Bauchi State Governor Balla Mohammed has signed a Memorandum of Understanding with Resident Cement Factory Limited to establish a $1.5 billion cement firm in the state.
Thank you for reading this post, don't forget to subscribe!Mohammed signed the MoU on Wednesday, August 7, 2024, and stated that the move proves the government’s commitment to simplifying business activities.
Proposed factory at appraisal stage
He said the proposed cement plant has progressed to an appraisal stage.
The governor said the $1.5 billion investment includes the construction of a water dam, trailer park, housing units, and other social infrastructure in the Gwana community of Alkaleri local government area of the state.
Mohammed explained that his government would ensure a hitch-free business environment and that he is committed to deepening community engagement.
The new project to start in 2025
Daily Trust reports that his administration will do business differently to ensure that the MoU will not be neglected.
The Group Chairman of Resident Cement Factory Limited, Junaid Waziri, said the partnership will allow the company to proceed with the project, and construction will commence in the first quarter of 2025.
Waziiri commended Governor Balla’s leadership and commitment to the development of Bauchi State, saying the cement firm will establish 10 million metric tons of cement plant.
Mangal Cement begins operation
The development came as Katsina-born Dahiru Mangal completed building a $1.5 billion cement plant in Moba, Kogi State, and rolled out the first cement from the facility.
The Mangal Cement Company Limited officially commenced business to rival the big players such as Dangote, BUA, and Lafarge cement.
The new facility to produce 200 trucks daily
The facility will produce about 200 cement trucks daily, which analysts say will create direct and indirect jobs.
ThisDay reports that Mangal Industries signed a deal with a Chinese company, Sinoma, to build the facility in November 2021.
The facility’s initial cost was projected at $600 million, but it increased to $15 billion due to the naira crash.
Fahad Mangal, the company’s chief executive officer, promised a state-of-the-art, technology-driven facility that poses no threats to the environment.
Dangote, BUA, Lafarge record over N2trn revenue in 6 months
Legit earlier reported that Nigeria’s cement industry has recorded a staggering surge in sales revenue driven by recent price hikes.
Data from the financial statements of Nigeria’s top cement manufacturers submitted to the NGX showed that Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc recorded a combined sales revenue of N2.4 trillion in the first half of 2024.
This represents a 76.66% increase compared to N1.36 trillion reported in June 2023 by the cement makers.
