Prince David Iweta

The Cement Producers Association of Nigeria (CEPAN), has assured the federal government of its readiness to support the federal government’s infrastructure drive, reduce the price of cement and ensure its price stability, if the federal government will only revisit the backward integration policy of the late President Umar Yar Adua on cement.

The association gave this assurance in a letter written to the Honourable Minister of Industry, Trade and Investment, Doris Uzoka-Anite.

In the letter signed by its National Chairman, Prince David Iweta, and co-signed by the National Secretary, Reagan Ufomba, 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.

The situation, it stated, might worsen  as a result of the federal government’s approval of 1,000 housing units to be built across the seven northern states in the country, as part of its efforts at meeting the 28million housing deficits in Nigeria, and its resolve at building all roads across the country with cement concretes, since it would further put pressure on the demand for the  commodity, thereby resulting in scarcity and price hike.

CEPAN, therefore, argued that a revisit of the backward integration policy of late President Yar’Adua will enable the sector meet such anticipated demands for the product in Nigeria.

It also urged the minister to convey a meeting with stakeholders in the sector, with a view to examining  the  status of the Cement Technology Fund (CTF),  also established by the late President, to guarantee stable cement price, by encouraging new entrants into the industry, ensuring equitable spread of the product across the six zones of the federation; and  conducting research in cement at the Technology Institute in Kogi State.

Knowing the status of the Fund, which it stated, had grown to about N13.2 billion as at June 2016, under the management of the Bank of Industry (BOI), will enable members draw from it to complete their various  Backward Integration activities, as intended by the policy.

“There is no better time than now. This  government should revisit the Yar’Adua Cement Backward Integration policy so as to meet the anticipated demand for cement in Nigeria, while also conveying a meeting that will enable stakeholders the status of the Cement Technology Fund, created then.

“The vision was made manifest through the promulgation of the Cement Backward Integration Policy, the granting of Cement Import Permits and Limestone Exploration Licenses to selected companies.

“In his wisdom to ensure the success and completion of the laudable policy, the former President imposed a levy of 10% of cost and freight (C&F) on all cement imported into the country, and on existing local cement manufacturers.

“It is in the light of this and many more  that we hereby humbly appeal to the Honourable  Minister, to invite all relevant stakeholders to a meeting to discuss the status of this fund in the month of October 2023 to establish  the present  status of the fund with BOI, and allow our members draw from the fund for the  completion of our various Backward Integration  activities, as intended by the policy under reference,” it stated.