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BUA Reduces Cement Price To N3,500 Per Bag

October 3, 2023
in Business
BUA Reduces Cement Price To N3,500 Per Bag
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BUA Reduces Cement Price To N3,500 Per Bag

BUA Group has announced a reduction of ex-factory cement price to N3,500 per bag. The current ex-factory price is N4,650, while it is being sold.

The current ex-factory price is N4,650, while it is being sold at N5,000 in the market.

In a statement on Sunday, the company announced that the new price will take effect from Monday, October 2, 2023.

The statement, titled ‘Reduce in Prices of BUA Cement’, reads: “We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.

“As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward. As a result, BUA Cement would now be sold at an ex-factory* price of N3,500 per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.

“Upon completion of the ongoing construction of our new plants, which would increase our production volumes to 17million metric tons per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.

“NOTE: all pending, undelivered orders which had been paid for at the old prices will be reviewed downwards to N3500/bag in line with the new pricing from October 2, 2023. Our licensed dealers are also enjoined to ensure that end-users benefit from this reduction in ex-factory prices as we will monitor field sales to ensure compliance.”

With the crash to N3,500, the market price is expected to be between N3,850 and N4,000, according to an Abuja-based cement dealer.

The dealer said the reduction is significant enough to be felt by the consumers as long as the manufacturer keeps to its promise and the dealers respect the new pricing regime.

Last month, when he visited President Bola Tinubu at Aso Rock, Chairman of BUA Group, Abdul-Samad Rabiu, told State House Correspondents that his company was set to reduce the price of cement.

Rabiu added that to support the efforts of the government to crash the price of the product, the company would add two new plants at the end of the year or early next year.

According to him, the plants to be commissioned by Tinubu, would bring BUA Cement’s total capacity to 17 million metric tons.

He said: “Let me thank His Excellency Mr. President for graciously receiving me today. I came to intimate His Excellency on the affairs of our cement business. We have two new lines of 3 million tons each that we will be commissioned by the end of the year.

“So I came to intimate His Excellency and also to explain to him the efforts we’re making in trying to support again the efforts of the government in bringing down the price of cement.

“With this 6 million tons that are commissioning by the end of the year. And by the way, His Excellency has agreed to come and commission the plants, sometimes in December or early January next year.

“So I explained to him and we want to support the efforts of the government in bringing down the price of cement. By the time these lines are commissioned, BUA Cement will to be producing about 17 million tons per annum. And with that, we intend to bring down the price of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag.

“And we can only do that because we’re producing cement locally. 80% of the raw materials that we’re using to produce cement are in Nigeria. We want to support the government efforts in ensuring that the price of these commodities are brought down.”

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