The Federal Government has begun efforts to tackle fiscal and policy challenges affecting Nigeria’s paper manufacturing industry as part of plans to strengthen local production, create jobs and reduce dependence on imported educational materials.
Minister of State for Industry, Senator John Enoh, disclosed this during a factory tour and stakeholders meeting with major paper manufacturers including Nixin Paper Mill Nigeria and Speciality Group.
The manufacturers complained about what they described as unfair competition from imported paper products and textbooks. According to them, imported educational materials enter Nigeria duty free while local producers still pay import duties on chemicals and other important production materials required for manufacturing.
Responding to the concerns, Enoh described the situation as harmful to the growth of local industries and revealed that the government is working on reforms under a new industrial policy framework aimed at improving domestic manufacturing and conserving foreign exce.
The minister stated that Nigeria loses an estimated N250 billion every year due to the continued importation of textbooks that could easily be produced within the country.
According to Enoh, it is unreasonable for local manufacturers to struggle against imported products when Nigerian factories have the capacity to meet local demand. He stressed that the Ministry of Industry, Trade and Investment would work with the Ministry of Finance to review the current duty structure affecting the paper and printing sector.
He added that supporting local paper manufacturers would help reduce import dependence, improve industrial growth and create more employment opportunities for Nigerians.
Managing Director of Nixin Paper Mill Nigeria, Eric Wang, stated that the company has the capacity to satisfy Nigeria’s demand for printing, publishing and exercise paper. He explained that the company also supports local agriculture by sourcing cassava from farmers in Oyo State for starch production used in papermaking.
Meanwhile, Speciality Group Chief Operations Officer, Dattei Ateinu, revealed that the company has been producing paper locally since 2004 but currently operates below capacity because of import pressure, high production costs and limited access to financing.
Industry experts believe the government’s proposed reforms could significantly improve Nigeria’s manufacturing sector and reduce pressure on foreign exce.
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