PIC: L – R: Emir of Kano, HRM Muhammadu Sanusi II; Kano State Governor, Dr. Abdullahi Ganduje; Edo State Governor, Mr. Godwin Obaseki; Vice President, Yemi Osinbajo; Executive Chairman/CEO, BUA Group, Abdulsamad Rabiu; Former Edo State Governor, Comrade Adams Oshiomhole; and the Minister of Trade, Industry and Investment, Dr. Okechukwu Enelamah at the commissioning of BUA (Obu) Cement in Edo State recently.
By Ogieva S’Osa
A media analyst writes from Lagos.
BUA Group’s US$1 billion Obu Cement plant in Okpella, in the equidistant state of Edo has brought relief to Nigerians who once had difficulty in building as a result of the skyrocketed increase in price of cement.
The recently commissioned plant constructed by FL Smidth of Denmark and powered by Siemens turbines has the latest cement production equipment in Africa with a 13 kilometer 16 inch gas pipeline for generation of over 500 megawatts of electricity and a 2-kilo meter horizontal water borehole that supplies water to the plant.
The groundbreaking of another cement line currently being constructed by SINOMA CBMI of China, a renowned cement manufacturing supplier on an EPC (Engineering, Procurement, and Construction) contract and the $300 million Greenfield cement plant in Sokoto State which will be commissioned in 2018 are clear evidences that BUA cement is fully prepared not only to meet the demands of Nigerians but boost Nigeria’s production status above its current capacity.
With these, BUA Group, a leading Food and Infrastructure conglomerate has continued to surpass imaginations and has brought the future prospect yet attained by other companies closer to the people who can now buy cement at subsidized rates.
It is in-line with the Federal Government’s expectations to allow the private sector lead the drive for the growth and emancipation of the nation’s economy and transform Nigeria into a self-sufficient nation in cement production.
Speaking at the commissioning, the Executive Chairman/Chief Executive Officer, BUA Group, Abdulsamad Rabiu believes that “BUA’s investment in the cement line in Sokoto is the single largest private sector led investment in the North-Western part of Nigeria” as it is the largest employer of Labour in Sokoto State after the State Government.
According to Rabiu, “The 2 cement lines in Edo State impressively represent the largest non-oil and gas related investment in the whole of the South-Southern region of Nigeria. With these, BUA will have invested over $2 billion dollars in the Nigerian cement industry with capacities in excess of over 12 million tons per annum within the course of a decade”.
“The cement sub-sector today represents over 90% of the Nigerian mining sector and employs some 30,000 people directly and over 2 million people indirectly. It also saves the Nigerian economy some $2 billion in foreign exchange”.
Aside the cement plant, Rabiu has expressed BUA Group’s commitment to establish the first limestone granulation plant in Nigeria for fertilizer production since there were some challenges associated with producing quality limestone granules used as filler for fertilizer blending.
Rabiu said, “The granulation plant will be integrated to a 1 million tons fertilizer blending plant, which we have also acquired to be sited in Edo State. On completion, it will be the largest fertilizer blending plant in Nigeria”.
He continued, “The success of the cement industry has shown that with the right Government policy and encouragement, it is actually possible to reverse our import dependence for many commodities, and by so doing, generate jobs and create wealth for our teaming population and preserve our scarce foreign exchange.
“The Nigerian cement industry went from a few hundred million dollars to almost $20 billion in enterprise value in just over a decade and there is still room to do much more. We still need more plants to produce more cement, increase our per capita consumption, and bring down our housing and infrastructure deficit”. He added.
Affirming the Federal Government’s stands on the giant investment, Vice President, Osinbajo at the Obu Cement commissioning agreed that BUA Cement is a consolidation of Nigeria’s self-sufficiency in cement and a big boost to the nation’s export capacity.
Osinbajo noted that the President Muhammadu Buhari-led administration is determined to continue with providing the enabling business environment that will go the extra mile to directly assist private sector in steadily growing the economy.
He further noted that the present administration is working very hard with the Industrial Policy Council to evolve and implement well-considered solutions to business impediments and economy stagnation in Nigeria.
“I am happy to note that for the construction of power production facility for this plant, the BUA Group has used the most modern and efficient gas turbines which combines low and economically value-cost with a very high degree of reliability,” he said.
For the Federal Government, the drive, resources and commitment of BUA Group’s Executive Chairman is such that will not only create jobs and wealth for the people and the nation but drive the Nation’s economic policy.
Osinbajo therefore asserts: “This country will only grow on the talent and resourcefulness of people like yourself (Abdulsamad Rabiu) who are ready to put their resources out and invest anywhere in the country, employ the local people in that community and add real value to the lives of Nigerians.
“It is my sincere hope and prayer that you will continue steadily on the path of growth knowing that on your success hangs the hopes of millions”. Osinbajo added.