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President Goodluck Jonathan Friday at the ground-breaking of the N100 billion expansion project for Ashaka Cement's new 2.5million metric-tonne capacity production line in Gombe State declared that the investment testifies to growing global confidence in the Nigerian economy.

It also emerged that businessman Aliko Dangote is building a 200-billion CFA francs ($421.35 million) cement factory in Niger Republic capable of producing 1 million tonnes per year.

Jonathan, who was represented by the Minister of Industry, Trade and Investment, Olusegun Aganga, said the new investment also confirmed Federal Government’s commitment to transforming the Nigerian economy, “leaving out no region.”

The project, expected to be completed within three years, will increase the company's current production capacity to about four million metric tones (previously about one million metric tones) while creating more jobs.

The President also disclosed that the Federal Government had commenced plans to bring down the price of cement.

He reiterated that the current administration would continue to provide a conducive environment for industry, trade and investments to thrive in line with his Transformation Agenda.

He said: “The cement industry is a perfect example of the transformation that can happen in an industry based on the focused implementation of a well-thought out policy and a continuous partnership that harnesses the expertise of the private sector and the capacity of the public sector.

“The commencement of the capacity expansion of AshakaCem Plc’s cement production project further buttresses the confidence that global investors have in the Nigerian economy, which is now the largest economy in Africa.

“As at 2002, the local cement industry had the capacity to barely produce two million metric tonnes per annum. By the year 2013, this had grown to 28.5 million metric tonnes and we expect the installed capacity to be about 39 million metric tonnes by the end of this year.

“Today, the Nigerian cement industry has attracted $8 billion in both local and foreign investments and supports approximately 1.6 million jobs. The industry also serves as the fulcrum of the housing and construction sectors. These sectors now contribute 11.13 per cent to Nigeria’s forecast Gross Domestic Product for 2013.”

Jonathan noted that Nigeria had become a net exporter of cement, saying that “this is something that we all should be proud of.”

“I therefore commend all the players in the industry for their focused implementation of the Backward Integration Policy. AshakaCem Plc has no doubt played its own part in the transformation of this industry and I commend them for that,” he stated.

He pointed out that the Federal Government had commenced a plan of action that would promote the consumption and export of cement, enhance skills development and innovation in the industry and bring down the price of cement.

He said: “Having achieved tremendous success in boosting cement production in the country, the government with the active collaboration of all stakeholders has recently concluded work on charting a new strategic direction that would further enhance efficiency in the industry.

“A report of these new ideas was recently submitted to the Federal Government for consideration. The new strategies, which are designed to take the industry to the next level, are expected to promote robust cement consumption in the country; adopt mechanisms to bring down the price of cement; promote the export of cement and enhance skills development and innovation in the industry.”

He stressed that his administration would continue to provide both the incentives and the conducive environment to make the cement industry globally competitive in line with the Nigeria Industrial Revolution Plan.

He said: “We must produce what we consume and consume what we produce as a nation. The development of the cement sector is a priority already identified under the NIRP. I wish to reaffirm the government’s commitment to sustaining specific incentives and concessions meant to promote the cement industry to become more globally competitive.

“I want to assure all the current and future investors in the cement industry that the government will continue to provide a level playing field in order to guarantee continuous growth and development of the sector.”

Niger Republic state radio announced Dangote’s investment in the country on Thursday.

According to Reuters, President Mahamadou Issoufou announced that work on the cement factory situated in Keita, around 600 km (375 miles) northeast of the capital, Niamey is expected to take 18 months. When finished, the factory will employ 3,000 people.

"This is an important event after the railway project started on April 7 last year. This cement factory will contribute a lot to the economic development of Niger," Issoufou said at the ground-breaking ceremony.

"Niger is for now a cement importer but when this project comes on stream, it will become a cement exporter," he added.

Dangote Cement, owned by Africa's richest man Dangote with a personal fortune of $25 billion, has cement plants spanning Africa, from Senegal to South Africa.

The company saw its 2013 profits increase by 40 percent to 190.76 billion naira ($1.16 billion), from 135.64 billion naira a year earlier.

Niger has just one cement factory currently. Built in 1964, it produces 540,000 tonnes a year and is a joint venture between the government and private partners.

Credit: Thisdaylive.com