By Favour Nnabugwu
Local production of cement will hit 17 million tonnes mark this year following the enforcement of Nigerian Local Content Act. The production of cement increased from two million tones in 2002 to 10.5 million in 2010 and is expected to rise to 17 million tonnes as the Federal government’s efforts to meet up with the local demand of cement is yielding positive result
Senotor Jubril Martins –Kuye, Minister of Commerce and Industry disclosed this in Abuja during the submission of report by the committee on the implementation of backward integration policy in the cement sub-sector. He said that with this development the expected additional target for the year 2011 was 6.5 million tonnes
The Minister said the “the cement sub-sector has become a success story because the backward integration policy which started in 2002 when the total local manufacturing output was two million tonnes has risen to 10.5 million tones”
“And in 2011 we are expecting additional 6.5 million tonnes to be delivered to augment total available supply as at December 2010 so roughly we are expecting 17 million tonnes which will be nearly approximate of this year total demand level so by all account it is a total success” he stated
Martin-Kuye believed that, if Nigeria can formulate a policy and stand by it and do all that could be done to make it sustainable then Nigeria can achieve its industrial target and goal”
He gave assurance that government will showcase this achievement of the successful cement industrial policy and try to replicate it across other sector of manufacturing sector of the economy.
The Chairman of the committee Lateef Salami in his remarks recalled that the committee was inaugurated in September 2010 to ascertain the level of compliance of all the investors in the cement industry to backward integration policy of government.
Other terms of reference include to verify the designed capacities of all cement manufacturing plants including ongoing cement projects, to examine and evaluate the impact of the current cement policy in all its ramifications, to suggest and recommend any measures that will accelerate attainment of self sufficiency in cement production in Nigeria in the short, medium and long terms, and to recommend measures that would guarantee stability and reduction in the market price of cement among others.
The chairman stated that the committee visited cement facilities in the country and noted that there has been an increase in establishment of new cement plants and expansion/modernisation of the existing ones since the pronouncement of the backward integration policy in the cement sub-sector
Salami who said the analysis of the findings and recommendation, in line with the terms of reference were elaborated in the report said it was discovered that there would be significant additional capacities from new plants that are expected to come on stream in significant additional capacities from new plants that are expected to come on stream in 2011
He said as a result of observed success in the sector the committee has recommended that the current policy be retained in order to achieve self-sufficiency in local production of cement by 2013