Nigeria’s Minster of Trade and Investment, Olusegun Aganga has said Nigeria has saved N300 billion ($1.8 billion) since the government encouraged the production of cement locally.

According to the minister,  this is as a result of increased production of cement since 2012. He added that the country has also been able to save over N4.2 trillion ($27 billion) since 2005 following reduction in the importation of goods.

Aganga who said this after a meeting which discussed the modalities on how private sector players would take over the government’s shares in the Onigbola Cement Factory, a joint venture between Nigeria and Benin Republic, stated that importation of cement into the country decreased to about 43 percent in 2012.

The Minister stated that the production of cement in the country has been able to increase the country’s foreign reserves since it stopped issuing licences for the importation of cement in 2012 and was able to create about two million jobs for youths in the country.

According to Aganga, “The importation of cement came down for example because no importation at all in 2012.  It saved us N300 billion ($1.8 million). Textile and vegetable oil imports have also fallen by at least 56 and 52 percent, respectively.”

“So, the supply is there and that is what that policy has achieved since 2002. In 2002 we were producing two million metric tones of cement; today it is 28.6 million metric tonne. For the first time in 2012, the Federal Government did not issue any import licence for cement in this country.”

He further explained that, “In terms of trade numbers, Nigeria’s import also fell by 43 percent, indicating a dramatic fall compared to previous years since 2005. What it meant is that import came down from about N9.5 trillion ($60 billion) or thereabout to about N5.3 trillion ($34 billion). What that means is that we have saved about N4.2 trillion ($27 billion) that has gone to increase our external reserves. So, when you see reserve building up, that is one of the reasons.”

He faulted reports of alleged shortfall in cement supply, saying if the cement factories are working in full capacity, they are capable of producing about 28 million tonnes of cement.

“That is much higher than the demand as of today. And in fact for the first time ever, we are exporting cement outside Nigeria. So that is a major achievement”.

“So when you see reserves building up, that is one of the reasons. And when you look at why has importation come down, you look at some products. If you look at cement for example, no importation at all and it saved us more than N300 billion”

“So, we are in a position we are today for the first time, we have falling imports which means that we are not importing most of the things we consume in the country. That is what industrialisation is supposed to achieve. We have started that process.”

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