Nigeria’s federal government to regulate imports

Nigeria's cement industry is witnessing a stand off between local producers and importers, as both are threatening to harm each other with the introduction of a 35% levy by the federal government on bulk cement importation quotas. The 35% levy is comprised of a 20% import duty on bulk cement, and a further 15% surcharge on the cost, insurance and freight price to account for the N500/t that was in place before the policy. This 15% surcharge will be serve as a donation to the development of the Cement Technology Institute.

The Ministries of Finance, Commerce and Industry claim the this levy will boost local production and eventually enable producers to export to neighbouring African nations and further afield. However, the levy will also increase the cost of imported cement by N205 per bag, which could harm the import market and foreign competition, which was the overriding factor in the reduction of the price of cement over 2008 - 09, which saw the price drop from around N2200, to as low as N1550 per bag. 

Nigeria is currently experiencing a housing and infrastructure deficit and as it strives to fulfil these requirement, the nation is expected to overtake South Africa to become the largest economy in Africa over the coming years. This will result inevitably result in increased demand for cement and other resources, which will continue to outweigh the level of supply.

Read the article online at: https://www.worldcement.com/africa-middle-east/17092010/nigeria_federal_government_to_regulate_imports/