…as reduction in prices of LPFO boost production in Local industries
The Federal Government has been commended on the resuscitation of local refineries in an interview with Abdulsamad Rabiu, Chairman of BUA Group. According to Rabiu, who is also the Chairman of the publicly listed Cement Company of Northern Nigeria (in which BUA Cement holds a majority stake), the ongoing resuscitation has already led to increased supply of LPFO (Low Pour Fuel Oil) to its Sokoto Cement Plant. In addition to this, the Federal Government has further reduced the price of LFPO from around N77.94 per litre to N51.38 per litre in an apparent move to boost local industries.
CCNN, the makers of Sokoto Cement, is the only operating cement plant in the whole of North-West Nigeria and the single largest employer of labour in Sokoto state. However, the company’s effort have been slowed down over the years due to infrastructural challenges including erratic supply of fuel oil to the plant.
“With the recent appointment of the new GMD for NNPC by the Buhari-led government, we are however beginning to see the impact of improved production at the refineries. Last year, CCNN spent about N7billion on fuel oil alone. However, this welcome development will bring about improved, cost-effective production and efficient capacity utilization at Sokoto Cement which should further engender a sustainable pricing regime that will make cement more affordable in the North Western region in the medium term.”
Abdulsamad Rabiu further added that the moves of the current administration to ensure optimal operations at the Nation’s refineries will rejuvenate moribund industries. “For instance, access to cheaper fuels associated with increased production at the refineries is already stimulating the rejuvenation of key industries including textiles and manufacturing in the North. I believe this effect will be replicated across the nation where certain industries are dependent on the refineries as their primary sources of fuel,” Rabiu said.
On the new line currently being added by BUA Group in Sokoto, Rabiu commented that at $300million, the project is currently the single largest private investment in the North West region. He said BUA Cement was committed to ensuring the timely completion of the project in 2016 which is expected to add an additional 1.5million tonnes per annum to CCNN’s current 500,000tpa capacity as part of the group’s Cement Strategy for Nigeria. Although, the additional line will come with Coal as the primary source of fuel, LPFO will still be used as a backup fuel at the plant.
“To further consolidate our position as a major player, we will continue to pursue our mid-term cement expansion strategy vigorously and are currently exploring opportunities for further expansion especially in Nigeria” added Rabiu.
Abdulsamad also spoke on BUA Group’s social responsibility initiatives especially in CCNN’s primary area of operation in Sokoto State in which the company has invested immensely in various health, education, capacity development, employment generation and water supply project for its surrounding communities.
“For us at BUA group, CSR is an integral part of our business especially in areas where we operate. We are very conscious of responsible and sustainable business practices as it relates to environmental management, responsible sourcing, working conditions, education and health and, we do our best to ensure we work hand-in-hand with all stakeholders within the communities.”
BUA Group is one of Nigeria’s largest Foods and Infrastructure conglomerates with significant investments in various sectors of the economy including Cement, Sugar, Steel, Flour & Pasta, Edible Oils, Housing, and Port Operations. With the completion of Sokoto Line II by 2016 and Obu Second line by 2017 as well as its 1.5million tpa BUA Cement I floating terminal, the Group’s total cement production is expected to hit over 10million tonnes per annum by 2017.