Paper Industry Collapse Costs Nigeria ₦674bn Annually, Imports Hit ₦1.11trn

Nigeria is losing an estimated ₦674 billion every year to foreign paper producers following the collapse of its domestic paper mills, a situation that has left the country heavily dependent on imports.

Data from the National Bureau of Statistics (NBS) shows that the sector’s contribution to GDP remains low at about 0.14 per cent, reflecting its weakened state.

Over the past five years, Nigeria’s paper import bill has surged from ₦328.9 billion in 2021 to ₦1.11 trillion in 2025, bringing total imports to over ₦3.37 trillion. Meanwhile, exports remain minimal, rising only from ₦2.17 billion to ₦19.6 billion within the same period.

Analysts note that domestic producers now supply less than 10 per cent of the country’s annual demand of over three million metric tonnes.

Collapse of local mills

Nigeria’s paper industry once thrived with key facilities such as Nigerian Paper Mill, Iwopin Pulp and Paper Company, and Nigeria Newsprint Manufacturing Company.

These mills, which flourished in the 1980s, significantly reduced import dependence and even supported exports. However, they shut down by the early 2000s due to poor management, outdated technology, and inconsistent policies, with failed privatisation efforts worsening the situation.

Rising import dependence

Currently, Nigeria imports more than 91 per cent of its paper needs, relying on countries such as China, India, Indonesia, and the United States.

Printing and writing paper, essential for education and publishing, is almost entirely imported, while local production is mostly limited to recycled packaging materials.

Economic consequences

The collapse has resulted in the loss of over 300,000 potential jobs and increased pressure on foreign exchange reserves.

Industry groups, including the Newspaper Proprietors’ Association of Nigeria, warn that the high cost of imported newsprint has made print media operations difficult, with prices jumping from about ₦600,000 to over ₦2 million per ton.

Untapped opportunities

Despite the challenges, experts believe the industry can be revived. Nigeria has abundant raw materials and growing demand driven by sectors such as e-commerce and food processing.

However, stakeholders insist that major investments and policy reforms are needed to reduce import dependence and rebuild the sector.

Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, cited structural issues including import pressures and regulatory challenges.

Gabriel Okonkwo of the Lagos Chamber of Commerce and Industry highlighted operational costs, while LCCI President Leye Kupoluyi underscored the ongoing relevance of paper.

Dr Muda Yusuf of the Centre for the Promotion of Private Enterprise pointed to forex shortages, high energy costs, and macroeconomic challenges as key constraints.

Princess Funmilayo Bakare Okeowo, CEO of FAE Limited, said:
“The demand for paper will always be there. What is missing is the enabling environment.”

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