Completed cement backward integration now saving $2bn annually – Dangote
Leading cement merchants and manufacturers, Dangote Cement has disclosed that since the successful completion of backward integration in cement production by the former administration of Dr. Goodluck Jonathan, the country is now saving bout $2bn annually.
Currently, Nigerian is producing all the cement used in the country and importation had stopped about two year ago when manufacturers surpassed the average yearly demand of 23mmt to hit a total of about 39mmt.
The group also argued that the upsurge in cement production had helped increase the manufacturing sector’s contribution to Nigeria’s Gross Domestic Product from about four per cent some years ago to approximately nine per cent currently.
Group Executive Director, Dangote Group, Mr. Devakumar Edwin, said this in a presentation entitled: ‘The Nigerian Cement Sub-Sector: A Success Story in Solid Minerals Utilisation’, at the just concluded 46th Annual General Meeting, Conference and Exhibition of the Nigerian Society of Chemical Engineers in Abuja.
In his submission, he argued that the resurgence in the local manufacturing of cement had led to a massive boost to mining operations, adding that about 33 metric tonnes per annum of quarried materials were estimated to have been required to ensure cement production in 2015.
He also noted that local cement production had created thousands of direct and indirect jobs and had displaced foreign exchange demand for its importation, which would by now have grown to about $2bn annually.
“It has increased revenue to government in form of taxes, not just from the cement manufacturers, but also from other participants in the value chain. Cement scarcity is now a thing of the past as local production capacity outstrips demand.
“There is now prospects of forex earnings from cement exports to neighbouring countries. It is also a healthy addition to the stock exchange and distribution of wealth to the stockholders.”
