Uba Godwin

We thank our numerous readers who have shown appreciation in one-way or the other. We feel highly encouraged all over the years by numerous enquiries and consultations from our numerous readers. This year, 2024, we will continue to educate our readers on some profitable manufacturing projects in Nigeria and how to go about achieving more profitable investments.

We wish all Nigerians a happy and prosperous new year.

Based on some analysis carried out we have been able to look at Nigeria investment climate and see many of projects as good one to think of investing into.

Viability of Manufacturing/Agro projects in Nigeria

From our feasibility studies, these projects can be comfortably set up and effectively managed in Nigeria. The raw materials are available, the plant and machinery to set them up are also available. The manpower will not be a problem too. Though there may be some problems in the manufacturing sector, such as power supply, but with time the problem will be over putting President Ahmed Bola Tinubu promises into considerations.

Market for Manufactured Products

Nigeria has a very big market; therefore the market for quality manufactured products will not be a problem. The Nigeria products are acceptable in the international market if well processed and packaged according to international standards.

The major problem for now is power supply, which has not been regular. However with the efforts of the Government and present reforms by President Ahmed Bola Tinubu in the power sector, huge improvement is expected in the year 2024.

Nigerians Should Think in-Wards

To importers in Nigeria, this is the right year to think of how to discuss with your foreign partners overseas to bring those producing plants in Nigeria and establish such Manufacturing plants in the country. With this arrangement, you will go a long way to assist in reducing the pressure on the demand for scarce foreign exchange; fight unemployment and add to development of Nigeria industrially.

Realizing a Profitable Investment in 2024

We will assist you in seeing your project proposals come through by packaging a comprehensive and bankable feasibility studies reports in any of the projects of your choice, give you investment advisory services, assist in sourcing and installing formidable plants and machinery from cottage, small, medium to large scale manufacturing projects.

We will provide you with information on international markets for export of your products. We will also help you to carry out market survey in the country for effective market of your products.

We will also assist in sourcing and recruiting experienced hands for effective management of your investments.

In the area of funding of your projects, we will assist to secure funds for your projects provided they are profitable enough.

Here we looked at how to establish and manage tissue paper production (toilet rolls, serviettes and facial tissues) for profits.

The Federal Government of Nigeria included tissue paper/toilet roll (of any type) amongst other products, in the import prohibition list.

Based on our evaluation and appraisal of viable projects in terms of small capital outlay, local raw materials availability, cheap manpower requirements and availability of sustainable high market demand, availability of appropriate technology, employment generation and incremental gain among others, we have found out that investment in tissue paper is always profitable. The end result is that tissue paper/toilet roll production, even at a small-scale level fits well the technologically, the payback period short and economically very viable if properly managed. One fundamental consideration to make when setting up this project is application of professionalism. This will enable your product to sell in any market in any part of the world. This brief write up seeks to enlighten any interested investor, businessman on what it takes to set up a profitable tissue paper/toilet roll manufacturing plant.

For Whom

The prospective beneficiaries of this project include: pensioners, and retirees, (civil servants, uniformed personnel, OPS), unemployed school leavers, those currently working but who want to have a running side project into which to transit smoothly, entrepreneurs who want to diversify into a profitable, low capital based small scale business.

Market Potentials

Tissue paper/Toilet rolls are consumed on daily basis by all and sundry irrespective of age; social class or religious divide for sanitary and cleansing purposes.

They enjoy high aggregate demand in places like households, hotels, schools, hospitals, and various types of institutions, parties of sorts, canteens, churches and mosques. Others are maternity homes, night and other clubs, shopping and food selling centers, offices etc. The beauty arsenals of any lady are not properly assembled and deployed without a tissue paper/toilet roll, a permanent of their handbags. Can you imagine a world without tissue paper?

Tissue paper/Toilet rolls have a high repeat sales tendency which is fuelled by such factors as increasing social and sanitary awareness of the need for hygienic and good quality living standard, geometrically exploding population, continued drift from the rural to the urban centers in search of the better things of life and job opportunities, affordability of the product price etc.

The market for tissue paper/toilet rolls has been well established and developed. It is large, expanding and sustainable.

The country’s population, which was estimated in 2023 to be in the neighborhood of 220 million, grows at an annual rate of 2.831%. In addition the ECOWAS has about 350 million people with similar growth rate. What this translates into is that any ventures into this lucrative tissue paper/toilet roll production business will tap into the already existing and expanding local and export markets.

The disposal of finished goods will not pose a serious problem as large and medium scale distributors with adequate purchasing power can be appointed in nearby urban centers to handle the selling function.

Recent researches findings reveal woeful supply inadequacy vis-a vis demand for tissue paper

(Toilet rolls & serviettes) thus creating a gap yearning for quick satisfaction. Nigeria alone needs over 950 million tons of tissue paper (toilet rolls and serviettes) per annum out of which local supply through production meets only 150 million. This enormous demand supply gap translates into a viable investment opportunity for any entrepreneur that exploits it. For such a determined investor, the illusion created by the sight of many people hawking toilet rolls of various types and their packing in stores and warehouses should be discarded as it doesn’t portend market saturation but rather that the products is in high daily demand.

Raw Materials Needed

The essential raw materials needed are the jumbo reels, core paper and white glue while the packaging materials are the wrapping paper on which the producer’s name, address and brand name will be conspicuously printed, cellophane, staple pins etc.

Each of these is obtainable locally from suppliers. The jumbo reels are either pure white or off white.

Needed Equipment

The relevant machinery and equipment, all of which are obtainable locally are:

Core making machine

Jumbo reel Rewinding machine

Band saw cutting machine

These have been tested, found to be reliable, rugged, long lasting and high performing by those who have been using the plant. The equipment supplier grants guarantee of 3 years for their performance and will install, test run the plant and train the prospective investors staff etc before handing over the factory anywhere in the country. This is to ensure that the entrepreneur does not have any start up problems associated with machinery and equipment. It should be noted that prospective investors could as well import these machines from some tested foreign machine producers on contacting the writer.

In terms of factory space, a three-bedroom space or duplex is ideal to house both the plant and raw materials. Of course you can build a factory if you are contemplating a bigger plant. You can also hire a warehouse type of accommodation.

PRODUCTION TECHNOLOGY

After you have selected and purchased good quality jumbo reels, received and stored them, the production of tissue paper/toilet rolls involves the following brief processes. First, the core paper is fed into the core-making machine from two different rolls and glue applied. The core pipe length is determined and cut. Jumbo reels are fed into the jumbo reel-making machine with the core pipe from the core-making machine. The jumbo reel sheets are wound or wrapped round the reel to be made. The jumbo reel sheets are wound or wrapped round the core pipe automatically by the reel to be made. This is now sent to the band-cutting machine where the toilet roll/ tissue paper is cut into desired market sizes.

The cut tissue/toilet rolls are then manually or mechanically wrapped, packaged in cellophane wraps and sent to the store ready for sale.

LABOUR REQUIREMENT

Not more than five production staff will be needed based on experience.

PROJECT FINANCIALS

The sum of N25, 500,000 will conveniently set up a tissue/toilet roll plant to produce 5 million toilet rolls per annum. The cost may be more or less depending on the capacity of the plant.

Generally and based on experience, establishing and running a tissue paper/toilet roll factory is a very lucrative venture if due diligence is given to good management practice. From an input of 250 metric tons of jumbo reels and after making allowances for expected wastages, and operating at 40% utilization capacity, gross profit of N21. 8 million will be made within first year of the business. Deducting annual operating cost of 14.7 million, profit before tax of 7.2 million would be recorded in the first year of operation. Deducting the annual taxation of 2.2million, net profit after tax of 4.96 million would be recorded. Further analysis of the investment revealed that percentage return on sales would 52.7% while percentage return on investment would be 137.0%. This is not considered bad at all given the prevailing economic climate.

Various funding options are open to the entrepreneurs. Of course the newly established SME small and medium Credit Scheme investment also

The writer will guide prospective investors in setting up this project from feasibility studies, site planning, procurement and installation of machines, development of marketing strategies and recruitment of experienced manpower to manage the project for profit.

Uba Godwin

Global Trust Consulting

56, Ishaga Road (1^st flour), Surulere, Lagos

Tel; 08023664368, 08034494437(What Sapp)

E-mail; ubagodwin@yahoo.com