Remarks At The Commissioning Of BUA Cement Factory In Sokoto

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REMARKS BY HIS EXCELLENCY, PROF. YEMI OSINBAJO, SAN, THE VICE PRESIDENT, FEDERAL REPUBLIC OF NIGERIA, AT THE COMMISSIONING OF BUA CEMENT FACTORY IN SOKOTO STATE, ON 17 JULY, 2018.

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Let me start by congratulating and commending the hard work and diligence of the Board and Staff Members of the BUA Group on the successful completion of this USD350 million BUA Cement factory.

I recall that on Tuesday, August 29, 2017, I was in Edo State to commission the BUA Cement (Obu) Plant in Okpella. At that time, the Chairman of BUA disclosed that the Sokoto factory would be ready in 2018, and it is gratifying indeed that it is done and ready just as planned and even ahead of schedule. This commissioning is an important milestone, not only for the BUA Group but also for the Cement Industry and the Nigerian Economy.

This plant, together with others in the country, will consolidate Nigeria’s self-sufficiency in cement production and our status as a net exporter of the product. The significance of this cannot be overemphasized. As we explore and implement strategies to diversify the country’s earnings away from oil and gas exploitation, the investments of BUA, USD 2 billion in the Edo Plant and the USD 350 million in Sokoto, this is a clear demonstration to the world that Nigeria has vast capacities and potentials for profitable projects.

After so many years of inadequate attention to National infrastructural development, the next few years will be defining for infrastructure development in Nigeria.

The National Integrated Infrastructure Masterplan estimates that an investment of   3 trillion USD is needed to bridge the infrastructure gap and increase our infrastructure asset from the current level of 35% of the Gross Domestic Product to at least 70% by 2050. To be where we ought to be in infrastructural development, investment in construction materials, in particular, is crucial. Cement is the first, literally, the building block for much of the infrastructure we need in Nigeria today; from housing to roads, bridges, dams, etc.

Currently, Nigeria produces over 40 million metric tonnes of cement annually, more cement than any other country in Africa. Indeed when you put several countries we still produce more cement. Nigeria’s huge market size, our high urbanization rate of 3.5%, and even now low per capita cement consumption of about 125kg and an estimated housing deficit of 17 million These are key drivers of the growth of the Nigeria cement Industry in the medium term, we have plenty of capacity to consume cement locally.

As mentioned earlier, two issues I believe will require attention. The first is the price of cement; it surely can be cheaper, I know the standard arguments; power, transportation costs, etc. But it is still a very lucrative business and I know that it is possible between Samad and his dear brother Aliko; they can bring down the price of cement. The second issue is concrete roads. We can change the narrative on road construction dramatically if we think through using concrete for road building in Nigeria. Already a few projects have demonstrated the viability.

In 2016, government commissioned the 26 km Itori-Ibese concrete road in Ogun State, which is currently the longest concrete road in Nigeria. The Federal Executive Council (FEC) also approved the construction of the 42.5 kilometre Obajana-Kabba Road with cement. The Obajana road, when completed, will be the longest concrete road in Nigeria. Similarly, the 2km Apapa-Wharf Road, which should be completed this year, is also being rehabilitated using concrete to withstand the weight of the heavy trucks that constantly move goods back and forth from the port to the hinterland.

With our current capacity in cement production and the effective control of producers over the price, it is possible as a matter of national interest to begin a programme of building our roads with concrete. The possibility of building cheaper and better roads is one which I would like to throw all of our cement producers. You can revolutionize road construction in Nigeria. You can do something for this country by simply deciding that we can build our roads with concrete. And I am sure that we can do that cheaper than current methods of building our roads.

I have no doubt that this newly completed factory will further boost employment generation and human capital development in Nigeria, particularly here in Sokoto State, where the BUA group has consistently maintained its position and it is, indeed, today the second largest employer of labour after the State Government. As I am informed, the plant is projected to generate 2,000 direct and over 10,000 indirect jobs. Without a doubt, this is significant and when we add to that all of the corporate social responsibility work that BUA has been doing, I think that this is commendable indeed and it is a good example for all of the companies that operate within our borders in Nigeria. Without a doubt, it is the private sector, not the government that must lead the way in jobs and opportunity creation in Nigeria. The potential is so obvious.

President Buhari, from day one of this administration, said that our primary role as Government is to provide a business-friendly environment. Importantly also that industrial and commercial policy is the joint responsibility of government and the stakeholder private sector. This is why he instituted Quarterly Business Forum, where we meet with major stakeholders in the business and commercial community every quarter, Industrial and Competitiveness Council, PEBEC also, which is Presidential Enabling Business Environment Council and the NSMA Clinics, which is our regular interaction with the private sector, where we take all of our regulators around the country, would be here in Sokoto State. In fact, Sokoto was probably the second state we visited with all of our regulators to ensure that they are able to interact directly with the private sector.

For us as Federal Government, working with the private sector is therefore not just a preference; it is the only way to go. And I want to just repeat that it is the commitment of Mr. President that we must as a government offer all of what is required to ensure that the private sector is able to do its business in the friendliest possible environment and that both local and International businesses are able to thrive in Nigeria and that they will be able to provide the opportunities they are providing in comfort and in peace.

This cement factory exemplifies the expectation of the government in the Economic Recovery and Growth Plan, launched by the President in 2017. The President was explicit in that Nigeria’s economic growth must be private sector-led and driven. This is a Nigeria story that we are proud to propagate, the story to buy and sell Nigeria; we will produce here and we will produce what we eat, what we consume we will sell and we will export.

Let me, as I close; commend my dear brother, Samad, and his team for this bold and patriotic investment. As I was saying to Matawallen earlier on, there are easier and safer ways of making money than building a plant of this massive size, and it takes an incredible level of commitment and courage to do a project on this scale. So I commend you for this great investment and for the courage that you have shown in doing this.

Let me also congratulate His Excellency, the Governor, for creating the enabling environment for a major investment such as this. Our vision as a Federal Government is to ensure that every state in Nigeria can compete with any African country, and I think that we are already demonstrating that in Sokoto State that we can compete with any country.

In a few minutes, we will be commissioning the plant and I very strongly believe that our country is so much better by what BUA group has done in Sokoto State and about what they are doing in the county. Congratulations, again. God bless you.

Thank you very much for listening.