Tucked away in the heart of Nigeria’s industrial sector, lies an often-overlooked opportunity — the local paper manufacturing industry. It’s not as glamorous as oil or as headline-grabbing as fintech, but it holds the potential to transform the Nigerian economy, ALAO ABIODUN and DAVID BOLARINWA write.
The paper sector, once considered a robust component of Nigeria’s industrial base, is now characterised by low capacity utilisation, rising production costs, and limited support from the government.
However, stakeholders believe the paper industry especially the moribund paper mill sector can work, it can thrive, and it can rescue Nigeria from both unemployment and a high-spending import system — if only the government and the people would believe in it.
Over the years, Nigeria, one of the largest consumers of paper in Africa, has continued to pour billions of dollars into importing nearly 90–95 percent of its demand for white-grade paper, while local producers struggle to keep afloat.
Meanwhile, stakeholders in the manufacturing industry believe the paper industry could find hope in the Nigeria First Policy of President Bola Tinubu’s recent initiative to prioritise locally made goods in public procurement.
The Nigeria First Policy, signed by President Tinubu and designed to prioritise locally made goods and services in public procurement, has been hailed as a bold step towards reducing import dependence and promoting job creation.
The Policy mandates that all ministries, departments, and agencies prioritise locally made goods, with any procurement of foreign products requiring a formal waiver certifying the non-availability of local alternatives. But industry leaders argue this requirement is not being applied in the printing and publishing sectors.
These stakeholders urged the Federal Government to implement bold policies that will reposition the nation as West Africa’s industrial hub for paper production, warning that the dominance of cheap imported paper continues to destabilize local pricing, distort competition, and weaken Nigeria’s paper value chain.
A Local Industry with Global Cost
According to a report from Nairametrics, In 2021, Nigeria imported over $600 million worth of paper and paper-related products. That’s $600 million in foreign exchange leaving the country annually for a product that Nigeria can mostly produce locally.
Similarly, paper prices in Nigeria in the last five years have surged by over 300 per cent, driven by foreign exchange crisis, transport bottlenecks and rising production costs. As a result, many local printers, despite having invested in high-capacity equipment, are battling low patronage.
Some key stakeholders argued that Nigeria’s local mills are already producing international-grade 50gsm and 60gsm paper, suitable for exercise books, publishing, and commercial printing.
However, unless the government increases import tariffs on finished paper and supports local procurement, the sector’s growth will be stifled.
A stakeholder in the paper production industry, Williams Sun who spoke with The Nation said: “We are building something great in Nigeria, but we are also facing an uneven playing field. The influx of underpriced and often inferior foreign paper is sabotaging local industry confidence.
“We’re not asking for a blanket ban, but for fair policy that encourages Nigerian content. If we import everything, we export jobs and import poverty.
Sun praised recent investments that have stabilized paper pricing and expanded job creation, particularly in the education sector.
According to him, the consistent local supply of writing paper has already led to more affordable exercise books and improved access for low-income students.
Looking at the broader socio-economic value of the industry, the local paper production is reviving communities, promoting technical skill development, and contributing to Nigeria’s climate goals through wastepaper recycling and sustainable forestry practices.
From Cassava to Printing Press
One might not expect to find cassava farmers and timber contractors playing a vital role in paper production, but in Nigeria, they do. “Cassava starch, when processed, becomes a type of gum we use in making paper,” Sun explained. “It’s one of our most important materials. The value chain involves thousands — farmers, transporters, machine operators, wood contractors — everyone benefits.”
In many rural areas, people are now beginning to understand the economic value of trees beyond furniture or firewood. “Now they know their tree roots can produce paper,” Sun added. “Even in rainy seasons, they keep working because they earn, that’s the impact.”
This transformation of local raw materials into industrial input is what industrialization looks like at the grassroots. It’s not just about factories and machines; it’s about people, families, and communities woven into a fabric of productivity.
Nigeria can shift away from import dependency and focus toward localized, inclusive industrial growth driven by investment, policy, and innovation.
The revitalization of the local paper manufacturing is crucial for economic diversification, job creation and the preservation of foreign exchange so as to foster a self-reliant and robust domestic industry.
The Bureaucracy of progress
Despite the human capital and natural resources at play, stakeholders lamented about the frustrating system, highlighting the issue of slow policy processes, difficult engagements with customs, and loopholes that benefit importers at the expense of local manufacturers.
Also, there are the essential inputs — materials like long-fiber pulp, peroxide, and caustic soda that are not produced locally due to climatic or industrial limitations.
The environmental benefits of investing in the paper industry are equally compelling. For years, Lagos streets were littered with plastic and paper waste, contributing to pollution and clogged drainages. But in recent times, there’s been a visible reduction in this trend — thanks to the rise in recycling efforts.
Yet, the problem isn’t just about paper — it’s about mindset, policy, and a system that inadvertently punishes local efforts while rewarding foreign imports.
Another stakeholder, Rajeev Kumar, warned that the unchecked dominance of imports would strangle local investment. He said many entrepreneurs who invested heavily in local production are unable to recover their investments.
Way forward
To recalibrate the progress in local paper industry, the government can consider tax incentives for local manufacturers, access to forex for equipment upgrades, access to BOI (Bank of Industry) loans at a cheaper interest rate and the classification of paper manufacturing as a priority sector within Nigeria’s industrial policy.
Most importantly, the establishment of a Paper Industry Council to serve as a liaison between government, industry, and investors, enabling real-time policy feedback and technical collaboration on sustainability and innovation can help reposition the country’s status.
The sector currently supports more than 7,000 direct and indirect jobs across three regions and could double that figure by 2026 with the right policy framework.
A Call to Action
Beyond the bureaucratic challenges and unfair competition from cheap imports, the local paper mill sector needs validation — from government and the Nigerian public. Publishers, educational institutions, and printers have been called upon to use Nigerian-made paper.
This repositioning vision isn’t far-fetched. In a country where paper is still essential — from education and publishing to packaging and branding — building a thriving paper industry isn’t just industrial policy; it’s economic survival.
