Nigeria Loses N250bn Annually to Imported Textbooks

Nigeria loses an estimated N250 billion annually through the continued importation of textbooks that could be produced locally. The Minister of State for Industry, Senator John Enoh, says the country's dependence on imported educational materials is detrimental to local industry.

The Minister disclosed this during a factory tour and stakeholders' roundtable with major paper manufacturers, Nixin Paper Mill Nigeria and Speciality Group. They'd raised concerns over what they described as unfair competition from imported paper products and textbooks.

While imported educational materials enter the country duty-free, local manufacturers are subjected to import duties on chemicals and other critical production inputs. Minister Enoh describes the situation as inexcusable and unconscionable, stating that it doesn't make sense for Nigeria to import 90 per cent of its textbooks when local mills can do the same job.

'It's a bit inexcusable and unconscionable that an industrial manufacturing concern like these can stay in the country, produce a product, and that product can't be sold because of competition with foreign products that either have lower quality or find their way into the market through unauthorized routes,' he said.

The Minister says the challenge is largely a fiscal policy issue. He stresses that the Ministry of Industry, Trade and Investment will engage the Ministry of Finance and the Coordinating Minister of the Economy to review the existing duty structure affecting the sector. The kind of fiscal policy that targets the paper and printing sector is very important. It will enable operators producing within the country to remain competitive.

Managing Director of Nixin Paper Mill Nigeria, Eric Wang, says the company, which commenced operations in 2023, has the capacity to meet the nation's total demand for printing, publishing, and exercise paper. He notes that the company sources cassava from farmers in Oyo State for the production of cassava starch used in papermaking. This supports more than 10,000 Nigerians across its value chain.

Group Chief Operations Officer of Speciality Group, Dattei Ateinu, says the company had been producing paper locally since 2004. However, it currently operates far below its installed capacity of 6,000 tonnes monthly. This is due to import pressure, high production costs, and limited access to credit.

The Federal Government's move to boost local paper production is expected to create jobs, reduce the country's dependence on imported educational materials, and conserve foreign exchange. As the government works on reforms under the new industrial policy framework to strengthen domestic manufacturing, it's hoped that the local paper industry will receive the necessary support to thrive.

As the government moves to address fiscal and policy bottlenecks undermining Nigeria's paper manufacturing industry, it's expected that the local paper industry will receive the necessary support to compete with foreign products. Minister Enoh's statement that it doesn't make sense for Nigeria to import 90 per cent of its textbooks when local mills can do the same job highlights the need for the government to take immediate action to support the local industry.

The impact of the government's move to boost local paper production will be felt across the country. It's expected to create jobs, reduce the country's dependence on imported educational materials, and conserve foreign exchange. The local paper industry has the potential to thrive. With the necessary support, it can become a significant contributor to the country's economy.

The government's decision to review the existing duty structure affecting the sector is a step in the right direction. It will enable operators producing within the country to remain competitive. The Minister's engagement with the Ministry of Finance and the Coordinating Minister of the Economy is expected to yield positive results. It will lead to the development of policies that support the local paper industry.

The Federal Government's move to boost local paper production is a welcome development. It has the potential to create jobs, reduce the country's dependence on imported educational materials, and conserve foreign exchange. The local paper industry has the potential to thrive. With the necessary support, it can become a significant contributor to the country's economy. The government's efforts to support the local paper industry will likely lead to increased economic growth and development.