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Nigeria’s
cement industry is gearing up for a sharp increase in output in the
coming years, as government and private sector infrastructure spending
rises, the country’s industry body said on Friday.

The Cement
Manufacturers’ Association of Nigeria (CMAN) said production was set to
rise to 20 million metric tonnes by 2012, almost double the level
expected this year and a figure which could turn the country from a net
importer to an exporter.

A shortage of
reliable and timely data in sub-Saharan Africa’s second-biggest
economy, particularly on industrial output, means analysts rely on
proxies such as cement production and demand to paint a broader picture
of its economic health.

“Next year, we
expect demand to be 16 million tonnes and production to be a bit above
18 million,” James Salako, CMAN Executive Secretary, told Reuters.

“In 2012 we will be
producing over 20 million. We have under construction 14 million metric
tonnes which will all be completed by next year,” he said.

Total cement
production in 2010 is expected to be around 11 million tonnes, below
demand of around 15 million, but up on last year’s production of around
8.1 million, Salako said.

Africa’s most
populous nation is in dire need of upgrading its infrastructure and
providing new roads and housing to support a rapidly growing population
of 140 million people.

Its commercial hub
and biggest city, Lagos, is in the process of completing its first toll
road, a 50 billion naira expressway which is the country’s first public
private infrastructure project, while a spate of new hotels and
apartment blocks have also sprung up in recent months.

Shortfalls in cement production are covered by imports from Asia, but the local industry is keen to close the gap.

Export outlets

CMAN chairman
Joseph Makoju said local firms were already exploring export outlets in
readiness for a rapid increase in production which will take supply
beyond Nigeria’s needs.

Nigeria’s largest
cement manufacturer Dangote Cement, part of a conglomerate owned by
Nigeria’s richest man Aliko Dangote, has said it aims to reduce the
country’s import dependence.

The firm controls
more than half of the Nigerian cement market with its wholly-owned
Obajana and Ibese cement plants, a controlling stake in Benue Cement,
its role as a joint venture partner in Unicem Cement and four import
terminals.

Makoju said Dangote
planned to double capacity at his Obajana plant to 10 million tonnes
before the end of next year while adding an additional one million
tonnes to Benue Cement and 6 million tonnes in Ogun.

Lafarge Cement
Wapco, a subsidiary of the world’s biggest cement maker Lafarge, is
increasing its capacity by 2.2 million tonnes, Makoju said.

The managing
director of Ashaka Cement, in which Lafarge also has a stake, told
Reuters last year the Nigerian market could absorb annual supply of 20
million tonnes.

He said Ashaka was
planning to expand its capacity to 1 million tonnes from 850,000 tonnes
within two years and was considering adding further lines.