Federal Government Implements 150% Surge In Charges For Wood Export, Unveils New Guidelines

Federal Government Implements 150% Surge In Charges For Wood Export, Unveils New Guidelines....KINDLY READ THE FULL STORY HERE▶

In a significant move to regulate and revamp Nigeria’s wood export sector, the Federal Government has announced a substantial increase in charges for both indigenous and foreign exporters, alongside the imposition of strict limits on export volumes….READ ALSOTUC Calls On Federal Government To Channel FAAC Allocations To Minimum Wage Payments

Under the new directives issued by the Department of Forestry, indigenous exporters will now face a 150% hike in charges, with fees soaring from N100,000 to N250,000 per 20-feet container. Foreign exporters, on the other hand, will see a staggering 350% surge, with charges skyrocketing from N150,000 to N500,000 per container of the same size.

Moreover, the government has imposed a strict cap of 200 containers per year per company for wood export, aimed at ensuring sustainable management of Nigeria’s forestry resources and promoting local processing and value addition.

According to Mr. Joe Odiase, Secretary of the Tropical Wood Exporters Association of Nigeria (TWEAN), these policy adjustments herald a new era of regulation and growth for the wood sector, with the potential to generate up to 5 million jobs across the wood value chain.

Outlined in the policy guideline titled “Policy Guideline for the Production, Processing, and Export of Processed Wood,” the government mandates all commercial wood processors or exporters to organize themselves into associations to streamline operations and facilitate compliance with regulatory requirements.

Crucially, the Ministry of Environment reserves the authority to periodically assess and determine the volume of processed wood eligible for export, as well as the corresponding charges payable to the government. This framework underscores the government’s commitment to sustainable forest management and balanced economic development.

As Nigeria seeks to maximize the socio-economic benefits of its forestry resources, stakeholders are encouraged to embrace these policy reforms, which aim to foster transparency, accountability, and equitable distribution of benefits within the wood industry.