CBN Charges Local Producers On Ballooning Cement Price
- Assures on robust partnership
BY COBHAM NSA – The Central Bank of Nigeria (CBN) has expressed its resolve to partner domestic manufacturers to force down the rising cost of cement and make it adequately available in the market for Nigerians.
In what is considered a deft move to address the ballooning price of the product nationwide, CBN Governor, Godwin Emefiele, charged cement manufacturers to brace up and turn things around for the overall socio-economic good of the country.
With Nigerians’ hues and cries over the price of cement skyrocketing to about N5000 per bag in recent times despite the encouraging local production, Emefiele assured that the apex bank is committed to providing the desired support for manufacturers to import spare parts, plants, and equipment required to enhance production capacities of the country’s cement plants.
Giving this assurance at the BUA Group’s official commissioning of the ultra-modern 3 million metric tons per annum capacity cement manufacturing plant in Sokoto, Emefiele said; “This sector is one of the major sectors in the economy helping to create employment and boost growth in our country.
“We are aware that some of our Cement manufacturers are producing for both the domestic and exports market. But we urge them to pay more attention to satisfying the domestic needs so as to bring down prices.”
The CBN Governor also said stakeholders in the construction sector would be in a position to work on bringing down the price of building materials in the country against the backdrop of recent calls by construction companies for cement and steel manufacturers to check the rising cost of these two all-important items in the sector.
For Emefiele, the achievements of Nigeria’s private sector, as demonstrated by the BUA Group, are quite heartwarming given that these are critical ingredients in complementing the government’s efforts at reducing unemployment and boosting production activities across the country.
Giving thumbs-up to the private sector’s investments that have continued to support the apex bank in its mandate of promoting stable macro-economic growth in the country, Emefiele praised the BUA Group, led by its Group CEO, Adbul Rabiu, for its ground-breaking investments in many parts of the country.
He described the Group’s establishment of the cement manufacturing plant in Sokoto and other parts of the country as a reflection of its faith in Nigeria as well as the enormous opportunities up for grabs in the industrial sector, especially in terms of abundant human and natural resources.
The apex bank boss also applauded BUA for its ingenuity of having the plant’s construction fully funded by its equity contributions without resorting to any external financing, noting that the government’s efforts to steer Nigeria’s economy away from its dependence on imports towards self-reliance, to enable Nigerians to produce what they consume, and eat what they produce, are so far yielding the expected results.
He explained that the government has been focused on policies meant to drive productivity in the industrial sector, and conserve the foreign reserves in the last seven years, adding that cement was among the restricted items’ list given the huge availability in the country of limestone which is the vital raw material for production.
According to him, that policy implementation had the country’s cement industry production capacity doubling from 30 million tons in 2014 to about 60 million tonnes in 2021, even as he noted that the government’s restriction of access to foreign exchange for imports of 43 items in 2015 has helped boost the capacity of Nigerians to produce what they need in-country while also conserving billions of dollars expended annually on imports.
He acknowledged that investments by local businessmen in cement manufacturing have enabled Nigeria to save billions of dollars since no dollar from the country’s external reserves has been expended on importing cement for over half a decade now.
On the new greenfield or existing brownfield projects in the country, Emefiele said the CBN is ready to collaborate with investors by providing all support necessary, both in Naira and foreign currencies, for the importation of plants and equipment to actualize the investments.
He said the planned support tallies with the determination to create a professional and people-centered CBN that acts as a financial catalyst for job creation and inclusive economic growth in Nigeria, just as he noted that private sector investments have not only aided the creation of several thousand jobs across multiple sectors of the economy but also saved huge foreign exchange for the nation.
Acknowledging the achievements as reflecting the success recorded by the government’s backward integration policy highlighted in notable opportunities in housing, construction, and related sectors, Emefiele said notwithstanding the successes, there was still ample room for more investments in all sectors of the economy.
With kind words for potential investors to take advantage of available opportunities and contribute their quota to Nigeria’s efforts at sustainable development and growth, the apex bank governor said there is no relenting in efforts at creating the enabling environment for existing and prospective operators to partner in developing a viable manufacturing and industrial sector in the country.
