AFRICA: Nigeria: Dangote to Increase Cement Production to 20 Million Tonnes

Lagos — Dangote Cement Limited says it will jerk up local production of cement in the country to about 20 million tonnes this year.

The company explained that the move was borne out of the need to improve production capacity of the product in Nigeria than consumption.

Managing Director of the company, Mr. Knut Ulvmoen, disclosed this in Lagos, yesterday.

He said overall production of cement in the country is expected to peak at 8 million tonnes between now and 2012.

He however said the problem militating against slash in the price of cement is energy.

He said: "Even in a place that is producing locally today, the energy cost is our greatest problem. If this comes down there should be room for cement price to come down. You can produce much less at less cost if your production is higher.

"This is because there is fixed cost, financial cost and lot of cost element you have to put into consideration. What is important is for us to continue to improve production capacity in Nigeria than consumption."

Knut, who is also the Deputy President of the Lagos Chamber of Commerce and Industry (LCCI) also spoke on the role of government in the nation's business environment.

According to him, government's attention should be focused on improved energy and infrastructure rather than running round checking companies to see those that are failing.

On the preference of Nigeria by foreigners, Dangote said the development is because the country has lots of potentials to offer the world.

He said: "Nigeria is a country that should be better. We have oil, gas, energy, and lots of solid minerals and huge home market. Of course if you look into the market, the whole ECOWAS has been part of it. There is good business for any foreigner who wants to move their business into the country.

"There are very few countries in the world with greater potential to succeed than Nigeria. That's why they are coming. It is a country with billions of people and the market. There is money to make here; all they have to do is make things right and they have to make business partners in the country."