Nigeria’s paint industry is projected to record five per cent growth rate from its present estimated $268 million (N96.50 billion) to $377 million (N135.80 billion) by 2025, a business expert has said.
Chris Kiwamu, Managing Consultant, Kirsten Turner Consulting, made the projection on Wednesday in Lagos during the 30th Annual General Meeting (AGM) of the Paint Manufacturers Association of Nigeria.
He spoke on the theme: “Strategic Roadmap for the growth of the Nigerian paint industry.”
Kiwamu, a consultant for Bank of Industry (BoI), projected that local paints consumption should grow from 391.75 million litres in 2020 to an all-time high of 1,002.63 million litres by 2025, under an ideal operating environment.
He noted that the drivers of growth of the paint industry was high demand for real estate properties and growing construction market and industrial production.
Others are increase in nationality population, rising per capital income and higher disposable income of paints consumers as the economy transitions from the last recession.
According to him, if the paint consumption in Nigeria can rise to 3kg per capita in the medium term perspective from its present one kilogram, it will positively impact fortunes of all market players.
“This certainly is not a very ambitious projection, as that is the level already attained by relatively poor South American countries like Bolivia and Paraguay.
“Interestingly, Venezuela, a fellow oil producing country as Nigeria, has a per capital paint consumption of 6.5kg.
“Therefore, we assert that a per capital consumption of 3kg is an attainable state to aim for by Nigerian paints industry in the medium-term perspective.”
He noted that the currently low per capital consumption of paints in Nigeria offers tremendous opportunities for paint practitioners in the country.
“As one drives through the streets of Lagos, Ibadan or any provincial city and looks at the many unpainted houses along the streets, the feeling that the future of the paints industry is fully assured is unmistakable,” he said.
He said that addressing challenges of the paint industry and collaborative efforts of manufacturers, consumers and regulatory agencies would assist the industry achieve its growth potential.
Kiwamu said that paint and coating industry was an important subset that was strategic to national development.