Why prices of ceramic tiles continue to rise
Eight out of the nine ceramic companies in Nigeria are manufacturing tiles below installed capacity, a document from the Raw Materials Research Development Council (RMRDC) has shown.
This, coupled with the massive importation of tiles, experts say, are responsible for the continuous rise in the prices of ceramic products across the country.
According to the RMRDC document, the rise is being aggravated by the rising demand, particularly in the real estate sector, as the building and construction industry is the second fastest growing industry in Nigeria.
The Director General
of
RMRDC, Professor Ibrahim Hussaini Doko, noted that the combined capacity of local companies was 114 million m3 in 2018 and that most of them were operating below installed capacity due to the shortage of professionals in ceramic manufacturing, coupled with the dearth of infrastructure, particularly electricity and dependence on imported machinery.
Prof Doko said, “As a result, there is about 11 million MT shortage in the demand and supply gap for ceramic products in Nigeria.’’
Due to this, he said the importation of ceramic products had affected the development and market of locally produced ceramic products as many customers preferred to buy foreign products.
He explained that, “Ceramic product dealers now prefer importation of ceramic products to establishing local ceramic industries. Consequently, the country imported ceramic products worth over $800m in 2018 and $900 in 2019. The importation of the products is expected to reach $2.1bn by 2025.”
In view of the problems militating against local production of ceramic products, Prof Doko said the council had been involved in promoting programmes and projects aimed at encouraging production of high quality ceramic products locally.
He said the major raw material for manufacturing was kaolin, which he noted Nigeria had in abundance, adding that the council had ensured the development, production and establishment of processing plants in some parts of the country.
The first project, he said, was the Pharmaceutical Grade Kaolin Plant at Kankara in Katsina State in 1997, and the second the Industrial Grade Kaolin Plant at Gwarzo in Kano State in 1998.
He further said, “The council collaborated with the Niger State Government for the establishment of catalytic model factory at Kagara which was commissioned and the council later divested. Also, the council’s initiatives have led to the emergence of other talc processing SMEs within Niger and Kogi states that supply processed talc to user industries.
This has led to Nigeria being selfsufficient in technical grade talc, and savings of more than N5bn annually from importation of technical grade talc.’’
According to the DG, the council is collaborating with the Projects Development Agency (PRODA), Enugu, and the Federal Institute of Industrial Research (FIIRO), Oshodi, Lagos, to promote the development of other types of ceramic processing plants for the production of products such as tiles, porcelain and China wares.
He said, “The major areas of the council’s interest are refractory bricks and electrical porcelain insulator production,” and added that, “Feasibility reports have been produced on the projects.”