and economic growth in Nigeria
1.6 SIGNIFICANCE OF THE STUDY
The study on the economic effect of furniture business will be of immense benefit to the Nigeria timber industry in the sense that the study will explore the types and classification of furniture for export. The study will offer maintenance procedure to be adopted for furniture preservation in Nigeria. The study will serve as a repository of information to other researchers that desire to carry out similar research on the above topic. Finally the study contribute to the body of the existing literature on economic effect of furniture business
1.7 SCOPE OF THE STUDY
The study will focus on the economic effect of furniture business from 200 0 to 2017; looking at the types and classification of furniture for export. The study will not cover other timber products
1.8 DEFINITION OF TERMS
Furniture: the movable articles that are used to make a room or building suitable for living or working in, such as tables, chairs, or desks.
Timber: Lumber or timber is a type of wood that has been processed into beams and planks, a stage in the process of wood production