CBN Governor – Nigeria has Incurred No Dollar Expenditure on Cement Importation

Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN) has disclosed that the Nigerian government has incurred no dollar expenditure on Cement importation in the last seven years.

Governor Emefiele made this statement during the inception of the new BUA cement plant in Sokoto, where the President Muhammadu Buhari was present on Thursday 27 January 2022.

According to the CBN governor, the apex bank will provide essential support to the manufacturing sector in Nigeria in order to reduce prices of building materials to make housing affordable in a long run.

Data released from the National Bureau of Statistics (NBS) reveals that in Quarter three (Q3) 2021, Nigeria’s manufacturing sector recorded a real GDP growth of 4.29% (year-on-year), an improvement from the corresponding quarter of 2020 and the preceding quarter of Q2 2021 by 5.80% and 0.80%, respectively.

Emefiele further explained that the CBN’s policy to regulate the flow of  foreign exchange for the importation of items (43) including cement, has improved production capacity in the cement industry, after the CBN survey revealed that most restricted items can be produced in Nigeria.

Reports from the CBN suggests that Nigeria cement industry  has doubled production output, with cement companies producing 60 million metric tonnes in 2021 compared to 30 million toones produced in 2014,representing a 100% increase in 7 years.

The CBN governor congratulated the BUA cement company on its plant expansion with no debt profile, stating that private sector activities and initiatives are important in curbing unemployment and increasing economic activities.

He said macro economic growth in Nigeria can be sustained through similar investments and assured industrialists that the Central Bank of Nigeria are ready to collaborate and ensure development of the manufacturing sector.

 “For those who are willing to invest in new greenfield or existing brownfield projects, the CBN will provide all the support needed, both in naira and dollars needed to import plants and equipment to actualise these investments,”