In a bid to identify and proffer solutions to the continuous hike in paper price, the Chartered Institute of Professional Printers of Nigeria ( CIPPON) organised a meeting with Major Paper Merchants in Nigeria to dialogue on the cause of incessant paper price hike and the way forward at an emergency fact-finding and consultative meeting.
The meeting was a wake-up call to all stakeholders in the paper industry, Ministry of Industry Trade and Investment, printing practitioners and investors to proffer a lasting solutions to the continuous rise in price of paper on daily basis which according to practitioners is about to shut the doors of print business in Nigeria if urgent attention is not given to their plea
The program was an avenue for dialogue between paper merchants and printers. Major printers and importers aired their views on the challenges they face with paper and their customers.
During the speech presentation of the President of the Institute, Mr Olugbemi Malomo said that the current Council organised the meeting in order to solve the common problem of escalating paper cost that affects every print practitioner in Nigeria.
According to him, there is no doubt paper remains the number one global commodity for printers and if for any reason, anything happens to paper, printers will be out of business. “Without printers, there would not be any need to sell paper. This is symbiotic to maintain”. He said
Lamenting at the meeting, a printer – Mr Akinbade Kolawole said that paper prices has gone up drastically. “We are in between the paper merchants and the end users of papers. Forex accessibility, port congestion, exchange rate, import duty and more are some of the major challenges affecting paper price. Forex is the most critical part of these challenges. Can we put pressure on the government to solve this issue? The increase on the price is making the industry to come down, whatever we are printing is at risk. We now have alternatives, if the price is not reasonable I see no reason doing paper business”. He stated
Another printer, David Henry stressed that; “We have deliberated so much on paper, the paper merchants are accused of insensitivity of price and extortion. They are our small gods who give us price and we have no option than to buy from them. If the professional printers are selling off their machines, then, there will not be paper to sell, we demand for a meeting point”.
Abayomi Ajayi added that small business scale printers are the worst hit by the price as they had to deal small and medium scale clients and at the end of the day, they do not get enough return from their businesses.
Responding to Printers complain, Lady Lizzy Ikenua of Kerie Dee Limited, major importer of paper explained that without printers, her company will not be in business. According to her, the major problem affecting paper merchants is quoting an initial price which automatically changes with new paper price and most times, we the merchants are at lost. “Accessing Forex from our end is appalling. They have pushed us to the black market, and that takes the little profit we are suppose to make from the business. “It is not an intentional practice, the increment is not from our end. Most times you realise you are selling at a lost after quoting a price, the situation is horrible”. She stated
Mr Obisesian Gbenga of Starbeint limited said that challenges faced are common among all practitioners, not just between paper merchants and the printers but all practitioners under the value chain of printing. “Forex rate is a major ache for printers. Some of our machines were brought from abroad with the use of forex. We don’t have control over forex which delays our transaction, and the Central Bank of Nigeria is not helping matters as they increase dollar rate almost every day” He said
“I am a marketer of news print, bulk paper, hard paper of all brands. I Import this commodities. In China there is no place to store your goods in the container before exporting down to Nigeria. I bought a five container items and was told by my supplier that I can’t push in the whole five, I was able to bring in just two which means the remaining three goes back to the local markets. We are facing challenges that printers are not aware of, the Nigeria custom is another issue we have to deal with. Obisesian said
Proffering solutions to the challenges facing the industry, the president of CIPPON, Mr Malomo stated that the institute is working on a short and long term solution to paper challenge in Nigeria. “We will not allow our neighbouring country Ghana to take our business from us. The production of paper mill should be adopted in our country. It is our duty to ensure security of lives and properties through the creation of employment opportunities and CIPPON is working hard to develop the printing business in Nigeria in order to develop capacity and aid employment opportunities to the unemployed among us. He said
“The new competition now is collaboration. We need to work hand in hand for the progress of Paper Price in Nigeria”. Mr Malomo said.
Meanwhile, the Deputy Director of Pulp, Paper & Wood at the Industrial Department of the Federal Ministry of Industry, Trade and Investment, Mrs. Ajayi-Ade Olumuyiwa commended CIPPON’s effort in bringing together major stakeholders in paper value-chain for dialogue and also appreciated all operators for making valuable contributions in addressing the incessant paper price hike which she assured the stakeholders of the Ministry’s intervention in a short while.
Her words “The increment of paper price is a major concern to us, all discussed will be address urgently. Also, we are working on special intervention fund for paper sector which will be accessible for all and we guarantee that this will be implemented”. She stated.
A representative of Manufacturers Association of Nigeria (MAN) and The Chairperson of the Printing, Publishing and Allied Group of LCCI Princes Layo Okeowo stated that the way out of the present paper crises was for stakeholders to come together under a cluster of investors to establish paper mills specific to different needs in the market. “We can have a papermill by forming clusters of $5million investment. We have so many species that can be developed like the jute mallow plant leaves or sugar cane to make paper. The Ogun State Government is ready to partner with us by providing land for the plantation. Paper mill is a goldmine ready to be tapped” She stated.
The following decisions sums up the emergency consultative meeting orgainised by CIPPON, It was agreed that: (1.) Paper importers association work with Printers’ representatives together in a Committee to work out a price modulation that will be published monthly (2.) A Paper Summit should be organised in the next 3 (three) months – Ministry is waiting for a date (3.) The Federal Ministry (of Trade & Industry) will start looking at the concept of Modular Paper Mills” he summarised.
