Government aims to save N250 bn by boosting local paper production.

By Nkiruka Nnorom

The Federal Government has begun steps to remove fiscal and policy obstacles that are hurting Nigeria’s paper manufacturing sector. The aim is to increase local production, create jobs, and lessen the country’s reliance on imported educational materials.

During a factory visit and roundtable with major paper producers, Senator John Enoh, Minister of State for Industry, outlined the government’s plans. The meeting included representatives from Nixin Paper Mill Nigeria and the Speciality Group.

Both companies highlighted unfair competition from imported paper products and textbooks. They noted that while imported educational materials enter Nigeria duty‑free, local manufacturers face import duties on chemicals and other essential inputs.

Enoh said the situation harms domestic industry and that the government is working on reforms under the new industrial policy framework to strengthen local manufacturing and preserve foreign exchange.

He estimated that Nigeria loses about N250 billion each year by importing textbooks that could be produced locally.

“It is inexcusable and unconscionable that an industrial concern can stay in the country, produce a product, and that product cannot be sold because of competition with foreign products that either have lower quality or find their way into the market through unauthorized routes,” he said.

He added, “Continuing the way we are, with nearly all textbooks printed abroad, the country loses in the neighbourhood of about N250 billion per annum. That is huge.”

The minister said the core issue is fiscal policy. The Ministry of Industry, Trade and Investment will work with the Ministry of Finance and the Coordinating Minister of the Economy to review the current duty structure that affects the sector.

“We need to step by step, sector by sector, enable operators producing within the country to remain competitive. The kind of fiscal policy that targets the paper and printing sector is very important,” Enoh stated.

“It makes no sense for Nigeria to import 90 per cent of its textbooks when we have mills here that can do the same job,” he added.

Eric Wang, Managing Director of Nixin Paper Mill Nigeria, said the company, which began operations in 2023, has the capacity to meet the nation’s total demand for printing, publishing and exercise paper.

Wang noted that the company sources cassava from farmers in Oyo State for the production of cassava starch used in papermaking, thereby supporting more than 10,000 Nigerians across its value chain.

Dattee Ateinu, Group Chief Operations Officer of the Speciality Group, said the company has been producing paper locally since 2004 but currently operates far below its installed capacity of 6,000 tonnes per month due to import pressure, high production costs and limited access to credit.

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