Nigerian cement project woos investors

Nigerian cement project woos investors
Published: 21 August 2006

Nigeria’s Adamawa State government has begun fresh discussion with German and Indian investors to explore the possibilities of a joint venture in the establishment of cement manufacturing company in the state. Disclosing this to newsmen recently in Yola, the deputy governor, Bello Tukur, who is also, the commissioner of commerce, said the first deal with the Chinese that cost the state over N6 million (about US$467,000) collapsed because the Chinese experts failed the government.

He maintained that "as there was no positive action from the Chinese experts, the state government entered into another round of discussion in 2002 with MBM, a German firm which indicated its willingness to establish a cement plant on a Turnkey basis with an installed capacity of 3000tpd at a cost of US$177.25m."

Tukur regretted that even that arrangement collapsed because the government could not raise fund to that effect due to alleged problem of cash flow. Tukur who was represented at the press briefing by his permanent secretary, Abubakar Gamawa said the government has begun a fresh discussion with German and Indian investors.

The government, he further said has incorporated Adamawa mining company, stressing that the step was taken toward the development of the solid minerals that abound in various parts of the state.

Besides, the government, Tukur stated has entered into memorandum of understanding with the Republic of Korea to explore areas of bilateral economic cooperation. He explained that the Korean experts were brought in and posted to the ministry with the primary assignment of geological investigation and solid minerals prospecting activities throughout the state.