The Federal Government has begun fresh efforts to revive Nigeria’s paper manufacturing sector by addressing policy and fiscal challenges affecting local producers, as authorities push to reduce dependence on imported educational materials and strengthen domestic production.
The development was disclosed by the Minister of State for Industry, John Enoh, during a factory inspection and stakeholders’ meeting involving major paper manufacturing firms, including Nixin Paper Mill Nigeria and Speciality Group.
During the engagement monitored by Zoyols News, industry operators complained about what they described as unfair competition from imported paper products and foreign printed textbooks. According to the manufacturers, imported educational materials are allowed into Nigeria without duties, while local producers still pay import charges on chemicals and key raw materials needed for production.
Reacting to the concerns, Enoh described the situation as harmful to the growth of local industries and explained that the Federal Government was working on reforms under its industrial policy framework to support manufacturers, create jobs and preserve foreign exchange.
The minister revealed that Nigeria currently loses an estimated N250 billion every year through the continued importation of textbooks that could ordinarily be produced within the country.
He stated that it was unacceptable for local manufacturing companies to struggle to sell their products because of competition from imported alternatives, some of which he claimed either have lower quality or enter the country through unofficial channels.
According to him, the country cannot continue relying heavily on foreign printed textbooks despite having paper mills capable of handling such production locally.
Enoh explained that the issue is largely connected to fiscal policy and disclosed that the Ministry of Industry, Trade and Investment would engage the Ministry of Finance alongside the Coordinating Minister of the Economy to review the existing duty structure affecting the paper and printing sector.
He stressed the need for policies that would gradually make Nigerian manufacturers more competitive across different sectors of the economy.
Speaking during the meeting, Managing Director of Nixin Paper Mill Nigeria, Eric Wang, said the company, which started operations in 2023, currently has the capacity to meet Nigeria’s demand for printing paper, publishing paper and exercise books.
Wang also revealed that the company sources cassava from farmers in Oyo State for the production of cassava starch used in paper manufacturing, a process he said supports more than 10,000 Nigerians across its value chain.
Also commenting on the challenges facing the industry, Group Chief Operations Officer of Speciality Group, Dattei Ateinu, stated that the company has been producing paper locally since 2004 but is currently operating far below its installed monthly capacity of 6,000 tonnes.
He attributed the situation to growing import pressure, high production expenses and limited access to financing needed for expansion and sustainability.
