By Abdul-Kadir Abdullah
In a strategic effort towards achieving economic prosperity in Edo State aligning with His Excellency, Governor Monday Okpebholo's vision, the Edo State Investment Promotion Office (ESIPO) recently conducted a site visit and held crucial business discussions with the management of BUA Cement PLC at their expansive facility in Okpella, Edo State.
The meeting aimed to gain firsthand insight into the company's operational dynamics and address challenges encountered since its acquisition of Bendel Cement and the establishment of its modern plant in 2015.
The ESIPO team led by the Managing Director, Hon. Amen Odigie, was received by BUA Cement's Plant Director, Engr. Ahmed Idris, and other key management personnel.
Hon. Amen Odigie, in his address during the facility visit, reiterated the Edo State government's commitment to fostering a conducive environment for businesses like BUA Cement to thrive. He emphasized that ESIPO's visit was part of a proactive aftercare service aimed at understanding the company's needs and exploring avenues for further collaboration and expansion.
According to him: "Your presence and continued investment in Edo State are of significant importance to our economic growth and development, BUA Cement stands as a testament to the potential and opportunities that this state offers, and we deeply appreciate your contribution to job creation, infrastructure development, and overall prosperity."
"His Excellency, Governor Monday Okpebholo is committed to ensuring a friendly business environment in Edo State "
Engr. Ahmed Idris, the plant Director provided an overview of the facility, highlighting its impressive 9 million metric tons total production capacity across three operational lines, with a fourth currently under construction.
He noted that the Edo State plant is approximately 20% larger than BUA Cement's Sokoto operations, underscoring the strategic importance of the state to the company's overall output.
During the discussions, BUA Cement emphasized its commitment to cooperation with the State government, local authorities, and community leaders.
However, several key operational challenges requiring state intervention were brought to the forefront. These included persistent issues with security, particularly the regular incidents of cable theft and vandalism that disrupt operations and have tragically resulted in fatalities. The company also raised concerns regarding multiple and often unpredictable taxation bills from various state ministries and agencies, appealing for a harmonized tax regime to ensure predictability and ease of management.
Despite these challenges, BUA Cement highlighted its significant contributions to the local communities. These include substantial investments in infrastructure development, such as the construction of a 3.7km concrete road, and various social initiatives. The company has awarded scholarships to hundreds of students from host communities and has provided essential amenities like transformers, streetlights, boreholes, and school renovations. Notably, a significant 60% of BUA Cement's 1,013 direct employees and a substantial portion of its 5,000-10,000 indirect workforce are drawn from the immediate local environment, demonstrating its role as a major employer in the region.
In response to economic pressures, BUA Cement has made significant investments in power generation and logistics independence. The company generates 160 megawatts of power through its two on-site power plants, mitigating reliance on the national grid. Furthermore, its operation of approximately 1,200 trucks ensures logistical autonomy in transporting its products.
Discussions also touched upon the current price of cement, with BUA Cement arguing that prevailing prices reflect the current economic realities and minimal profit margins, particularly given the dollar-denominated gas prices from NNPC, which have significantly increased production costs following the naira devaluation.
Several action items were identified during the meeting. These include ESIPO working with relevant government agencies including Etsako East Local Government Council represented in the meeting to address the pressing security concerns, particularly the issue of cable theft. The possibility of exploring partnerships to enhance BUA Cement's market share was also discussed. Furthermore, ESIPO committed to working with the Edo State Internal Revenue Service (EIRS) reviewing and streamlining the state's tax regime to create a more predictable and manageable business environment for businesses in the state.
The visit concluded with a renewed commitment from both ESIPO and BUA Cement to maintain open communication and work collaboratively towards ensuring the continued success and growth of BUA Cement in Edo State, recognizing its vital role in the state's economic landscape.
