For an average Nigerian who has either experienced or been told about collateral damage and enormity of wanton destruction that ravaged the North, especially the North-East as a result of routine insurgent attacks, subsequent hope and belief that re-birth is underway for its economy and social life might be in doubt.
But, with Ashaka Cement in Gombe, the only cement plant in the North-Eastern zone of the country, succour and lifeline are seemed to be in sight for Gombe State’s economy as well as the other five states’ since AshakaCem, a subsidiary of the French multinational company, Lafarge Africa plc, has pledged to resuscitate the economy by leading foreign investors to the region.
Despite the huge losses suffered by AshakaCem in 2014 financial year as a result of the insurgent attacks, which according Suleiman Yahaya, chairman of the Board, led to a loss of whopping N2.5 billion when its facilities were shut down; over 500 workers fled the plant, forcing a scale down of operations, AshakaCem still believed in economic resuscitation of the North-East.
For a spirit of patriotism and belief in economic re-birth of the North and the entire country, the management of AshakaCem still believes in injecting additional fund, running to over $800 million for plant expansion programme in spite of “two insurgency attacks suffered by the company in November and December 2014, greatly affected the operation of the company.”
Speaking at a recent annual general meeting of AshakaCem held in Abuja where N4.566 billion was declared as profit with a 7.1 percent increment on dividend for 2014 financial year, the chairman disclosed that the firm would not only stimulate the economy with an additional investment, but would also resuscitate the economy by attracting foreign investors.
He assured president-elect, Muhammadu Buhari and Governor Ibrahim Dankwambo of Gombe State as well as the entire North-East that the cement plant would, in the short run, create jobs and other interesting socio-economic opportunities for Gombe and North-East communities and in the long run, resuscitate the economy by bringing foreign investors to the zone.
He said: “We attribute the success of AGM to support of the community, the government and the people of Gombe State, our host state, for ensuring that in spite of the insurgency attacks, they rallied round Ashaka and its people to ensure that we sustain production in the most difficult circumstance and this has been translated in this successful annual general meeting.
“Moving forward, we want to reassure the incoming president-elect, Muhammadu Buhari, that this AGM will send a good signal to the international community that North-east is ready to receive foreign investment and we will lead the process. AshakaCem will rally support with the Buhari administration for the reconstruction of the Northeast economy and Nigeria in general.
“We will continue to provide leadership and innovative ideas especially in the area of infrastructure and agriculture. Lafarge-Ashaka, will lead the process of ensuring that the expansion programme for AshakaCem plc, takes place within the lifespan of this Board and by 2018, we shall be commissioning the largest expansion programme with an investment in excess of $800 million.
“This will create new jobs and significant opportunities for the community and people of the North East, so that it will serve as a stimulant and rider to other investment we believe shall occur; the reconstruction, rehabilitation, re-development of the North Eastern economy. We shall be leading in this exercise.
“We have received substantial support from the community, from our shareholders, and we shall ensure that we execute our expansion programme, our community development programme, shareholder value and wealth creation programme, in a sustainable manner moving forward.
“We are now on the planning stages and putting together the enabling infrastructure like strengthening the roads, the bridges, to the plant; reworking the development programme, establishing our resource and controlling our resource base like the limestone, coal deposit; ensuring that we secure these things and the government of Gombe and Yobe State have given us that support.
“We will conclude that process and go back to Lafarge Africa and Lafarge Global, and there is a big merger taking place at the Global level and we are going to be a distant number one. We will go back to them and tell them we are ready and hopefully within the next six to nine months, we should be seeing our contractors, the Chinese people and others moving in that direction.
“The whole community will be back to life and we urge and the people of Gombe State to continue to support this initiative so that we can ensure a seamless of the most difficult expansion programme that will happen and I think Nigeria will give us a lot of support to ensure that we achieve this objective and it will serve as a major stimulant and rider to other government initiatives.”
While commenting on the possible financial plans on ground should incoming, Muhammadu Buhari’s government decide to reduce price of cement, Suleiman Yahaya expressed readiness to possible reduction in the prices of cement to further provide massive growth in property industry, saying that government needed to help investment grow through actions and policies
“Well, with the discovery of coal deposits and other significant mineral resources, we are positioned to respond to any decision of government on pricing strategy.
“But let me give you another advantage, what the government said they will do, is to also address some of the bottlenecks of the economy, including energy cost, transportation cost and what have you, those are the key drivers of cost for cement,” he said.
Also at the AGM where the appointments of Suleiman Yahaya were ratified as Board of directors chairman and Anders Kristiansson, Rabiu Umar and Edith Oneucheka ratified as non executive directors by the stakeholders, Leonard Palka, managing director, said the firm had been participating in the economic growth and development of Nigeria, particularly in the North East.
Palka, who revealed that the firm recorded 84.5 percent increase in the profit before tax, said: “I am happy to hear many voices that our stakeholders appreciate our results we have reached in 2014. Regardless of attacks of insurgents, a difficult year, we were able to reach this result thanks to very hard work of whole Ashaka team.
“Cost efficiency, good performance, employee motivation and staff engagement were at best in the year 2014,This has made me very happy and I believe that now with peace coming, we will gradually rebuild our capacity.”
Although, the Federal Government has designated the plant, a National Strategic Asset with about 400 security personnel providing security to prevent attacks on the firm, a Northern investor who spoke with BusinessDay said “the incoming government should do more on security and infrastructure incentives in the entire North if more investors must come and invest in the North.”
RAZAQ AYINLA
