Economic and Financial Review


Central Bank of Nigeria


Paper Supply, Nigeria


This study reviews the developments in the paper industry with special focus on the supply and factors affecting the supply of paper in Nigeria. The study appreciates the strategic role of paper on socio-economic activities and is concerned with the downward trend in the supply of paper to the market. The data show the low capacity utilization and heavy revenue losses sustained over the years by the local pulp paper mills as well as the declines in the import supply of paper due to the scarcity of foreign exchange. The study attributes the factors constraining the supply of paper to the dominance of government investment in and control of the pulp paper mills which have made them uncompetitive and unresponsive to technological changes and innovations. Other factors listed are obsolescence of the machinery and equipment, old and low technology inherent in the production system, high production costs as well as inadequate funding due to limited access to the financial markets. The study calls for urgent privatisation of government's share holdings in the paper mills to inject private funds and management for efficiency; re-structuring of the paper mills to medium sizes; 1·e-classification of paper used as intermediate inputs as raw materials for duty exemption; and adoption of new technology or adaptation of the existing ones to process any available local substitutes for the imported long fibre pulp.

Author Bio

Chief Awoseyila is a Deputy Director of Research and Head, Real Sector Studies Division, while Alhaji Obitayo is an Assistant Director and Head of Industrial Studies Office Research Department.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Awoseyila, A. P. & Obitayo, K. M. (1994). Factors Affecting the Supply of Paper in Nigeria. CBN Economic and Financial Review. 32(2), 133-162.



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