The Federal Government is poised to replicate backward integration policy in the cement sub-sector across other sectors of manufacturing industry in the country.

Cement manufacturers have also ignited the country’s hope to become self-sufficient in cement production and to be a net exporter of the product by 2013.

The Minister of Commerce and Industry, Senator Jubril Martins-Kuye, while receiving Monitoring Committee Report on the Implementation of Backward Integration Policy in the Cement Sub Sector, stated that government will showcase this as successful industrial policy that will be replicated across other sectors of manufacturing sub-sector of the economy.

The Minister thanked the committee members for their diligent and professionalism by touring all the cement plants, looking into the expansion programme, inventory level and ascertain value of their investment to come up with the report.

The Minister assured that the report will be submitted to Mr. President Goodluck Jonathan, unedited based on the fact that cement sub-sector has become a success story as the policy on local manufacturing of cement that started in 2002 with supply capacity of 2 million metric  ton rose to 10.1 million metric tons in 2010.

The Chairman of the Committee, Alhaji Lateef Salami, noted that they inspected available records, previous inspection reports and evaluated the performance of investment in compliance with the policy.

In a related development, the Executive Secretary, Cement Manufacturers Association of Nigeria, Mr. James Salako, said “Since the introduction of the Backward Integration policy in 2002, local cement production has maintained a steady rise from its very low level of 2 million metric tons in 2002 to 10.1 million tons in 2010. This represents an increase of over 400 per cent in 8 years.

Total supply of cement into the Nigerian  market in 2010 was a record 15.8m metric tons. Out of this figure, supply from the local manufacturers (10.1mt) accounted for 64 percent  with imports accounting 5.7 million metic tons or 36 percent”

According to him, this year, an additional 6.5 million metric tons will be added to existing capacity of 10.1 million to make up 17 million tons of locally manufactured cement by the end of this year.

“This year we expect all the new facilities presently under construction to come on stream.  All things being equal, we expect to start 2012 with a total installed capacity of 28 million metric tons per annum.  We do not expect anything less than 60 per cent from most of the new plants in 2012. The ultimate is not just to become self-sufficient in cement production, but to become a net exporter of the product.” he said.

President/CEO, Dangote Cement PLC, Alhaji Aliko Dangote, corroborated that by July this year (2011), Dangote Cement alone, will be in a position to produce 20 million metric tonnes of cement yearly.  “With this, we will surpass local demand and export the excess to neighbouring West Africans countries, where demands for cement is very high,” he said.