Abuja — President Umaru Musa Yar'Adua has approved measures that will make Nigeria a cement exporting nation by 2013.

The measures, aimed at boosting local cement manufacturing and bringing down prices, formed kernel of the report of the Presidential Committee on the Review of Cement Industry in Nigeria headed by Finance Minister, Dr. Mansur Muhtar.

The Federal Government will soon constitute an inter-ministerial implementation committee that will ensure full implementation of the measures.

The government will also be restricting issuance of cement import licenses to only manufacturers and other players with track records of commitment to backward integration, including bulk cement importers with suitable bagging facilities.

Specifically, "cost reducing measures" rolled out by the government for manufacturers, approved for implementation are: "Concessional pricing and special allocation of low pour fuel oil (LPFO); de-linking the price of gas for cement production from the price of LPFO; granting duty free importation of LPFO during periods of acute domestic shortages of cement; classifying cement companies in the same manner as fertiliser companies with regard to gas pricing; examining the key drivers in cement production, together with cement manufacturers, with a view to articulating a sustainable price for cement in the domestic market."

Also following the recommendation of the committee, a special levy of N500 per tonne on all cement imports, has been approved by Yar'Adua, to assist in developing local capacity, in addition to re-instating tariff incentives for imported spare parts and machinery items; two to three years duty free period of importation for machinery, equipment and spare parts to cover the plant building phase for the first two years of commencement of production.

The Federal Government has also resolved to remove all forms of restrictions on the importation of gypsum, and the reduction to a maximum of five percent import duty on gypsum until its local production on a commercial basis is achieved. Besides the government said it will also intensify efforts to streamline ports procedures, and ensure the achievement of the 48-hour maximum period for clearance of cargo from the ports.

In its new efforts, the Federal Government has resolved to only grant licences to those that have shown proof that they fully utilised them within a specified period of time. Sanctions have however been prescribed for any abuse in the utilisation of the licences. Yar'Adua has approved 2013 as the deadline for backward integration in the cement industry with definitive and measurable milestones as well as strict monitoring mechanism established.

To this end, the Federal Government has fast-tracked the process, the duration of obtaining exploratory licences and minning from relevant government has been shortened to 18 months and six months respectively. Muhtar said : "It is our hope that cement manufacturers will reciprocate the good gesture of Mr. President by dedicating themselves to not just meeting domestic demand for cement but achieving the target of making Nigeria a cement exporting nation by 2013."

The finance minister gave assurances of current administration's commitment to the revitalisation of the Nigeria 's manufacturing sector, citing government's recent efforts to address infrastructure deficiencies, particularly boosting of power supply.