By Gena Lubem
Local production of cement in Nigeria is expected to hit 17 million tons this year according to the authorities in Cement Manufacturers Association of Nigeria (CMAN).
Addressing journalists after its quarterly meeting to review performances of cement companies in the country at the United Cement Company premises in Calabar, the Cross River State capital, yesterday, chairman of CMAN, Mr Joseph Makoju, said the production of cement has increased from 2 million tons in 2002 to 13 million last year.
He lauded the Federal Government for policies that have prevented the dumping of foreign cement in the country, thereby protecting local industries. Makoju said, “For the first time in Nigerian history there has been no cement import since the beginning of the year; because the local cement companies have been able to rise up to the challenge hence there has been no scarcity. “As at today, daily production of cement is even in excess of sales and they are in the process of formalizing the exportation cement to Economic Community of West African States (ECOWAS) and neighbouring countries.”
According to him, the conducive economic environment in Cross River will soon see the state become the cement hub in the country. Makoju stated that they were mindful of their corporate social responsibilities to their host communities and acknowledged the support which UNICEM has received from the Cross River State Government, commending the latter for providing a conducive environment for the former to operate.
The CMAN chairman said their focus is not just how to make enough cement for the people but also develop human capacity in the industry, adding “very soon Nigeria will soon be exporting cement to neigbhouring just as it is doing with crude oil.” The former Managing-Director of defunct NEPA said with heavy investment in cement manufacturing, with new plants coming up in the country there was need to invest in human capital development.
To this end, he said the cement manufacturing companies in the country are proposing the establishment of a Cement Technology Institute. On the poor state of roads and how it was affecting their business, he noted that 90 per cent of Nigerian roads are asphalted and the maintenance culture is low.
He said they had proposed to the Federal Government for the construction of concrete roads which are more durable, describing cement manufacturing as high energy intensive. He complained that gas is cheaper to run their plants but since most of the plants are not close to gas pipelines, they have to resort to fuel oil, which is five times more expensive. He called on the federal government to assist by subsidizing the price of fuel oil to cement manufacturers.
Earlier, Makoju proposed the use of cement for all road construction and rehabilitation works in the country when he paid a visit to the Minister of Works, Mr Mike Onolememen.
Makoju said the consideration became necessary due to the short life span of roads and damages on the roads which often resulted in the expenditure of huge sums of money for road rehabilitation.
“We observed that roads constructed with the use of cement to asphalt last longer. For instance, when there is oil spill on the roads built with cement, it does not cause any damage to the road. “But roads constructed with bitumen and asphalt are easily destroyed.”
Makoju said the use of cement in the construction of roads would address the issue of frequent rehabilitation and help in cutting down maintenance expenditure.
He said the initial cost of constructing a road with cement might be more compared to the alternative option, but it enhanced the life span of the road.
He also noted that the use of cement in road construction was more environmentally friendly. The chairman pledged the support of the association in ensuring that the price of cement remained stable if endorsed for road
construction.
“If eventually endorsed, the association is poised to ensure the price of cement stabilises.” Makoju said the success story was that over the past six months, the price of cement was on the decline for good.
He further stated that the bad state of roads, which accounted for high cost of haulage and the cost of importation, were the reasons for the high cost of products in the country.
He said that limestone, which is the raw material for the production of cement, was readily available in the country.
“Nigeria currently produces over 28 million tons of limestone across the country annually.
Makoju, therefore, urged the Federal Government to re-assess the cost implication of both materials so as to determine where to place tax payer’s money for maximum benefit.
In his response, the minister, represented by Mr Bala Danshehu, the Acting Permanent Secretary and Director, Highways Planning and Development, stated that the Ministry would understudy the proposal submitted by CMAN. He said the proposal on the use of cement in road construction in the country came in good time, considering the fact that the ministry was reviewing its road sector design manuals.
The minister noted that cement based roads were remarkable for their durability and resilience.
It could be noted that, the commissioning of the 6 million metric tonnes cement plant recently has placed the country in a vantage position that would make it to have enough cement to meet local demand.
According to Makoju, there may even be surplus of cement in the country before Dec. 31, 2012.
“With all these new capacity, there could be a glut out of the excess production. Government has a big part to play because they are the biggest consumer of cement especially in public works and construction.
“So government needs to really invest more in infrastructure development especially civil infrastructure like roads and bridges.’’
Makoju said that the new production capacity would eventually bring down the price of cement in the long run.
While maintaining that the forces of demand and supply will reduce the price of cement though it will not be immediate as other factors could make the price to jump he said however that when there were excess supply the market forces would bring down the price.
“I agree market price needs to come down. Factory cost at the moment is about N1,500 maximum per bag. With this increasing production, I am sure Nigerians will be expecting to begin to see the price of cement come down.
“I have no doubt that that period is not far away; it may not be immediately now because there are other distortions. We may even be moving into a period of glut – what is called market forces. When you have a product you want people to buy and they are not coming one of the things you resort to is to give price concessions.
“That period is not far off and when it comes I am very confidence it will start impacting on market prices.’’
Makoju said that stakeholders in the cement industry were promoting to all tiers of government the idea of specifying cement in road construction in the country.
According to him, using cement in road construction has been successful in many countries as it has solved their road problems.
“Also, we are now promoting an idea that can lead to an increase in the consumption of cement dramatically. And the idea we are promoting is to specify cement in road construction in Nigeria.
“This has been done successfully in many other counties and it has been a solution to the road problems in those countries because cement roads are for life.
“You know if you mix cement and pour water on it, it starts hardening. It will continue to be getting stronger and stronger with life. So you can imagine a road which actually as it is getting older it is getting stronger.
“The initial cost may be a bit high than asphalt but in the long run it is cheaper because you will not spend money maintaining it.’’
Makoju said that contracts had already been awarded to ensure the expansion of the Ibese cement plant and the one at Obajana in Kogi State.