Bel Papyrus Banks on Stable Power Supply to Boost Manufacturing Sector

Peter Uzoho

Bel Papyrus Limited, Nigeria’s biggest tissue manufacturing company, has said that stable electricity supply, in addition to the use of local raw materials were essential in boosting the country’s manufacturing sector.

The company also said manufacturers require government support to secure raw materials locally, following the high cost of importing them due to the devaluation of the local currency.

The General Manager of Bel Papyrus Limited, Charbel Kairouz, stated this during a chat with THISDAY.

Bel Papyrus is reputed as the largest tissue reel manufacturer in West Africa. It employs more than a thousand personnel to produce high quality and cost-effective products. It has three paper machines with an annual capacity of more than forty-five thousand metric tonnes (45,000 MT) of jumbo reels.

Like many other manufacturing firms in the country, Kairouz explained that the company grapples with challenges relating to sourcing foreign exchange for raw materials required for the manufacturing process, adding that power also presents a major challenge as the supply from the grid remains unstable.

“Local raw materials, with a stable power, will allow companies to save costs, time, and key supply chain challenges. In addition, if the government can look into making purchasing raw materials possible locally, it will go a long way to solving a key problem for all manufacturers in Nigeria,” Kairouz stated.

The company, which has been in operation for over 25 years, is considering embarking on backward integration as soon as economic conditions improve and the power supply becomes more stable.

Manufacturers in Nigeria, apart from struggling to secure foreign exchange for the importation of raw materials, are battling high energy costs, which represent almost 40 per cent of all their costs, according to the Manufacturers Association of Nigeria (MAN).

“We need stable power because a majority of our equipment is designed to run 24/7, and if stopped at any time, we will experience technical difficulties resulting in a longer recovery time and loss of resources”, Kairouz said.