- 1957, the Nigerian Cement Company codenamed Nigercem was established in Nkalagu, Ebonyi State
- Few years later, the factory collapsed due largely to alleged mismanagement by successive governments
- FG, state make move to revitalize the factory after unsuccessful privatization in 1999
For the people of Ebonyi state, South East of the country, Nigercem has become another reference point of a failed neglected regional government project.
Every year, or rather month, the sight of the dilapidated multibillion naira cement factory continues to be a source of worry and indignation for the teeming population of the geopolitical zone who say this could have been a huge source of employment for them and revenue for the government alike.
In the beginning
Investigation by WITHIN NIGERIA showed that Nigerian Cement Company Plc., Nkalagu otherwise known as NIGERCEM, is the premier cement firm in Nigeria and the West African sub-region.
Further checks revealed that, the gigantic cement factory suffered great dislocation and subsequent repairs and restoration by the defunct East Central State Government some decades ago.
Unfortunately, this viable and productive industry went down as a result of many factors ranging from bad management and total neglect on the part of the government of the five states that make up the South-east geo-political zone namely; Imo, Abia, Anambra, Enugu and Ebonyi; that lay claim to the ownership of the industry.
Additionally, the failure of the factory, or rather the owners of the factory to attract investors and technical partners with the core competency to manage the once viable company that was famed for its product, ‘Nkalagu cement,’ also contributed to the abandonment of the company over the years.
However, WITHIN NIGERIA gathered that the last time the company produced cement for the public was said to be around 2000 before it went comatose as a result of different factors, ranging from alleged mismanagement to change of baton in the factory which no doubt bedeviled.
Privatisation effort
In any case, due to the economic importance of the pioneer cement industry, the Federal Government slated it for early privatization in 1999 through the Bureau of Public Enterprises (BPE). Consequently, the company was listed in the first schedule of the enterprises to be privatized by the BPE. The bid was advertised and finally privatised.
At the privatisation stage, the Eastern Bulcem Cement Limited emerged as the only bidder and winner during the bidding round as the core investor despite the fact that there were other international cement manufacturing giants around. Following this successful bid and closure of the deal, Eastern Bulkcem Limited subsequently bought the assets and liabilities of the company.
However, it only paid for the assets of the company but failed to pay for its liabilities leading to the disengagement of thousands of its formers employees and nonpayment of arrears of their salaries.
Since 1999 till date, it is unfortunate to state that the company that emerged as winner in the bidding round has failed to commence production after several years of acquisition of the company.
Eastern Bulkcem claimed that it could not take full possession of the cement industry until the entire share certificate of the company was released to it. According to the management of Eastern Bulkcem, it needed the Share Certificates to go to the bank, whereas the rivatizedon laws and guidelines require the core investor to have enough technical competence and the financial muscle to pay competitive bidding price (assets and liability) and add value to the enterprise so rivatized.
Signing of Deeds/Terms of Settlement
WITHIN NIGERIA gathered that more than one and half decades later, precisely on June 3, 2016, the signing of Deed of Understanding/Terms of Settlement for the revitalisation of the company, between Nigerian Cement Company Limited (NIGERCEM), representative of the four host communities of Nkalagu, Nkalaha, Umuhuali, Amaeze and Ebonyi State government was took place at the International Conference Centre, Abakaliki.
It was witnessed by representatives of the four communities, Ebonyi State government and the core investor, Ibeto Company Limited.
Ebonyi people react to the situation
In any case, reacting to the ugly situation, the state Publicity Secretary of Peoples Democratic Party, PDP, Sir Chika Nwoba who hails from the host community expressed his displeasure over the condition of the factory.
In a chat with our reporter, Sir Nwoba stated that the factory if properly fixed will be a source of employment for over 10,000 persons in the south east zone.
Taking our reporter down memory lane, he narrated that “in 1954, limestone was discovered in today’s Ebonyi State. 1957, the Nigerian Cement Company codenamed Nigercem was established in Nkalagu, Ebonyi State. It was owned by the eastern government at the time and the federal government of Nigeria. The discovery was during the colonial years.
“The four communities that the limestone was discovered in are: Nkalagu, Nkalaha, Amaezu & Umuhuali. Nkalagu is said to have a little proportion of it, yet, it’s named as the centre, hence the name Nigercem, Nkalagu.”
Explaining further, Sir Nwoba said that “Nigercem experienced management crisis and the company folded in the year 2000. Workers in their thousands were disengaged and production brought to a halt till date. The primary cause of the folding was the inability of the company to pay workers and comply with the demands of the host communities.
“Protests and counterprotests rocked the company which snowballed into its ultimate closure. The company that acquired the management was the Eastern Bulkcem Ltd. It later relinquished it to the Ibeto Group in an unconventional manner which led to litigation.
“The former Gov. Elechi barred Ibeto Group from entering the site, citing the subsisting court case surrounding the acquisition and ownership of the facility.
“In 2016, during David Umahi administration, the four host communities (listed above) entered into an agreement with the Ebonyi State Government and the Ibeto Group so as to enable resumption of production of cement. This led to the termination of the court case. Chief Cletus Ibeto of the Ibeto Group demanded from the Ebonyi State Government the following: construction of a flyover at the Nkalagu Junction, construction of the stretch of road from the Ehamufu (Enugu) border down to the Nkalagu Junction, other major feeder roads surrounding the facility, security, water, etc, all of which the Government provided.
“It was later realized that the Ibeto Group didn’t have the money needed to hit the ground running and that’s why reconstruction works haven’t begun at the Nigercem till date as the amount needed to import machines, install them, build structures, reconnect conduit channels, and make it even better than it was runs in billions of dollars.
“There will be counterpart funding from the Ebonyi State Government, but that’s not what’s withholding resumption of productions at the company in essence. Military officers had long been deployed to the facility to stop illegal entry and exploitation of the remnants of the technological installations in the company as it was discovered that thieves were already looting the machines and metals in the facility.
“The defunct Nigercem had in the premises of the company banks, primary and secondary school blocks, hospital, park, recreational facilities, restaurants, market, staff quarters, among others. It was a full-blown community such that workers needed not to look for anything outside there. The current governor of Anambra State, Prof. Charles Soludo was born and raised there, among others who are now prominent members of the society.
“When fixed and put to maximum use, the company is capable of engaging at least 10,000 people into direct and indirect labour force.”
FG intervenes
WITHIN NIGERIA findings equally showed that recently, the Minister of Works and former Governor of Ebonyi State, David Umahi, has restated that the administration of President Bola Tinubu has created an enabling environment for business to strive in the country.
In a media parley in his country home, Uburu, Umahi reiterated that he had just spoken to two manufacturers, stating that in the coming weeks, they were expected in Ebonyi State. “I want to commend Ebonyi State Governor Francis Nwifuru, for his efforts in revamping NIGERCEM Cement Company Nkalagu, said Umahi, adding: “I encourage him, we should not continue to have NIGERCEM moribund, I was a governor for eight years, it could not take off, former Governor Elechi was in office eight years, the company could not take off.”
Going down memory lane, the Minister for Works noted: “It was the first cement factory in the whole country, I will encourage the government that within the next six months, let us know the direction the company is going.
“Governor Nwifuru is a younger person and is more daring; let the shareholders expand their tentacles.” Umahi then urged Chief Cletus Ibeto, who is a major shareholder in NIGERCEM, to see to the fast tracking of the operations by the cement company, stressing that Ebonyi people were beginning to be very restive about the state of the company, which is yet to come back on stream.
Ebonyi government intervenes
In an interview, the Ebonyi State Commissioner for Commerce and Industry, Mr Oguzor Offia Nwali, said that NIGERCEM remains a big industry that is of concern to the state in particular and south-east in general.
He said that the state government was concerned about the dwindling fortunes of the company and was desirous in turning the company around. He said: “It is one company that Governor Francis Nwifuru is interested in, would make sure it starts working to be able to employ our people.
“It was a concept our forefathers had, almost everybody’s grandfather or father worked in NIGERCEM, and they trained most of us from the proceeds of NIGERCEM.” The Commissioner further stated: “There are investors coming into the state, the state government is willing to welcome investors, provide a level playing ground.
“Hopefully, within a short period of time, things will start happening in the company, we will be able to have an investor that is interested in NIGERCEM.” Anxious to get the cement company back on track, Nwali disclosed that the government had been interfacing with Chief Cletus Ibeto, who lamented that he needs millions of dollars to get the company working again.
State govt looks up to FG
The Commissioner disclosed that a delegation from the Federal Ministry of Solid Mineral Development was in the state recently on a courtesy visit to Governor Nwifuru. Nwali stated that Nwifuru complained bitterly about the renewal of licenses to individuals that lack the technical competence to revamp the company.
‘‘I’m sure that if the delegation returns back to Abuja, they will be able to tell the minister that a lot needs to be done. “Ordinarily, what we should be asking the Ministry of Solid Mineral Development is why are they continuously renewing licenses to companies that are not ready to revamp the industry?”
He said that the state government would draw the attention of the Federal Government to this development in order for it to know that the core-investor was not serious and should not hold Ebonyi to ransom.
“The current investor does not have the financial muscle to do it alone, he needs other investors and they are coming,” said the commissioner.
Benefits
According to the Commissioner, the revival of NIGERCEM and the commencement of full production would ultimately provide full time employment for the unemployed youths that are roaming the streets.
He further stated that this will ultimately lead to a drastic reduction in the poverty level of the citizenry. Besides, when NIGERCEM becomes operational, it would generate the much needed foreign currency for both the federal and state governments and boost the Gross Domestic Product (GDP) of the country.
The cement company is believed to have an abundant limestone reserve deposit that can last for more than 100 years. The question agitating the minds of the people borders on the inability of the core investor, Eastern Bulcem Company Limited, to commence production.
This is against the backdrop of the laws establishing privatisation, which stipulates that a core investor must be technically competent and have the financial capability to pay for the assets and liabilities of the company.
However, at the moment, the cement factory has become an abode for snakes, rats and other dangerous reptiles.
Nkalagu, the host community
WITHIN NIGERIA investigation showed that Nkalagu is one of the notable towns in Ishielu Local Government Area of Ebonyi State. It is famed for having a large deposit of limestone, which was one of the factors that gave birth to the Nigerian Cement Company (NIGERCEM).
Nkalagu is the first path into Ebonyi State through the Enugu-Abakaliki Express Road. It is the headquarters of Ishielu West Development Centre, with five major villages, namely; Ishiagu, Uwule, Imeoha, Amanvu and Akiyi.
The village head in Nkalagu is also known as Onyishi. Each village has its own Onyishi, which must be the eldest son of the town. The major market in the town is known as Nkwo Nkalagu, situated along Enugu-Abakaliki Express Road.
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