Stakeholders lament high importation of paper, pulp

LCCI-on-CBN

By Merit Ibe

 

Stakeholders in the paper and pulp industry have lamented that despite huge arable land and abundant forest resources across the country, Nigeria still relies on importation of raw materials to meet her demand for paper products.

The operators, who bared their minds at a seminar organised by the Lagos  Chamber of Commerce and Industry with the theme: ” Challenges, Prospects and Raw Materials Demand in the Printing, Packaging and Publishing Industry” at the weekend, called for  revamping of the paper and print industry to minimally meet domestic capacity production of three million metric tonnes.

President of the chamber, Dr Michael  Olawale-Cole,who cited a report that Nigeria is Africa’s second largest importer of printing and paper processing technologies, decried that the country’s paper, printing and publishing industry is a paradox that defies logic.

Olawale-Cole noted that the country’s installed production capacity remained at abysmally low level of 200 thousand metric tons, thereby making importation of raw materials inevitable.

The LCCI president called for legislative backing and harmonised regulatory framework for printing, packaging and publishing to spur investment in critical midstream and downstream segment of the value chain.

He stressed the need to chart the course for self-sufficiency in production of raw materials by exploring opportunities for production of fibrous and cellulose materials from many seasonal plants in addition to wood

For her part, the chairperson of the Printing, Publishing & & Allied Group of LCCI, Princess Layo Okeowo,  noted that without doubt, the industry was  grappling with lots of challenges which affect the smooth running of the activities of the sector.

She reeled out the challenges to include but not limited to high cost of paper; in which various factors come into play to influence the increase in paper prices like electricity supply and fuel cost, paper mill closures, and also increased demands for tissue papers.

Other challenge she emphasised were high foreign exchange; continuous depreciation of the Naira, collapsed infrastructure and poor funding of the sector.

She said the high cost associated with the importation of pulp and paper products is a huge issue as the integrated pulp and paper mills in Nigeria depend overwhelmingly on imported long fibre pulp.

“The issues of inadequate research effort are not being supported towards the conversion and

utilisation of fibrous raw materials into pulp and paper and mills development in Nigeria.

Proffering  solution to the challenges she noted that innovation by researchers has shown that Kenaf can be used in paper production which offers environmental advantages over reproducing paper from trees.

“Distinguishing characteristics of Kenaf for paper production include low lignin content and naturally whiter fibre, which can be translated into a decreased requirement for bleaching.

“Thus, Kenaf can produces paper that requires less energy while substantially reducing environmental pollution.

She opined that $10million can create  a cluster of paper mills of about500-600 all over the nation.

This she said will improve foreign ex change and the economy at large.

“You can never go wrong with investing in Kenaf paper and the capacity expanded to meet the domestic need of about 3million mt.”

Commissioner for Commerce and Industry, Ogun State, Kikelomo Longe, who noted that the gap between  supply and demand was enormous, said the demand in the paper industry is huge.

The commissioner disclosed that in an efforts to combat the situation in the pulp and paper sector, the federal government through the federal ministry industry  trade and investment is currently working towards the resuscitation and strategic development by setting up  an inter- agency committee which has been mandated to investigate the remote and immediate causes of the collapse of the privatisation of  paper mills.

She noted that with the help of the agency, government and other relevant stakeholders, Nigeria’s paper industry can source a greater percentage it its raw materials locally and reduce the over dependence on importation.

Professor Abiodun Oluwadare, Department of Forest Production and Products, University of Ibadan, noted that research has shown  that the country has a lot of tree species that could grown in more than 10 states and used to produce paper.

He was optimistic that the country can look inwards to improve the sector  and stop importation, adding that

Nigeria is blessed with flora species and the pulp and paper sector  can conveniently employ about 500,000 workers.

The professor disclosed that  data has shown that a comparison between crude oil and wood pulp price in the global market shows that wood pulp is  more expensive than crude oil and from 2014 , the price of pulp in the global market has been very stable compared with the price of crude oil which has been fluctuating.

Oluwadare believes that Nigeria can  conveniently provide the basic raw materials for any  kind of paper, but lamented the dearth of industries, which is a huge challenge .

He proffered clustering  of operators in the sector which can propel  the growth of the sector.

He also noted that a major point that is essential to the survival of the sector is that the country  must have a research based centre for pulp and paper “as we cannot make progress without such. We have the expertise

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