Dangote invests $1bn in Okpella cement plant

Dangote Group, Africa’s biggest conglomerate, is investing $1 billion in a new Greenfield cement plant in Okpella, Edo State, according to Aliko Dangote, President/CEO, Dangote Group, at the official ground breaking ceremony yesterday in Okpella.

The new Greenfield, a 6 million metric ton per annum (6mmtpa) cement plant, is expected to come alive in 18 months and would provide 6000 direct jobs.

So far, this new plant is the most expensive among the cement plants built in recent time by the Group due to the terrain, the naira devaluation, and the size (6mmtpa).

“The two lines that would be built would be powered by 100 per cent coal. By this, Dangote Cement has moved from 29mmtpa to 38mmtpa cement production totally from all its Nigerian plants,” according to Dangote in a speech.

The new cement plants are expected to further increase the $3 billion the country has been saving from import substitution in cement yearly.

The new 6 million metric tons per annum capacity cement plant is coming on the heels of similar arrangement for another 6 million mtpa cement plant in Itori, in Ogun state where the company is currently running a 12million mtpa cement plants at Ibese, in Yewa division of the state. By this investment, Dangote’s production capacity will go up further to 41m mtpa, in Nigeria alone.

Impressed at the continuous investments in cement production despite having met local demands, the Federal government said the gains of the backward integration in the cement sector of the construction industry, as championed by the Dangote group is saving the nation huge billions of foreign exchange.

The Minister for Solid Mineral Development, Kayode Fayemi and his counterpart in Trade and investments, Okechukwu Enelamah, represented by Aisha Abubakar, minister of state for industry, said government is pleased with the exploits of the Dangote cement in ensuring that the nation freed itself from the shackles of endless importation and becoming net exporter.

This development, they stated, tallied with the change agenda of the present government that all hands must be on deck to substitute importation with local production and consume only products that are produced locally.

They stated that the volatility in the international oil market and the excessive dependent on importation have both combined to put pressure on the Naira, adding that the government is putting in place strategies to free the Naira from such pressure.

The Ministers commended the President of Dangote Group, Aliko Dangote for believing so much in the nation’s economy and has continued to invest even where others have contrary opinion.

They therefore called on other investors to take a cue from Dangote’s firm commitment and support to turn the nation’s economy around through active production.

In his remark, Aliko Dangote said he would never shy away from investing in Nigeria saying Nigeria still remains the best place to invest in the world.

According to him, “a key factor that drives investments in an economy is the presence of an investor-friendly business climate. Indeed, Edo State today, is one of the most attractive investment destinations in Nigeria.