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Author: Obi Enweze
Posted to the web: 9/6/2007 4:58:32 AM

Policy Institute Seeks FG's Action on Commodity Prices
09.03.2007, Thisday Publications
Amidst complaints from Nigerians and prospective foreign investors concerning the exorbitant prices of cement and other building materials in the country, the Nigerian Policy Institute. (NPI), a United States based non-governmental organization, has called on the Federal Government to review it's current Policies on Cement Industry to effectively address it's retrogressive effect on the economy and the Nigerian masses.
The U.S. based Institute representing all Nigerians for Good government Policies in a letter to the Presidency jointly signed by its Executive Director, Prince Jimmy Asiegbu, Dr. Obi Enweze,  Secretary General, Prof. Frances Onukwuli and Mr. Joseph  Iyang, Members of the Board of Directors, noted that the review of the current cement policies will effectively address the problem of high cost of housing and also tremendously help in moving our economy forward. 'Cement is the oxygen that drives the construction industry and the correlation between Industrialization and Construction; and their effects on the Local economy can never  be over-emphasized. Consequently, any policy affecting the production of cement, it's supply and prices has to be sound, progressive, implemented and constantly monitored. To reflect the Federal Government's much-publicized desire to ensure the growth of the economy, the current policy on importation and distribution of cement needs to be reviewed' NPI stated in a letter to the President' the group noted.
Scarcity of cement due to monopolistic practices, price gorging, up to 400 per cent above actual cost, insufficient number of manufactures/ Importers, dealers ( monopolistic  market), fraudulent importation practices, abuse of the import duty waivers by Dealers, inefficient distribution system, poor quality of cement, loss of revenues to the government, according to the letter are among the problems associated with the current policy.
According to the letter which was also copied to Dr. Shamsudeen Usman, Minister of Finance, and his counterpart, Mr. Aderemi Babalola both of  Federal Ministry of Finance, the group noted in its findings that estimated cost of importing a 50kg bag of Cement into Nigeria is estimated at N350.00 while the selling price to the Nigerian masses goes for N1500.00. This development, according to Prince Asiegbu, the Executive Director negates the present administration' s resolve to make housing affordable for all Nigerians no matter the income ladder as part of its quest to attain the Millennium Development Goals, (MDGs). 'Nigeria is the giant of African continent given the abundance of natural and human  resources. We appeal to the present administration to revisit the current prices of building materials in the market. That is one of the ways the country can move forward,' Asiegbu who has been preaching capacity building in socio-economic activities added.
Slowed housing and real estate development, costly or slowed execution Infrastructural and other cement-required projects, loss of interest by foreign investors and developers, inflation, loss of revenues to the country due to abuse of import duty waivers, loss of employment among others, according to the group are some of the real effects on the economy and the Nigerian masses, of the current policy.
For Nigeria to have affordable housing scheme as one of the requirements of the 21st century  economy, the Think-Thank group stated that after in depth analysis of the crises in the Cement industry, 'we are recommending that the President take the following actions to effectively address the current  retrogressive Cement policy. • Immediate Review and Liberalization of the current Cement Policies * Eradication of Monopolistic clauses * Open up the Market and make it competitive * Eliminate retrogressive and stringent requirements to attract new Investors * Grant Import Duty Waivers only to Foreigners who have big projects in Nigeria *. Compliance is recommended for this set of Investors. * Reduce the Import Duties on Cement and      Profit margins should be pegged at 10 percent or more but not to exceed 25 percent.
Nigeria Policy Institute, USA, is a recently established Think-Thank Group whose core objective is to assist Federal and State governments in the formulation of sound public policies and/or evaluation of government policies and proffering better and effective suggestions that will ensure good governance, progress and unity within our country, Nigeria and avoid costly and retrogressive trial and error  policies.
Business Day Sun, 02 Sep 2007 11:52:00
Cement price: Diaspora Nigerians seek FGâ's intervention
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Amidst complaints from Nigerians on the exorbitant prices of cement with other building materials and its repellant effect on foreign investment, the Nigerian Policy Institute (NPI) has called on the Federal Government to review its current policies on cement industry.
CHIDIEBERE NWANKWO
Sun, 02 Sep 2007 11:52:00
NPI, a United States- based non-governmental organisation, said this is to effectively address its retrogressive effect on the economy and the Nigerian masses.
The institute in a letter to the Presidency jointly signed by Jimmy Asiegbu, its executive director, Obi Enweze, secretary general, Frances Onukwuli and Joseph Iyang, members of the Board of Directors, noted that the review of the current cement policies will effectively address the problem of high cost of housing and also tremendously help in moving the Nigerian economy forward.
'Cement is the oxygen that drives the construction industry and the correlation between industrialisation and construction; and their effects on the local economy, can never be over-emphasised.
Consequently, any policy affecting the production of cement, its supply and prices has to be sound, progressive, implemented and constantly monitored', they said.
To reflect the Federal Governmentâ's much-publicized desire to ensure the growth of the economy, the current policy on importation and distribution of cement needs to be reviewed,' the group stated.
According to the letter, among the problems associated with the current policy are scarcity of cement due to monopolistic practices, price gorging of up to 400 per cent above actual cost, insufficient number of manufactures, fraudulent importation practices, abuse of the import duty waivers by dealers and inefficient distribution system.
The letter which was also copied to Shamsudeen Usman, Minister of Finance, and his counterpart, Aderemi Babalola, Minister of State for Finance, the group noted in its findings that the cost of importing a 50kg bag of cement into Nigeria is estimated at N350.00 while the selling price to the Nigerian masses goes for N1500.00.
This development, according to Asiegbu, negates the present administrationâ's resolve to make housing affordable for all Nigerians no matter the income ladder as part of its quest to attain the Millennium Development Goals, (MDGs).
' Nigeria is the giant of African continent given the abundance of natural and human resources. We appeal to the present administration to revisit the current prices of building materials in the market. That is one of the ways the country can move forward,' Asiegbu opined.
For Nigeria to have affordable housing scheme as one of the requirements of the 21st century economy, NPI recommended the immediate review of the current cement policies, eradication of monopolistic clauses, grant import duty waivers only to foreigners who have big projects in Nigeria and peg the profit margins at not more than 25 percent.