Paper manufacturers seek special Forex rate

FAE Limited, a leading envelope manufacturing and customising company has bemoaned the cost of operation in the paper sector and appealed to the Central Bank of Nigeria (CBN) and the federal government for a special forex rate.

This was disclosed by the Managing Director/CEO of FAE LTD, Princess Funlayo Bakare Okeowo, at a press briefing to commemorate the company’s 50th anniversary and the announcement of World Envelopes Day.

According to the MD, the interest rate given to paper manufacturers by commercial banks is pegged at 28% as against the central bank’s current 22.75 rate.

“We need special interest rates to be given to manufacturers, we want a single-digit rate; 80% of our profit goes into diesel, how can we make profit?

She further lamented the growing importation of raw materials in the paper sector, saying, “We don’t need to import papers as we have the raw materials to make paper in this country. A ton of paper is about $1,350, we should make this our second oil.”

She added, “As we embark on the journey towards our next 50 years, we extend our heartfelt gratitude to our employees, partners, customers, and the communities we serve. Your support has been the driving force behind our success, and we look forward to many more years of collaborative and mutually beneficial relationships.”

The Chief Operating Officer of FAE LTD, Adeleke Adeleye, said paper manufacturing can strengthen the value of the naira.

The indigenous paper manufacturing company will however be launching initiatives aimed at reducing environmental footprint, promoting recycling, and exploring eco-friendly materials in its manufacturing processes.