* As Buhari Inaugurates BUA Sokoto Plant
The Central Bank of Nigeria Governor, Mr Godwin Emefiele, on Thursday, called on manufacturers to reduce the high prices of building materials in the country to make the construction of houses affordable for Nigerians
The Governor said this in an address delivered in Sokoto at the inauguration of new plant of BUA Cement Plc by PresidentMuhammadu Buhari.
He said due to the fact that the housing sector plays an important role in creating jobs and reducing the level of poverty, it has become compelling for manufacturers of building materials particularly cement and steel to reduce their prices.
While admitting that these products are also being manufactured for exports with high possibility of generating more revenue for the manufacturers, the CBN Governor urged them to put the interest of the country first so that the price of these products could go down.
Speaking at the inauguration of the plant, the President pledged that his administration would continue to support serious investors to set up businesses that will take advantage of huge reserves of resources in different parts of the country.
The President recalled that in 1985 as the then Head of State, he was at the same location to commission the 2nd line of the facility.
”Today, almost thirty-seven years later, to commission the fourth line is a very special day for me personally.
”As you all know, one of the key economic pillars of our administration has been to create an enabling environment for businesses to thrive. This is necessary for job creation and indeed, for our economy and national security.
”In the past few weeks, I visited Ogun and Kaduna States where I observed many private sector investments in action. And today, I am here in Sokoto to commission this multi-billion Naira project.
”It is therefore very clear for all to see that our policies are working. Progress is gradually being made in all parts of the country,” he said.
The President thanked the Founder of BUA Cement, Abdul Samad Rabiu and the entire team for the great work they are doing in supporting the government’s economic diversification and job creation agenda.
He noted the company, which has completed four new cement plants of similar capacity in the last five years in different parts of the country and is set to complete two more plants soon, had shown through these investments that they believe in Nigeria and its potential.
Commending BUA and other entrepreneurs for making Nigeria self-sufficient in cement and a net exporter of the strategic product, the President said:
”I am pleased that through these investments, BUA Cement has created employment opportunities for our citizens. Today, BUA is the largest employer of labour in the North-West region.
”I always remind Nigerians that every region, indeed every State, in Nigeria sits on huge reserves of resources. For example, in this area, Kebbi, Sokoto and Zamfara can boast of rice production, gold and other precious metals development and of course, heavy industries like cement manufacturing.
”As a Government, we introduced policies and mechanisms to support such investments in a legal, ethical and inclusive manner.
”For example, we have the National Food Security Council on Food Security Matters and the Presidential Artisanal Gold Mining Development Initiative to develop local artisanal gold mining and ensure health and safety of mining workers and protect the environment.
”We remain prepared to support serious investors to set up businesses that will take advantage of these opportunities through value addition so as to take advantage of the huge market here, as well as in the greater African region and the world at large.”
The Chairman of BUA Group, Mr
Abdul Samad Rabiu, who commended the President for creating the enabling environment for businesses to thrive, acknowledged the support of the Central Bank of Nigeria (CBN) and its Governor in setting up the gigantic project.
He announced that, ”so far, we have invested over a billion dollars in the past four years and we urge the CBN to continue to support industries like ours that use locally sourced raw materials to add value.”
He pledged that BUA would continue to invest more in the cement industry until Nigeria is self-sufficient and the commodity is made available, accessible, and affordable for all Nigerians.
”In the past 6 years, we have completed 4 plants – two in Obu, Edo State and two in Sokoto (of which this Sokoto line 4 is the fourth) with BUA’s total production capacity now standing at 11.5million tonnes with the completion of this plant.
”Next year, we intend to complete the construction of two new plants of 3 million metric tonnes each for which construction is ongoing – one in Edo and the other, here in Sokoto.”
He said he looked forward to President Buhari commissioning these plants next year which will bring total production capacity to 17.5million metric tonnes.
Cement prices have surged by 40 per cent one year after Nigeria’s largest cement manufacturers boasted of crashing cement prices in the country.
Few days into 2022, cement prices are trading at N4,700 per bag and N4,500.
The development had triggered a surge in the overall cost of construction projects.
The increase in cement price is coming at a time when the Federal Government is planning fresh investments of N3.53trn in the Nigerian housing sector to reduce the deficit in the country which is estimated at about 17 million houses.
The investments, to be made within the next four years is part of the strategies of government to boost housing delivery and guarantee affordable houses for Nigerians.
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