The cumulative capacity of Nigeria’s cement industry is set to hit 45.5 million metric tons per annum (MTPA) as BUA Group gears up for the August launch of its $600-million Obu Cement Plant, which will have capacity to produce 3 million MTPA.
Nigeria’s cement industry’s current total capacity is estimated at 42 MTPA.
Dangote Cement, leader in the industry, has 29MTPA, while Lafarge Africa’s subsidiaries such as WAPCO, the United Cement Company of Nigeria (UNICEM), Ashaka Cement and Atlas have a combined capacity of 12.5MTPA.
The Obu Cement plant, which is about five kilometres away from Edo Cement Company, is 100% owned by the BUA Group.
In April 2014, BUA Group signed a gas sales and purchase agreement with the Nigerian Gas Company to guarantee supply of about 0.9Mm3/ day to the Obu plant. To ensure stable power supply, a 30-kilometre gas pipeline has been built, with compensation paid to all three host communities.
Liquid fuels would also be used as a backup to ensure production around the clock.
Equipment at Obu Cement plant was supplied by FL Smidth of Denmark, and civil construction was handled by Julius Berger, producing one of the finest cement plants in the world.
Obu Cement Plant will provide over 1,500 direct jobs.
Expansion activities in the fast-growing industry have continued with Sokoto Cement planning pumping N48 billion to triple capacity while also mulling a coal-fired plant.
