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Home Manufacturing

Nigeria’s packaging industry gets thumbs up from foreign tech companies

by Admin
March 28, 2018
in Manufacturing

Foreign technology companies at the ongoing 4th international trade exhibition in Lagos have expressed high confidence in the viability of the Nigerian packaging industry, with most of them positive that transfer of improved technology, knowledge and skills could help achieve the country’s long desired efficiency in its agricultural value chain.

About 140 international market leaders including 10 national participants with latest technologies from Austria, China, Belgium, France, Germany, Italy, Netherlands, South Africa raised hopes for the packaging industry.

Robert Petri, the Kingdom of Netherlands ambassador to Nigeria, noted that his country being the second largest exporter of agricultural products to Africa is determined to share packaging innovations with Nigeria to strengthen its local capacity.

Appreciating the interest of the international allies, Ahmed Alex Omah, executive director Institute of Packaging Nigeria raised the need for a renewal of the public perception of plastic packaging as environmentally degrading activity.

Plastics generated from packaging, he said, has driven creative waste management initiatives reflected in the increase in local recycling.

He noted that the plastics processing industry has generated jobs and scaled up entrepreneurial opportunities as plastic products are being recycled into new materials, raw materials, or energy.

“We can hardly imagine our everyday life without products made of plastics. They contribute greatly to more resource efficiency, whether in various industries, in domestic appliances or in medical equipment. This valuable material reduces the weight and sound of cars. It provides lightweight solutions, secures packaging, and insulates buildings, thus reducing energy consumption and greenhouse gas emissions,” he said.

He noted that plastics extend shelf life of food as well as reducing post-harvest loss in food.

“The $18 billion Quantum Petrochemical project in Lagos by the Dangote Group when completed in 2019 will have a nameplate capacity of 780,000 metric tonnes of PP and 500,000 metric tonnes of PE. The increase in investment is not surprising, given the surge in demand for plastics in Nigeria, particularly from packaging firms. We hope that these exhibitions will see valuable exchange between professionals across Nigeria, Africa and rest of the world,” he said.

Paul Marz, managing director Fairtrade said production facilities needs to increase to achieve a more diversified range of products just as Nigeria needs investment in the agric industry through the entire value chain of food and beverage processing and packaging.

“Nigeria is still heavily dependent on food imports. At the same time the country has the potential to become self-sufficient and to even become an export nation when it comes to agricultural production,” he said.

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Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

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