The Lagos Chamber of Commerce and Industry (LCCI), in partnership with NIXIN Paper Mill Nigeria Limited, has called on the Federal Government to provide policy support and incentives to boost local paper manufacturing in Nigeria.
The Chairman, LCCI, Printing Publishing and Allied Group (PPA), Gabriel Okonkwo, has reiterated the urgent need for government intervention in the paper manufacturing sector to revive local production and reduce Nigeria’s dependence on imports.
Speaking at a meeting with stakeholders at NIXIN Paper Mill, Okonkwo highlighted policy inconsistencies that have continued to undermine local manufacturers.
He condemned the current tariff regime, which imposes duties on plain paper imports but allows for the importation of printed materials duty-free. According to him, this unfair policy has created a lopsided competitive environment that favours foreign manufacturers over local producers.
“This has led to a situation where it’s cheaper to print books and other materials abroad and import them, rather than produce them locally. As a result, a significant number of printing jobs are being outsourced to other countries, depriving our local industry of business opportunities. If local manufacturers can provide high-quality paper at competitive prices, it would reduce our reliance on imports, conserve foreign exchange, create jobs, and contribute significantly to the economy,” Okonkwo said.
He pointed out that Nigeria’s large population, especially its student demographic, offers a massive market for paper products, calling on support for local paper manufacturers to produce at scale and competitive prices.
Reinforcing his call for increased confidence in local capacity, Okonkwo pointed to recent developments with the electoral body as a case in point. “INEC didn’t even believe we could produce ballot papers locally until recently. It’s time we began to believe in and invest in our own,” Okonkwo stressed.
As part of NIXIN Paper Mill’s commitment to the nation’s self-sustenance, the paper mill is concentrated on increasing production capacity, improving product quality, and expanding its product line to meet the growing demands of the Nigerian market, thereby reducing the country’s dependence on foreign paper products and contributing to the growth of the local economy.
Managing Director, NIXIN paper mill, Eric Wang, highlighted the potential of Nigeria’s paper industry, comparing it with his hometown in China with a population of just 300,000, supporting a paper factory that consumes over 20,000 tons monthly.
In contrast, Nigeria, with a population exceeding 200 million, recorded only 70,000 to 75,000 tonnes per month, a figure he believes should be much higher given the country’s educational and commercial demands.
“We see that over 80 per cent of Nigeria’s educational and printing materials are imported from Asia,” Wang stated.
He assured that local manufacturers, including their competitors, are fully capable of meeting Nigeria’s paper demand without relying on imports, lamented that the paper mill is capable of producing up to 8,000 tons of paper monthly, depending on the GSM, and despite this, local demand remains low, limiting their market potential.
He advocated for the imposition of punitive tariffs on imported paper to protect and encourage local industry
Business Manager, NIXIN, Williams Sun, echoed that Nigeria significantly underutilised its local paper production capacity, with many orders still going to countries like India and China.
He emphasised the significant investment NIXIN has made of over $60 million, and expressed frustration over the lack of returns, noting that one year into operations, the expected market response has yet to materialise.
Sun urged the government to support investors and take steps that will attract more players into the publishing and paper production space, which is critical for building a self-sufficient industry.
He further suggested urging a ban on the importation of writing paper such as 50 grammes exercise book paper, which NIXIN can produce in sufficient quantity, noting the challenge of importing key raw materials like softwood and hardwood pulp, due to the absence of suitable trees in Nigeria, due to the climate.
To overcome these hurdles, NIXIN is advocating for reduced or duty-free importation of essential production materials that are currently unavailable in Nigeria, such as high-quality pulp.
“We mix 30 per cent imported pulp with 70 per cent local material to achieve the right quality. But if the government could support us by waiving some import duties, we could reduce our prices and meet more of the market demand,” he said.
LCCI urged more Nigerians to patronise NIXIN and other local manufacturers to reduce the burden on foreign exchange and support national development, encouraged local producers to expand their capacity and tap into the enormous opportunities that exist in the paper and publishing value chain.
Secretary, LCCI PPA, Olakunle Ogunjobi, warned that the shortage of long fibre pulp is stalling Nigeria’s paper production, urging the revival of local paper mills to drive down costs and create jobs.
