Vice President Yemi Osinbajo, over the weekend, inaugurated BUA Group’s 1.5 million metric tonnes Kalabaina Cement Plant in Sokoto State. The plant is valued at $350 million.
Speaking at the inauguration of the new cement plant, which on full utilisation will provide at least 2,000 direct and 10,000 indirect job opportunities, Osinbajo called on BUA Group to collaborate with other major cement manufacturers toward achieving reduced cement price to drive infrastructure development in the country.
The VP noted that the inauguration of the plant was a milestone, not only for BUA Group, but for the cement industry and the nation’s economy.
According to him, Nigeria now produces over 40 million metric tonnes of cement, more than any other country in Africa. The siting of the Kalabaina cement factory by BUA, he said, was a demonstration that Nigeria had vast potential, which investors should explore.
“This achievement by BUA will consolidate Nigeria’s self-sufficiency in cement production, and boost our status as a NET exporter of cement. The significance of this feat cannot be over-emphasised as we explore opportunities to diversify the country’s earnings away from oil. The National Infrastructure Master Plan recommends that we need to spend $3 trillion to bridge the infrastructure gap as well as five per cent of the Gross Domestic Product annually,” the VP said.
In his speech, the Executive Chairman/Chief Executive Officer, BUA Group, AbdulSamad Rabiu, attributed the landmark achievement to deliberate policies put in place by the administration of President Muhammadu Buhari, to support the real
sector.
He noted that through some of the policies, the Central Bank of Nigeria provided adequate foreign exchange for the importation of machinery, which has been helpful in completing the project on schedule.
Highlighting some of the unique features of the plant, Rabiu noted that the plant could run on coal, heavy oils or a mixture of both, thereby putting less pressure on the factory’s operations, while improving energy efficiency.
“By also using coal to power our kiln, we expect to save over 70 per cent in terms of energy costs, compared to if we had to use over 15million litres of fuel oil per month or about 400 tonnes or 20 trucks of fuel oil per day,” he
said.
The BUA Chief added, “The second line of our $1billion Obu Cement Complex in Okpella, Edo State, which was commissioned in August 2017, will be completed by the end of this year, and by the time that plant is completed, BUA Cement’s total production volumes will be in excess of eight million tonnes, which will represent over 35 per cent of the entire volume produced in Nigeria.”
