PROFILE ON PRODUCTION OF BAMBOO FURNITURE

Bamboo is found in abundance in all the states of southern Nigeria except Lagos and Bayelsa where the distribution is relatively less. The most endowed states in terms of bamboo distribution are Ogun, Oyo, Osun, Ondo, Edo, Rivers, Akwa Ibom, Abia, Ebonyi, Enugu, Anambra, and Imo states. A reconnaissance survey of these states indicate that at least 10% of the natural vegetation is dominated by bamboo with existing bamboo clumps showing appreciable gregarious growth that is contiguous over large areas. Lagos, Ekiti, Bayelsa, Kogi, Kwara, Benue, and Nasarawa states belong to the category where bamboo distribution is frequent. Pockets of banboo clumps wre found in Niger, Taraba, and Plateau states as well as within the Federal Capital Territory. There are 12 states where bamboo occurrence is rare. These are Adamawa, Bauchi, Borno, Gombe, Kano, Kaduna, Katsina, Kebbi, Sokoto, Jigawa, Yobe, and Zamfara. Other uses of bamboo are as listed in Table 1.0.

 

TABLE 1: PRODUCTS OBTAINED FROM BAMBOO

 

S/No.

Products

i.

Scaffolding in building industry

ii.

Yam Stakes

iii.

Fencing posts

iv.

Pots for seedlings

v.

Benches in farm houses

Vi.

Window blinds

Vii.

Pulp for paper

Viii.

Ornamentals

Ix.

Walling in riverine houses

x.

Trusses

xi.

Environmental use especially in water shed management

xii.

Medicinal

Xiii.

Flooring

Xiv.

Frames

 

Source: Omiyale, 1998.

This profile envisages the establishment of a plant for the production of bamboo floor tiles with a capacity of 1,500 Units/annum. The plant will create employment opportunities for 10 persons. The total investment requirement is estimated at about N20.521 million, out of which N3.5 million is required for plant and machinery.

The project is financially viable with the following profitability indices:

 

Average Return on Assets                              63.7%

 Average Return on Equity                             79.1%

Average Return on Assets                             42.1%

 Average Return on Equity                             93.6%

 Average Return on Sales                              18.0%

 Average Debt service coverage                        38.0

 Average proportion of Debt                           0.062

 Average proportion of Equity                         0.938

 Average Debt/Equity Ratio                            6.2:93.8

 Average Operating ratio                                   67.6%

 Average current ratio                                       3.84

 UnDiscounted Pay back period (yr)                 2.2

 Net present Value (N000)                             72057.2

 Internal Rate of Return                                   94.6%

 Break Even point(Based on year1)(Sales)    18560.3

 Fractional capacity utilization                        0.196

 Selling Price N000.00                                   100.0000


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