Manufacturers Express Worries Over Total Collapse of Paper Industry, Seek Govt’s Support

Despite the abundance of pulp and paper materials also known as fibrous and non-fibrous materials, Nigeria’s paper mills have continued to nosedive, forcing the country to spend billions of Naira on the importation of papers yearly.

The former Chairperson of the Pulp, Paper and Packaging Group of the Manufacturers Association of Nigeria (MAN) and the Chief Executive Officer of FAE Limited, Princess Funlayo Bakare-Okeowo dropped the hint at the celebration of the Company’s 50th Anniversary and the announcement of the World Envelopes Day held at the Company’s Head Office in Lagos.

Bakare-Okeowo explained that if nothing is done to revive the country’s paper mills and save the industry, it will go under.

She also expressed concern over the rising of operating costs, which she said is putting production under intense pressure and increasing the cost of purchase for the end users.

She canvassed that “special interest rate should be given to manufacturers as many manufacturers and businesses have left the country because of harsh operating environment. If the government want to stop this ugly trend, it is clear what must be done. Despite Nigeria having all the materials needed to make papers it is sad that we have to import as much as 80 per cent of the raw materials we use because the paper mills are not functioning.”

The Chief Executive Officer of FAE Limited wondered why government has abandoned the paper industry, which according to her could be a source of foreign exchange(FX) for the country.

She revealed that a ton of paper now retails for $1,350 in the international market.

“We need single-digit interest rate and special rates for FX to help us source raw materials. We use to pay monthly before, then it moved to weekly, then daily, but now it changes to as much as twice a day. We cannot continue like this”, Bakare-Okeowo emphasized.