On the current production capacity

On the current production capacity, demand and supply of the product in Nigeria, Salako said: “Last year, total production in the country by local manufacturers was 10.1 million metric tonnes. Total supply into the Nigerian market was 15.8 million metric tonnes.

“Total supply measures consumption in a way, but not totally, because the total supply included what we had as inventory as at the end of the year. What this signifies is that the total supply was slightly below the actual demand; and the reason for that was that in that year, we ended that year with a high volume of inventory, both in terms of finished products and semi-finished.

“Therefore, in a year where you have excess products as inventory — unsold inventory, what that means is that there is no unsupplied demand in 2010.

“If 2010 was like that, and consumption was roughly at about 15.8 million, what that means is that demand is less than 15 million. Let us take demand to be 15 million for 2010.

“Over the past six years, the yearly average growth in demand has been in the region of six per cent. However, let us be more realistic and assume a 10 per cent increase in demand last year, therefore, if last year it was 15 million and you add 10 per cent to that, it would be in the region of 16.5 million, approximately 17 million metric tonnes. So, if you ask me the current demand for cement in the country in 2011, due to developments in the economy, such as elections among others, I will say it is 17 million metric tonnes.

“Talking about supply in the year 2011, as at when we were closing 2010, the estimate CMAN was planning to produce locally, our projection was that we will be able to produce about 15 million to 17 million metric tonnes this year. Now, events have proved us slightly wrong because we are already in May.