In the crowded markets and classrooms of Nigeria, paper is an ever-present and essential commodity. From the exercise books in a child’s hand to the cartons that package everyday goods, paper is a foundational element of the nation’s economy.
Yet, a closer look reveals a startling paradox: a country with vast forestry resources and a once-promising local industry is now drowning in imported paper, with devastating consequences for its economy, job creation, and long-term potential.
Nigeria, one of the largest consumers of paper in Africa, continues 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.
The figures paint a stark picture. Nigeria, with its immense demand for paper and paper products, is estimated to spend over $5 billion annually on imports, according to some industry experts.
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This staggering outflow of foreign exchange is a silent drain on the nation’s reserves, a resource already under immense pressure. It’s a tale of economic opportunity squandered, as the capital that could be fuelling local growth and industrialisation is instead being used to support mills and workers in countries like China, Indonesia, India and Brazil.
“The reason (for this) is that the government has not yet seen the paper industry as a gold mine; they are just running after crude oil. But papermaking is like oil. For example, a tonne of white paper now is about $1,200,” Funlayo Bakare Okeowo, MD/CEO of FAE Limited, said in an earlier interview.
“When you look at Egypt, for example, you can see the population of that country with Nigeria. Egypt has 25 paper mills, whereas Nigeria has about two and a half, and Nigeria is just recycling, not proper papermaking,” she said. “That is why we stakeholders in the paper industry are saying, ‘Let’s have a functional paper mill in Nigeria.’”
A promise unfulfilled: The ‘Nigeria First’ policy and a crying industry
Following years of unfulfilled promises and half-hearted revival efforts, Nigeria’s struggling paper industry could find hope in the Nigeria First Policy, President Bola Tinubu’s recent initiative to prioritise locally made goods in public procurement.
Yet, months after its unveiling, industry stakeholders warn the sector remains overlooked, lamenting what they see as complete government neglect.
“We are drowning in cheap and substandard imports that have taken over the market,” lamented one stakeholder. Local manufacturers, who once held a robust market share, are now struggling to compete, their pleas for the policy to be urgently applied to the paper industry seemingly falling on deaf ears.
They describe a wide chasm between government policy declarations and reality, highlighting persistent regulatory inconsistencies and the absence of meaningful support as key challenges.
“The industry currently supports over 7,000 direct and indirect jobs, a figure that Kumar believes could double by 2026 with appropriate support.”
The struggle of local producers
The story of Nigeria’s paper industry is one of ambition followed by neglect. The country once had three major government-owned paper mills: the Nigerian Paper Mill in Jebba, the Nigerian Newsprint Manufacturing Company in Oku Iboku, and the Iwopin Pulp and Paper Company. These mills, in their prime, were capable of meeting a significant portion of the country’s demand.
For example, the Iwopin mill was designed to produce up to 65,000 metric tonnes of fine writing and printing paper annually. The Oku Iboku mill, a pioneer in using local tropical hardwood like gmelina, had an installed capacity of 100,000 metric tonnes of newsprint per year.
However, a combination of systemic challenges, including policy inconsistencies, mismanagement, and a lack of investment in modern technology and raw material sourcing, led to their gradual decline and eventual collapse.
Though some have been privatised, many remain moribund or operate at a fraction of their capacity. Local manufacturers who have invested heavily in modern facilities are now struggling to compete with the flood of cheap, and often substandard, imports.
The challenges for local producers are multi-faceted. The current tariff structure, which imposes a 25 percent duty on general paper imports but often exempts educational materials, creates a loophole that disincentivises domestic production.
Williams Sun, a stakeholder in the paper production industry, expressed his frustration over the state of local paper mills. He noted that despite significant investments in upgraded facilities capable of producing international-grade 50 grams per square meter (gsm) to 100 gsm paper, most local printing presses are running far below capacity.
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50 gsm paper is often referred to as detail paper, layout paper, or tracing paper. It’s also sometimes used as a synonym for newsprint or thin printing paper, while 100 gsm paper is commonly known as standard printer paper, everyday office paper, or enhanced standard paper. It is a popular choice for general printing tasks like letters, documents, and assignments.
“There is available technology, but many printing presses operate only three to four months a year,” Sun said. “We can run our mills every day, but publishers continue to send printing jobs abroad. Local printing presses are idle much of the year, and the market is flooded with cheap, low-quality imports. Most Nigerian textbooks are now produced outside the country.”
Sun further lamented that most imported paper products bypass regulatory scrutiny, undermining local price competitiveness. “The products are not only lower than market standards but also make it impossible for local manufacturers to compete fairly. The economic loss is staggering,” he said.
A call for a level playing field
Rajeev Kumar, another manufacturer, warned that the unchecked dominance of imports is strangling local investment. “We are effectively exporting jobs and importing poverty,” he said. “Every tonne of paper we fail to produce locally is a lost opportunity for economic growth.”
Kumar and Sun insist that the implementation of the Nigeria First Policy is non-existent, particularly in the paper and printing sectors. To reverse this trend, they have called on the government to classify paper manufacturing as a strategic national industry, deserving of the same incentives provided to other critical sectors like cement and pharmaceuticals.
Their proposals include duty-free importation of essential raw materials, a ban on imported paper below 60 gsm, which Nigerian mills can produce in large volumes, and a harmonised tariff structure that prevents the misapplication of tax exemptions, particularly those meant for educational materials, which currently undermine local production.
60 gsm paper is commonly known as lightweight paper or thin paper and is often used for printing everyday documents like text-based reports and forms. It’s also referred to as copy paper or printing paper and can be used for a variety of purposes, including the inside pages of books and documents.
“We are not calling for a full ban on paper imports,” Sun said. “What we are asking for is for the government to analyse the market and ensure tax policies are not misapplied in a way that undermines localised production. This is the only way to support domestic manufacturing and create a fair, competitive environment for Nigerian mills.”
He added that with the right policies, his company alone could meet up to 60 percent of local demand for writing and printing paper by next year.
The economic ripple effect
The consequences of this import dependency extend far beyond the paper industry itself. Paper prices in Nigeria have surged by over 300 percent in the last five years, driven by foreign exchange crises and transport bottlenecks.
This has led to low patronage for local printers and a ripple effect across multiple industries that rely on paper, including education, publishing, and logistics.
The stakeholders are urging the Bureau of Public Procurement (BPP) to actively enforce local content rules in government printing and packaging contracts. They also proposed a “special situation tariff” to discourage the dumping of substandard paper products and a National Paper Industry Council to serve as a central platform for policy dialogue and collaboration.
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The industry currently supports over 7,000 direct and indirect jobs, a figure that Kumar believes could double by 2026 with appropriate support. He reiterated that the industry’s plea is not for protectionism but for a level playing field.
“We are not afraid of competition, but we must compete under fair conditions. Otherwise, the best of our talent and capital will continue to leave, and the country will keep bleeding economic value,” he said.
“If we let this sector die, it will take a decade and billions of Naira to rebuild,” Kumar warned. “And now is the time to act. Not next year, not after another policy review, but today.”
