Dangote starts construction of Nigeria’s first concrete road

Dangote Industries (DIL), one of Africa’s largest industrial conglomerates, has formed a joint venture with Brazilian contractor Andrade Gutierrez to work on a number of concrete roads in Nigeria, some of which will be new roads and some reconstructions of existing routes.

A cement manufacturer, Dangote believes concrete roads are better for Nigeria, while research has pointed to lower lifetime costs compared to asphalt.  The longest of the roads is a 24km stretch between the towns of Itori and Ibese to the north of Lagos...

At a signing ceremony held at the weekend (11 June), Aliko Dangote, the founder of DIL, said he hoped the move would signal greater use of concrete in Nigeria.  He said: “Obviously, this calls for a review of our existing method of building roads in Nigeria.

Roads play an important role in the social and economic development of any nation.”  Other projects include a new road between Obajana and Kabba in Kogi State, central Nigeria and the Ajora–Apapa urban motorway in central Lagos.  One of DIL’s subsidiaries is Dangote Cement, the largest producer in Nigeria with a market capitalisation of $20bn.

The company has a cement production plant in the outskirts of Obajana.  The government awarded the company a tax waiver as an incentive to build. It is favouring the use of concrete because about 80% of the materials used for asphalt road construction are imported. 

The government estimates that about $1bn is lost each year as a result of bad roads.  Concrete is recognised as a more durable road building material than asphalt, however it is seldom used because of the higher capital costs associated with it.

However, a recent report by India’s Ministry of Rural Development found that the whole-life cost of concrete is as much as 25% cheaper than asphalt.  Aliko Dongote, who is reckoned to be the richest man in Africa, began his diversified conglomerate as a cement business

No comments

Powered by Blogger.