Nigerians For Good Government Policies Nigeria Policy Institute, USA
Nigerians For Good Government Policies Nigeria Policy Institute, USA
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FOR IMMEDIATE RELEASE
August 20, 2007 Ref. NPIUSA-CementPolicyLtr.doc
The President, Alhaji Musa Yar’Adua Federal Republic of Nigeria Aso Rock, Abuja, Nigeria REQUEST FOR THE REVIEW OF THE CURRENT POLICY ON CEMENT INDUSTRY Your Excellency :We hereby utilize this opportunity to congratulate you on your becoming the new president of our great nation Nigeria. Since your assumption of this office, we have keenly, enthusiastically and satisfactorily observed your determination to move our country forward through some of the steps you have taken so far to correct some anomalies regarded mundane in the old dispensation. We wish you continued success and offer to freely assist your administration in achieving your goals. Nigeria Policy Institute, USA represents all Nigerians for Good Government Policies. It is a recently established Think Thank Group whose core objective is to assist Federal and State governments in the formulation of sound public policies and/or evaluation of government policies and proffering better and effective suggestions that will ensure good governance, progress and unity within our country, Nigeria and avoid costly and retrogressive Trial and Error policies; (please see enclosures). Mr. President, amidst complaints from Nigerians and prospective foreign investors concerning the scarcity and exorbitant prices of Cements and other building materials in Nigeria, we have investigated their complaints, and have equally evaluated the current Government Policy as regards the Cement Industry. Thus we would like to intimate you with our findings to enable you review the current policies and effectively address their concerns. CEMENT CEMENT is the oxygen that drives the construction industry and the correlation between INDUSTRIALIZATION and CONSTRUCTION; and their effects on the LOCAL ECONOMY can never be over-emphasized. Consequently, any policy affecting the production of cement, it’s supply and prices has to be sound, progressive, implemented and constantly monitored. To reflect your much-publicized desire to ensure the growth of the economy, the current policy on importation and distribution of cement needs to be reviewed. Sir, find below a summary of our findings and recommendations:Problems in the Cement Industry (1) Scarcity of Cement (2) Price Gorging – 400 percent Price Markups While the verified cost of importing a 50kg bag of Cement into Nigeria is estimated at N350.00, the Selling Prices to the Nigerian Masses is N1500.00 (3)Insufficient number of Manufactures/Importers, Dealers (Monopolistic Market) (4) Fraudulent Importers Practices in manipulating production (5) Abuse of the Import duty Waivers (6) Inefficient distribution system (7) Poor Quality of Cement (8) Loss of Revenues to the Government The Effects on the Economy and the Nigerian Masses (1) Slowed infrastructural development (2) Slowed Housing and real Estate Development (3) Costly execution of projects that depends on Cement Usages (4) Loss of interest by Foreign Investors (5) Inflation (6) Loss of Revenues to the Country due to abuse of import Duty Waivers (7) Loss of Employment and associated effects on Nigerians Policy Review and Recommendations (1) Immediate Review and Liberalization of the current Cement Policies (2) Eradication of Monopolistic clauses (3) Open up the Market and make it competitive (4) Eliminate retrogressive and stringent requirements to attract new Investors (5) Grant Import Duty Waivers only to Foreigners who have big projects in Nigeria. Compliance is recommended for this set of Investors. (6) Reduce the Import Duties on Cement. (7) Profit should be pegged at 10% or more but not to exceed 25%.Mr. President, we feel very strongly that your review of the current cement policies and implementation of the above changes will effectively address this problem and will tremendously help in moving our economy forward as well as eliminate some social problems. Thank you for the audience. NPI-USA is here to assist.
The People’s Servant ,Prince Jimmy E Asiegbu Obi Enweze, J.D Joseph Iyang Prof Francis O Onukwuli Executive Director Secretary General Board of Director Board of Director Tel 310 497-5007 Email: jasmak@nigeriapolicyinstitute.org Copied: (1) Dr. Samsondeen Usman , Minister of Finance: (2) Mr. Aderemi Babalola, Minister of State for Finance (3) Ambassador, Consulate General
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