Local manufacturer boss advises FG to increase tariff on pencil to 35%

Mr Muideen Ibrahim, Managing Director, BAMIB Resources and Investment Company Limited, has advised the Federal Government to increase the tariff on pencil to 35 per cent, by 2020, to enhance local production.

Ibrahim told our reporter in Abuja, on Thursday, that the government should also place a technical ban on importation of pencil as it was done for rice.

He said such move would discourage importation of the product and encourage more companies to go into production of pencil.

“It is estimated that the country will save about 2.14 billion dollars if the government can ban importation of pencil.’’

BAMIB Resources and Investment Company Limited, which started production on August 1, 2018 is first indigenous pencil manufacturing company in Lagos state and second in the country.

Ibrahim also government to come up with good policy for pencil manufacturers that would make the product cheaper.

“Pencil is affordable but more expensive than the imported ones because the cost of production is high and the environment is not also easy for us produce at cheaper rate.

“We use generator; we still import some of the raw materials for the production, so it is very difficult to compete with the imported ones in terms of price.

“A pack sells for N150 but they are still saying it is expensive and we cannot sell below the cost price.

“We import most of the raw materials, old newspapers are available in Nigeria, gum is available but other major components are not available in Nigeria.

“We are hoping that people will start to produce our raw materials now that we are out for production; when there will be no demand, there will not be production.

“There will be production of raw materials now that we are showcasing what we have, people can start investing in our components and raw materials,’’ the official said.

Ibrahim further called on the Federal Government to stop multiple taxation of the company and support innovative enterprises in the sector.

He also advised government to reduce administrative burden in production to ensure favourable, enabling environment for local companies and encourage export in the country.

Ibrahim said that if the government could help to remove some of the bottlenecks in the production, it would have a multiplier effect on expansion drive of the company.

According to him, the company has the expansion capacity of producing 450 million pencils per annual and capacity to employ 1,450 staff.

“It will have multiplier effect of backward integration for the production of graphite lead which is in abundance in Nigeria and production of sleeves and films.

“It will also enhance massive employment opportunities for the teeming unemployed.’’

“A technology that is Nigerian (Proudly Nigerian) is better suited for protection and needs of the country and the people.

“Therefore, supporting the company will attract Foreign Direct Investment (FDI) and strengthen other local manufacturers.

“It will enhance skills acquisition, create wholesome industrial development and encourage local content as well as superlative contributions to the Gross Domestic Products.’’