Spatial and Temporal Price Variations of Sawn Wood Utilized for Furniture Making in Selected Cities in Nigeria

The spatial and temporal price variations of sawn-wood used for furniture making in Lagos, Ibadan and Benin were studied and evaluated. Four wood species popularly used for furniture making in the cities were studied. They are: Mansonia altissima (Mansonia), Khaya ivorensis (Khaya), Cordia millenii (Cordia) and Tectona grandis (Teak). A total of 193 furniture factories comprising of 154 small, 28 medium and 11 large scale were selected in the three cities through stratified random sampling technique. Structured questionnaire was used to generate data from 2001 to 2008 on the dimensions of various planks, their prices, sources and their availability. Further confirmation of the prices of the four wood species and their availability was carried out using sales receipt of sawnwood sellers, sawmillers, and timber contractor in the study area. Data collected were collated by species and analysed using Randomized Complete Block Design to test for the significant differences in price variation among the cities over a period of eight years. The model specification is Yijk = μ + bi + tj + eijk. The results showed that the mean annual price of the wood species varied significantly (P< 0.05) in the three cities between 2001 and 2008. The mean annual price variation of the wood prices was also significant (P<0.05) for the eight years of study. Ibadan had the lowest mean price for the wood species. This was followed by Lagos, while Benin had the highest mean price. The percentage annual price changes were inconsistent and tend to be in decreasing order from 2005 to 2008 for most of the species. Teak had the highest and the lowest percentage annual price changes in 2003 and 2006 respectively in the three cities. To curb the high spatial and temporal price differences in wood producing areas, it is recommended that suitable policies that will ensure market integration through proper fixing of forest tariff and regulations should be developed. The contribution of illegally sawn timber to the gross in-efficiency of sawn-wood pricing should also be prevented.