Nigeria targets 100 percent local cement production in 2013

Federal government of Nigeria has said it would achieve 100 percent local production of cement by the year 2013.

Minister of Commerce and Industry, Chief Achike Udenwa, who disclosed this recently in Abuja, when he received in audience the Country Manager, Lafarge Cement Nigeria, Mr. Jean Christopher Barbant who paid him a courtesy visit in his office said Nigeria can satisfy local demands of the product, thereby making importation of cement to be a thing of the past.

He pointed out that government has granted incentives to local producers of the product such as appropriate pricing of LFPO, banning of importation of bagged cement, lifting of ban on importation of gyms and reduction of duty to 5 percent to encourage local manufacturers.

"Federal government has been very much concerned about the development of cement industry in the country and as a result, it has granted several incentives to local manufacturers, which include the LFPO, lifting of ban on importation of gyms and reduction of its import duty to 5 percent, all these are aimed at encouraging investment in the cement sub sector". He noted that up till now, Nigeria was still the largest importer of cement in the world, saying the federal government was doing everything possible to reverse the situation.

The Minister recalled that the estimated consumption of cement products per annum was put at 19.5 million metric tones, pointing out that Nigerian manufacturers can only produce 9.5 million tones while the remaining balance of 10 million tones has to be sourced from outside. "The President is desirous that the situation be corrected. He has gone out of his way in providing the enabling environment and ensuring that the sector is well monitored".

Udenwa therefore urged the local manufacturers to reciprocate the federal government's gesture by ensuring that the price of cement was brought down within reasonable period of time. "I have had meetings with the manufacturers several times on behalf of federal government; the manufacturers should also try their best to bring down the price", he said. The Minister said the federal government acknowledged the high cost of transportation and power sector, but still believed that there was still room for reduction of prices of cement to a more manageable level for the economy to bear. He therefore urged the producers to cooperate with government in that direction.

Earlier, the Country Manager of Lafarge Cement, Nigeria , Mr. Jean Christopher Barbant said the company was confident in the Nigerian economy, adding that the recent government directive on the ban on importation of bagged cement would definitely be a big boost to local manufacturers of cement in the country.

Barbant therefore invited the Minister to inspect the progress of work at the new plant in Ogun state. Lafarge is one of the leading cement producers in the world. The company's investments in cement industry in Nigeria are very encouraging with the group controlling the major shares in WAPCO and Ashaka cement. The Lafarge Group also owns 28 percent in United Cement Company (UNICEM) in Calabar. In its drive at expanding its base in Nigeria, the Group has also embarked on engineering procurement and construction (EPC) of a new 2.2 million metric tones per annual (MTPA) plant tagged "LAKATABU" project adjacent to Ewekoro plant in Ogun state.

From China Cement (2009-11-18)