The Cross River state government has signed an agreement with a German firm to begin the construction of a cement factory The government signed an MoU with Cross Cement International and Infrastructure Limited to begin the construction of the cement plantThe governor assured that the state has provided a supportive environment and incentives to encourage business growth
Henzodaily.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology and the Stock Market.
The Cross River State Government has reached a deal with a German company, Cross Cement International and Infrastructure Limited, to build a cement plant with a capacity of 5.7 million tons per year.
The Secretary to the State Government (SSG), Prof. Anthony Owan Enoh, signed the agreement on behalf of the state, while the company’s chairman, Mr. Dotimi Anthony, and Vice Chairman, Mr. Martins Schaefer, signed for the firm.
The Cross River state government assured that it has provided a supportive environment and incentives to encourage business growth.
Photo Credit: Bet_Noire
Source: Getty Images
In recent times, the prices of various brands of cement have skyrocketed nationwide, mostly due to the high cost of production and Nigeria’s foreign exchange challenges.
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Once completed, this will be the second cement factory in the state, which has abundant limestone resources.
Cross River eyes economic growth with cement plant
At the signing event on Wednesday in Calabar, held at the temporary office of the Secretary to the State Government, Governor Otu—represented by Prof. Enoh—said the agreement resulted from the state’s Investment Summit held in Calabar a few months ago.
He noted that Cross River has a mapped-out area rich in minerals, including about 25 km of limestone deposits available for both local and foreign investors interested in the sector.
The governor assured that the state has created favourable conditions and incentives to support business growth.
He also assured the state government’s full support for the project and emphasized the need for a clear action plan to help track progress.
Anthony stated that the new cement plant will be the largest in West Africa, with a production capacity of 12,000 tons per day and 5.7 million tons per year.
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He added that the company plans to begin mobilization in March 2025, and once completed, the project will boost local cement production, increasing Nigeria’s capacity to 41.25 million tons per year and Africa’s total capacity to 57.6 million tons per year.
In a similar move, the Bauchi state government signed a Memorandum of Understanding with Resident Cement Factory Limited to establish a $1.5 billion cement firm in the state.
Katsina billionaire begins cement production
In a related development, Henzodaily.ng reported that Dahiru Mangal, a businessman from Katsina, has completed a $1.5 billion cement plant in Moba, Kogi State, and has started production.
Mangal Cement Company Limited has officially launched operations, entering the market to compete with major players like Dangote, BUA, and Lafarge.
The plant is expected to produce around 200 cement trucks daily, which experts believe will generate both direct and indirect employment opportunities.
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Initially estimated to cost $600 million, the project’s expenses rose to $1.5 billion due to the depreciation of the naira.
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Source: Henzodaily.ng