…Says Transporting Containers From Lagos To Kano Higher Than China to Lagos
Amid massive cement shortfall that has, however, led to increase in the price of cement in the country, BUA group, producer of BUA cement export cement to Niger Republic and Burkina Faso.
BUSINESSinsiderng reports that the surge in the demand for cement products has led to a supply gap of about 40% in the country’s cement market.
Also, the demand and consumption of cement in the nation currently outstrips supply, and this can be pegged on the growth in the country’s population, the strong appetite for real estate investment and construction as investors consider them a good hedge against falling local currency.
However, one of the country’s producer of cement have, however, decided to priorities export of the scarce commodity instead of meeting the supply gap in the local market.
Speaking in Paris while commenting on the enormous opportunities in the Nigerian transportation system, particularly the rail sector, chairman of BUA Group, Abdul-Samad Rabiu said his company export cement to Niger Republic which is 120km to the plant and also to Ouagadougou, Burkina Faso, which is about 400km away from Sokoto.
He also stated that it is cheaper to transport a container from China to Lagos than from Lagos to Kano.
He said, “One of my plants in Sokoto is exporting cement to Niger Republic which is about 120km to the plant and also to Ouagadougou, Burkina Faso, which is about 400km away from Sokoto.”
Rabiu said investment in transformation, especially the railways system, will unveil enormous opportunities for the country and investors.
Rabiu commended the Buhari administration’s investment in rail infrastructure across the country, however, urged global financiers and private investors to invest in the rail sector.
We are able to produce for local consumption and also for export.
“Nigeria is one of twelve countries in the world that have large deposit of iron ore, gas and coal, but unfortunately the country is importing steel.
We spend $2.5 billion annually importing steel to Nigeria.
“With $2.5 billion, we should be able to set up a plant that can produce steel of 1.5 to 2 million tons per annum.”