Nigeria presently has about 1Billion MT of gypsum spread over many states. Gypsum are used in the production of Plaster of Paris, Cement and Chalk.  Nigeria's domestic production of Plaster Of Paris(POP) is trending upwards, but still lags behind the rapidly growing demand from the building industry. This supply deficit resulted in the increase in the price of POP within ten months, reaching a high N50,000.00 per ton  in  2014.

This profile envisages the establishment of a plant for production of Plaster of Paris with a capacity of 600 Tons per annum.

The present demand for the proposed product is estimated at 180,000Tons per annum. The demand is expected to reach at 320,000 by the year 2022.

The plant will create employment opportunities for 12 persons. The total investment requirement is estimated at about N13.005million, out of which N4.0 million is required for plant and machinery.

The project is financially viable with the following profitability indices:

Average Return on Assets                             43.9%

 Average Return on Equity                             75.9%

 Average Return on Sales                              29.6%

 Average Debt service coverage                        8.0

 Average proportion of Debt                           0.205

 Average proportion of Equity                         0.795

 Average Debt/Equity Ratio                           20.5:79.5

 Average Operating ratio                                46.8%

 Average current ratio                                       3.73

 UnDiscounted Pay back period (yr)                4.0

 Net present Value (N000)                             14359.4

 Internal Rate of Return                                   49.0%

 Profitability Index                                            0.9

 Break Even point(Based on year1)(Sales)     7956.7

 Fractional capacity utilization                         0.421

I.                 PRODUCT DESCRIPTION AND APPLICATION

Plaster of Paris which is calcium sulphate with half molecule of water of crystallization (CaSo4.½ H₂O) and hygroscopic characteristics obtained by duly calcined the raw material i.e. Gypsum (CaSo4 2H₂O). It possesses outstanding property of setting and subsequent hardening when mixed with water.

Plaster of Paris is extensively used in ceramic industry for preparation models and moulds. It is also used as main raw material in the manufacture of toys & statues, chalk crayons, gypsum plaster boards, and decorative picture frames besides wide range of applications in the interior decoration of buildings and other establishments

A.     MARKET STUDY

The current population of Nigeria estimated at over one hundred and seventy million growing at a rate of 3.5% per annum has a shortfall in the supply of housing units estimated to be between 16-17million, has a growing and sustainable market for cement and plaster of paris. With an economic growth rate of 5.7% per annum in the past five years, Nigeria has witnessed a growth in the number of middle class families with the associated need to have home of their own, thereby further deepening the POP market in Nigeria. Nigeria presently has about 1Billion MT of gypsum spread over many states. Gypsum are used in the production of Plaster of Paris, Cement and Chalk. 

·        RAW & AUXILIARY MATERIALS

About 1 billion tons of gypsum deposits are spread over a number of states in the country, according to the Nigerian Investment Promotion Council (NIPC). Gypsum is currently found in Yobe, Adamawa, Bayelsa, Anambra, and many other states. Most of the known     important gypsum resources are found in the sedimentary  basin of north-eastern  Nigeria, especially in Yobe, Gombe and Bauchi States. There is an urgent need for detailed technical and economic feasibility   and viability studies to be carried out on all the occurrences as well as detailed geological   mapping of favorable areas

Table 2 Locations of Gypsum Resources in Nigeria

Table3:  Locality,   State,  Estimated Reserve      

Source: NMC Report