Despite an abundance of raw materials, Nigeria is missing out on the $351 billion market provided by the global pulp and paper market, which could have provided another option in its economic diversification drive.
Stakeholders are also anxiously seeing that the industry is estimated to hit $370 billion by 2028 on the back of rising population, educational requirements, sustainability goals, etc.
Despite having a promising and thriving industry prior to the oil boom, the paper production sector has consistently suffered challenges that contributed to its collapse and the closure of companies in the space.
Additional losses are also recorded as opportunities available in the $352 billion packaging and printing market evades the country and stakeholders who are interested in this treasure trove.
Speaking at a seminar organized by the printing, publishing and allied group of the Lagos Chamber of Commerce and Industry (LCCI) in partnership with the Raw Material Research and Development Council (RMRDC), Layo Okeowo, chief executive officer, FAE Limited, said the potentials of Nigeria’s paper& pulp, printing, publishing and packaging sector is significantly underutilized with adverse impact on economic growth and development.
Okeowo, who doubles as the Chairperson of the Printing and Publishing Group, LCCI said challenges such as collapsed infrastructure, foreign exchange shortage, naira depreciation, the rising cost of raw materials, poor research efforts, policy-related issues, etc are major problems bedevilling the sector.
“The government needs to come to our aid, we need an enabling environment to thrive, the paper mills need to be revitalized and their capacity expanded from 256 thousand metric tons to meet domestic demand of about three million metric tons,” she said.
Okeowo described the paper industry in Nigeria as a goldmine waiting for investors to explore, adding that research has shown resources such as Kenaf can be used in paper production.
She urged stakeholders to tap into the opportunity noting that although the government has its role to play, there is a need for sector players to also pull their weight in reviving the sector through investments and resource pools.
Speaking at the event themed, challenges, prospects and raw materials demand in the printing, packaging and publishing industry, Michael Olawale-Cole, president, LCCI in his remarks said that despite huge arable land and abundant forest resources across the country, Nigeria relies on the importation of raw materials to meet her demand for paper products.
Citing data from the National Bureau of Statistics foreign trade report for the third quarter of 2021, Nigeria spent N410 billion on importation of Paper-Making Material, Paper and Paperboard articles which is not sustainable due to challenges around FX sourcing and unfavourable exchange rate.
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“The inability to process and manufacture quality paper, which is a major raw material occasioned capacity underutilization in printing and publishing industry, thus several jobs across the value chain have been lost while many more jobs are currently being threatened due to patronage for the importation of printing products,” he said.
To make a rebound, the president said the industry requires legislative backing and a harmonized regulatory framework to spur investment in critical midstream and downstream segments of the value chain, while a more sustainable source for raw materials is discovered.
“There is need to chart the course for self-sufficiency in the production of raw materials by exploring opportunities for production of fibrous and cellulose materials from many seasonal plants in addition to wood,” he said.
Adewale Bakare director, industrial development at the federal ministry of industry, trade and investment said the significance of the Nigerian paper and printing industry cannot be overemphasized as the subsector contributed significantly to the economy through exports before its collapse
Bakare who was represented by Olumuyiwa Ajayi-Ade deputy director at the FMITI said that the country cannot afford to depend on imported paper for its consumption due to issues around foreign exchange and its attendant effect on all related products which calls for the urgent need to address these issues and also implement strategies to revive the paper production and printing subsector.
“The FMITI is actively working towards the resuscitation and strategic development of the sector by setting up an interagency committee mandated to investigate the remote and immediate causes of the collapse of privatized paper mills and find a lasting solution for their revitalization with a view to coming up with a sector-specific policy
He said with this implementation of this sectoral policy, the government is optimistic that the pulp and paper industry will be repositioned to drive economic recovery thereby creating employment opportunities and increasing revenue generation.
