Description

Cement is a binder, a substance that sets and hardens as the cement dries and also reacts with carbon dioxide in the air dependently, and can bind other materials together.

The most common and widely used in construction is the Portland cement. This cement is produced by burning a homogenized mixture of clay and limestone, resulting in intermediate product called clinker. This in turn is mixed with gypsum in a specified proportion, and ground into fine powder to form the final product called Portland cement.

This product is very useful in construction and engineering works of housing, buildings, bridges and cement concrete roads. Other applications of cement are for mortar and concrete making. In mortar making cement is mixed with sand and crushed stones of definite proportion and size. In concrete making it is mixed with sand or other fine and coarse aggregates to be used in construction.

Infrastructure is a backbone of social-economic development of any country and its institutions. A nation cannot be self -reliant unless it evolves a large-scale infrastructure network. The construction industry is very important for country’s economic growth, infrastructural development and employment generation.

Cement is always considered as a barometer of progress in developing country and is rightly taken as an important economic activity indicator.
The history of cement production in Nigeria dates back to the early 20th century. The first cement factory in the country, Nigerian Cement Company (NIGERCEM), was established in 1954 in Nkalagu, Eastern Nigeria. This marked the beginning of cement manufacturing in Nigeria, leading to the establishment of other factories in different regions.

During the 1960s and 1970s, the Nigerian government recognized the importance of self-sufficiency in cement production to meet the demands of its growing construction sector. This led to the establishment of several state-owned cement plants. However, these plants faced numerous challenges, including inadequate maintenance, obsolete technology, and inconsistent power supply, which hampered their efficiency and productivity.

Today, Nigeria is one of the leading producers of cement in Africa. The country has several cement manufacturing companies that contribute significantly to the national economy. Some of the major players in the Nigerian cement industry include Dangote Cement, Lafarge Africa, and BUA Cement. These companies have invested heavily in modernizing their production facilities and expanding their capacities to meet the rising demand for cement.

Dangote Cement is Africa’s leading cement producer with fifty-two million (52,000,000) million tons per annum production capacity across Africa with Nigeria accounting for thirty-five million (35,000,000) million tons per annum.

Dangote Cement has played a pivotal role in revolutionizing the cement industry in Nigeria through its state-of-the-art facilities and efficient production processes.

Lafarge Africa, a subsidiary of LafargeHolcim, is another major player in the Nigerian cement industry. The company operates multiple plants in Nigeria, producing high-quality cement for various construction needs. Lafarge Africa has a strong commitment to sustainability and innovation, focusing on reducing its environmental footprint and promoting sustainable construction practices.

BUA Cement is a prominent cement producer in Nigeria, known for its rapid growth and expansion. The company has invested in modern production facilities and has a significant presence in the Nigerian cement market. BUA Cement’s strategic investments in technology and infrastructure have positioned it as a key player in the industry.

The global cement market size reached US$ 385.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 629.9 Billion by 2032, exhibiting a growth rate (CAGR) of five point four percent (5.4%) during 2024-2032.

The global cement market is witnessing robust growth driven by rapid urbanization, infrastructure development, favorable government initiatives and policies, rising disposable incomes, and increasing construction activities, especially in emerging economies.

According to ConsTrack360’s, cement industry in Nigeria is expected to grow by three point two percent (3.2%) on an annual basis to reach US$3,425.4 million in 2023.

The medium to long term growth story in country remains intact. The cement industry in country is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a compound annual growth rate (CAGR) of three point three percent (3.3%) during 2023-2027.

The cement output in the country is expected to increase from US$3,319.2 million in 2022 to reach US$3,893.8 million by 2027.

The demand for cement in Nigeria is driven by several factors, including:

Urbanization and Housing: Rapid urbanization and population growth have increased the demand for housing and infrastructure development. The construction of residential, commercial, and industrial buildings is a major driver of cement consumption.

Infrastructure Projects: The Nigerian government has prioritized infrastructure development, with significant investments in roads, bridges, airports, and railways. These projects require substantial quantities of cement.

Private Sector Investments: The private sector plays a crucial role in driving cement demand through investments in real estate, manufacturing facilities, and other infrastructure projects.

Cement consumption in Nigeria is predominantly concentrated in the southern and southwestern regions, which are home to major urban centers like Lagos, Ibadan, and Port Harcourt. The northern region also accounts for a significant share of consumption, driven by ongoing infrastructure projects and urban development initiatives.

This report seeks to confirm the financial viability or otherwise of establishing a cement production plant Edo state, Nigeria. The major raw materials required for the production of cement are limestone, ball clay, iron ore and gypsum. They are all locally available and the company would source them from different miners within our vicinity.

The production capacity of the proposed plant is two hundred (200) tons per day cement plant and the plant would operate three (3) shifts of eight (8) hours each, for three hundred (300) days per annum at eighty percent (80%) of the installed capacity in the first, second, third, fourth and fifth year of operations respectively.