Cost of Setting up a Paper Production Factory in Nigeria 2021


Do you wish to find out the cost of setting up a paper production factory in Nigeria and the necessary equipment needed.

What is the cost of setting up a paper manufacturing factory and how much is needed to start a paper production factory in Nigeria in 2021?

If your question falls into any of the queries above, then this information is meant to explain everything to you in a detailed and understandable procedures.

At the end of this article, you should be able to know the cost of setting up a paper production factory in Nigeria, the necessary equipment needed, the profit in paper production business and many more.

Profit in Paper Production Business in Nigeria

Starting paper business in Nigeria is a good choice because Paper production is very profitable in Nigeria.


Paper is one of the most purchased commodities in Nigeria. The rate at which people buy papers in Nigeria is very high.

Papers can be manufactured in different forms. Some of the most popular forms of papers in Nigeria are:

  • Exercise books
  • Magazines
  • Newspapers
  • Calendars
  • And other paper products

The profit one can make from a paper production business especially in Nigeria, has no bounds.

But we can estimate paper production profit base on some factors like production cost and sales price.

Other good factors that are vital in such estimation may include any or all of the following;

  • Size of production
  • Quality of Production
  • Popularity of brand
  • Affordability of sales price, etc.

Without wasting much time, let’s find out the basic registration that your paper factory must undergo so as to be legalized for operation.

Registering a Paper Factory in Nigeria

Before you launch your paper factory, you may have to register it with CAC (not compulsory) and you must receive an operational permit from the appropriate regulatory body.

After that, you may have to pay all the necessary dues and fees like sanitation/environmental fee and so on.


Note: this information is just a hint. It advisable to visit an existing paper factory to ask more questions on how to go about the registration.

Major Expenses in Setting up a Paper Factory

Considering and combining all the major expenses will help us to arrive at a suitable amount that will be good for starting a paper mill in Nigeria.

Below are some of the major expenses, materials and requirements needed for the Setting up of a paper production mill in Nigeria:

Setting Up the Paper Mill

This is the starting point. It will cost you some money to construct a standard paper manufacturing factory.

Approximately, you may spend as little as Five Hundred Thousand Naira (N500,000) and as much as One Million Naira (N1,000,000) to set up a standard paper mill building excluding land and machines.

But we advise you to start by renting a place to start with. You can construct a low standard shop or you can use part of your house to start with.

But in all, remember to minimize noise and air pollution by locating your mill a far from living residents.


Please make sure to also check;


Buying the Needed Equipment

Another major expenses will be on buying the necessary machines and equipment needed to carry out the production.

Machines and materials needed for paper production mill include:

Raw materials suitable for paper production include;

  • Wood fiber from sawmills
  • Recycled newspaper
  • Coniferous trees (e.g spruce and fir)
  • Deciduous trees (e.g poplar and elm)
  • Bamboo
  • Straw
  • Sugarcane
  • Cotton and linen rags

Other materials needed for paper manufacturing include;

  • Bleaches
  • Dyes,
  • Fillers (e.g titanium oxide, chalk, and clay)
  • Sizings (e.g rosin, starch and gum).

Employing Workers/Operators:

If you choose to employ workers to assist you in both production and supply, then that will result to extra expenses.

The amount you will spend on the payment of workers including operators and suppliers will depend on the amount you choose to pay them.

Marketing Your Products

To create awareness and make more profit, you will need to market your products.

The best way to advertise your products include advertisements, promo, giveaway, etc.

Steps to Setting up a Standard Paper mill
  • Construct a standard factory building
  • Segment your factory
  • Organized your production room

How Much Does it Cost to Start a Paper Factory in Nigeria?

Starting a small scale paper production mill will cost between Five Hundred Thousand Naira (N500,000) to Seven Hundred Thousand Naira (N700,000).

Setting up a large scale paper production company in Nigeria will cost between Eight Hundred Thousand Naira (N800,000) to Two Million Naira(N2,000,000) depending on your desire.

At this point, we believe you have known the cost of setting up a paper production factory in Nigeria, the necessary equipment needed, the profit in paper production business and many other information that are helpful.

If you are satisfied with the above information, go ahead and set up your paper mill today. Thanks and feel free to share your comment below.

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