The Nigerian paper industry meets over 90% of its white‑paper demand through imports, costing an estimated US $5 billion annually and draining the country’s foreign exchange. Despite having modern facilities such as NIXIN Paper Mill, local producers say they operate below capacity due to policy inconsistencies and an unfavourable business environment. Current tariff structures impose a 25% duty on imported paper while exempting educational materials, skewing competitiveness in favour of foreign suppliers, which they argue its insufficient.
However, some industry experts argue that the country cannot “tariff” itself into manufacturing competitiveness. Rather the industry should look into other factors that can drive productivity and growth.
The underutilisation of privatised mills is driven by capital‐intensive machinery, lack of long‑fibre pulp resources, and power and infrastructure deficits. Import bills reached ₦412 billion in 2022 alone and over ₦1.63 trillion in the past five years, exacerbating job losses and economic vulnerabilities. Comparatively, China’s pulp and paper industry thrives on clear investment incentives and sector‑specific policies, producing 283.9 million tonnes in 2022 under a supportive regulatory framework. To revive Nigeria’s paper sector, coordinated policy reforms, harmonised tariffs, investment incentives, public‑private partnerships, and raw‑material diversification—are essential to create jobs, conserve forex, and safeguard the environment.
Nigeria’s domestic paper‐production capacity falls drastically short of demand, leading to import dependence for over 90% of white papers used in education, printing, and publishing. Modern facilities like the NIXIN Paper Mill remain underutilised, operating well below their technical capacity due to policy gaps and infrastructural constraints. This imbalance underpins the sector’s decline and necessitates urgent analysis of the policy, economic, and structural barriers to local paper manufacturing.
Industry stakeholders frequently cite conflicting government directives that undermine investor confidence and long‑term planning. For example, duty waivers on imported educational materials clash with high tariffs on general paper imports, making local production economically untenable. Experts warn that without a coherent industrial policy, private mills will continue to struggle with unpredictable cost structures and regulatory burdens.
Imported paper attracts a 25% import duty, while educational books and notebooks often enter duty‑free, creating a loophole exploited by importers and disincentivising local manufacturers. This misalignment skews market competition, flooding the market with cheaper foreign paper and suppressing domestic producers’ ability to achieve economies of scale.
Nigeria spent an estimated US $5 billion on paper imports in 2022, translating to ₦412 billion in import value, with broader allied products pushing cumulative import bills to over ₦1.63 trillion in the last five years. These outflows strain foreign reserves and divert capital from critical investments.
The lack of competitive local production has precipitated mill closures and underemployment in allied sectors, with experts noting significant job losses across manufacturing, logistics, and forestry inputs. The macro‑economic fallout includes reduced tax revenues and diminished industrial linkages.
Unchecked importation and paper consumption carry environmental costs, including higher carbon footprints from long‑distance shipping and increased waste generation. Research advocates for leveraging recycled wastepaper as an alternative raw material to reduce pollution and conserve forestry resources.
China’s pulp and paper sector produced 283.91 million tonnes in 2022 and benefits from a clear Catalogue of Encouraged Industries that actively invites foreign investment in pulp, paper, and allied sub‑sectors . Incentives such as tax breaks, subsidised financing, and streamlined land‑use policies have enabled China to build resilient supply chains and achieve global leadership despite limited domestic forestry resources.
Experts have therefore recommended steps to revive the industry, including tariff harmonisation by aligning import duties to level the playing field—phasing out zero‑duty exemptions and standardising paper tariffs to protect local producers. Also, introduce tax holidays, subsidised loans, and guaranteed off‑take agreements for new and existing paper‑mill projects, modelled on China’s encouraged‑industry framework. In addition, accelerate research and development into using wastepaper and agricultural residues as pulp substitutes, reducing dependence on imported long‑fibre pulp and engaging the RMDC’s programmes which could save up to ₦500 billion in forex annually, establish industrial clusters with shared power, water, and logistics infrastructure to lower operational costs and improve economies of scale. Finally, constitute a multi‑stakeholder task force to review and synchronise all policies affecting the paper value chain, ensuring consistent implementation across ministries.
Reviving Nigeria’s paper industry demands more than sporadic interventions—it requires a cohesive strategy integrating policy reform, fiscal incentives, and collaborative investment. By learning from successful models like China’s and harnessing domestic resources innovatively, Nigeria can rebuild a self‑sustaining paper manufacturing sector that creates jobs, conserves foreign exchange, and promotes environmental stewardship.
