Impact of Privatization of Primary Pulp and Paper Mills on Performance of the Pulp and Paper Sector in Nigeria.

Abstract

The integrated pulp aand paper mills established in Nigeria were privatized in the mid 2000 as a result of lack of adequate funds to import requisite raw materials and generally because of their non performance.  The Nigeria Paper Mill commenced rehabilitation immediately after privatization and started production in the 2009. The two other mills are yet to start production.   While Nigeria Paper Mill has rehabilitated its paper machines, it is currently producing kraft paper within 60-250gsm range using recycled paper. The mill has been able to reduce national dependence on kraft paper importation, although, its customers are agitating that it should add long fibre pulp to the recycled waste paper pulp in order to increase the strength of its products. The deficit turn-over of the non production of the three pulp and paper mills between 2006-2009 to the economy was 153.05 billion naira.  This is estimated to rise to 180 billion in 2015 as a result of the increasing cost of long fibre pulp and the anticipated rise in demand for paper as a build up to the 2015 general elections.  The major problems the mills may likely continue to face even after becoming fully operational are dependence on imported long fibre pulp and chemicals, epileptic energy supply, thereby increasing costs of production.  These are likely to forestall the gains of the privatization exercise among which are deepening of local market, technology transfer, employment generation and reduction in cost of paper products locally.  Thus, government  has significant role to play in monitoring the post privatization activities at the mills and in providing suitable environment for profitable operation of the mills by finding sustainable solution to the problems of long fibre pulp sourcing within the polity.

Keywords: privatization, turn over, long fibre, rehabilitation, energy.