Plastic chairs and tables play a pivotal role in Nigeria’s economy, impacting various sectors from packaging to agriculture, automobiles, and electronics. These versatile products have revolutionized affordability, aesthetics, and functionality for consumers. Plastic chairs and tables are now widely used in public spaces such as restaurants, coffee shops, libraries, and schools, gradually replacing wooden and metal alternatives. Their lightweight design, cost-effectiveness, and comfort make them a preferred choice.

This study analyzes the potential success of a new plastic chair and table manufacturing plant in Ikorodu, Lagos, Nigeria. The plant will utilize polypropylene (PP) granules, a cost-effective and durable raw material. Our mission is threefold: to reduce reliance on imported furniture, to promote sustainable practices by conserving forest resources, and to satisfy the rising demand for high-quality, affordable seating and dining solutions for Nigerian homes and businesses.

Industry Overview
Plastics manufacturing is a rapidly growing sector in Nigeria, driven by increasing consumer demand and import substitution opportunities.
Plastic furniture like chairs and tables are widely used across homes, schools, offices, hospitality businesses, and outdoor events.
The Nigerian plastic furniture market is currently dominated by imported products from Asia, with limited local production capacity.

Market Analysis
The total market for plastic chairs and tables in Nigeria is estimated at over 10 million units per year and growing at 8-10% annually.
Key demand segments include urban households, educational institutions, corporate offices, hospitality industry, and events/rental businesses.
Import substitution potential exists as over 60% of current demand is met through imports due to limited domestic supply.
Opportunities for product differentiation through innovative designs, colors, and customized solutions.

Proposed Project
New manufacturing plant with an initial installed capacity of 2 million chairs and 500,000 tables per annum.
Located in EPE, Lagos State with proximity to major markets and access to raw material sources.
Utilize injection molding technology to produce sturdy, lightweight plastic furniture meeting international quality standards.
Implement stringent quality control processes and seek product certifications.
Produce varied product range (monobloc, rattan-style, foldable, stackable) to cater to different market segments.

Financial Viability
The total capital investment encompasses various components such as land, plant/machinery, and working capital.
Revenue projections anticipate significant growth, reaching substantial figures by year 5, assuming a utilization rate of 85%.
The financial metrics demonstrate attractiveness, with a relatively short payback period and an Internal Rate of Return (IRR) exceeding 25%.
There is potential for further expansion in capacity and product range based on market demand.

Key Success Factors
Securing reliable, cost-effective supply of quality plastic resins (HDPE, PP) and other raw materials.
Implementing efficient production processes to maintain cost competitiveness against imports.
Building a strong brand identity and innovative product designs to differentiate offerings.
Developing an effective distribution network spanning retail, institutional, and B2B sales channels.

This feasibility study concludes that the proposed plastic chairs and tables manufacturing project is commercially viable and financially lucrative based on the sizeable market demand, import substitution potential, and positive financial indicators. However, effective sourcing, production efficiency, product differentiation, and market access strategies are critical for successful execution.