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The high cost of packaging materials in Nigeria is hurting food processors, as it impacts their production cost negatively.
An expert, who spoke to BusinessDay on the side-line of the just concluded Nigeria Agrofood exhibition event in Lagos, said that the high cost of packaging materials in the country is due to the importation of raw materials and machinery, as well as the technical know-how needed in the industry.
Food processors have always complained about the high cost of packaging materials, saying their products would have been more competitive if prices for packaging were cheaper.
“The cost of packaging in Nigeria are quite expensive because the machines are not manufactured here they are all imported and the raw materials to an extent are also imported and even the human capital to an extent are still imported,” Ahmed Alex Omah, executive director, Institute Of Packaging Nigeria (IOPN) and board member, World Packaging Organisation said.
“If you go to places where you find packaging machines in Nigeria, the people running them are not Nigerians. The technology involved in packaging is very advanced.
“If we can find Nigerians that can run these machines and the machines can be fabricated locally as well as sourcing inputs locally, the prices for packaging will become lowered and we would stop importing most of our packaging materials,” Omah said.
To drive down the prices of packaging materials in the country, some companies have invested heavily in plastic production in the country.
“When Dangote Petrochemical plant is completed and it commences operation, it will help drive down the cost of packaging as the plant will provide some of the materials needed for production of plastics,” he said.
“Currently, Indorama is supplying resin for the production of plastics and a lot of recycling is also on going. At the moment government have put some ban on the finished plastic materials because the country now has the capacity,” the executive director added.
Speaking on the use of flexible packaging in Nigeria, Omah stated that the use of flexible packaging is gaining a lot of traction among food processors, adding that a lot of innovation has gone into the production of flexible packaging in term off decoration.
He noted that the use of flexible packaging is on the increase in the country owing to its light weight.
“In terms of rating in Africa in the packaging industry, outside Tunisia and South Africa, Nigeria is doing very well,” he further said.
The world of product marketing is the world of appearance. Like the typical physicalist or materialist, the consumer believes in what he sees, feels, touches or perceives. The consumer tends to look at the physical attributes of a product first before considering whether it meets the standards or not.
Josephine Okojie
