A former director-general, Raw Materials Research and Development Council (RMRDC), Dr Abdullahi Aliyu, has tasked the federal government to ban importation of raw materials that can be sourced locally in order to solve the economic situation in the country.
Aliyu made the call during his paper presentation at the 45th Kaduna International Trade Fair Seminar programme titled, “Sustainable Economic Recovery Through Deepening of Locally Content Value Chain,” organised by Kaduna Chamber of Commerce, Industry, Mines and Agriculture.
He said Nigeria’s industrial policy document needs to be reviewed and overhauled completely and urgently.
“Based on the performance of the manufacturing sector in the last 40 years, the industrial policies adopted in the document are not the right ones.
Government should urgently liaise with private sector operators to address the issues that are causing the decay in the manufacturing sector,” he said.
The former director-general who was represented by Dr Hajara Tanko said the policy adoption of trade liberalization by the government has made the importation of raw materials and finished products more attractive to businessmen.
“Many of the small and medium-scale industries in Nigeria find it difficult to compete, which has led to many of them closing down. The government needs to seriously look into the issues of trade liberalization with a view to protecting our local industries.
“There are about 5 to 6 major cement producing companies in Nigeria currently. Recently, the government was expecting the price of a bag of cement to go down, but the cement producers announced a price of about N10,000 per bag. That did not go well with the government. Sincerely, the problem is from the government. In 1995, RMRDC made a presentation to the federal government on cement production in Nigeria.
“The major raw materials required in cement production are limestone and gypsum. We recommended to the federal government that these raw materials, limestone and gypsum are available in Nigeria. The cement companies import gypsum. The government accepted RMRDC’s recommendation and then the importation of gypsum was banned. Unfortunately, gypsum is now imported. It is the high cost of imported gypsum that is causing the high cost of cement,” he added.
In his welcome address, the president KADCCMA, Ishaya Idi, urged government at all levels to improve the Nigeria business environment.
“The business environment in Nigeria has been very harsh with member-companies individually paying several taxes, levies and other levies to the coffers of both the state and federal government.
“The operating environment has been challenged by issues such as multiple and duplication of taxes and the unconventional drive for revenue generation, absence of meaningful road rehabilitation in industrial areas, revenue driven effluent treatment and disposal requirements,” he said.
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