By Providence Ayanfeoluwa
Industry players have said that paper production could become Nigeria’s “second oil,” given its profitability and global demand. Speaking at the occasion of World Envelope Day, Managing Director and Chief Executive of FAE Limited, Layo Bakare-Okeowo, estimates that with an investment of $5 million, a paper mill capable of producing up to 20 tonnes daily could be established.
She said such clusters would not only meet domestic needs but also position Nigeria as a major exporter in the global market.
Bakare-Okeowo alluded that a tonne of wood-free paper currently sells for about $1,300, whereas local mills remain overstretched, with shipments overbooked due to limited production capacity.
Meanwhile, FAE Limited, leading envelope manufacturing and corporate paper packaging company, unveiled Ecofriendly, copier papers, Ecofine described as environmentally friendly and first of its kind in Nigeria.
According to Bakare-Okeowo, local paper industry cannot meet demand despite their expansion.
Her words: “We need a lot of investors when it comes to paper making. Paper making is a goldmine. A tonne of paper is about $1,300.
“Imagine that we are exporting that out of Nigeria. We don’t need a lot of money to have a paper mill. With $5 million, you can have a paper mill. Let’s form clusters that can make maybe about 20 tonnes in a day and we are exporting that.
“I’m having issues now with my shipments because my paper mail is overbooked. Paper should be our second oil in Nigeria to make money.
“In Nigeria some people are saying we should go paperless, this is wrong.
In Europe and in America, their post office is working. They are using copier papers and envelopes.
“Our post office is no more working because of this idea of going paperless and so many ideas. I’m using this opportunity of World Envelope Day to say that they should make our post office work.
“Let Nigerians judge where and how they want their communications to be. They shouldn’t kill the paper industry.
“Egypt has about 25 paper mills. What’s the population of Egypt? In Nigeria, we are over 250 million and we have just three paper mills.
“We have Chinese coming in to make papers in Nigeria. Why are they coming in? And you still have two more that I know that are floating paper mills.
Meanwhile, our old paper mills are not working”, she said.
Also, President of Lagos Chamber of Commerce and Industry, LCCI Leye Kupoluyi, added that Envelope Day is a reminder of how important envelope is to the business world, saying that it is a contributor in every area, from the knowledge industry, to the manufacturing industry, and post services.
He described the sector as a multi-billion sector need to be refocused.
He said: “I think we need to focus more into improving our paper industry, because paper is always very important. There are digital things but eventually, for Store of value, many of us really want to read most of our textbooks on papers”.
Article Paper Industry: Nigeria’s untapped goldmine in need of investors – FAE Live On NgGossips.
