Nigeria Faces ₦1.1 Trillion Paper Import Bill as Domestic Industry Collapse

Nigeria’s paper and pulp industry is facing a systemic crisis, with new data revealing that the country spent a staggering ₦1.11 trillion on paper imports in 2025 alone. This figure marks a sharp escalation from ₦328.9 billion in 2021, underscoring a near-total reliance on foreign markets to meet domestic demand for printing, packaging, and sanitary products.

Despite Nigeria’s status as one of Africa’s largest paper consumers, the domestic manufacturing sector has largely collapsed over the last 26 years. The industry’s contribution to the National Gross Domestic Product (GDP) remains marginal at approximately 0.14%, a reflection of a structural gap that analysts warn is draining foreign exchange reserves and stifling job creation.

A Widening Trade Deficit

Data from the National Bureau of Statistics (NBS) highlights a critical trade imbalance. Between 2021 and 2025, Nigeria spent over ₦3.37 trillion on imported paper. In stark contrast, exports for 2025 stood at a mere ₦19.6 billion—an improvement from ₦2.17 billion in 2021, but still a negligible fraction of the country’s import volume.

Five-Year Import vs. Export Value (Billion ₦)

The Collapse of Industrial Giants

Nigeria was once on a trajectory to self-sufficiency. Between the 1960s and 1980s, the federal government established three major facilities:

• Nigerian Paper Mill (NPM), Jebba

• Iwopin Pulp and Paper Company, Ogun State

• Nigeria Newsprint Manufacturing Company (NNMC), Oku Iboku

At their zenith, these mills produced tens of thousands of tonnes annually, serving both local markets and international buyers in North America and West Africa. However, operations ceased by the early 2000s due to a combination of mismanagement, obsolete technology, and inconsistent government policies. Stakeholders allege that post-privatization efforts failed to revitalize the plants, with some investors accused of asset stripping rather than genuine reinvestment.

Economic and Social Repercussions

Today, local producers meet less than 10% of the national demand, which exceeds three million metric tonnes annually. The fallout of this industrial decay is extensive:

• Employment Loss: Experts estimate that over 300,000 potential jobs have been lost across the pulp, manufacturing, and logistics value chains.

• Inflationary Pressure: The high cost of imported newsprint—which has surged from ₦600,000 to over ₦2 million per ton—has crippled the local publishing industry.

• Sectoral Strain: Education, pharmaceuticals, and food processing sectors face rising operational costs due to expensive imported packaging and writing materials.

Path to Recovery

Despite the grim data, industry leaders insist the sector remains viable. Nigeria possesses vast, untapped raw materials, including bamboo, kenaf, and sugarcane bagasse, which could fuel virgin pulp production.

Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria (MAN), cited regulatory bottlenecks and high energy costs as major deterrents. Similarly, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), pointed to macroeconomic headwinds and exchange rate volatility as primary factors weakening the sector.

While waste paper recycling has emerged as a growing sub-sector, experts maintain that it cannot bridge the supply gap without a concerted return to large-scale virgin pulp production.

“The demand for paper is permanent,” noted Princess Funmilayo Bakare Okeowo, CEO of FAE Limited. “What is missing is the enabling environment to save the trillions currently lost to foreign mills.