AFRICA: NIGERIA: FG must allow 30% cement import to check monoploy - Rabiu

The Chairman of Sokoto Cement, Alhaji Abdulsamad Rabiu has called on the Federal Government to allow 30 per cent of cement import to check monopoly, insisting that a situation where 150 million Nigerians rely on just two players was dangerous for the economy.

Rabiu, who was part of the just concluded two-day presidential retreat with the private sector on economic development and job creation, at the Banquet Hall of the Presidential Villa, described the two days spent with President Goodluck Jonathan as the best for the private sector so far.

He warned that the call for licences for cement importers not to be renewed was not good for the economy, as the two major players would not be able to meet the demands of Nigerians for the product.

“We had a retreat with most of the stakeholders here in Nigeria business wise and with Mr. President. Everybody was frank, open and most of the issues discussed were really issues that affect the business environment in this country and so we are really happy.

“ I am a cement manufacturer, I have got a cement plant, Sokoto cement in Sokoto State, I have got another one in Edo State, so I am a manufacturer but I know that the demand for cement in Nigeria is a lot more than we can produce. So there is need and government has always had that policy in issuing licences to bridge the gap between what we can produce and what the demand is in the country.

“Right now, we are in the situation where by the end of this year, licences will expire and there is a lot of clamouring that licences should not be renewed again for the importation of cement. The reason I am bringing this issue and we raised this with Mr. President at the retreat is simply because we see a situation where 80 to 90 per cent of cement production is being controlled by two companies in Nigeria, I believe that is risky, it’s dangerous and should not be allowed because the consumer comes first. Yes, it is good, it is commendable to some of the companies, putting up cement factories in Nigeria and yes they have put in a lot of money but look, we are talking about one or two companies as against 150 million Nigerians. 

“So that is why I actually raised the issue that we should carefully make sure that we do not fall into the hands of very few players in the market.