By Benjamin Ameh
Fuels serve as a major part of our energy requirement. They are the concentrated store of energy, which is related as heat when fuels are burnt. Fuels are combustible substances of organic origin or artificially obtained substances, which are used for producing heat and energy. Low Pour Fuel Oil, Wood, diesel, coal .domestic gas, petrol and biogas are some of the examples of fuels.
Fuels play an important role in our everyday life because they are used in homes, transport and industry for providing energy.
The Chairman of BUA Group, Abdulsamad Rabiu has hailed the federal government (FG)for the resuscitating the local refineries, as results of restructured of Nigerian National Petroleum Corporation saying it has led to increased supply of Low Pour Fuel Oil (LPFO) to many industries.
Rabiu said “With the recent appointment of the new Group Managing Director for Nigerian National Petroleum Corporation (NNPC) by the President Muhammadu Buhari-led government’s we are however beginning to see the impact of improved production at the refineries. Last year, Cement Company of Northern Nigeria spent about N7billion on fuel oil alone. However, this welcome development will bring about improved, cost-effective production and efficient capacity utilization at Sokoto Cement which should further engender a sustainable pricing regime that will make cement more affordable in the North Western region in the medium term.”
He added that the moves of the current administration to ensure optimal operations at the nation’s refineries will rejuvenate moribund industries.
“For instance, access to cheaper fuels associated with increased production at the refineries is already stimulating the rejuvenation of key industries including textiles and manufacturing in the North. I believe this effect will be replicated across the nation where certain industries are dependent on the refineries as their primary sources of fuel,” Rabiu added.
Rabiu, who serves as double Chairman both of BUA Group and Cement Company of Northern Nigeria (CCNN), one of the listed companies on the Nigerian Stock Exchange (NSE), reiterated that the resuscitation of the refineries has particularly improved LPFO supply to the company located at Sokoto Cement plant which BUA holds a majority stake in it.
He also disclosed that the Sokoto Cement plant is the only operating cement plant in the North-west region and the company opted to be the single largest employer of labour in Sokoto state inclusive. However, the company’s efforts have been slowed down over the years due to infrastructural challenges including erratic supply of fuel oil to the plant.
On the new line currently being added by BUA Group in Sokoto, Rabiu commented that at $300million, the project is currently the single largest private investment in the North-west region. BUA Cement was committed to ensuring the timely completion of the project in 2016 which is expected to add an additional 1.5million tonnes per annum to CCNN’s current 500,000tpa capacity as part of the group’s Cement Strategy for Nigeria, he said.
Although, the additional line will come with Coal as the primary source of fuel, LPFO will still be used as a backup fuel at the plant.
“To further consolidate our position as a major player, we will continue to pursue our mid-term cement expansion strategy vigorously and are currently exploring opportunities for further expansion especially in Nigeria” he noted.
Chairman pointed out that “BUA Group’s social responsibility initiatives especially in CCNN’s primary area of operation in Sokoto State in which the company has invested immensely in various health, education, capacity development, employment generation and water supply project for its surrounding communities is highly commended.
“For us at BUA group, Rabiu said, CSR is an integral part of our business especially in areas where we operate. We are very conscious of responsible and sustainable business practices as it relates to environmental management, responsible sourcing, working conditions, education and health and, we do our best to ensure we work hand-in-hand with all stakeholders within the communities.
The management of BUA led by the chairman signed a USD600million contract with China’s leading Cement manufacturing supplier, SINOMA CBMI to commence the construction of a second production line. This landmark agreement which was signed at the SINOMA CBMI offices in China will further bolster BUA Group’s share of the cement market in Nigeria to over 20% market share by the time the expansion is completed.
Speaking at the signing ceremony which held at the SINOMA CBMI Headquarters in China, recently, Abdulsamad Rabiu, Executive Chairman of BUA Group said that the new line was part of the Group’s organic growth strategy for its cement arm, BUA Cement. “Given their proven track record and vast expertise in deploying cement plants across the world, we are confident in SINOMA’s ability to deliver a world-class second line for our Obu Cement Plant as well as meet our stringent environmental, safety, quality and technical requirements for our plants and products.
Apart of cement producer, BUA Group is also one of Nigeria’s largest Foods and Infrastructure conglomerates with significant investments in various sectors of the economy including Cement, Sugar, Steel, Flour & Pasta, Edible Oils, Housing, and Port Operations. It’s cement arm, BUA Cement, currently operates factories in Obu and Okpella, Edo State Nigeria and also in Sokoto through its majority shareholding in CCNN
CCNN posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.
From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.
