NIGERIA may be losing about ₦674 billion annually to foreign paper mills as the domestic primary producers closed shops over the past 26 years.

The development indicates a near total collapse of the sector even as the contribution to Gross Domestic Product (GDP) is stuck at a marginal 0.14 per cent.

Vanguard findings highlight a widening structural gap between demand and local capacity, positioning Nigeria as one of Africa’s largest paper consumers but weakest producers.

Data obtained from the National Bureau of Statistics (NBS) revealed that Nigeria’s paper import bill has risen sharply over the past five years, climbing from ₦328.9 billion in 2021 to ₦1.11 trillion in 2025, driven by rising demand for printing, packaging, and sanitary paper products, while local production has dwindled.

Consequently, the situation led to ballooning of imports with the five-year figure at over ₦3.37 trillion, as 2025 accounted for the highest annual figure.

By contrast, exports remain negligible, rising modestly from ₦2.17 billion in 2021 to ₦19.6 billion in 2025 — a fraction of import volumes.

A breakdown of the NBS data shows that the value of imported paper products in 2021 amounted to ₦328.9 billion; ₦412.2 billion in 2022; ₦573 billion in 2023; ₦948.2 billion in 2024; and ₦1.107 trillion in 2025.

Conversely, the value of exports within the period was ₦2.17 billion in 2021; ₦2.62 billion in 2022; ₦3.95 billion in 2023; ₦8.76 billion in 2024; and ₦19.6 billion in 2025.

Analysts attribute the widening gap to the collapse of domestic production capacity, with local manufacturers meeting less than 10 per cent of national demand, estimated at over three million metric tonnes annually.

From industrial promise to collapse

Nigeria was once positioned to become a major paper producer in Africa. The country established three large paper mills between the late 1960s and 1980s: Nigerian Paper Mill (NPM) in Jebba, Kwara State; Iwopin Pulp and Paper Company in Ogun State; and Nigeria Newsprint Manufacturing Company (NNMC) in Oku Iboku, Akwa Ibom State.

However, due to mismanagement, lack of investment, obsolete equipment, and policy inconsistencies, these mills have collapsed, leaving the country producing very little pulp or printing paper locally today.

At their peak in the 1980s, the three mills produced tens of thousands of tons of paper annually, significantly reducing dependence on imports and even supporting exports to international markets.

However, by the early 2000s, all three facilities had ceased operations due to a combination of mismanagement, obsolete technology, weak investment, and policy inconsistencies.

Industry sources further allege that post-privatisation efforts failed to revive the plants, with some investors accused of asset stripping rather than reinvestment.

Import dependence

Today, available data shows that Nigeria imports over 91 per cent of its paper needs, sourcing primarily from China, India, Indonesia, and the United States.

Printing and writing paper — critical for education, publishing, and office use — accounts for the largest share of demand but is almost entirely imported.

Local production is largely limited to kraft paper and packaging materials made from recycled waste, with most operators constrained by poor electricity supply, high cost of imported inputs, and outdated machinery.

Economic implications

The collapse of the paper industry has far-reaching consequences for the broader economy.

Experts estimate that Nigeria may have lost over 300,000 potential jobs across the paper value chain, spanning pulp production, manufacturing, printing, and logistics.

The heavy reliance on imports also exerts pressure on foreign exchange reserves, as billions of dollars are spent annually to meet domestic demand.

Additionally, weak local production has raised costs for downstream sectors such as education, publishing, food processing, pharmaceuticals, and packaging, further fueling inflationary pressures.

For example, during its heyday, NNMC was producing international standard newsprint, some of which was exported to the United States, Canada, Ghana, Sierra Leone, Liberia, and many other countries.

The Newspaper Proprietors’ Association of Nigeria (NPAN) has consistently lamented the collapse of NNMC, noting that its closure has nearly killed the local publishing industry.

The association argued that the high cost of imported newsprint has made the hardcopy newspaper business in Nigeria unsustainable, with prices rising from about ₦600,000 to over ₦2 million per ton in recent years.

Untapped potential

Despite the grim outlook, experts insist that the sector retains strong revival potential.

Nigeria possesses abundant raw materials for pulp production, including bamboo, kenaf, rice straw, sugarcane bagasse, and forest resources, which remain largely untapped.

They also noted that the rapid growth of e-commerce, food processing, and consumer goods industries is driving demand for packaging paper, creating new opportunities for local manufacturers.

Operators are increasingly exploring waste paper recycling, which has emerged as the most active segment of the industry.

Stakeholders, however, stress that recycling alone cannot bridge the massive supply gap without significant investment in virgin pulp production.

Stakeholders’ comments

Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, lamented that the sector now operates on the margins, contributing barely 0.17 per cent to GDP.

He highlighted persistent industry challenges, including underutilisation of paper mills, the exit of major players, disruptive importation of finished goods, and regulatory bottlenecks.

Chairman of the Printing, Publishing and Allied Group (LCCI), Gabriel Okonkwo, pointed to high operating costs, difficulty in sourcing materials, and policies favouring imported finished goods.

President of the Lagos Chamber of Commerce and Industry (LCCI), Leye Kupoluyi, stressed that paper remains essential despite the digital age.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, added that macroeconomic headwinds, exchange rate depreciation, forex constraints, high energy costs, and technological disruption have weakened the sector.

Analysts project continued import dependence in the short term unless major investments and policy reforms are implemented.

However, stakeholders maintain that with the right policies, Nigeria can rebuild its paper industry, reduce import bills, and unlock thousands of jobs.

Princess Funmilayo Bakare Okeowo, CEO of FAE Limited, said Nigeria could have saved trillions of naira and earned foreign exchange if the industry were functional.

“The demand for paper will always be there. What is missing is the enabling environment,” she said. (Vanguard)

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