The Central Bank of Nigeria (CBN), as part of its agenda to strengthen the manufacturing sector, has tasked multinational manufacturing companies in the country to consider setting up their manufacturing lines in Nigeria.

Godwin Emefiele, the CBN Governor made this statement during the contract signing ceremony between Procter & Gamble (P&G) and Colori Cosmetics Nigeria in Lagos.

The contract which is a move towards stimulating localization of production was birth from CBN’s policy-driven efforts to encourage improved production of goods that can be produced locally.

READ: Central Bank of Nigeria; resuscitating an ailing economy

The Governor of Nigeria’s apex bank who was the host at the contract signing ceremony encouraged other multinational firms to consider the opportunities that Nigeria offers and begin to set up their manufacturing lines in Nigeria, noting that this move will help in creating jobs and wealth for the growing population.

Emefiele who also spoke on the economic stabilization policies implemented by the CBN to set Nigeria on the path of recovery explained that the manufacturing sector will continue to be a key focus of the efforts by the monetary and fiscal authorities towards driving the recovery of the Nigerian economy.

READ: Automotive policy will make Nigeria Africa’s manufacturing hub – FG

Why this matters

• The investment deal which is worth $35 million is set to present the well-diversified consumer goods giant with the opportunity to commence the domestic production of Oral-B toothpaste in Nigeria.
• The contract between P&G and Colori Cosmetics Nigeria will facilitate the local production of Oral-B products by P&G in Nigeria, as part of the commitment by the CBN to strengthen the manufacturing sector.
• This move is expected to make Nigeria a competitive producer of the product, and also cut the importation of toothpaste from the US, where P&G is based.

The second Kalambaina Cement Line of 3 million MTPA in Sokoto State, owned by one of the leading Cement manufacturing company, BUA Cement Plc, looks set to be commissioned in July this year.

In line with BUA Cement’s strategic midterm expansion programme, the cement plant will help to effectively scale up cement production, with the look to meet current and projected demand, as the Nigerian market is still greatly underserved.

Images of the plant surfaced on social media platform -Twitter- suggesting that the official launching of the plant could be imminent.

READ: BUA Cement set to establish ultramodern 3million cement plant, 50mw power plant in Adamawa

Why this matters

• The cement line when commissioned will add to the robust infrastructure of the cement tiger, and expand its installed capacity from 8 million MTPA to 11 million MTPA.
• This should help in cementing BUA’s position as the second-largest cement producer in terms of installed capacity, ahead of Lafarge Africa with 10.5 million MTPA capacity.
• This move will also help to unlock Pan-African opportunities for the company across the African Continent.

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What you should know

• Recall that the billionaire, Abdul Samad Rabiu, the founder of the BUA Group revealed in his statement at 2020 Institute of Directors Dinner, that BUA’s cement line of 3mmt per annum in Sokoto is expected to be commissioned in the middle of 2021.
• BUA has also signed a contract with the Chinese construction company, Sinoma CBMI, for the construction of additional three production lines, with an installed capacity of 3 million metric tonnes per annum each.
• According to Abdul Samad Rabiu, the 3 cement plants in Sokoto, Edo and Adamawa which will be constructed at the cost of $1.050billion, will be completed by the end of 2022.
• When completed, the total installed capacity of BUA Cement is expected to expand to 20 million MTPA.

BUA Cement at the moment is the third most capitalized company on the Nigerian Stock Exchange with a market capitalization in excess of N2.5 trillion behind MTN and Dangote cement.