How Backward Integration Boosts Local Production
THE introduction, 10 years ago, of backward integration policy, which required that cement import licences be allocated only to importers who show proof of building factories for local manufacturing, has helped the country make substantial progress in its march to self-sufficiency.
Alhaji Aliko Dangote, the president of the Dangote Group expressed this view at the inauguration of a new six million-metric ton per annum cement factory in Ibese during the week.
The plant, which was built by Sinoma, a Chinese construction company, is complemented by a 112.5 megawatt plant that was set up by Siemens, a German engineering firm for the Dangote Cement Plc.
Dangote, who commended President Jonathan for attending the event "in person," also gave credit to former President Olusegun Obasanjo for initiating the backward integration policy, which, according to him, had helped Nigeria move from being a net importer of cement to potential exporter.
The business mogul explained that, since the Group took over the 800,000 metric ton- Benue Cement, it had actually increased its capacity to four million metric tonnes without any technical partner.
He also noted that, with the projected 10.25 million tonnes, Obajana Cement would soon be "on the map as the largest cement plant ever in the world."
The security challenges not withstanding, Dangote described Nigeria's current investment climate as the best in Africa, saying that the tax policy, by way of incentives and holidays, either introduced or sustained by the Jonathan Administration had provided a leeway for the Group to make successful inroads into other African countries, with the result that the continent has begun to gain global recognition in manufacturing.
"In line with our long-term vision, we are in 14 African countries and we plan to attain 60 million metric tonnes of cement production by 2014. We are commissioning our plant in Senegal in two months' time; we are just waiting for the dust of election to settle," he said.
According to him, producing 60 million metric tonnes within the continent would put Dangote Cement Plc on the list of top eight cement-producing companies in the world.
Noting that the country needs more entrepreneurs in the mould of Dangote, Jonathan thanked the company for its contributions to national development and economic growth.
Ogun State Governor, Ibikunle Amosun, who described Ogun as the highest cement-producing state in the country, urged Dangote Cement Plc to impact lives in the host community and the state in general. He, specifically, requested that connecting roads should be reconstructed with concrete as the Group did in Obajana, Kogi State.
In attendance were serving and former state governors, lawmakers and traditional rulers, as well as captains of industries.
The Guardian