Import And Local Production Of Cement Importation

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Source: CMAN In spite of the local production, cement importation has been high over the years because of the out-dated manufacturing technology, high-interest rates and exchange rate fluctuations. These factors have contributed to the manufacturing overhead both in terms of the high cost of raw materials and other inputs in the manufacturing and distribution process. Also, the easy access and low cost of acquiring an import license in comparison with difficulty in import license acquisition for manufacturing equipment spare parts also discouraged local manufacturing (Mojekwu, Idowu, & Sode, 2013). See table below for the import and local manufacturing trend over time Table 3: Cement imports and local production 1986-2011 As seen from…show more content…
Other incentives under the BIP included a VAT and import duty waiver on cement production equipment (Elijah, 2014). The next section discusses Alpha’s background and its domestic expansion process 2.3 Alpha Background and Domestic Expansion Process 2.3.1 Early and Formative Years Alpha is a fully integrated cement manufacturing company with Headquarters in Nigeria and subsidiaries in 16 African countries and Nepal where production is proposed to start in 2018. The company’s business operations span all business sectors and the most expansive of it is cement manufacturing which is the focus of this study. The firm was established as a one man trading business in 1981 specialising in commodity trading with a focus on varieties of products ranging from consumable commodities such as rice, flour, sugar, fish and later cement. The internationalisation process of Alpha could be grouped into three distinct stages, the early and formative years 1981-1999, the rapid domestic expansion Years 2000 –2012 and the internationalisation period from 2012 – present. The years between 1981 and 1999 are regarded as the formative years of the business because it was the period in which the firm evolved and expanded as a large trading firm. It was also the period in which the firm diversified and ventured into bulk cement importation, a division that was incorporated in 1992. The entrepreneurial ability of the owner transformed Alpha to become the
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