As Nigeria moves towards increasing its local cement production capacity, President and Chief Executive of Dangote Group, Aliko Dangote, has assured that the merger between Dangote Cement and Benue Cement will assist the Federal Government in actualising its objective to achieve self-sufficiency in cement production.
Currently, the combined cement production capacity at Obajana and BCC plants is 8Mta. A new production line in Obajana with annual capacity for 5Mt and the greenfield plant at Ibese, Ogun State, with annual production capacity of 6Mt are both expected to be completed by the first half of 2011. Production capacity at BCC is also expected to increase to 4Mt from the current level of 3Mt before the end of 2011. All of these will bring the total production capacity of the group to 20Mt by the end of 2011.
Aliko said that by 2013, capacity might exceed demands by 5.08Mt and this according to him, “ is based on the assumption that cement consumption will continue to grow at an annual rate of 10 per cent, and that total installed capacity will reach 26.75Mta after 2012.