An estimate according to Renaissance Capital research on the ongoing projects in the cement industry in the country indicated that production will likely reach 50 million metric tons per annum (mnt pa) in 2017.

The report stated that production capacity in 2013 is28 million metric tons, surpassing South Africa’s production of 18.3 million, owing to the successful implementation of Backward Integration Project (BIP) that came with aggressive investment programmes.

It also stated that, aside government commitment to infrastructure development, housing remain a major demand driver of the cement sub-sector following the country’s rapid rate of urbanization and estimate by United Nations Organisation (UNO) put Nigeria’s urbanization rate to 51 percent in 2012, implying that over 80 million people live in the cities.

Renaissance Capital research also revealed that because the issuing of import licences also cased in 2012, lending further support to local manufacturers even as the market grew ahead of historic average, the country became the third-largest cement producer in the Middle-East/Africa region, overtaking South Africa to become the largest producer in sub-Saharan Africa

Moreover, cement consumption is said to have remained strong in the country, growing from 14.8mnt in 2009 to 18.3mnt in 2012 and Renaissance Capital experts following this strong growth, has tip consumption to continue growing over the medium term at a compound annual growth rate (CAGR) of 10 percent until 2020.