FeaturesLife & StyleCement Manufacturers Urge President Tinubu To End Cement Monopoly In Nigeria

Cement Manufacturers Urge President Tinubu To End Cement Monopoly In Nigeria

spot_img

By Akinwale Kasali

Access Bank Advert

The increase in the price of Cement has moved  Cement Producers Association of Nigeria, CEPAN, to urge President Bola Tinibu to end the monopoly in cement production and distribution in the country.

The Association also called for the inclusion of companies with verifiable local investments in cement within the participation scope.

UBA

The Association made the requests in a letter addressed to President Tinubu signed by its National Chairman,  David Iweta, and co-signed by the National Secretary, Reagan Ufomba. In the letter, the association argued that Nigeria continues to be the country with the highest price tag on cement due to the inability of the industry to meet the demands for the commodity.

READ ALSO:  Finally, Bobrisky Jets Out Of Nigeria Amid Ongoing Legal Tussle

The letter read, “Cement being the major requirement to bridge the infrastructure gap, housing deficit, revenue earner, amongst other construction activities in the country must meet demand at a reasonable pricing as in most parts of the world.”

CEPAN noted that the profit margin of over 300 per cent by the three major cement plant owners in the country depicts how Nigerians are being cheated.

It said bigger cement plants in other developed economies of Switzerland, China, Mexico, Taiwan, and India can only boast profit margins between 13 per cent – 17 per cent.

It urged the government to revisit the backward integration policy of the late President Umar Yar’Adua on cement, which would allow the sector to meet the anticipated demands for the product in Nigeria.

READ ALSO:  Kemi Badenoch And The Betrayal Of Heritage: The Painful Truth Behind Colonialism’s Legacy

It added, “The President, working with the Ministry of Industry, Trade and Investment and the Ministry of Finance must dismantle monopoly and expand the scope for participation by those with verifiable local investment in cement and other interests.

“As a practical demonstration of the exploitation of Nigerian cement consumers, the annual profit margin by the three major cement plant owners in Nigeria is over 300 per cent above bigger cement plants in other developed economies of Switzerland, China, Mexico, Taiwan and India with profit margin average of between 13 per cent – 17 per cent. The return on investment under international best practices Internal Rate of Return must not exceed 25 per cent.

READ ALSO:  PSC Promotes Four Officers At Police Academy Who Acquired  PhD Certificates

“This can only happen where a cabal dictates industrial policies and not a democratically elected government.”

Similarly, the Association demanded a probe into the utilisation of N13.2 billion in Cement Technology Funds.

It said the fund, currently domiciled with the Bank of Industry, was initiated under Yar’Adua’s Government as part of an infrastructure drive to reduce the price of cement and ensure its price stability nationwide.


Discover more from The Source

Subscribe to get the latest posts sent to your email.

Share your story or advertise with us: WhatsApp: +2348174884527, Email: [email protected]

Your Comment Here

More articles

Discover more from The Source

Subscribe now to keep reading and get access to the full archive.

Continue reading