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Tag: Lafarge

  • Lafarge Africa launches new bid to take over Ashakacem’s minority shares

    Lafarge Africa launches new bid to take over Ashakacem’s minority shares

    Lafarge Africa Plc has secured the approval of the Securities and Exchange Commission (SEC) to proceed on a new tender offer to acquire the entire equity stakes held by minority shareholders in Ashaka Cement Plc. Minority shareholders hold 392.864 million ordinary shares in Ashaka Cement, representing 17.54 per cent of the entire issued share capital of the Gombe State-based cement company.

    The entire minority shareholdings were valued at N7.68 billion at Ashaka Cement’s closing price of N19.56 per share yesterday at the Nigerian Stock Exchange (NSE).

    A regulatory filing signed by company secretary, Ashaka Cement Plc, Zainab Umaru, filed at the NSE yesterday indicated that Lafarge Africa, which holds the majority equity stake in Ashaka Cement, had secured the approval of SEC to proceed with the tender offer.

    Already, the board of Lafarge Africa has notified the board of Ashaka Cement of its intention to proceed with the tender offer to all minority shareholders of the company.

    The tender offer, if successful, will make Ashaka Cement a wholly-owned subsidiary of Lafarge Africa Plc, and may lead to delisting of the cement company from the NSE. The board of Lafarge Africa was silent on the post tender-offer status of Ashaka Cement as well as the terms of this new tender offer.

    The latest tender offer is the second attempt by Lafarge to buy over the entire shares held by minority shareholders. It had earlier launched a mandatory tender offer (MTO) to acquire the 41.4 per cent equity stake held then in Ashaka Cement by minority shareholders immediately after the 2014 consolidation of Lafarge’s cement businesses in Nigeria and South Africa to form Lafarge Africa Plc. The MTO recorded partial success, reducing minority equity stakes in Ashaka Cement to 17.54 per cent, which Lafarge Africa now seeks to acquire.

    Following the consolidation of Lafarge’s businesses in Nigeria and South Africa into Lafarge Africa, Lafarge Africa had acquired 58.61 per cent majority equity stake in Ashaka Cement. The majority equity stake was previously held by Lafarge Nigeria (UK) Limited. The acquisition was done through a block trade at the NSE.

    The acquisition thus triggered the mandatory tender offer (MTO) provision of the Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC, which make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders.

    Under the terms of the MTO, Lafarge Africa offered 261.58 million ordinary shares and N1.85 billion as equity and cash consideration for the takeover of the 41.39 per cent equity stake held then by minority shareholders in Ashaka Cement.

    Lafarge Africa offered 57 ordinary shares of 50 kobo each in exchange for 202 ordinary shares of 50 kobo each of Ashakacem. In addition, Lafarge Africa paid N2 for every acquired Ashakacem’s share.

    Minority shareholders then held 927.009 million ordinary shares of 50 kobo each in Ashakacem, representing 41.39 per cent of the cement company’s total outstanding shares.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

  • Lafarge set to expand production with three plants

    Lafarge set to expand production with three plants

    • Firm unfolds 2016 business outlook

    With a plan to open three new plants, cement manufacturer and building solutions provider – Lafarge Africa Plc. – yesterday unfolded its business outlook for the year.

    Its Chief Executive Officer (CEO) Peter Hoddinott said the company remains bullish about Nigerian growth potential, assuring that the firm will continue to uphold its standard.

    He said: “We’ll continue to deliver good performance with significant upsides as new cement and power generation capacities come on stream and synergy benefits from the merger in Nigeria flow through.

    “Our business integration process has been successful and as a company, we are optimistic to deliver improving performances in 2016 and beyond, improving value to our shareholders.”

    According to him, the integration of LafargeHocim businesses in Nigeria will drive efficiency and ultimately generate synergy savings of N9 billion for the group by mid-2018. The cost of borrowing for the companies will also reduce by four per cent.

    In a statement on the outlook, the company predicted robust growth in the local cement market behind a strong Individual Home Building Segment.

    The statement reads: “The Federal Government of Nigeria has also shown strong indications to support Infrastructure growth in the coming year.

    “Lafarge Africa will be able to leverage its unique footprint in 2016 with Ashaka returning to growth, ReadyMix securing high volume contracts to support its eight existing and new plants to be inaugurated as well as the new 2.5 million tons cement line due to be inaugurated in Mfamosing in H2.

    “Overall, the Lafarge Africa group will continue to seek innovative ways of improving product offerings in the Nigerian cement, concrete and aggregate market in 2016.

    “In the South Africa market, Lafarge Africa will leverage the 2015 investments within the cement operations with a revamped sales team and route to market. In aggregates, the company will continue to benefit from its strong network delivering results with two new quarries, being opened in the Gauteng market and Ready-Mix growth.

    “New strategies in penetrating retail, new geographies and the technical segment are expected to allow Lafarge Africa volumes to grow above a flat market in all three product lines.

  • Lafarge gives out 570 bags of cement at promo

    Lafarge gives out 570 bags of cement at promo

    • Over trucks containing 600bags won

    Lafarge Africa Plc has rewarded its customers with various prizes with Mrs. Yeside Oduyebo clinching the star prize of 50 bags of cement at the final raffle draw of its Buy & Win’ promo in Lagos.

    During the draw held in Ikorodu, 34 customers went home with five bags of cement, 20 customers with 10 bags of cement, 10 with 15 bags, all totaled 570 bags.

    Its Marketing Director, Bruno Hounkpati said the promotion is part of an overall strategy to win with the customers and create value for them.

    “What we want to achieve is to increase our customers’ loyalty. A repeat business or behaviour can be bribed but customer loyalty has to be earned.  We believe our customers have been good to us in spite of the situation; we are in a competitive environment,” Hounkpati noted.

    He said the promo which started  December last year ends this month, adding that it is targeted at retailers and block-moulders. He said  it is with a view to stimulating end user demand and enhancing sell out from key distributors.

    Explaining the promo works, Hounkpati said: “For the first phase, consumers who purchase 100bags of cement received an instant umbrella gift while in the second phase for every purchase of twenty bags the retailer gets a coupon which qualifies him to participate in a raffle draw with the chance of winning several gift items.

    “The promo is focused on the key regions of Lagos Island, Lagos Mainland, West and Southwest has witnessed nine different raffle draws with 60 winners emerging from each location. So far, over 700 customers have been rewarded at the different raffle draw locations which include Badagry, Abeokuta, Ibadan, Ajah, Abule-Egba, Oregun, Sagamu and Ikorodu. For the raffle prize, customers were rewarded with cement ranging from five bags to a star prize of 50 bags and other point of sales materials like Shovels, Head-pans, Pouches, Jackets, Almanacs, and T-shirts.”

    According to Hounkpati over 12 trucks each containing 600bags of cement have been given out since the commencement of the promo.

    Meanwhile, the Managing Director, Ebony De Great Nigeria Ltd, Mrs. Modupe Oshibowale, one of the key distributors of Lafarge in Ikorodu has commended the  building materials company for honouring its promise to reward its loyal customers.

    Also, the trade Marketing & Brand Manager, Lafarge Africa Plc., Tina Sobola, congratulated the winners and explained that the response and participation is indicative of the positive acceptance of the promo by customers and appreciated the efforts of the company’s distributors and all those that made the promo successful.

  • Lafarge unveils affordable housing units

    Lafarge unveils affordable housing units

    Lafarge Holcim has unveiled a self-contained studio-flat at its Oregun, Ikeja, Lagos office in a move that may meet the desire of the majority, especially the low and middle income earners.

    The firm said the unveiling would serve as the bedrock upon which the firm’s planned delivery of a 500-unit of low cost housing in Gwagwalada, Abuja, is premised. The firm is executing the project with the Federal Government, which is contributing five hectares of land.

    The house types to be provided include two and three bedroom flats and studio types. Prices start from N1.5million for studio model, while others are between N4million and N6million.

    Its Head, Affordable Housing and Building, Mrs. Jumoke Adegunle, said the firm is taking affordable housing seriously. This, he said, informed its decision to come up with the studio model that are within the reach of singles and newly married couple, who are desirous to own their home, with little financial requirement.

    She said: “We are working on the possibility of delivering at least, 500 houses in Abuja in 2016. It is to be situated in Gwagwalada area of the Federal Capital Territory (FCT), in partnership with some developers.

    “As a long-term vision, Lafarge plans to come to the aid of individuals who would be home owners by assisting to help in building with this technology, which will not only be cost effective, but also saves time and offer quality.”

    The Project Contractor, who is also the Chief Executive Officer of Tye-Wall Construction Ltd., Mr. Tunde Isiolaotan, said the building was developed using modern technology known as “aluminum shuttering.”

    He said the use of this technology saves between 20 and 25 per cent of what it would cost to build in conventional ways.

    Isiolaotan described the house as ‘bulletproof’ as a result of prefabricated concrete blocks used in making the shell. Also, the electric cables, plumbing materials and other amenities are conduit except wash hand basins and toilet closets.

  • Lafarge unveils affordable housing units

    Lafarge Holcim has unveiled a self-contained studio-flat at its Oregun, Ikeja, Lagos office in a move that may meet the desire of the majority, especially the low and middle income earners.

    This unveiling will serve as the bedrock upon which the firm’s planned delivery of a 500 unit of low cost housing in Gwagwalada, Abuja, is premised. The housing project is in partnership with the Federal Government, with equity contribution of five hectare land for the development.

    The house types to be provided include two and three bedroom flats and studio types. Prices starts from N1.5million for studio model, while others are between N4million and N6million.

    Its  Head, Affordable Housing and Building,  Mrs. Jumoke Adegunle, said the firm is taking affordable housing seriously. This, he said informed its decision to come up with the studio model that are within the reach of singles and newly married couple, who are desirous to own their home, with little financial requirement.

    She said: “We are working on the possibility of delivering at least, 500 houses in Abuja in 2016. It is to be situated in Gwagwalada area of the Federal Capital Territory (FCT), in partnership with some developers.

    “As a long term vision, Lafarge plans to come to the aid of individuals who would be home owners by assisting to help in building with this technology, which will not only be cost effective, but also save time and offer quality.”

    The project contractor, who is also the chief executive officer of Tye-Wall Construction Ltd., Mr. Tunde Isiolaotan, said the building was developed using modern technology known as “aluminum shuttering.” He said the use of this technology saves between 20 and 25 per cent of what it would cost to build in conventional ways.

    Isiolaotan described the house as ‘bulletproof’ as a result of prefabricated concrete blocks used in making the shell. Also, the electric cables, plumbing materials and other amenities are conduit except wash hand basins and toilet closets.

  • Lafarge, NSE promote best practices in construction industry

    Lafarge, NSE promote best practices in construction industry

    In furtherance of its commitment towards enhancing global best practices in the application of its products, Lafarge Africa Plc has partnered the Nigerian Society of Engineers (NSE) to build the capacity of stakeholders on best practices in the application of the product for construction.

    Indeed, the Lafarge explained that while it has continued to explore innovative solutions through product development, efforts are being sustained to ensure that such solutions are not misapplied and abused.

    Speaking at a technical session and capacity building programme for engineers in Ibadan, Oyo State, Country Head, Infrastructure and Key Accounts, Lafarge Africa, Mike Fisher emphasised the need for Nigerian professionals to adopt best practices in the construction industry.

    According to him, adhering to specified requirements is key in the construction industry, adding that durability and return on investments should equally be assessed when considering infrastructural development.

    “We are not commodity traders but solutions providers as we continually engage stakeholders across the spectrum and at various stages of project development. One of the areas we are addressing is the environment where the products are being applied. Sulphates and chlorides attacks are being addressed using innovative solutions in our products,” he added.

    On his part, General Manager, Independent Power Projects, Lafarge Africa, Lanre Opakunle, explained that the company is exploring new solutions to meet the needs of the environment.

    “We consider engineers as a major stakeholder in the construction industry and that is why we are engaging them on how best to apply our products. The construction industry is evolving and various factors are being considered when erecting a structure. The social impact, energy conservation, concrete requirements, lifespan, exposure to environment are some of the major issues being considered today.

    “Our research and development centre is exploring new products to meet some environmental needs. We are also improving the emissions from the use of the product with a view to addressing health and safety issues. Adopting best practices is expected to aid long term cost saving measures and sustainability rather than going through short cuts,” he added.

    Technical Secretary, Nigerian Society of Engineers (NSE) Ibadan branch, Adekunle Olaoye noted that the capacity building initiative will further address the challenges in the construction industry.

    “Cement is an engineering material and its application needs to be addressed. Various issues need to be addressed through effective capacity building for stakeholders,” he added.

     

  • Lafarge emphasises on safer structures

    Lafarge emphasises on safer structures

    The General Manager, Independent Power Projects, Lafarge Holcin, Mr. Lanre Opakunle, has called for collaboration among stakeholders, professional bodies, especially the Nigerian Society of Engineers (NSE), Institute of Quantity Surveyors, and others to support the Build Safe, Live Safe campaign. He made this known at a media parley designed to educate and enlighten the public and professional builders on the need to engage professional structural and civil engineers in construction. The ‘Build Safe campaign’ was created to reduce the incidence of collapsed building which has remained a recurring decimal.

    According to the Director Ready Mix Operations, Lafarge Africa Plc, Mr. Fred Amobi, most of  the cases of building collapse  occur as a result of poor mixture of concrete. He said until people are ready to mix concrete in proper proportion, it might be difficult to curtail the menace. He said with the Lafarge Build Safe, Live Safe campaign, stakeholders are expected to come together to rub minds on how to stop unwholesome practices in the sector.

    Amobi, therefore, urged professionals to opt for ready mix concrete which is both affordable and durable in construction, rather than allowing building contractors to put them into trouble while trying to be economical with building materials. This method, he explained, can save millions of home owners from calamity, and also make construction works more profitable for building professionals.

    “Ready-mix concrete is concrete that is manufactured in a factory or batching plant, according to a set recipe, and then delivered to a work site, by truck mounted in–transit mixers. This results in a precise mixture, allowing specialty concrete mixtures to be developed and implemented on construction sites. Ready Mix concrete construction is the future of the construction industry,” he insisted.

    Amobi said Lafarge interacts with all actors in the construction chain and makes a net positive contribution to society through sustainable developments which is part of the company’s DNA.

    A property consultant with TELL Communications Ltd, Mr. Boye Ajayi, urged Nigerians to be weary of whom they consult for construction works. He also used the occasion to challenge Lafarge on the sustainability of the campaign by continuously sensitising the public.

    “As for Lafarge, I will urge them to sustain this campaign and platform. We should structure this forum and partner with various institutions and schools to deepen the Build Safe, Live Safe campaign,” he said.

    Amobi assured that Lafarge Africa will strive to create more value for customers and end-users by providing them with the highest quality products and solutions.

    Indeed, the rate of buildings collapse in Nigeria has become alarming, with its attendant loss of lives and destroying properties. Concerned by the number of lives and properties lost to collapsed buildings, many civil, structural engineers as well as other practitioners many property owners have been left homeless to the scourge.

  • Lafarge to boost operations with 310Mw IPP

    Lafarge Holcim, parent company  of  Lafarge Africa  has announced plan to provide additional 220 mega  watts (Mw) of its Independent Power project (IPP) to existing  90 Mw in Southwestern  Nigeria.

    According to the company, this plan will be completed by 2017.

    The General Manager, Independent Power Projects, Lafarge Africa, Mr Lanre Opakunle,  said  with 386.5 metric  tonnes  of installed capacity worldwide netted N6.422.2 trillion ($32.6 billion) last year from  global cement sale, the firm is eyeing a long term investment in  Nigeria, hence, its involvement in the construction of an  IPP in the Southwest and other parts of the country.

    According to Opakunle, Lafarge has already delivered 90Mw of the 50Mw which is already added to the national grid.

    He also said the company is increasing and expanding the capacity of its operations and power supply to its plants in various parts of the country.

    He said its newly constructed 220Mw power plant at Ewekoro, Ogun State, would commence operation soon.

    According to him, the 220Mw power plant at Ewekoro, Ogun State project worth $400 million (N78.8 billion) was executed in partnership with the International Finance Corporation (IFC) and Wartsila.

    He said IFC would provide financial and advisory services for the project through InfraVentures, its Global Infrastructure Project Development Fund, while Wartsila would build and manage the power plant.

    He expressed the hope that the project would enhance 1.4 million households’ access to electricity and help mitigate energy problems of many firms in the country, adding that power project remained one of the company’s contributions toward providing an enabling environment for new investments and the nation’s economic growth.

    He added that Lafarge has signed a Memorandum of Understanding (MoU) with Ogun State government on the collection and usage of waste, including agro-waste for the waste-to-energy independent power project with a view to generating electricity; creating job opportunities and reducing carbon dioxide in the atmosphere and effects of greenhouse gases.

    He however, affirmed Lafarge’s commitment to Ogun State socio-economic growth and development, saying the combustible and re-cyclable energy programme would improve the state economy and create job opportunities in addition to cleaning and reducing carbon dioxide in the atmosphere and effects of greenhouse.

    Apart from the Southwest, there are also plans to raise production capacity in the Northeast, Nigeria to four metric tonnes from 0.9, including a 64megawatts coal power plant by 2018 for Ashaka cement company.

    Opakunle also stated that Lafarge plans to also expand its Southeastern operation to five metric tonnes from its present 2.5 metric tonnes whose investment stands at N120 billion.

    For the UNICEM, he said the production capacity will be increased to 12 metric  by 2018 from 8.5 metric tonnes in 2014. This, accordingly, includes construction of N9 billion road, 45Mw gas plant

    He said Lafarge interacts with all actors in the construction chain and makes a net positive contribution to society and nature through sustainable developments which is part of the company’s DNA.

    He assured that Lafarge Africa will continuously strives to create more value for customers and end-users by providing them with the highest quality products and solutions.

  • Lafarge Africa’s profit dips amidst slow sales in Q3

    Lafarge Africa’s profit dips amidst slow sales in Q3

    Lafarge Africa Plc’s pre and post tax profits dropped in the third quarter as the cement company struggled with slow sales and rising costs.

    Key extracts of the nine-month earnings report of Lafarge Africa for the period ended September 30, 2015 showed that sales rose marginally by five per cent to N168.14 billion in third quarter 2015 as against N159.4 billion recorded in comparable period of 2014. Profit before tax declined by 12 per cent from N38.09 billion to N33.67 billion while profit after tax also dropped by six per cent from N31.47 billion to N29.52 billion.

    Lafarge Africa attributed the decline to the challenging operating environment in Nigeria.

    Chief executive officer, Lafarge Africa Plc, Mr. Peter Hoddinott said the earnings report was still a good performance in the face of the challenging business environment and competitive situation in the Nigerian cement company.

    “Our business expansion is remarkable and we are optimistic that our company will continue to deliver strong value to our shareholders,” Hoddinott said.

    According to the company, the Nigerian market is temporarily challenging, but it is expected to return to growth as the transition period is completed, leading to future growth in the infrastructural space in the short to medium term.

    “Lafarge Africa Plc will continue to leverage its strong brands, technological advantage and support from the global group. The expansion plans are on track, with the aggregate business ramping up, new ReadyMix plants being erected, the UNICEM second line set to come on stream in 2016 and the Ashaka expansion plans being finalized,” the company stated.

    According to the company, its South African market is foreseen to pick up over the medium term while operational performance and commercial offerings are improving, and the foundation is strengthening.

    The company added that Lafarge South Africa will remain a strong cash flow generator to Lafarge Africa, further improved by the strengthening of the Rand against the Naira.

    Lafarge Africa this month completed the acquisition of 30 per cent equity stake in United Cement Company of Nigeria (Unicem) Limited from Flour Mills of Nigeria Plc. Nigerian Cement Holdings BV (NCH), a 50 per cent affiliate of Large Africa, completed the acquisition of the second tranche of 15 per cent in Unicem, making the company a wholly-owned subsidiary of NCH. NCH had in March 2015 acquired the first tranche of 15 per cent stake in Unicem from Flour Mills of Nigeria.

    With this final acquisition, NCH now owns 100 per cent of Unicem and consequently Lafarge Africa now owns 50 per cent of the equity of Unicem. The completion of this transaction removes any representation or equity interest of Flour Mills on the board of Unicem, according to the initial terms of agreement.

    The management of Unicem will continue to be shared between Lafarge and Holcim, technically implying that the cement company is under the same global management with the merger of Lafarge and Holcim to form LafargeHolcim.

    Lafarge Africa plans to use Unicem to further deepen its geographical strength in the South-South axis. Unicem’s operational office is located in Calabar and its manufacturing plant is in Mfamosing, Cross Rivers State. It currently has a cement production capacity of 2.5 million metric tonnes per annum (Mtpa) and it is developing a second production line of 2.5Mtpa. The second production line is targeted to be commissioned in 2016 to bring Unicem’s total production capacity to 5.0Mtpa.

    The board of Lafarge Africa had rationalized the acquisition as part of the cement group’s continued investment in Nigeria to accelerate the growth and development of its business, with a focus on serving its customers and delivering value through provision of innovative products and services with a strong geographical spread.

    Lafarge had in July 2014 consolidated its cement businesses in Nigeria and South African to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc, which was subsequently rebranded as Lafarge Africa.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent; Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

    The new group managing director, Lafarge Africa, Mr. Peter Hoddinott, who resumed in July 2015, wears two caps as group managing director of Lafarge Africa and area manager for the LafargeHolcim business in the West African region. His main mandate included acceleration of the global cement group’s expansion plan in Nigeria and the West African region.

    Hoddinott’s appointment was said to be in furtherance of Lafarge’s long-term agenda for Nigeria as the focal point of its business within the region and the continent. The new group managing director is expected to deepen the existing businesses of the Lafarge Africa, introduce new businesses and drive the group’s capital investments.

    After it successfully combined its operations in South Africa and Nigeria to create Lafarge Africa, Lafarge had revealed plan to double its production capacity in Nigeria as part of a new expansion programme that would see additional investments by the foreign majority shareholders in its Nigerian subsidiaries.

    Lafarge, which had increased its capacity from 3.0 million metric tonnes to 8.0 million metric tonnes, said it would be making new investments in the next few years to double its capacity and strengthen its position as a leader in the Nigerian cement industry.

     

  • Lafarge eyes housing deficit reduction through microfinance academy

    Lafarge Africa Plc, a member of the LafargeHolcim Group, has launched the Lagos State Chapter of its Housing Microfinance Academy, which is to provide capacity building to Microfinance Banks to enhance accessibility of housing credits for the low to middle income segments of the society.

    The move, which is a corporate social responsibility of the group, is aimed at allowing low income earners own homes, reduce the 17 million housing deficits in the country and it is as a result of the success of the pilot scheme of the affordable housing initiative called ‘Lafarge Ile Irorun’ done in Sagamu last year.

    The Chief Executive Officer, Aggregates and Concrete, Lafarge Africa, Mr Loren Zanin said this over the weekend at the launch in Lagos, saying: “the ‘Lafarge Ile Irorun’ (meaning house of comfort), has gone a long way and expanded nationally, adding that it is the reason it is now called ‘Lafarge Easy Home.’ He said in just two years, it has enabled 2,000 families to build their homes, allowing a total of 10,000 Nigerians to become homeowners.

    Zanin said: “Nigeria has from the start been one of the key countries for our affordable housing initiative and what was done in Sagamu, the first housing microfinance programme ever in this country was through the partnership with LAPO Microfinance Bank and the support of the Agence Francaise de Developpment (AFD), that dedicated a five million Euros credit line to LAPO Microfinance for this.”

    On the reason for Lafarge’s involvement, Zanin said the challenge of providing access to housing for low-income earners has special importance within Lafarge Africa Plc, as it sees it not only as a challenge of the times, but also as an opportunity which is fully aligned and central to its strategic objectives.

    “This initiative was launched four years ago in the perimeter of Lafarge group and over the period, Lafarge has developed projects in 18 countries. This initiative is unique as it combines two objectives, which are finding new ways of doing business by serving the low income segment profitably, and making an impact on the housing for millions of people. This is now a business for Lafarge which impacted more than 300,000 people over the last two years, and generated €7,2m EBITDA last year”.

    The Ambassador of France to Nigeria, Mr Denys Gauer said AFD, which is an arm of the French development agency, a public institution in charge of administering aid. It was involved at the pilot scheme because of the importance of the initiative. He said the academy aims to enhance the development of microfinance housing in Nigeria to build houses for the poor which is a major challenge in Nigeria.

     

     

    Speaking at the event, the Country Manager, International Finance Corporation (IFC) in Nigeria, Eme Essien said IFC is in partnership because housing is a major challenge in Nigeria as statistics revealed that there is a housing deficit of about 16.17 million units to close up in the housing sector. He said the sector has to produce over 700,000 units of housing every year but the formal sector is only churning out about 1,000 units a year and the most prolific developers in Nigeria can only churn out about 400 units a year.

    Essen said when compared with developers in Latin America and East Asia that are able to build between 5,000 and 10,000 units a year, there is a real problem in Nigeria when it comes to trying to address the housing challenge.

    Another issue in the housing sector, she said, is that most developers tend to target only the high income segment, but in places such as Mexico, there are prolific developers that are able to churn out units for about $35,000.

    Lafarge Easy Home now has operations in Lagos, Ogun, Oyo, Osun, Ondo, Kwara, Edo and Cross River states, with, close to 200 families becoming clients of the scheme monthly.

    Head, Central Bank of Nigeria (CBN’s) National Housing Fund Programme (NHFP), Mr Adedeji Adesemoye said the CBN is in the scheme because it aligns with the agenda of the NHFP and will provide housing to members of the  lower strata of the economy.

    Asesemoye said CBN is the project implementing entity of the NHFP and it is supported by the World Bank in collaboration with the Federal Government, Federal Ministry of Finance, the Ministry of Lands and Housing and the state governments as states have the larger parts of the lands.