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Dangote, Cement, Others Save Nigeria $2bn Capital Flight

Dangote, Cement, Others Save Nigeria $2bn Capital Flight
Cement companies in Nigeria save the country’s economy a whopping $2 billion in foreign exchange through local production of the product.

The cement sub-sector today represents over 90 per cent of Nigeria’s mining sector and employs about 30,000 people directly and over two million people indirectly.
This is even as respite seems to be on the way of home builders as cement price has dropped marginally by 3.8 per cent to N2,500 per 50-kilogramme bag from N2,700  in the last one and half years.

The marginal drop in the price of cement, was due to an increase in the aggregate commodity production capacity in Nigeria, which is currently in the tune of over 30 million metric tonnes.
The capacity output of Nigeria’s cement industry is set to hit 45 million tonnes per annum by 2018, 1,400 per cent up from about 3.0 million a decade ago.

This followed BUA’s Obu green field three million metric tonnes (mmt) plant inaugurated at Okpella, Edo State, recently and another one set to commence production in the first quarter of next year.
Besides, Dangote Cement, Africa’s leading cement producer, produces nearly 46 million metric tons capacity across Africa.
Obajana plant in Kogi State is the largest in Africa with 13.25Mta of capacity across four lines, followed by Ibese plant in Ogun State, which has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue State, which has 4Mta.
Also, Larfarge-Nigeria has12mmt installed capacity of cement production.

Chairman of BUA Group’s, Alhaji Abdulsamad Rabiu, told LEADERSHIP Weekend that the vision of the company is to provide Nigerians with the best quality cement, using the best technology and best hands at the most affordable price.
Rabiu explained that the feat delivered by the sector’s industrialists has not only made Nigeria self-sufficient in cement production, but also a net exporter of the commodity.
He said, “The cement sub-sector today represents over 90 per cent of Nigeria’s mining sector and employs some 30,000 people directly and over two million people indirectly. It also saves the Nigerian economy some $2 billion in foreign exchange”.

Meanwhile, respite seems to be on the way of home builders as cement price has dropped marginally by 3.8 per cent to N2,500 per 50-kilogramme bag from N2,700 price in the last one and half years.
Chief Executive Officer, ReoHabilis Nigeria Limited, Mr Kunle Awobodu, said the reduction in price was marginal when compared to N1, 700 selling price before February 2016.
A homebuilder who spoke with our correspondent in Lagos, Alhaji Ramond Sanusi, said the reduction in the price of cement is no news, pointing out that the product should not be more than N1, 500 since the nation’s cement production capacity has increased.
He said except a few items, all the raw materials for cement production are sourced locally, adding that gas supply to factories is now stable unlike before.

Citing the market forces of demand and supply, he stated that the price of cement is expected to crash further since the latter has now overwhelmed the former.
Also, Mrs. Oludayo Bamgbose noted that cement has been selling at N2, 550 in Onitsha and Enugu before now, saying it is no news that the price was slashed by 3.8 per cent.
 We recalls that cement price was increased from N1, 400 at the peak of the nation’s economic recession in 2016 to N1, 700; N2, and later to N2, 700.
Cement manufacturers cited factors such as volatile forex market, ban on importation of some materials by the federal government, high cost of energy and logistics as being responsible for the increase.

PMB Urges D-8 To Prioritize Incentives For Trade, Investments Among Member Countries
Meanwhile, President Muhammadu Buhari yesterday in Istanbul urged D-8 leaders to prioritize incentives and measures aimed at increasing trade and investments among member countries.
Speaking at the ninth summit of the D-8, Buhari noted that the private sector and business communities in the economic organization must be assisted with incentives to widen economic cooperation among member-states.
He said, ‘‘As the D-8, we need to intensify our activities with a view to enhancing various measures and incentives introduced to promote trade and assist the business communities from Member States to invest in our countries and widen our cooperation.

‘‘We need to work hard to establish integrated manufacturing structures and markets. I will like to reiterate the importance of increasing trade and investment among our Member States.”
A statement by presidential spokesman, Mallam Garba Shehu, noted that the president also used the occasion of his speech to reiterate Nigeria’s commitment to international trade and development, even as he affirmed the country’s readiness to host the meeting of D8 Ministers of Industry from November 14 – 17 in Abuja.
Highlighting the attractive business and investment opportunities in the country, the president stressed the need for prospective investors to take advantage of the federal government’s new policies on trade facilitation.

His words: ‘‘Nigeria is committed to, and is actively pursuing a policy of trade and investment facilitation for growth.  The gains from trade are reflected in greater competitiveness, improved productivity, job creation, consumer welfare and prosperity.
‘‘Economies that grow fastest and at more sustainable rates are those that actively promote trade and attract investment. We are committed to creating an enabling environment and making Nigeria an attractive place for business and investment’’.
President Buhari also urged D-8 member countries to support the efforts of the African Union (AU) to establish the first ever-single market for trade in goods and services on the continent.
He described the AU-backed Continental Free Trade Area for Africa as a “win-win for all, including member countries of the D-8”.

He continued: ‘‘I am pleased to inform you of positive market developments currently in Africa, that will support our efforts as Members of the D-8 to enlarge our markets, facilitate our trade and investments, and develop our economies.
‘In Africa, we are on the threshold of finalizing negotiations to establish the first ever Single Market for Trade in Goods and Services on our Continent, in the Continental Free Trade Area for Africa.  This will be a win-win for all, including member countries of the D-8.
‘‘As partners, I urge that we work together to support this effort of the African Union that will have a positive effect on global economic development and integration.”

Earlier, President Buhari congratulated the outgoing Chairman of D8, Pakistani government, and Dr. Seyed Ali Mohammad Mousavi, the outgoing Secretary-General, on their commitment and strong resolve to forge the organization ahead, even in the face of serious challenges.
He also congratulated Turkey on assuming the new leadership of the economic organization.
He assured D-8 leaders that Nigeria would continue to support the Secretariat in its assignments to achieve the visions and objectives of the organisation.

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