The Nation Newspaper

Tag: self-sufficiency

  • The road to fertiliser self-sufficiency

    The Central Bank of Nigeria (CBN) has barred foreign exchange (forex) allocation to fertiliser imports. The inclusion of this critical farming input on the list of 41 items not valid for forex may have reinforced the Federal Government’s commitment to delivering commercially-significant quantities of affordable and high-quality fertiliser to farmers. Assistant Editor CHIKODI OKEREOCHA reports.

    Before the inuaguration of the Presidential Fertiliser Initiative (PFI) in December 2016, the non-availability of fertiliser was, arguably, one of the obstacles to increased productivity in the agriculture sector.

    The scarcity of the critical farm input was a major disincentive to farmers’ efforts to contribute to economic diversification through small, medium and large-scale agriculture.

    But, the Federal Government, through the PFI, moved to change the narrative. It was part of its efforts to deliver commercially-significant quantities of affordable and high-quality fertiliser at the right time to farmers.

    The initiative, which involved a partnership with the Government of Morocco for the supply of phosphate to produce fertiliser locally, was an instant success.

    It resulted in the revitalisation of 14 blending fertiliser plants across the country, with a total installed capacity in excess of two million metric tonnes (MT). It also saved the government about $200 million in foreign exchange annually, and N60 billion annually in budgetary provisions for fertiliser subsidies.

    Other multiplier effects, according to the Minister of Information & Culture, Lai Mohammed, include the provision of about 60,000 direct jobs and several indirect jobs.

    The substitution of imported inputs of NPK with locally-sourced inputs also made it possible for farmers to purchase fertiliser at 30 per cent cheaper than previously available.

    However, in a renewed push to consolidate on the gains of the initiative and ultimately, achieve self-sufficiency in fertiliser production, the Federal Government, through the Central Bank of Nigeria (CBN), this week, barred official foreign exchange (forex) allocation to fertiliser imports.

    In other words, the apex bank has included fertiliser on the list of items not valid for forex. The CBN in a circular dated October 10, 2018 and signed by its Director, Trade & Exchange Department, Ahmed Umar, said the inclusion of fertiliser on the list of items not valid for forex took effect from Friday, December 7, 2018.

    The circular, however, noted that the “CBN will ensure that transactions (Form M) on fertiliser for which payments are outstanding, are settled at the appropriate settlement dates”.

    Recall that the CBN had on January 1, 2015 announced a forex policy that restricted the availability of forex to the importation of 41 items, which it said could be produced in Nigeria. Those who export products that fall under the 41 items were also barred from using their export proceeds to fund the importation of raw materials classified as not valid for forex.

    The apex bank had argued that the policy was necessary to promote locally-produced goods, build robust foreign reserves, and also create jobs.  “We need to aggressively begin the process of feeding ourselves by ourselves and producing much of what we need in this country.

    “The huge amounts of money the country spends on importing things we can produce locally have become a significant drag on our foreign exchange reserves…,” CBN Governor Godwin Emefiele, had said.

    But manufacturers and other members of the Organised Private Sector (OPS) kicked, describing the forex restriction variously as “obnoxious, superfluous, and ill-conceived”. Many of them argued that they were not consulted by the CBN and other regulators before the restrictions were placed on the items.

    They also pointed out that the vague nature in which the items in the import prohibition basket were described in the circular impeded the access of several local manufacturers to foreign exchange for procurement of their raw materials.

    They accused the CBN of emasculating manufacturers by failure to properly appraise domestic capacity for production of some of the excluded items, and therefore, called for a review.

    But the CBN has insisted that the policy was in the interest of the economy and Nigerians. It reiterated that the policy was necessary to re-awaken the consciousness of manufacturers on the need to look inwards and embrace the utilisation of local raw materials, conserve foreign exchange and create jobs.

    The apex bank, at some point, hinted of its plans to add more items to the import prohibition list. This was why the inclusion of fertiliser on the list of 41 items not valid for forex may not have come as a surprise to industry operators and stakeholders.

    For one, the strategic move may have reinforced government’s avowed commitment to achieving self-sufficiency in food production and consumption through unhindered access to adequate and affordable fertilisers to farmers.

    This holds true, considering the fact that before the PFI, the activities of fertiliser black marketers were hurting efforts at leveraging large-scale agric for job and wealth creation. They were the powerful middlemen in the sector, who allegedly ensured that critical farming inputs like fertiliser from the government never got to farmers.

    Apart from controlling the Federal Government’s fertiliser distribution system for several decades, the black marketers, whose activities clearly verged on economic sabotage, also denied farmers access to other subsidised inputs such as disease-resistant, high-yield rice seeds and palm oil seedlings.

    The inputs, which would have seen farmers’ output rising and contributing to food security, job and wealth creation, were brazenly sold in the open market or in neighbouring West African countries at exorbitant prices.

    Beyond the democratisation of access to fertiliser, which the PFI encouraged, the latest forex intervention by the CBN, according to experts, may have also brightened Nigeria’s chances of becoming a major player in the global fertiliser market.

    Recall that before the CBN barred official forex allocation to fertiliser imports, Nigeria had on the strength of the revitalisation of the fertiliser industry, set her eyes on claiming a substantial share of the global fertliser market, starting from the West African sub-region, where it plans to reclaim her position as food basket.

    Based on this, Chairman, Fertiliser Producers and Suppliers of Nigeria (FEPSAN), Mr. Thomas Etuh, predicted that Nigeria will begin to export fertiliser soon. He said Nigeria was already selling fertiliser to Benin Republic, Chad, Cameroon and Niger Republic.

    According to Etuh, the gradual, but steady revolution in the nation’s fertiliser blending industry will restore Nigeria’s position as the food basket of the West African sub-region, noting that it has helped farmers access critical agricultural input at affordable prices.

    He also said this has reduced farmers’ overheads, boosted yield and encouraged more players to invest in the agric value chain. He recalled, for instance, that before the PFI, Nigeria had 32 fertiliser blending plants most of which were moribund.

    Of the 33 plants, five were functional, but produced at 10 per cent capacity because of the emphasis on importation. With the forex restriction for fertiliser importation to encourage local production, it means that Nigeria is inching closer to becoming a dominant player in the regional and global fertiliser industry.

  • The road to fertiliser self-sufficiency

    The Central Bank of Nigeria (CBN) has barred foreign exchange (forex) allocation to fertiliser imports. The inclusion of this critical farming input on the list of 41 items not valid for forex may have reinforced the Federal Government’s commitment to delivering commercially-significant quantities of affordable and high-quality fertiliser to farmers. Assistant Editor CHIKODI OKEREOCHA reports.

    Before the inuaguration of the Presidential Fertiliser Initiative (PFI) in December 2016, the non-availability of fertiliser was, arguably, one of the obstacles to increased productivity in the agriculture sector.

    The scarcity of the critical farm input was a major disincentive to farmers’ efforts to contribute to economic diversification through small, medium and large-scale agriculture.

    But, the Federal Government, through the PFI, moved to change the narrative. It was part of its efforts to deliver commercially-significant quantities of affordable and high-quality fertiliser at the right time to farmers.

    The initiative, which involved a partnership with the Government of Morocco for the supply of phosphate to produce fertiliser locally, was an instant success.

    It resulted in the revitalisation of 14 blending fertiliser plants across the country, with a total installed capacity in excess of two million metric tonnes (MT). It also saved the government about $200 million in foreign exchange annually, and N60 billion annually in budgetary provisions for fertiliser subsidies.

    Other multiplier effects, according to the Minister of Information & Culture, Lai Mohammed, include the provision of about 60,000 direct jobs and several indirect jobs.

    The substitution of imported inputs of NPK with locally-sourced inputs also made it possible for farmers to purchase fertiliser at 30 per cent cheaper than previously available.

    However, in a renewed push to consolidate on the gains of the initiative and ultimately, achieve self-sufficiency in fertiliser production, the Federal Government, through the Central Bank of Nigeria (CBN), this week, barred official foreign exchange (forex) allocation to fertiliser imports.

    In other words, the apex bank has included fertiliser on the list of items not valid for forex. The CBN in a circular dated October 10, 2018 and signed by its Director, Trade & Exchange Department, Ahmed Umar, said the inclusion of fertiliser on the list of items not valid for forex took effect from Friday, December 7, 2018.

    The circular, however, noted that the “CBN will ensure that transactions (Form M) on fertiliser for which payments are outstanding, are settled at the appropriate settlement dates”.

    Recall that the CBN had on January 1, 2015 announced a forex policy that restricted the availability of forex to the importation of 41 items, which it said could be produced in Nigeria. Those who export products that fall under the 41 items were also barred from using their export proceeds to fund the importation of raw materials classified as not valid for forex.

    The apex bank had argued that the policy was necessary to promote locally-produced goods, build robust foreign reserves, and also create jobs.  “We need to aggressively begin the process of feeding ourselves by ourselves and producing much of what we need in this country.

    “The huge amounts of money the country spends on importing things we can produce locally have become a significant drag on our foreign exchange reserves…,” CBN Governor Godwin Emefiele, had said.

    But manufacturers and other members of the Organised Private Sector (OPS) kicked, describing the forex restriction variously as “obnoxious, superfluous, and ill-conceived”. Many of them argued that they were not consulted by the CBN and other regulators before the restrictions were placed on the items.

    They also pointed out that the vague nature in which the items in the import prohibition basket were described in the circular impeded the access of several local manufacturers to foreign exchange for procurement of their raw materials.

    They accused the CBN of emasculating manufacturers by failure to properly appraise domestic capacity for production of some of the excluded items, and therefore, called for a review.

    But the CBN has insisted that the policy was in the interest of the economy and Nigerians. It reiterated that the policy was necessary to re-awaken the consciousness of manufacturers on the need to look inwards and embrace the utilisation of local raw materials, conserve foreign exchange and create jobs.

    The apex bank, at some point, hinted of its plans to add more items to the import prohibition list. This was why the inclusion of fertiliser on the list of 41 items not valid for forex may not have come as a surprise to industry operators and stakeholders.

    For one, the strategic move may have reinforced government’s avowed commitment to achieving self-sufficiency in food production and consumption through unhindered access to adequate and affordable fertilisers to farmers.

    This holds true, considering the fact that before the PFI, the activities of fertiliser black marketers were hurting efforts at leveraging large-scale agric for job and wealth creation. They were the powerful middlemen in the sector, who allegedly ensured that critical farming inputs like fertiliser from the government never got to farmers.

    Apart from controlling the Federal Government’s fertiliser distribution system for several decades, the black marketers, whose activities clearly verged on economic sabotage, also denied farmers access to other subsidised inputs such as disease-resistant, high-yield rice seeds and palm oil seedlings.

    The inputs, which would have seen farmers’ output rising and contributing to food security, job and wealth creation, were brazenly sold in the open market or in neighbouring West African countries at exorbitant prices.

    Beyond the democratisation of access to fertiliser, which the PFI encouraged, the latest forex intervention by the CBN, according to experts, may have also brightened Nigeria’s chances of becoming a major player in the global fertiliser market.

    Recall that before the CBN barred official forex allocation to fertiliser imports, Nigeria had on the strength of the revitalisation of the fertiliser industry, set her eyes on claiming a substantial share of the global fertliser market, starting from the West African sub-region, where it plans to reclaim her position as food basket.

    Based on this, Chairman, Fertiliser Producers and Suppliers of Nigeria (FEPSAN), Mr. Thomas Etuh, predicted that Nigeria will begin to export fertiliser soon. He said Nigeria was already selling fertiliser to Benin Republic, Chad, Cameroon and Niger Republic.

    According to Etuh, the gradual, but steady revolution in the nation’s fertiliser blending industry will restore Nigeria’s position as the food basket of the West African sub-region, noting that it has helped farmers access critical agricultural input at affordable prices.

    He also said this has reduced farmers’ overheads, boosted yield and encouraged more players to invest in the agric value chain. He recalled, for instance, that before the PFI, Nigeria had 32 fertiliser blending plants most of which were moribund.

    Of the 33 plants, five were functional, but produced at 10 per cent capacity because of the emphasis on importation. With the forex restriction for fertiliser importation to encourage local production, it means that Nigeria is inching closer to becoming a dominant player in the regional and global fertiliser industry.

  • Dangote targets self-sufficiency in food production

    Dangote targets self-sufficiency in food production

    Africa’s richest man Aliko Dangote has promised to make Nigeria self-sufficient in food production.

    He spoke in Lagos at the Awards for 77 customers of Dangote Foods, comprising of Dangote Flour Mills, Dangote Sugar Refinery and NASCON Allied Industries.

    At the award night held at the Expo Centre of Eko Hotel Victoria Island Lagos, 11 winners emerged from each of the geopolitical regions while the others were picked from the national category.

    A total of 23 distributors won awards from Dangote Sugar Refinery, 27 from Dangote Flour Mills and 27 from NASCON Allied Industries.

    Dangote said: We are firm believers in the vast economic potential of Nigeria. This has informed our desire to invest massively in some states across the country.

  • NAPE: Why it’s hard to achieve fuel self-sufficiency

    Low private sector involvement in petroleum refining is the major challenge bedeveling the oil sector, the President of the Nigerian Association of Petroleum Explorationists (NAPE), Abiodun Adesanya, has said.

    The refineries are in Warri, Kaduna and Port Harcourt.

    Adesanya, who spoke at a forum in Lagos, said the country may not achieve self-sufficiency petroleum refining, until the Federal Government deepened private participation by reviewing the policy on the establishment of refining companies.

    He urged the government to ensure that crude oil gets to the refining plants promptly, reduce operation fees for investors, tariffs on importation of machinery, assist crude oil refiners to access funds for operation, and provide a conducive environment for the implementation of Environmental Impact Assessment (EIA), among other measures, that would aid the operation of private refineries in the country.

    He said when these happen, the country would witness more private investors in the refining sector.

    Adesanya said a review of the policy was inevitable, if the country is to achieve self-sufficiency in fuel supply. He said it was unfortunate that Nigeria, after over 50 years of discovering and producing crude oil for local consumption and export, was yet to get private investments that would greatly boost its refining capacity.

    Adesanya said: “The issue of policy and environment in which the sub-sector nay refineries operate are necessary if the country is to achieve self-sufficiency in fuel supply. The policy determines the direction, which investment in refineries must take to record growth. Therefore, the government needs to critically look into the policy and subsequently review it for growth. We need to look at the twin issue of policy and environment, with a view to attract more private investors.”

    He said other problems affecting the sub-sector include bureaucracy and politics, arguing that refineries cannot operate optimally, as long as the problems continue.

    “Bureaucracy and politics among those in the position of authority are preventing the refineries from achieving optimal capacity. As long as we have that sub-sector linked to the government, the country cannot achieve self-sufficiency in the area of refining crude oil and supplying fuel to the users,” he added.

    According to him, the sector will generate more money, create jobs and boost the Gross Domestic Product (GDP), once it is free from government’s control.

    Stakeholders, he said, organised the forum to discuss how and what should be done to make the sector more attractive, adding that they all agreed that the sector ought to open its doors wide for private participation.

    Adesanya said the Nigerian National Petroleum Corporation (NNPC) imports 90 per cent of fuel consumed in the country, because it is able to meet requirements that are relevant to importation.

    Also, Integrated Oil and Gas Limited Chairman Captain Emmanuel Iheancho said the destruction of pipeline and other critical infrastructure was responsible for importation.

    The government had given 2018, as deadline for the completion of Dangote Refineries and Petrochemical and the start of production of over 500,000 capacity.

    By this, the firm will be the first private outfit to begin processing crude oil into finished products such as Premium Motor Spirit (PMS), diesel and kerosene.

  • Cement self-sufficiency: BUA’s $1b investment to the rescue

    Cement self-sufficiency: BUA’s $1b investment to the rescue

    Nigeria’s road to self–sufficiency in cement has been long and tortuous. But her chances of achieving the target may have been brightened by the investment of $1 billion in Obu Cement Plant in Edo State by the BUA Group. Asst Editor OKWY IROEGBU-CHIKEZIE writes that the massive investment could change the economic landscape of the state and the country.

    With the investment of $1 billion in its cement plant in Okpella, Edo State, which, arguably, boasts Nigeria’s finest limestone depository, the BUA Group may have set the stage for the transformation of the state economy and, by extension, the economy.

    For one, the newly-inaugurated cement plant, which has the capacity to produce three million metric tonnes of cement yearly, is seen as a big boost and a massive intervention to address the domestic deficit in cement products for housing and construction.

    With the plant’s state-of-the-art setup seamlessly structured to facilitate the export drive, the investment is also seen as a significant boost for the nation’s cement self-sufficiency drive. BUA Group, according to its Chairman/Chief Executive Officer, Abdul Samad Rabiu, is building the second Obu cement line.

    Rabiu, who spoke at the launch of the facility, noted that the cement plant would reposition Nigeria from a cement importer to an exporter, increase production capacity from three million tonnes to 45 million tonnes by 2018.

    He said the cement sub-sector, which accounts for over 90 per cent of Nigeria’s mining sector, has the potential to shore up the $2 billion it injects into the country as foreign exchange (forex).

    Rabiu, however, said infrastructure, particularly stable power as well as policy consistency, was necessary to achieving a significant growth in the sub-sector. He said that the investment could double the sub-sector’s current 30,000 direct employment and over two million indirect jobs.

    “These kinds of investments in important sectors of the economy are not only necessary, they are critical.

    “In order to reverse our import dependency and diversify the economy, large corporations have to engage in game-changing investment in sectors such as agriculture, mining, and infrastructure, while government at all levels ensures an enabling environment for the investments to thrive,” Rabiu said.

    He said the vision of the company was to provide Nigerians with the best quality cement, using the best technology and best hands at the most affordable price. According to him, the choice of Okpella, in Estako East Local Government Area of the state, as the site for the plant, is strategic.

    “This community has the best limestone in the whole of the country,” Rabiu said, adding that the location is very good, being in the mid-west and it is very close to the cement market in the north, with excellent road networks in the south-west and to the east. “So, this place is at a strategic location to adequately distribute cement all over Nigeria,” he added.

    Rabiu also stated that the completion of the second line in the first quarter of 2018, being handled by SINOMA CBMI of China, is expected to take the company’s production capacity to six million metric tonnes per annum.

    He expressed confidence that SINOMA, with their track record and vast expertise in deploying cement plants across the world, would deliver a world-class second line for the Obu Cement Plant. “It will also meet our stringent environmental, safety, quality and technical requirements for our plants and products,” he said.

    The Obu Cement Plant utilises 9,000 tonnes of limestone and clay daily for its large-scale operations, while it produces 32.5, 42.5 and 52.5 grade cement. And the plant is engineered to be the most-environmentally- friendly cement plant in Africa with the most advanced dust emission control systems.

    “Our technology has the latest filtration with capacity of less than 10 milligram per normal cubic meter. We use natural gas, which is a very clean energy for both our kiln as well as the power plant, in addition to having a very green environment,” Rabiu said.

    At the inauguration of the plant and the ground-breaking of the second line, the Vice President, Prof. Yemi Osinbajo, pledged that the Federal Government would remove all human inhibitions to encourage investors.

    Commending BUA management for the achievement, he said the project, which is a wholly Nigerian enterprise, planned and executed by a Nigerian team, is a big boost to the economy, with the opportunities it will provide for skilled and unskilled youths of the state and the country at large.

    The Vice President noted that the plant’s output would guarantee self sufficiency of cement production for the nation, especially when BUA Group is using modern and efficient facilities with local materials. He said the company’s achievement had demonstrated that the Nigerian economic growth plan must be private sector driven.

    Osinbajo assured the private sector that the Federal Government would endeavour to make policies that would remove bottlenecks. “We will continue to create the enabling business environment and will directly assist the private sector to grow, which will in turn grow the Nigerian economy,” he said.

    According to him, the only feasible means to achieve a robust and far-reaching socio-economic development is to enable active involvement of private sector players and investors. Government resources, he said, cannot independently bridge the infrastructural and technological gap without the involvement of private sector resources.

    Osinbajo noted that advanced economies attained significance by the contributions of major entrepreneurs such as the Chairman of BUA Group. He emphasised that it was imperative to build a symbiotic relationship with committed serial entrepreneurs and investors to drive economic growth and development.

    His words: “Nation building is never judged by the number of new projects or fresh ideas that we begin; we are judged by what we complete and sustain. This country will only grow on the talent and resourcefulness of people like yourself who are ready to put their resources out and invest anywhere in the country, employ the local people in that community and add real value to the lives of Nigerians.”

    Edo State Governor Godwin Obaseki commended the management of the company for taking the bold steps in 2015 to initiate the process of establishing the plant. He expressed happiness that the management had made success of the company, including completely turning around the acquired moribund Edo cement factory.

    Obaseki said the vision and mission of the company were in line with the state government’s economic reform agenda, adding that “the State Government is ready to make Edo an industrial haven with friendly tax policies.

    He reassured the group of ensuring the operating environment was comfortable with the promotion of responsible and attractive tax regime. The state, he said, has reformed her land management process in a fashion that makes acquisition of land, security of approvals and building permit feasible without social harassments or uncontrolled communal land administration.

    Obaseki said: “We want to use this opportunity to invite other investors to emulate the BUA Group, come to Edo State and take advantage of the great potential in the state. Edo State is rich in limestone and other solid minerals, besides its status as an oil producing state. Government is resolute about economic diversification especially into areas where we have competitive and comparative advantage.”

    The governor also informed that his administration has created the enabling business environment for potential investors to invest in an industrial park, located in Ologbo, in Ikpoba Okha Local Government Area of Edo State, where the gas transmission line and proximity to power is expected to boost economic activities and create investments in the state.

    “We are currently designing an export processing zone with the initiative of investing in the Gelegele Port to boost production and agriculture, which is the major thrust of both the Federal and Edo State Governments’ economic diversification programme,” Obaseki added.

     

    How the BUA journey began

    The acquisition of a two million tonnes floating cement terminal labelled BUA Cement 1 in 2008 marked the company’s entry into the Nigerian integrated cement manufacturing. It was the first time the industry experienced a technology driven bulk-bagging of cement on a vessel.

    It acquired majority stake in the publicly listed Cement Company of Northern Nigeria PLC (CCNN), as well as in Edo Cement Company Limited in the same year before investing in the construction of a Greenfield three million tonnes plant in Obu.

    On the acquisition of CCNN, Rabiu said: “BUA’s investment in the cement line in Sokoto is the single largest private sector led investment in the North-Western part of Nigeria.

    “This is particularly important because Sokoto cement was the largest employer of labour in Sokoto State after the State Government, and the 60-year-old company founded by the Sardauna of Sokoto needed that investment to keep those jobs.”

    The effectiveness and efficiency of the plant in its first year of operation, which was over 90 per cent in an industry where efficiency averaged 60 per cent, led BUA to commence the construction of a second cement plant line of three million tonnes.

  • ‘Govt working for fuel self-sufficiency, export’

    Nigeria requires a mixture of bigger and modular refineries to achieve self-sufficiency in crude oil processing, to become an exporter of petroleum products in Africa, Deputy Director, Department of Petroleum Resources (DPR), Olumide Adeleke, has said.

    According to him, the four state-owned refineries – Port Harcourt 1 &2, Warri and Kaduna refineries are operating below installed capacities of 445,000 barrels per day (bpd), adding that it was a setback to the country’s goal of providing fuel for domestic market aside making fuel available for export.

    At an industry’s forum in Lagos, Adeleke said when Dangote Petrochemical and Refinery starts production in 2019, the country would be at an advantage to distribute enough fuel in the country, and  export the product to other countries.

    He said Dangote Refinery and other refineries are bigger platforms needed to refine crude oil, noting that the bigger a platform is, the higher the profit margin that accrues to the owner of the platform.

    The decision by the Federal Government to license operators that wish to invest in modular refineries few years ago, was part of efforts to encourage processing of crude oil in the country, he said.

    He, however, said the DPR, which issued the licences on behalf of the government, was not happy that the many of the operators are yet to begin processing of crude oil.

    Adeleke said: “While the government is making crude oil refining for domestic consumption by encouraging as many firms as possible to go into it, it is worthy of note that many of the firms that were licensed are yet to  show meaningful progress in that regard. To achieve self-sufficiency in the area of crude oil refining locally, private operators need to be up and doing by processing crude oil optimally.”

    According him, finance is a major setback to operators, who want to invest in refineries, adding that many operators are finding it difficult to get a minimum of $2billion required to operate a big refinery.

    This, Adeleke said, informed the decision of the government to arrange some finances for operators.

    On issue of co-location, Adeleke said col-location is good, when firms established for that purpose are situated where refineries are. He said co-location that is going on in Port Harcourt was as a result of the refinery in that region.  In Port Harcourt alone, co-location of about 100,000 barrels of crude oil is ongoing, a development, which is good for the country.

  • Cement production: Nigerian firm leads in push for Africa’s self-sufficiency

    Cement production: Nigerian firm leads in push for Africa’s self-sufficiency

    Africa is inching closer to self-sufficiency in cement production. A multinational, Dangote Cement Plc, is at the forefront of the ambitious drive, with plans to start production at its $300 million cement grinding plant in Congo. Assistant Editor OKWY IROEGBU-CHIKEZIE, who was part of a guided tour of facilities at the Congolese plant, reports.  

    With gradual closure in the demand and supply gap of cement in Africa, the construction industry is witnessing a dramatic turnaround. It is in the area of product manufacturing, importation, packaging and distribution.

    The turnaround is expected to throw the continent into the realm of self-sufficiency in cement.

    Besides, meeting the prevailing demand in the construction market, the revolution is saving the continent huge foreign exchange on importation, as well as boosting employment opportunities.

    In Congo Brazzaville for instance, an indigenous multinational, Dangote Cement Plc and Africa’s driver of self-sufficiency target in cement, plans to create more than 1,600 direct and indirect jobs. The company’s $300 million plant will soon begin cement production.

    According to Plant Director for Congo Operations, Mr. Ganapathy Balasubramanian, the multi-million dollar investment will significantly boost the economy of the Francophone nation and its neighbours after completion.

    The 1.5 million metric ton-capacity plant, located in Bouansa, Congo Brazzaville, is billed for completed soon. Balasubramanian also spoke of plans to boost to raise the plant’s production capacity by 1.5 million metric tons, bringing it to three million metric tons.

    Speaking during a guided tour of the ultra-modern plant, Balasubramanian said the factory, built on an 80-hectare land, will not only meet the nation’s cement demand, but cater for the export market in countries in Central Africa.

    The plant director, who put the project cost at CFA 133 billion (about $300 million), told reporters that factory will get it’s 20 megawatts power needs from Congo’s national grid.

    He also informed that the factory has a potential utilisation profile of 99 per cent when upon completion. The Congolese are the latest in the list of Africans to be excited by prospects of massive job opportunities and significant boost in Gross Domestic Product (GDP) following investment by Dangote Cement Plc.

    The Central African nation is the latest to join the clubof beneficiaries of the cement giant’s strategic investments across 16 African countries where it targets to achieve a total cement production capacity of 75 Million Metric Tonnes Per Annum (MMTPA) by 2019.

    Some of the strategic investments targeted at changing the narrative of Africa’s cement market from dependency on importation to self-sufficiency include: 1.5 million MTpa in Senegal, Zambia’s 1.5 million MTpa (Green-field projects), Tanzania’s 1.5 million MTpa, South Africa’s 2.2 millon MTpa, Ethiopia’s 1.5 million MTpa and Cameroun’s 1.5 million MTpa cement grinding plant.

    The company also has cement terminal operations in Ghana (3.0 million MTpa); Sierra Leone (0.5 million MTpa); Ivory Coast (1.0 million MTpa) and Liberia (0.5 million MTpa).

    It was learnt that many of the countries limestone deposits, the essential component for cement production in commercial quantity.

    The nationals are thrilled by the deposits because of their spin-offs, especially in the area of job creation.

    It was the same sentiment in Ethiopia where the inauguration of a 2.5 million MTpa cement plant in the East African country in 2015 was expected to create over 7, 000 jobs. There were also plans to double the plant’s capacity before the end of that year.

    At take-off, about 2,000 people were directly employed in the main plant operation and 5,000 others indirectly engaged.

    Speaking at the inauguration, President of Dangote Industries Limited (DIL), Alhaji Aliko Dangote,   charged African leaders to create a conducive environment for real sector growth, noting that doing so remained the best to create jobs and to reduce poverty.

    Dangote also stressed the need for genuine collaboration between the private sector and governments at all levels for the much-needed real sector growth, noting that there must be deliberate efforts to encourage Africans, not just foreigners alone, to invest in Africa.

    He said: “Take for example, my company, the Dangote Cement, is currently investing in 16 African countries, with plans to invest in many more over the next few years. We need to encourage this trend to see more investments in Africa by Africans.

    “Above all, there is the need to encourage the private sector to collaborate with governments across Africa, to address the issue of infrastructure deficit, which has plagued the continent for decades.”

    According to him, “manufacturing, and not trading, is the best way to grow an economy.”

    “This event, which we are witnessing today, attests to the fact that we took the right decision when we decided to transit from trading in our home country, Nigeria, into manufacturing, in 1996”, he said.

    Dangote, who is Africa’s richest man, noted that his investments in new cement plants and terminals across 16 African countries were in line with his company’s long-term vision to become one of the world’s biggest cement producers.

    “We envisage that by the time we complete all our ongoing African projects, we will be on track to achieving our target”, he said.

     

    Nigeria’s cement market leads

    No doubt, the Nigerian cement market where the multi-billion dollar investor started his investment drive across the continent remains the biggest and most impactful. The total production capacity of the company’s three plants is 20.25 MMTPA.

    The plants are: Obajana in Kogi State (10.25 MMTPA), Ibese in Ogun State (6.0 MMTPA) and Gboko in Benue (4.0MMTPA).

    The Obajana Cement Plant (OCP) is believed to be one of the single largest cement plants in the world with a combined 10.25MMTPA capacity. It added a fourth line of 3.0 MMTPA to two years ago. Apart from a 135 mw capacity power plant, the cement plant has a gas pipeline of approximately 90-kilometre length for natural gas supply.

    The company also recently inaugurated its factories in Okpella, Edo State and Itori, Ogun State. According to Dangote Group Executive Director, Strategy, Projects and Portfolio Management, Devakumar Edwin, the Okpella plant will have two cement lines, which will with capacity for three mmtpa each.

    On the other hand, the Itori plant, he said, will deliver approximately three mmtpa from two production lines. Both plants are expected to come on stream next year.

    He said the proposed plants would add 12 mmtpa to the company’s current local output of 31.25mmtpa, raising its total output to 41.25mmtpa.

    Explained that the company’s expansion drive, Edwin said it was targeted at reducing transportation and production costs, adding that it would on the long run bring down price and more employment opportunities for youths in the host communities.

    Other outlets of Dangote Cement are: Lagos Cement Terminal, Port Harcourt Cement Terminal, Onne cement terminal, Aliko Inland Cement Terminal and Continental Cement Terminal. The terminals have combined capacity of nine mtpa.

    On account of its local investments in Nigeria, Dangote Cement is said to control about 65 per cent of the market and over 30 per cent of the Nigerian Stock Exchange (NSE).

    According to Dangote, the group’s cement production has surpassed Nigeria’s average total consumption of 20 million metric tonnes.

    The Nation learnt that Dangote’s strategy for Africa is to achieve a total capacity of 75 MMTPA by 2019. Officials of the company, who spoke in Congo, said that this will make the company a global force to reckon with in cement production.

    They hinged their optimism on the fact that the company has unique footprints in cement production across Africa.

    Experts have traced the rising demand for the commodity in Africa to massive infrastructural developments in many countries.

  • Stakeholders call for drug security, self-sufficiency

    Operators in the health sector have gathered in Abuja to discuss how to access quality healthcare.

    They said access to quality healthcare is a major challenge in the country.

    The forum organised by the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMGMAN), was attended by lawmakers, who were represented by the chairmen of some key committees of the Senate, policymakers from Ministries, Departments and Agencies (MDAs), as well as other players in health policy, research, industry and manufacturing.

    The forum presented an opportunity for lawmakers and civil servants to exchange ideas with manufacturers to improve access to drugs.

    Senate Committee on Industry Chairman Senator Sam Egwu said the theme of the forum, “Medicines’ security and national self-sufficiency: maximising medicines’ production capacity in Nigeria” was apt.

    PMGMAN Chairman Mr Okey Akpa berated the lack of an appropriate policy to ensure national security on health.

    According to him, the country remains at risk of drug insecurity.

    He referred to lessons from the Ebola crisis which made it obligatory for the country to develop strategies to ensure it becomes self-sufficient in medicines.

    Besides, he said there was the need to develop a comprehensive and far-reaching medicines’ security policy which would ensure a robust engagement with medicine security issues.

    He said to intimate the legislature and various MDAs on barriers and limitations encountered in pharmaceutical manufacturing.

    He called on the legislature and other key stakeholders to facilitate enabling environments for maximising manufacturing capacity for medicines in Nigeria.

    The Senate Committee chairmen congratulated the PMG-MAN members for getting the World Health Organisation Good Manufacturing practice (GMP) certification, adding that their achievement placed Nigeria among the countries whose local drug industries manufacture at the highest international standards.

    This step, he said, had been identified as a major precursor for the attainment of self–sufficiency, reduction of medical tourism and commencement of substantial exportation of pharmaceutical products to other countries.

    The Chairman, Senate Committee on Primary Health praised the Group for holding the forte in contributing to the nation’s access to  quality medicines. This was despite the unfavourable local and international environment that had impacted businesses in the industry.

    On self-sufficiency, Senator Mao Ohuabunwa agreed  that the issue was vital.

    He said ignoring self-sufficiency as regards medicines will be perilous to the country, adding that the issue was beyond healthcare as it impinged on national security.

  • Buhari seeks self-sufficiency in goods’ production

    Buhari seeks self-sufficiency in goods’ production

    President Muhammadu Buhari said yesterday that his administration is committed to achieving rapid diversification of the nation’s economy in the shortest possible time.

    He spoke at a farewell audience with the outgoing Iranian Ambassador to Nigeria, Mr. Saeed Koozechi, at the State House, Abuja.

    Buhari said he was convinced that with greater diligence, hard work and patriotic determination to achieve self-sufficiency, Nigeria can produce most of the items on its import list.

    The President, in a statement by his Special Adviser on Media and Publicity, Femi Adesina, said: “We made a terrible mistake by becoming a mono-product economy hinged on oil and we are now in a volatile situation, due to the crash in oil prices.

    “We have seen the benefits of diversification which helped Iran to survive many years of sanctions and still come out strong.

    “We are now fully committed to economic diversification. Most of the things on our import bills can be produced here. And we are determined to achieve that self-dependency,” Buhari told the outgoing envoy.

    At a separate audience with the outgoing Chinese Ambassador, Mr. Gu Xiaojie, the President gave an assurance that the Federal Government would continue to do its best to meet its obligations under bilateral agreements with China for the development of critical infrastructure in Nigeria.

    He added that because of their importance to Nigeria, his administration would uphold contractual agreements with Chinese companies for the development of essential infrastructure, which it inherited from past administrations, and would work to ensure that the projects were speedily completed.

    The President reiterated his commitment to the completion of the Mambilla Power Project which, he said, was of great strategic importance to his government’s efforts to ensure that Nigeria does not become over-reliant on gas-powered electricity generation.

    Buhari hailed the outgoing ambassadors for their efforts to strengthen  bilateral relations between Nigeria and their countries during their tenure in Abuja.

    He wished them well in their future endeavours.

  • ‘CBN’s policy ‘ll promote local self-sufficiency’

    The Managing Director,  Okomu Oil Palm Plc, Dr. Graham Heifer, has said the policies of the Central Bank of Nigeria (CBN) on forex only affected businessmen asking for waivers especially on palm oil.

    He said granting waivers by previous administration has affected oil palm production in the country negatively.

    Heifer who spoke with reporters said granting waivers was unfair because some people have to pay duty while others got waiver to bring in things and it affected the industry negatively.

    The Okomu Oil chief said the CBN policy offered local producers of oil palm to produce more as well as an opportunity for others to invest in the business.

    He said his firm has purchased 12,000 hectares of land in Ovia North East Local government Area of Edo State with a view to expanding production to meet market demands.

    He said: “We produce palm oil here locally and we have the market already. The CBN’s directive is good for us. It does not stop people from importing because some can still pay the duty but if you want to import now, you cannot (raise foreign exchange) through the CBN. You have to go to parallel market.