Nigeria needs more cement plants to boost local production - BUA Group Chief

The Chairman of BUA Group, one of Nigeria's leading conglomerates, recently highlighted the urgent need for more cement plants in the country to enhance local production. In a recent interview with CNBC Africa, he emphasized the importance of increasing the capacity of cement production in Nigeria, the most populous country in Africa with nearly 200 million people. Despite the current production volume of 30 to 35 million tons per year, the Chairman noted that the per capita consumption of cement in Nigeria is relatively low at approximately 120 to 130 kilograms per person, compared to other African nations. To address this gap, he suggested that Nigeria should aim for a production capacity of over 40 to 50 million tons per year, equivalent to at least 200 kilograms per capita, to meet the growing demand for cement in the country. He highlighted the significance of the plant's location in facilitating efficient distribution and reducing transportation costs. Additionally, the proximity to the Nigerian and Indian markets presents an opportunity for exporting cement and earning foreign exchange, contributing to the country's economy. The Chairman praised BUA Group's investment in the northwestern region of Nigeria, where the company established the largest cement plant, creating 2,000 direct jobs and over 10,000 indirect jobs, thereby stimulating economic growth in the region. The project, valued at $350 million, stands as the most significant private sector-led investment in northwest Nigeria. The Chairman underscored the collaborative efforts required to execute such projects, citing partnerships with state governments, local communities, and stakeholders as crucial in bringing these initiatives to fruition. BUA Group's commitment to expanding its cement production capacity is evidenced by the ongoing construction of new plants, with the completion of a second line in Edo State and upcoming projects in Kalambina and Obu. By the end of this year, the group aims to achieve a combined production capacity of approximately eight million tons, a substantial increase that poses operational efficiency as the primary challenge. Despite the rapid expansion of cement production in Nigeria, maintaining the effective functioning of these plants remains a key focus for BUA Group and the broader industry.