Nigerian Cement Company
The Nigerian Cement Company (Nigercem) is a Nigerian concern established on December 20, 1957 to produce cement. It was the first cement company in the country to manufacture cement from integrated sources with the exception of gypsum which was imported. The first cement clinker was an un-integrated mill at Port Harcourt that made use of imported bags, gypsum and clinkers and set a mill to mix, grind and bag the cement.
In the 1960s, Nigercem was one of the most successful manufacturing ventures to be set up in Nigeria.
The company was funded with a 75% capital contribution from the federal and Eastern regional government. Its total capital was made up of 1.75 million pounds in equity and 500,000 pounds in debentures. The mill's initial production was a total of 100,000 tons a year, it was later increased to 230,000 tons (1960) and in 1965, 450,000 tons. The company made use of inputs from the limestone deposits in the Nkalagu seam, coal from Enugu, and power generated from the Oji River station. A rail line from Port Harcout to Kaduna links the factory with the Northern region, the second major cement market for the factory after the nearby Eastern region. At onset, the company was granted a tariff protection which allowed it to earn a competitive advantage against its competitors, the cement importers and later the un-integrated plant at Port Harcourt. Under the Industrial development Income Tax Relief Ordinance, the company paid no taxes for the first five years, the retained income was later used to finance the plant's expansion in the early 1960s.
Lately, the Eastern Bulkcem Company is the core investor in the firm after it bought majority shares for about 1.4 billion naira as part of the privatization scheme in Nigeria starting in year 2000. Though, it was the intention of the Federal Government to dispose 10% of its shares in the firm since the 1990s.