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Calcium Carbide (CaC₂) Production in Nigeria; The Feasibility Report.

Calcium Carbide (CaC₂) Production in Nigeria; The Feasibility Report.

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Description

Calcium carbide (CaC₂) is a simple-looking but industrially strategic chemical: a gray-black solid that reacts with water to produce acetylene (C₂H₂) and calcium hydroxide. Acetylene is used for welding and metal cutting, as a feedstock for organic chemicals (e.g., for vinyl chloride derivatives in some regions), and as a fuel for small-scale industry.

Worldwide, calcium carbide (CaC₂) remains an important intermediate in regions where electric-arc carbide production is more economical than hydrocarbon-based acetylene routes.

Recent industry reports estimate the global calcium carbide market at roughly USD 16.0–16.8 billion in 2023–2024, with projections to reach about USD 24.1 billion by 2032 — a compound annual growth rate (CAGR) in the range of four percent (4%) range driven by demand for acetylene derivatives, metallurgical uses, and construction-related chemistry.

These forecasts also segment demand by application (acetylene gas production, chemical industry, metallurgical uses, construction), by grade (high, medium, low), and by physical form (lump, powder, granular).

Industrial calcium carbide is produced in electric-arc furnaces by reducing lime (CaO) with a carbon source (coke, anthracite) at temperatures >2,000 °C. The net reaction: CaO + 3 C → CaC₂ + CO.

The high energy intensity of the electric-arc furnace (EAF) route is the dominant cost driver: electricity and electrodes, refractory life, and feedstock (lime and carbon) quality largely determine competitiveness. After smelting, the crude carbide is crushed and graded; its quality is commonly measured by the volume of acetylene it produces on hydrolysis (e.g., litres per kilogram at a standard temperature and pressure).

Calcium carbide and acetylene were commercialized in the 1890s (the arc-furnace method was discovered in 1892).

Globally, carbide production boomed where electric power was cheap (historically hydroelectric regions) and where acetylene was a practical feedstock. In recent decades, production has concentrated in countries with low electricity costs and large integrated chemical sectors (China remains a major producer).

In Nigeria the historical footprint of full-scale calcium carbide manufacturing has been limited. Where calcium carbide is present in the market it is largely via importers and chemical distributors supplying acetylene-generating plants and small-scale users (welders, metal fabrication shops, certain chemical producers).

Local entrepreneurship around acetylene generation and distribution (acetylene plants, generators, gas suppliers) is visible, but large integrated calcium carbide (CaC₂) plants are uncommon — most Nigerian operators either import calcium carbide (CaC₂) or buy acetylene gas from local gas suppliers who themselves may run carbide-based generators.

Market research on Nigeria’s acetylene sector suggests demand exists across metal fabrication, automotive repair, and specialised chemical applications.

The demand for calcium carbide in Nigeria is tied to several industries:

Metal Fabrication and Welding: Acetylene, derived from carbide, is widely used for cutting and welding metals in workshops, construction sites, and automotive repair shops.

Chemical Industry: Acetylene serves as a precursor for certain organic compounds and industrial chemicals.

Construction: Calcium carbide residue (a byproduct of acetylene generation) can be used as a soil stabilizer or additive in cementitious applications, offering a potential secondary market.

Automotive and Aerospace: Welding and fabrication demand continues to grow alongside industrial and infrastructure expansion.

Nigeria has a strong and consistent need for acetylene and related applications, which sustains steady demand for calcium carbide (CaC₂).

The Nigerian calcium carbide and acetylene market is supported by:

Importers and Distributors: Several chemical distributors and industrial suppliers import bulk carbide and distribute it to end-users.

Acetylene Gas Companies: Local firms operate acetylene plants and generators to supply acetylene gas directly to industries. These companies are critical to the downstream welding and fabrication market.

Small and Medium Industrial Suppliers: Some Nigerian chemical businesses carry calcium carbide as part of their product line, mainly serving local welding shops and chemical users.

Calcium carbide is regulated by several statutory and guidance instruments in Nigeria and internationally because of its hazards (reacts with water to release flammable acetylene) and because of its misuse (notably as an illegal fruit-ripening agent that can leave toxic residues).

Standards Organisation of Nigeria (SON) plays the lead role on product standards, certification and quality control — producers, importers and suppliers are expected to meet SON product specifications and labeling requirements. SON’s mandate includes the standardization and quality assurance of industrial chemicals.

Calcium carbide remains a globally significant commodity, with projected market growth driven by acetylene-derivative demand and metallurgical and construction uses. In Nigeria the current market is dominated by importers, distributors and acetylene generators, with limited evidence of large domestic smelting due mainly to power, capital and logistics constraints.

Table of contents

EXECUTIVE SUMMARY

1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of the Product
2.2 Product Packaging and Delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating Activities and Expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the Business
4.2 Profile of the Promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of Salary Schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start Up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Analysis
5.7 Cash Flow Analysis
5.8 Viability Analysis

6.0 Business Risks, Mitigation Strategies and SWOT Analysis

6.1 Business Risks and Mitigation Strategies
6.2 SWOT Analysis

Report Details

Report Type: Feasibility Report
Formats of Delivery: EXCEL / MS WORD
No. of Pages: Text – 50 Pages and Excel Spreadsheet – 6 Pages
Product Code: FORA/07/2025/CALCIUMCARBIDEPRODUCTIONINIGERIA/111134344
Publisher: Foraminifera Market Research
Release Date: 08/10/2025; Update Every 3- Months
Language: English
Delivery time: 24– 48hours

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