Nigeria considers new tariff on imports to protect local producers

The Nigerian government is considering imposing a new tariff on imported bulk cement following an influx of volumes which are said to have caused a glut in the market. The current duty on imported bulk cement is 10 per cent, but no levy is imposed on the commodity.

Dr Olusegun Aganga, Minister of Trade and Investment, said during a meeting with select ministers on Nigerian business competitiveness organized by the Nigerian Economic Summit Group.

According to reports by local press, Dr Aganga expressed concern of illegal imports entering the country  stating that the trend had led to distortions in the market. He said that there was no basis for importing cement clinkers when Nigeria has a manufacturing capacity of about 28.6Mta. "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 clinker, because we have self-sufficiency in cement manufacturing,” ThisDay quoted him as saying.

The government has been limiting the cement importation to stimulate local production through a number of measures including a high import duty and the cessation of import licences. The Ibeto Group   maintained the only import licence after winning a court case allowing it to import 1.5Mta until 2017 through Port Harcourt. However, Dangote Cement cited imports by the Ibeto Group as the reason for the closure of its Gboko plant for eight weeks starting December 2012. The works resumed production in February 2013 following an increase in demand.