FG to mulls tariff hike on imported bulk Cement

Worried over the influx of imported bulk cement (also known as cement clinkers), which is said to have caused a glut in the market and is threatening local cement manufacturing , the Federal Government may seriously be considering imposing a new tariff regime on the commodity.
The current duty on imported bulk cement is 10 per cent, while no levy is imposed on the commodity.
Minister of Trade and Investment, Dr. Olusegun Aganga, dropped hints of the impending tariff hike Monday at a breakfast dialogue with select ministers on Nigerian business competitiveness organised by the Nigerian Economic Summit Group (NESG).
Aganga was emphatic that he did not issue any import permit for bulk cement in 2012.

Expressing concern over the smuggling of bulk cement, which is imported in the form of clinkers, crushed and bagged, the Minister said that the trend had led to distortions in the market.
There was no basis, according to him, for importing cement clinkers, when Nigeria has a manufacturing capacity of about 28.6 million metric tonnes of the product.
“On the smuggling of cement, it is a very big commodity, it’s not that easy to smuggle, it is not like sugar.
“But what we have seen is a situation whereby some companies or individuals import clinkers. However, that should not happen, especially now that we have capacity of 28.6 million metric tonnes.
“The industry brought it to my attention and I wrote to Mr. President. And he has approved a very, very high duty for anybody bringing in clinkers, because we have self-sufficiency in cement manufacturing,” he said.

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