The Cement Armada of 1975

Sometimes in 1970, there was the six days war between Israel and the Arabs, this war led to quadrupling increase in oil price over night. All of a sudden Nigeria became rich with a lot of money to the extent that Federal government of Nigeria in her magnanimity ordered the immediate effect implementation increase of salary for all the civil servants(Udoji salary awards,  1974). All civil servants' salary were doubled. Of course with the new found wealth a lot of people wanted build their own houses but there was severe cement shortage in the country.

The demand for cement and other building materials was astronomical, under pressure from the military the government committed itself to a massive Barrack building program and thus ordered 16 million metric tonnes of cement for the building of Army Barracks alone, amounting to 80% of the country’s total cement import.

Although all Nigerian Ports combined could only handle 6.5 million tonnes of general cargo per annum, the government had expected ALL 16 million metric tonnes for the building of barracks to be delivered within twelve months!

By April 1975 about 105 ships, were waiting on the high seas for berthing facilities. By June the number had climbed to 455, of which 300 vessels were carrying cement.  Forced to wait an average of 180 days before berthing, freight surcharges of 30 % to 100 % were being paid per ship with the effect of raising import prices.   At the same time Nigerian agricultural exports suffered.   It has been estimated that the Government paid $ 4100 per day in demurrage for each cement vessel delayed over ten days.

It was said at the time the cement shipped to lagos could build the whole of lagos 3 times. The cost of importing the cement at the time could build 20 cement factories in Nigeria.

This is not the end of the saga but the beginning of an end
... *To be continued*