‘We have made Nigeria self-sufficient in cement production’

Aliko Dangote, president, Dangote Group, has vowed to increase investment drive in the country by creating new industries and expanding existing ones between now and year 2017. In this interview with RAZAQ AYINLA and some journalists, Dangote boasts that the largest cement plants in the world are controlled by indigenous company – Dangote Cement plc. Excerpts:

We can see hundreds of Dangote Cement distributors here on facility tour of Ibese plant, what does Dangote Cement wants to achieve with this?

We decided to bring the customers (distributors) here first to show them the second expansion of Ibese Cement Plant by doubling our capacity from 6 million metric tons per annum to 12 million metric tons per annum. Although, in the last six months, we have had challenges, mainly from gas supply and also the low fuel oil which has not allowed us to put up our main capacity. The demand for cement increased a little bit over that of last year. Already, we have anticipated that. So, we decided to double our capacity, we just want to assure them (customers) that we have enough capacity to meet the demand of Nigerians through our customers (distributors). Whether high season or low season, we will be able to meet up with the demand, inclusive of quality that we are talking about, which is 42.5R standard of cement.

We understand you have expanded Ibese plant, from 6 million metric tons to 12 million metric tons per annum; how much have you committed to this and what is the level of local content in terms of raw-materials?

The plant requires quite a lot of money; I think we must have spent in the two lines, N150 billion or thereabouts. All the 96 percent of raw-materials are here in Ibese, the only thing we import is gypsum. Apart from gypsum we don’t really import anything. Gypsum is 4 percent we are using; we produce everything out of local raw-materials.

With all these expansions: additional 6 million metric tons in Ibese, Ogun State; 3 million metric tons in Obajana, Kogi State, and others, do you think Nigeria will be self-sufficient in cement production in the long run?

We have already made Nigeria self-sufficient in cement production; we are making sure that we are meeting up with any other demand, whether it’s real or unreal, whatever the demand, we will meet up.

What about job creation?

The expansion will create a lot of jobs, directly and indirectly. We have to employ more people because the capacity has doubled; we have to double our number of staff or at least we take about 60 percent more. We have also increased power. Now, the power in Ibese alone is 210MW, which is quite a lot. Distributors will increase, other people who are interested in getting into cement business will also increase – we will open up to make sure that we empower where they can all become dealers. It is not difficult to do if someone is consistent.

In what area do you want government’s assistance?

Actually, in making sure that there is enough gas, because the only thing we are getting is gas, so that we can continue to generate our own power. If you look at it in the last six months, we have been using diesel to produce power because our generators are made in such a way that if there is no gas, you have to use diesel, and between diesel and low fuel oil, we are spending between N230 million and N250 million per day, so, that has really eaten up our own profit vis-a-vis last year. But, I think now we have stabilised a bit, we are using coal and by next year, we will fully be on coal so that we don’t go through this mess anymore.

What about the industrial pollution from the cement plants, through quarrying and mining, do you anticipate earthquake in the long run?

We have no pollution here; all our equipment are 100 percent dust-free. You can see that three lines are working; we are fixing the other one and they will soon finish it, you will not see dust anywhere here. As regards quarrying and mining, we are working towards international standards. We don’t use explosives here and by history, we have not recorded any earthquake in Nigeria. In fact, we use modern technology to explore and excavate limestone here. So, I think there shouldn’t be problem.

What is the total capacity of Dangote Cement plants now?

12 million metric tons is our capacity here in Ibese, starting from the end of this month. That is double, and very huge. There is no cement plant in the world that has 12 million metric tons capacity. Apart from Dangote Cement, Obajana in Kogi State, (Obajana Cement Plant in Kogi State will be increased from 10.25 million metric tons to 13.25 million metric tons), Ibese Cement Plant is the second largest in the world. Never forget another one in Gboko, Benue State, with 4 million metric tons capacity.

What about the number of employees?

In all Dangote Group, we have 26,000 employees. But, employees are going to increase. If you look at it, we are doing fertiliser, we are doing refinery, we are doing petro-chemicals. In agriculture alone in the next four years, we estimate that by 2017 we will generate about 180,000 jobs. So, it is a continuous process and we pray that we will continue to create more jobs and take a lot of people off the streets.