The value of the Nigerian paper industry as at 2023 estimated at N398.8 billion naira, according to the National Bureau of Statistics, is very small when compared to the size of the country’s economy, foremost economist and Chief Executive Officer of the Centre for Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf, has said.
Dr. Yusuf said the industry was valued at N365 billion in 2022; N363 billion in 2021; and N255 billion in 2020.
“However, when compared to the size of our economy which is estimated at N230 trillion as of 2023, it is still very small,” he said.
Yusuf was delivering a lecture at the Business Roundtable and Inauguration of World Envelopes Day with the theme, “The Pivotal Role of the Paper Industry in the Nigerian Economy.”
The programme was convened by a renowned indigenous paper manufacturer, FAE Nigeria Limited, in commemoration of its 50th anniversary.
Yusuf lamented that the paper industry has largely been in recession due to the growth in digital technology and “other macroeconomic headwinds, especially relating to exchange rate depreciation, forex liquidity crisis and high cost of fund and energy cost escalation.”
He disclosed that the sector contracted by 1.47% in 2022; it contracted by 0.56% in 2023.
The CPPE boss stated that envelopes for instance are still important, especially in the corporate world, in enhancing brand visibility.
Yusuf suggested that the major government agencies that have huge budgetary allocations for expenditure on papers, envelopes and other paper products should be compelled to patronise domestic paper products producers and service providers such as printers and publishers.
He equally called for revival of the moribund paper mills like mills by revisiting the privatisation of Jebba Paper Mill, Iwopin Pulp and Paper Company in Ogun State and the Nigeria Newsprint Manufacturing Company.
He also called for privatisation of government-owned printing presses, saying the idea of governments operating printing presses creates “unfair competition.”
Managing Director/CEO of FAE Limited, Princess Funlayo Bakare-Okeowo, recalled that FAE started 50 years ago as Funlayo Adebo Enterprises founded by her late mother.
She said despite the digital disruption, the paper industry would continue to play a pivotal role in the nation’s economic landscape.