Cement can be sold at N500 per 50kg – Producers Pension scam: Board directs NRC to sanction erring staff

The price of cement in Nigeria is 300 per cent higher than the price of the same product in countries like Egypt, China, Taiwan, India, Japan, Norway, Turkey, Indonesian, Pakistan, Iran, Iraq and others.

This observation was contained in a letter addressed to the Presidency and made available to newsmen in Lagos, by the President, Cement Producers Association of Nigeria (CPAN), who is also a member of Nigeria Chambers of Commerce, Industry, Mines and Association (NACCIMA), Mr. David Iweta.

According to him, 50kg bag cement in countries that have attained sufficiency in cement production, is being sold for the equivalent of Nigeria’s N500, while in Nigeria the product is selling for around N2, 000.

Iweta said the international best practice for cement manufacturing is for investors to earn Internal Rate of Return (IRR) in region of 25 per cent, revealing that Nigerian cement investors are earning over 150 per cent IRR.

He said: “By this token, all such local manufactures claiming large investment have since recovered their investments. It is regrettable that the price of the product is hovering within N1, 800 and N2, 000 per bag. We strongly recommend that Mr. President should revisit this strategy by allowing unexhausted licenses to be fully utilised and consider granting more licenses and abolish the introduced levy of 20 per cent with 15 per cent duty, but retain the five per cent duty and five per cent VAT on imported cement.”

“This will force the local cement manufacturers that are hiding under the high cost of imported cement which attracts 45 per cent extra cost comprising duty, levy, NPA, NIMASA , in addition to cost of freight in region of $50 per metric tonne. The total extra cost paid on imported cement is in the region of N900 per bag. Imported cement will sell for N1, 000 per 50kg bag if the Federal Government retains duty and VAT at five per cent on imported cement.

The local manufacturers are still at a better position to make N500 profit per bag owing to the fact that they make use of free local limestone and could sell cement for N500 per 50kg bag.” The Board of Directors of the Nigerian Railway Corporation (NRC) has directed the sanctioning of workers found to be involved in the case of the alleged N1 billion missing pension funds in the corporation.

This development was sequel to the adoption, in its entirety, of the report and recommendations of the corporation’s management on the over N1 billion missing pension funds.

A statement from the NRC at the weekend said: “The Board directed the NRC management to implement the report and recommendations immediately.”

It would be recalled that an administrative panel of enquiry was established by the NRC management to investigate the alleged N1 billion fraud in NRC pension accounts.

The statement also read in part: “Sequel to the report of the management on the Pension Fund and the adoption of some recommendation of the report by a Board Sub-Committee set up to review the report, an emergency Board meeting of the Corporation was convened on 17th April, 2014 at the Corporation’s Headquarters in Lagos by the Chairman of the Board, Alhaji Bamanga Tukur.”