New Cement Firm to Begin Operations in Kebbi, Partners Sign Deal For Three Million Tonnes Plant
- The Kebbi State government and a cement company have signed a Memorandum of Understanding (MoU) for a new cement plant in the state
- The new deal will see MSM Cement Limited build a three million tonnes capacity plant in the state
- The government revealed that the new plant will boost job creation and the state’s economic environment
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Kebbi State government has inked a deal with MSM Cement Limited to establish a factory with a three million tonnes per annum capacity.
The News Agency of Nigeria (NAN) revealed that the agreement was sealed on Friday, March 8, 2025, by Kebbi State Governor, Nasir Idris, and MSM Cement Chairman, Mu’azzam Mairawani.
Source: Getty Images
The new cement plant to create 45,000 jobs
The governor reiterated his government’s commitment to create a conducive business environment for the cement plant to operate.
He revealed that the project is an essential economic opportunity for the state, highlighting its potential for job creation.
According to Idris, apart from reducing youth unemployment, the project will employ direct and indirect jobs of about 45,000 people.
The governor said the Nigerian government will also benefit from the project.
The MSM Cement chairman described the deal as a major milestone for the firm, Nigeria’s cement industry and Kebbi’s economy.
Mairawani revealed that the company will build a modern cement factory in the state, using new technology, with the name, MSM Kebbi Cement.
“The decision is not only for the availability of limestone deposits in Kebbi but for the welcoming attitude and business-friendly reception of the people of Kebbi and most encouraging, the good heart of the Kebbi governor,” Mairawani said.
FG says the new plant aligns with its plans
The Minister of Finance, Wale Edun, revealed that the plant’s location near Nigeria’s border positions it for export under the African Continental Free Trade Agreement (AfCFTA).
According to the minister, the plant is expected to create 20,000 direct jobs and 25,000 indirect jobs.
Edun said the project key to President Bola Tinubu’s commitment, policy and strategy for economic stability, allowing the private sector to invest and drive investment to drive productivity.
Nigeria has become a haven for cement investment as more companies have announced their intention to set up manufacturing plants.
New cement firms enter Nigeria
Legit.ng earlier reported that Chinese cement giants such as China Cement and Huaxin are making inroads into Africa to sustain growth.
With declining domestic demands, these cement firms are aggressively expanding by acquiring stakes in existing cement companies and establishing new plants across the continent.
Two Chinese cement firms enter Africa
The growth strategy is meant to harness Africa’s growing infrastructure needs and boost global market presence.
Due to this, Chinese cement makers are intensifying competition with big players such as Dangote and BUA to reshape the landscape in Africa’s cement sector and drive economic opportunities.
Experts have said that Nigeria’s cement industry is tightly regulated and dominated mostly by three players, hence these foreign firms furrow into the sector by buying shares in existing firms.
Huaxin acquires Lafarge Africa
Legit.ng previously reported that Holcim AG will sell its 83.8% share in Lafarge Africa to Huaxin Cement Co., a Chinese cement company, in a $1 billion deal.
A statement by the group on Sunday, December 1, 2024, disclosed that the deal will be finalised in 2025 subject to regulatory approval.
Source: Getty Images
The deal will see Lagarge’s market capitalisation on the Nigerian Exchange Limited (NGX) double if the new owners do not delist from the NGX.
BUA, Dangote, other cement companies raise prices
Legit.ng earlier reported Nigerian cement makers defied troubles in 2024 to post stunning profits, buoyed by price hikes.
A breakdown of Dangote, BUA, and Lafarge’s unaudited financials reveals that the firms’ profits after tax rose to N677.48 billion in 2024, representing a 17.6% increase from N675 billion due to price hikes implemented in response to increasing operational costs and inflationary pressures.
Dangote Cement posted the highest profit at N503.4 billion, followed by Lafarge at N100.1 billion, and BUA at N73 billion.
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Source: Legit.ng
