Alhaji Abdulsamad Rabiu, Chairman, BUA Group |
It would be recalled that Alhaji Dangote connived with Olusegun Obasanjo, during his regime and used both Nigerian Customs Services and EFCC
to destabilize the operations of BUA Group so that Dangote would enjoy monopoly
of cement production and sale in Nigeria.
In a statement made
available to Tectono
Business Review, Alhaji Rabiu stated that the rehabilitation effort had
already led to increased supply of Low
Pour Fuel Oil (LPFO) to his Sokoto
cement plant, therefore leading to efficient capacity utilisation in the
plant.
According to him, the
Federal Government has further reduced the price of LFPO from around N77.94 to
N51.38 per litre in order to boost local industries. He added that the
company’s effort had been slowed down over the years due to infrastructural
challenges including erratic supply of fuel oil to the plant.
Alhaji Rabiu said: “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.
“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.”
Alhaji Rabiu also spoke on
the new line currently being added by BUA Group in Sokoto. He said that at
$300million, the project is currently the single largest private investment in
the North West region, adding that BUA Cement was committed to ensuring the
timely completion of the project in2016 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.
He said that although, the
additional line would come with coal as the primary source of fuel, LPFO would
still be used as a backup fuel at the plant.
He added: “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.”
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