Stakeholders query CBN's policy on aluminium products, urge review

ELEVEN days after the Central Bank of Nigeria (CBN) reeled out a policy on aluminium products, stakeholders and manufacturers of the products are now questioning the process that evolved the apex bank's directive. CBN, had in circular to all authorised dealers, Destination Inspection Service providers, the Nigeria Customs Service (NCS) and the general public forthwith placed on ban on importing any aluminium product that is less 0.50m thickness into the country. The apex bank, which also tasked stakeholders to comply, warned to sanction any defaulter. The statement reads in part: "This is to inform all authorised dealers, Destination Inspection Service Providers, the Nigeria Customs Service and the General Public that with effect from November 16, 2009, the importation of aluminium roofing sheets of less than 0.50mm thickness and cold roll steel of less than 0.20mm thickness into Nigeria shall not be allowed. Accordingly, in order to ensure that Nigerian consumers get value for their money, only aluminium roofing sheets with Nigerian specification (NIS488.2004) of 0.5mm thickness and cold roll steel with thickness of 0.20mm are allowed. Therefore, request for establishment of Form 'M' for these which do not meet the specification stated above should not be entertained by authorised dealers." The statement, signed by the bank's acting director, Trade & Exchange Department, Mr. Batari Musa, however, gave room till Febraury 12, 2010, for transactions that had been initiated before the circular. "However, transactions that had been initiated before the issuance of this circular shall be fully consummated on or before February, 12, 2010." On sanctioning defaulters, "please ensure compliance, failing, which relevant authorities will apply sanctions, including seizure of the items." But at a briefing recently by Association of Primary Aluminium Producers (APAP) and Coil-Coaters and Roll-formers Operators of Nigeria, which, though applauded the steps by CBN to take interest in the sector, however, kicked against the specification, which the apex bank stipulated. Speaking for the groups, Chairman, Qualitec Aluminium Industries Ltd, Chief Oluyinka Kufile, kicked against the specification on aluminium by CBN, saying, although, both Standard Organisation of Nigeria (SON) and the stakeholders had agreed to 0.4mm specification, it was surprising that CBN perked its specification at 0.5mm. According to him, SON and the stakeholders are still at the moment review the standard. "We are very, very happy that CBN is showing interest in the industry and also it is up to protect the product, manufacturers and stakeholders. It should be noted that there are scrupulous importers who are bringing in lesser quality products. "However, going by the specification by CBN, stakeholders and SON are reviewing the standard and as at the last discussion, we settled for 0.4mm. We are saying that if CBN will make any policy on this, it should have first reached out to stakeholders." Kufile, who said that, the group would take every necessary step to address the situation, added that the policy would not favour the generality of Nigerians. He explained that perking the specification at 0.5mm, would lead to price increase that would be affordable to the high-income earners only. He said, "this policy will eliminate the middle class people from the usage of aluminium. It would also prevent cladding jobs in the building sector." Commercial Direcor, First Aluminium Nigeria Plc, Mr. Robin Neville said the directive would not only affect local producers and consumers, it would also affect job creation as some of the manufacturers may be forced to cut staff strength.