FAE Limited, a prominent envelope manufacturing and customizing company, has raised concerns about the operational costs in the paper sector and has appealed to the Central Bank of Nigeria (CBN) and the federal government for a special forex rate.
The Managing Director/CEO of FAE LTD, Princess Funlayo Bakare Okeowo, made this plea during a press briefing to mark the company’s 50th anniversary and to announce World Envelopes Day.
Highlighting the challenges faced by paper manufacturers, the MD pointed out that commercial banks are offering interest rates of 28%, higher than the central bank’s current rate of 22.75%.
“We require special interest rates for manufacturers, aiming for a single-digit rate; 80% of our profit is consumed by diesel costs, making it difficult to generate profit,” she expressed.
She also lamented the increasing importation of raw materials in the paper sector, stating, “We have the raw materials to manufacture paper locally; importing paper is unnecessary. A ton of paper costs about $1,350; we should prioritize paper manufacturing as a significant revenue source.”
Looking ahead, she thanked employees, partners, customers, and communities for their support over the years, emphasizing the importance of collaborative relationships for future success.
The Chief Operating Officer of FAE LTD, Adeleke Adeleye, emphasized the potential of paper manufacturing to bolster the value of the naira.
As part of its commitment to sustainability, the indigenous paper manufacturing company will launch initiatives to reduce environmental impact, promote recycling, and explore eco-friendly materials in its manufacturing processes.
