Africa’s largest cement producer and the world’s fourth largest cement manufacturer, Dangote Cement which has presently built cement plants in over 14 African countries stated that the company’s implementation of backward integration policy on cement production has saved Nigeria over $2 billion annually.
Dangote Cement which revealed earlier in the year that the company would expand its production capacity to the tune of 51.00 million metric tonnes per annum before the end of 2017 has enormously enchased the contribution of the manufacturing sector to the Nigeria’s Gross Domestic Product (GDP)from about four per cent some years ago to approximately nine percent currently.
Mr. Devakumar Edwin, Group Executive Director, Dangote Group, disclosed this in a presentation titled; ‘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.
He noted that the resurgence in the local manufacturing of cement had led to a massive boost to mining operations, saying that about 33 metric tonnes per annum of quarried materials were estimated to have been required to ensure cement production in 2015.
Edwin said 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.
He noted; “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 are 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.”