The chairman of BUA Cement, Abdul Samad Rabiu has announced a reduction in the price of cement, lowering it to N3,500 per bag effective October 2, 2023.
Rabiu made this known during the company's 8th Annual General Meeting in Abuja, where he expressed his intention to make cement more affordable for Nigerians amidst ongoing economic challenges.
Despite the initial price drop, Rabiu revealed that many dealers exploited this opportunity, reselling the cement at inflated prices, sometimes reaching N7,000 to N8,000 per bag.
He noted that BUA Cement had sold over a million tons at the reduced price before realizing the extent of the markup by dealers. Rabiu emphasized that the company could not sustain the low price, as it was not feasible to subsidize dealers who were profiting excessively from the situation.
The increase in cement prices has been attributed to several factors, including the devaluation of the naira, fluctuations in foreign exchange rates, and rising operational costs related to diesel and spare parts.
Rabiu pointed out that while BUA Cement aimed to support the Nigerian government’s efforts to lower commodity prices, other manufacturers in the sector have not followed suit, leaving BUA in a challenging position.
Rabiu's promise to maintain the N3,500 price point as BUA's strategy to mprove its production capacity, which is expected to reach 17 million metric tons per annum upon the completion of new plants.
He stated that the company would continue to monitor the market and adjust prices accordingly, with a further review anticipated in the first quarter of 2024.
