Leading Cement Producers in Nigeria in move to raise production by 24.5 million mt

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In Nigeria, major cement producers are strongly funding new projects in an effort to increase their installed production capacity by an additional 24.5 million metric tons per annum.

According to Vanguard, expansion projects by Dangote Cement, Lafarge Africa and BUA Group, will bring their total capacity from 31.25 million metric tons per annum to 53.75 million metric tons by the end of 2018.

Dangote Cement’s current production stands at 20.25 million metric tons. The company is at present constructing $1 billion cement factory in Okpella, Edo State, to expand its cement production by 12 million metric tons by the end 2018.

Lafarge also plans to increase its production capacity by 5 million metric tons to existing production capacity of 8.4 million metric tons. In this framework, the company has injected N80 billion in the expansion of the Ashaka Cement in Gombe to 2.5 million metric tons from 1 million metric tons. It is also expanding its WAPCO production capacity by 2.5mmt production.

BUA, on the other hand, plans to add 7.5 million metric tons to its current production capacity of 4 million metric tons. This will raise its total capacity to 11.5 million metric tons in 2018.

The company on Tuesday inaugurated the Obu green field three million metric tonnes per annum cement plant in Edo state.

Speaking at the inauguration yesterday, the Chairman and CEO of BUA, Abdulsamad Rabiu, said: “Right now, the Obu plant is one of the many cement projects we are doing in Nigeria. It is a modern plant with up-to-date facilities. At the end of the construction period, we will be producing additional three million metric tonnes of cement per annum.”

BUA also expects 1.5 million metric tons from its subsidiary, Cement Company of Northern Nigeria (CCNN) and 3 million metric tons per annum from Edo Cement. CCNN’s new line is expected to be completed before the end Q3 of 2017.

EcofinAgency