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CMAN welcomes backward integration policy

World Cement,

The Cement Manufacturers Association of Nigeria (CMAN) has welcomed the Federal Government’s decision to re-introduce its policy to support domestic cement producers, called the Cement Backward Integration policy.

Jide Mike, CMAN’s Director General, was pleased with the decision, which he said will boost production capacity in the country and thus bring down prices. MAN hopes that Nigeria will become a net exporter of cement. Indeed, by the end of next year it is expected that Lafarge Cement WAPCO will have commissioned its new plant at Lakatabu Ogun State; the Dangote Group will have commissioned the Ibese plant and doubled capacity at Obajana and Benue, contributing to an increase in production capacity to more than 20 million tpa and making Nigeria self-sufficient in this area. Joseph Makoju, CMAN Chairman, has said that already increased capacity is bringing prices down, and improvements in the power and infrastructure industries will push prices down further.

The backwards integration policy imposes a 15% levy on the cost, insurance and freight price of bulk cement. Cement import licenses issued from 2002 – 2008 have been cancelled, and an annual review of local production will be carried out to determine whether or not import licenses are necessary. Importers without operational land terminals will no longer be considered from import licenses from 2011.

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