NGN150bn Loan Planned for New Ebonyi Cement Plant

Wedoany.com Report-Nov. 26, The Ebonyi State Government in Nigeria has included a provision to borrow NGN 150 billion (approximately US$102.95 million) in its proposed 2026 budget to fund the construction of a new state-owned cement plant, Governor Francis Nwifuru announced.

The announcement was made during a Citizens' Budget Input event organised by the Ministry of Budget and Planning in Abakaliki, the state capital. The governor explained that the new facility will replace previous plans to rehabilitate the former Nigercem plant and will fully utilise the state's abundant limestone and other raw material resources.

"This is the first time we put borrowing in our budget," he said. "We have put a project we will borrow money to fund, while the project would generate money to pay back the loan. That project is a brand new cement factory owned by the state government. We will borrow up to NGN150bn for a start."

The proposed 2026 budget totals NGN 884 billion, representing the largest annual budget in Ebonyi State's history. Approximately 84 percent of the total expenditure is allocated to capital projects, with major emphasis on infrastructure development.

The new cement plant is intended to serve as a revenue-generating asset that will enable the state to service and repay the loan through operational income. By establishing modern production capacity, the project aims to support local construction needs, create employment opportunities, and contribute to economic growth in the state.

Further details on the plant's location, production capacity, and construction timeline are expected to be provided as the 2026 budget moves through the approval process at the Ebonyi State House of Assembly. The initiative reflects the administration’s focus on strategic investments that combine public funding with long-term financial sustainability.