New cement policy to accommodate pricing, export – FG

By Franklin Alli

The Federal Government is set to build on the success of the backward integration policy in the cement sector with plans to further review the policy to accommodate pricing, availability and export to international markets.

The Minister of Trade and Investment, Dr. Olusegun Aganga, made this known in a meeting with local producers of cement and importers in Abuja during the week.

“In 2002, the major priority of the country’s Backward Integration Policy was about cement production from limestone.

“For the first time ever, this ministry did not issue any import licence in 2012. This is a remarkable achievement and a major economic success for our country.

However, we want to carry out a deeper review of the cement sector to ensure that it is more competitive not just locally but internationally because we are at a point where we should be thinking about exporting some of our products,” he said.

*Cement

He said following the tremendous success recorded through the introduction and rigorous implementation of the Backward Integration Policy in the cement industry, we are planning to review the entire policy to consolidate on the gains so far recorded.

“We have achieved everything we set for ourselves 10 years ago when the Backward Integration Policy was introduced and we want to thank all stakeholders and investors in the sector for the success story recorded so far.

“ I am delighted to say that after 10 years of implementation of BIP, the good news is that we started with 2 million tons capacity but today we have about 28 million tons capacity of cement,  investment of about $6billion; which provides direct and indirect employment for about 2 million people.

“And because of what we have done together, we have been able to save the country foreign exchange of about N210 billion per year annually.”

“However, we want to take the next step as part of our strategy on the way forward. We are forming a group of people that will look at the cement policy in details and come up with the policy response that we need to have in place to take that next step that will make us a major exporter and user of cement in terms of consumption.”

“In 2002, the major priority of the country’s Backward Integration Policy was about cement production from limestone.

“For the first time ever, this ministry did not issue any import licence in 2012. This is a remarkable achievement and a major economic success for our country.

However, we want to carry out a deeper review of the cement sector to ensure that it is more competitive not just locally but internationally because we are at a point where we should be thinking about exporting some of our products.

”This means that we need to look at the overall structure including the current pricing, availability, affordability, in addition to developing an export strategy for the sector,” he said.

Mr. Isa Tata Yusuf, who spoke on behalf of the cement producers in the country, promised to surpass their current total production capacities.

“We are happy with the way the government has implemented the Backward Integration Policy in the cement sector, since inception of the policy ten years ago. We strongly believe in the industry and will work together to surpass the current growth,” said Group Representative, Dangote Industries Limited, Mr. Isa Tata Yusuf.

“We want to thank the Nigerian government for its consistency in keeping faith with the implementation of the Backward Integration Policy in the cement industry. Nigeria is a shining example globally in terms of success story in cement production. We see a long term future in Nigeria and we are ready to work with the government and all the stakeholders to grow the sector,” said Managing Director/Chief Executive Officer, Lafarge Cement WAPCO Nigeria Plc, Mr. Joseph Hudson.