Introduce liberal policies to encourage local investors in cement industry, Senate tells FG

By Musa Baba Adamu

The Senate has called on the gederal government to introduce liberal policies such as the provision of industrial and larger tax incentives to encourage local investments in cement production in Nigeria.
According to the Upper Chamber the move will attract local investors, boost the production of cement as well as reduce its price in the market.
The call was contained in a prayer adopted by the chamber after it considered a motion titled: “Need for Liberalization of Cement policy in Nigeria”, sponsored by Senator Ashiru Oyelola Yisa and co-sponsored by five other lawmakers.
They are: Senators Muhammad Enagi Bima (Niger South); Adelere Adeyemi Oriolowo (Osun West); Samuel Egwu (Ebonyi North); Kabiru Gaya (Kano South); and Michael Nnachi (Ebonyi South).
Presenting the motion, Senator Yisa noted that Cement was one of the few building materials in which Nigeria is self sufficient.
The lawmaker observed that, “as at 2018, the installed capacity of cement producers was about 47.8MMT which is far above the estimated (2018) consumption of about 20.7MMT. Yet, the prices of cement in Nigeria (N380) in about 240 percent higher than global average;
“Cognizant that Cement takes a large share of domestic expenditure, and the price of each commodity significantly impacts the government’s ability to provide much-needed infrastructural works required for the growth of our economy;
“Further cognizant that the recent increase in price of Cement ( from N2,600- N3,800) slowed down the amount of construction work being embarked upon thus negatively affecting labour engagement and almost collapsed the procurement plan of the governments in 2020 Appropriation Act;
“Mindful that the Nigerian cement market is oligopolistic in nature with three players (Dangote Cement (60.6 percent); Lafarge Africa Plc (21.8 percent); and BUA Group (17.6 percent) largely dominating the scene therefore making it susceptible to price fixing practices;
“Convinced that if the status quo persists, the negative consequences of high prices on the economy will outweigh the benefits of producing cement locally.”