Nigeria's Ebonyi State, recently unveiled a $604 million budget proposal for 2026, one of the key plans of which is to invest $102 million in the construction of a state-owned cement plant. Governor Envifrou said most of the budget would be spent on infrastructure and economic growth projects, far exceeding the average of about $60 million in previous years, mainly due to the abolition of fuel subsidies by the federal government to free up more fiscal space for the state government.
The new cement plant is seen as a successor to the defunct NIGERCEM plant, with an innovative self-liquidating financing model. Enviru made it clear that this is the first time that the state has included a borrowing project in its budget, and that it will realize the closed-loop operation of "borrowing money to build, repaying loans with income" through self-financing. Specifically, the state government plans to borrow 150 billion Nigerian naira ( $103 million) to start the project, and the proceeds generated by the plant will be directly used to repay the loan.
At present, the geological assessment is in full swing, and the expert team is surveying throughout the state to find the best site with sufficient limestone reserves to ensure the resource base and long-term sustainability of the project. The governor stressed that the new plant would make full use of the abundant local limestone and other raw materials, rather than trying to repair the old facilities.
As the largest budget in the history of Ebonyi State, about 84% of fiscal expenditure in 2026 will be invested in infrastructure construction. This decision marks a key step in the state's independent development of industrial capacity, aiming to meet local construction needs and create a stable source of income for the state government through the establishment of a complete cement industry chain.
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