Nigercem: Shame of Ndigbo

The current situation of Nigeria Cement Company (Nigercem), located in Nkalagu, present day Ebonyi state, is tear-evoking. Nigercem, which commenced production in 1958, was Nigeria’s premier cement factory. Nigercem reached its peak when it recorded production of over 480,000 tones of cement in 1975.

Then, through its foreign technical partners and interference-free management, Nigercem maintained optimum production as to satisfy local and even international demands. Nigercem generated enough revenues to run itself, including payment of staff salaries and other emoluments.

Following creation of additional states in 1976, Nigerian government reduced its shares and control from 42.9 to 10 percent, for the southeast states to have majority control in the company. Before now, Nigercem had blossomed to a point of establishing auxiliary factories such as bagging company, printing outfit, fish farms, hospital and so on.

Unfortunately, the federal government’s hand-over of the running of Nigercem to the southeast (Ndigbo) marked the beginning of the demise of the premier cement company. At this point, management of the outfit became characterized by undue influence and interference by various owner (state) governments. Merit gave way to inducement and appointment of friends and political cronies who lacked the requisite knowledge in high managerial positions in the company.
Nigercem was to sink deeper into the abyss during the second and third republics when the southeast civilian governments evolved a policy that the Chief Executive of the company should be from the host state while the board of directors should be appointed from the remaining owner states. This particular policy literally served as a death knell on the cement company, as offices were filled on the basis of state of origin rather than on merit.

The eventual privatization of Nigercem in 2002 by governors of the southeast states did not help matters. (The governors included Orji Uzor Kalu, Abia; Chinwoke Mbadinuju, Anambra; Sam Egwu, Ebonyi; Chimaroke Nnamani, Enugu and Achike Udenwa, Imo)

By the manner of its privatization, the governors ceded Nigercem to Eastern Bulkcem, manufacturers of Port-Harcourt, Rivers state based Eagle Cement as majority shareholders. Unfortunately, Bulkcem snubbed all the stipulated conditions and guide lines towards reviving the cement company. A major default of Bulkcem was its refusal to offset arrears of salaries and emoluments owed to the workers before the privatization.

It has to be emphasized that it was for selfish reasons that the southeast governors settled for Bulkcem in preference to other perceived better investors, believed to possess funds and needed technical partners to turn the ailing company around.

Egwu, host governor, reportedly secured 20 percent share in Eastern Bulkcem. Udenwa of Imo was a one time Accountant of the cement company (Eastern Bulkcem). The firm, it was even learnt, assisted to install Udenwa governor in 1999. And kalu of Abia single-handedly appointed chairman of the Privatization Committee of Nigercem. And all these were in addition to ‘kickbacks’ the Bulkcem dispatched to the governors to facilitate the ceding of Nigercem to it.

Although the present day government of Chief Martin Elechi in Ebonyi state is restive over Eastern Bulkcem’s ruination of Nigercem, the state is hamstrung by the privatization agreement and ratio, which is that while Bulkcem owns 90 percent shares, Ebonyi, as the host state, controls only ten percent. This situation makes Eastern Bulkcem the core investor that is supposed to call the shots in the revival of Nigercem.

It is nauseating that rather than turn Nigercem around, Eastern Bulkcem is presently busy dismantling and carting away several equipment of the factory. And Eastern Bulkcem may not stop at its current plundering of Nigercem, as it has been reported that it is about selling off its (Nigercem) liaison office in Enugu.

KlinReports dare say- What a shame! What a shame that Ndigbo presided over the death of ‘Nigercem Nkalagu’, one of their pride of yester years.

Is it not heart-renting that one time Igbo governors sold away the only viable cement industry of their people? An industry which, if run well, could provide employment opportunities the teeming unemployed Igbo youths and other Nigerians? Today, Eastern Bulkcem is ravaging Nigercem, yet Ndigbo, including their incumbent governors, pretend not to know that this amounts to a rape on their heritage.

KlinReports is of the opinion that Ndigbo rally round and cancel the privatization of Nigercem, and take it over. This is, especially, because Eastern Bulkcem has defaulted on virtually all conditions under which Nigercem was ceded to it. The take over is long overdue, and must be now!