Cement prices in Nigeria predicted to fall

Reports from the Nigerian press this week mention that the chairman of the Cement Manufacturers Association of Nigeria (CEMAN), Joseph Makoju, has disclosed that cement production will reach 18 million t by 2011 from the current 11 million t. This means that cement production will exceed local demand. The boost in production is due to the Federal Government’s policy of encouraging local production while at the same time banning the issuance of licences for importation. Makoju described the policy as a bold step in the right direction as the Federal Government under the leadership of President Goodluck Jonathan was committed to the country’s industrialization and poverty alleviation. At present the gap between local cement production and demand is being filled by imports in the short term. With the huge investment in the cement industry across the country, the price of cement will soon drop.

Makoju confirmed that because of the high production of cement, many companies were already exploring the Economic Community of West African States (ECOWAS) countries and beyond for export opportunities. He said that the Ibese, Benue Cement and Obajana plants belonging to the Dangote Group will be able to produce 20 million tpa. In addition Nigeria Flour Mills, owners of Unicem, produces 4.5 million t, while BUA Cement is expected to produce 0.5 million tpa. The Bendal Cement plant, AVA company and other new plants are coming on stream. The advantage of expanding the cement industry is that it will help the country’s economy to grow and when cement supplies outstrip demand allow Nigeria to export cement, and thereby eliminate the N1.8 trillion currently being spent on imports.

Read the article online at: https://www.worldcement.com/africa-middle-east/20082010/cement_prices_in_nigeria_predicted_to_fall/