Infrastructure Gap in Nigeria to Provide Opportunity for Local Cement Manufacturers

The Infrastructure gap in Nigeria has recently led to an opportunity growth for local cement manufacturers hence leading to an expansion in capacity and operations.

According to the National Infrastructure Master Plan, Nigeria needs to spend a whopping US $3trillion and 5% of GDP annually to bridge the infrastructure gap.

However, in 2016, Dangote Cement commenced the construction of a US $1bn investment in cement plants in Nigeria with potential for 6,000 new jobs hence tapping this gap. Dangote’s current capacity is estimated at 29.4 million metric tonnes per annum (mtpa). But by the time the investment is complete; his production capacity will hit 41 million mtpa in Nigeria alone.

Currently, Dangote Cement already has a strong presence in many African countries.  While reviewing the company’s operations in the second quarter of 2018 on July 22, Joe Makoju, group chief executive officer of Dangote Cement, said Dangote has invested US $3bn in building manufacturing plants and import/grinding terminals across Africa.

Makoju stated that the investments were located in Cameroon (1.5 million mtpa clinker grinding), Congo (1.5 million mtpa), Ghana (1.5 million mtpa import), Ethiopia (2.5 million mtpa), Senegal (1.5 million mtpa), Sierra Leone (0.7 million mtpa import), South Africa (2.8 million mtpa), Tanzania (3.0 million mtpa), and Zambia (1.5 million mtpa).

Recently BUA Group commissioned 1.5 million mtpa Kalambaina cement plant in Sokoto State, which cost US $350m to build. The ultramodern cement plant has a 32 MW multi-fuel captive power plant and a coal mill, blessed with huge limestone deposits.

 

Source: Construction Review Online

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