By Etuka Sunday
The claim in some quarters that the recent standardization of cement quality by the regulatory authorities could trigger off a monopoly in the industry has been debunked by the Dangote Group.
The Standard Organization of Nigeria (SON) had recently came out with a new cement quality standard, prescribing the uses into which each type of cement grade could be put. In the standard review, the SON restricted the 32.5 R grade of cement to only plastering of building while 42.5 was recommended for general purpose.
However, opponents of the new standard had argued that the move was not in the best interest of the industry but an attempt to create a monopoly whereby a cartel would cash in on the standard to shove other manufacturers out of the market.
Meanwhile, speaking on the controversy during a Channels Television programme, Engineer Joe Makoju, Chairman of Cement Manufacturers of Nigeria (CMAN) and an Honorary adviser to Chairman of Dangote Cement Plc, Aliko Dangote said it was easy for people to accuse others of monopoly, when they fail to do their homework well. According to him, many people shy away from investment in manufacturing and prefer business that can bring in quick money, but when they see someone like Dangote who continues to invest without looking back, when it’s time for harvest, those of them who pulled out would be crying of monopoly.
Makoju who drew an inference from the situation in the petrochemical industry where several people collected license to build petroleum refinery but years after fail to put a block on their sites giving flimsy excuses as reasons for their inability to commence construction.
According to him, after many of years that the holders of the license failed to act, Dangote has gone ahead to source for funds from banks and had commenced initial physical activities to signal the commencement of construction.
“If after five years now, Alhaji Dangote begins refinery of petroleum products and move to the next level with government approval, those who fail to utilize their licenses would be crying of monopoly. Did anybody say they shouldn’t invest? All they want is business that will bring in money quickly, but here is a man who believes so much in Nigeria and understands that production is the only way out for Nigeria, then rather than praising him, people will be shouting monopoly.
18, 2000, the Company was producing the 42.5 grade of cement and not 32.5 as claimed by some people.
