- As ACCI allays fears over FG’s $5.5b Eurobond external loan
A new 1.5 million metric tonnes per annum (MMTPA) Dangote Cement Plant built at a cost of $300million was commissioned in Mfila, in the Republic of the Congo yesterday.
The plant was commission by President Denis Sassou N’Guesso, with the Federal Government of Nigeria represented at the event by Dr. Kayode Fayemi, Minister of Solid Minerals, and Dr. Okechukwu Enelamah, Minister of Industry, Trade and Investment.
In his speech at the event, President of Dangote Group, Alh. Alike Dangote, said at the end of May 2017, total production capacity of Dangote Cement across Africa stood at 45.8 million MT per annum, adding that the company aims to be among the top ten producers of cement in the world by 2020.
He noted that the new plant is the fifth commissioned by the company across Africa in the last two years. He stated: “The Dangote Cement Plant that we are commissioning today, is the largest cement plant Congo-Brazzaville in terms of installed production capacity.
With the commissioning of the plant, we become also the largest integrated cement producer in the CEMAC region comprising Cameroon, Chad, Central African Republic (CAR), Equatorial Guinea, Gabon, and now, the Republic of the Congo. “It is our hope that our plant will help to reduce and eventually replace cement imports into Congo-Brazzaville and these other countries.
More importantly, it is also our hope that this project we are commissioning today, will further cement the existing cordial ties between our two countries—the Republic of the Congo and Nigeria.
“As we all know, cement is one of the basic inputs in infrastructure development. For Africa, a continent, which faces severe infrastructural deficits, the need for local self-sufficiency in cement production cannot be over-emphasised.”
In the meantime, the Abuja Chamber of Commerce and Industry (ACCI), has urged Nigerians to worry less about the Federal Government’s $5.5billion Eurobond loan recently approved by the National Assembly, even as it condemned the use of Malaysian contractors to help with the Economic Recovery and Growth Plan (ERGP).
The Director General, ACCI, Chijioke Ekechukwu, who expressed the feelings of the Chamber, said there was nothing wrong with the Eurobond loan, since government explained it was targeted at infrastructural projects, and refinancing of maturing domestic debt with less expensive long-term external debt.
Ekechukwu, who said this Wednesday, while speaking to journalists on ‘The State of The Economy’, in Abuja, maintained that many other countries had borrowed far above what Nigeria is taking from the Eurobond.
He said: “We shouldn’t be shy to borrow money to fund the budget deficit, infrastructural development and local projects. There is no problem with that and Nigerians should not worry.
“I’m optimistic that this external borrowing will not suffer the country’s economy, as being speculated in some quarters. I am saying so because government has come out to say it will be used mostly for infrastructure development of the country.
“During the last Economic Summit Group gathering, I said that government should stop borrowing locally, so as to reduce the pressure on rates. If government can source for funds from outside the system, it will bring the mix that would balance out what we are suffering today.”
But on the recent decision by the Federal Government to hire four Malaysians to help in fixing the economy, he said, such actions should be discouraged, as Nigeria has competent hands that can successfully navigate the country out of the economic quagmire.
He noted that the contractors do not have the full grasp of the political and economic environment prevailing in the country, and will at best; only succeed in scratching the surface of the problem.
He advocated for the right people, who would not be engrossed in partisanship, overriding personal interest, and nepotism to be appointed in the economic think tank.
Commenting on the commercial banks and their inability to lend at low rates to investors, the DG noted that sectoral borrowing should be targeted in order to add value to manufacturing, distribution of goods and services.
Vanguard with additional report from Guardian NG
