5 Blue Chip Companies Supported by Nigerian Business Environment

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Conveyors in a stone quarry

CEM REPORT | The Ministry of Information and Culture has credited the formation and flourishing of business in the country to the enabling condition provided by the Federal Government.

The ministry said the conducive business environment created by the present administration has breed more than five indigenous blue chips companies which stable, profitable and long-lasting.

The Minister of Information and Culture, Alhaji Lai Mohammed said this during a media tour of the five-million tonnes per annum (mtpa) BUA Cement Factory in Sokoto.

The Minister in company of more than 30 journalists drawn from the print, electronic and social media according to News Agency of Nigeria (NAN), mentioned the blue chips businesses to include; the BUA Cement Factory being inspected and the 2.5 billion dollar Dangote Fertilizer Plant expected to produce three million tonnes of Urea every year

Others are the Dangote 650,000 barrels per day oil refinery due to open later in the year, the Lekki Deep Sea Port, one of the most modern sea ports in West Africa and the 5,000 barrels per day Modular Refinery in Ibigwe, Imo.

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He added that these blue chips companies were beneficiaries of the Presidential Enabling Business Environment Council (PEBEC).

“All these projects are beneficiaries of the conducive business environment created by the administration of President Muhammadu Buhari, under the auspices of the Presidential Enabling Business Environment Council (PEBEC).

“PEBEC has implemented more than 150 reforms since 2016, as well as the Companies and Allied Matters Act, 2020 (CAMA 2020) – Nigeria’s most significant business legislation in three decades,’’

Business Enabler, PEBEC
Yemi Osibanjo, Chairman PEBEC

The Presidential Enabling Business Environment Council (PEBEC) was set up in July 2016 by President Muhammadu Buhari, to remove bureaucratic constraints to doing business in Nigeria, and make the country a progressively easier place to start and grow a business.

The Council is an inter-Governmental and inter-Ministerial one which is chaired by His Excellency, Vice President Yemi Osinbajo, SAN, and comprises 10 ministers, the Head of Civil Service of the Federation, Governor of the Central Bank of Nigeria, representatives of Lagos & Kano State governments, the National Assembly and the private sector.

The Enabling Business Environment Secretariat (EBES) is the operational arm of PEBEC, assisting the MDAs to implement the reform agenda of the PEBEC.

The Minister said the ban on importation of cement helped BUA cement record a 300 percent increase in production, adding that the pioneer status granted to the company also boosted its production strength.

“Thanks to these conditions, BUA Cement has recorded a 300 per cent increase in production between 2015 and now.

“That’s from 3.5 million Tonnes per annum to 11 million tonnes per annum.

He added that BUA cement will export to neighboring countries easily owing to its location.

“Because of its location, which is just 100 kilometers to Niger Republic, the plant exports to Niger and Burkina Faso, earning Nigeria much needed forex,’’

He added that majority of the cement production were for local consumption while only excess were exported, especially during the raining season.

He further said the cement factory produced all year round, loading between 250 and 270 trailers per day, while the plant had 700 trucks for distribution of its product adding that the plant is the irst in the country to be powered by Liquefied Gas.

“This is one of the most modern cement plans anywhere.

“The plant is the first cement plant in Nigeria to use Liquefied Natural Gas to generate 50MW of power, thereby, replacing coal in its kiln.

“This has made the plant environmentally friendly to also curb climate change,’’

Furthermore the Minister said, the plant contributed to the decline of unemployment as it bears 10,000 workers, with 443 permanent members of staff, while others ancillary work jobs.

He commended the Chairman of BUA Cement, Alhaji Abdul-Samad Rabiu and his entire team for their undying belief in Nigeria.

Corroborating the minister’s position, the Managing Director of BUA Cement, Mr Yusuf Binji said the factory, which foundation was laid by Late Sir Ahmadu Bello, started production in 1967 with installed capacity of 100,000 metric tonnes per annum.

He added that the company present installed capacity had grown to 11 million tonnes per annum resulting from the conducive business environment created by federal government.

This is a 300 per cent increase over the last seven years and it is by no means a small increase.”

According to Binji, BUA Cement is one of the biggest companies listed on the Nigeria Stock Exchange with a market capitalisation of N2.4 trillion as at March 2022.

“We have invested close to two billion dollars in this Sokoto factory alone and today, we are the second largest cement manufacturer in Nigeria with about 25 per cent market sharing,’’

He, on behalf of the chairman of the company and other management staff thanked the Buhari administration for its vision and the minister for the visit.

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