Abdulsamad Rabiu, the executive chairman/CEO of BUA Group, has said that Nigeria saves over $2 billion annually from more than 25 million metric tonnes (MT) of cement produced by local manufacturers.
Rabiu said this recently in Abuja after attending the Presidential Industrial Advisory Council meeting alongside other manufacturers in Nigeria.
He attributed the foreign exchanged saved from cement importation to cement investments made by manufacturers, amongst which are BUA’s over $1billion Obu Cement complex and BUA’s $300 Million Sokoto Cement (CCNN) expansion.
He said the reduction in the price of Low Pour Fuel Oil (LPFO) and the appreciation of the local currency in the foreign exchange market have helped the cement sub-sector to grow tremendously.
Accompanied by Kabiru Rabiu, group executive director, the industrialist said that a new cement plant in Sokoto State and the second line of BUA’s Obu Cement would be commissioned in 2018 to increase the country’s total annual cement output.
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“The cement industry in Nigeria will continue to save Nigeria a lot of foreign exchange. If, for example, you look at what we have produced in Nigeria today, maybe 25 million to 30 million tonnes, and quantify that in terms of foreign exchange, it is almost $2 billion per year. That is a lot of money being saved because if we do not have these cement plants, definitely we have to import cement. And not only would we have had to spend money in terms of foreign exchange for import but the price of cement definitely would have been higher than what it is today,” he said.
“Foreign exchange has also come down. It is stable even though, as we all know, the cement industry does not really require a lot of foreign exchange. But the fall in the foreign exchange rate has really helped in terms of the things that we import into Nigeria like spare parts, some raw materials like gypsum,” Rabiu explained.
Odinaka Anudu
