BUA Cement, a subsidiary of BUA Group, yesterday evening announced a reduction in the price of their cement from N5000/6000 to N3,500 per bag effective from today.
In a statement signed by the management of the company, they said they were reducing the prices in a bid to spur development in the building materials and infrastructure sectors.
In recent times, the price of cement has seen a significant increase from N3, 500 to as high as N6000 in some parts of the country, forcing up construction and manufacturing prices.
“As per the commitment made to reduce prices and following a periodic review of our operations for efficiency upon the completion of our new lines at the end of the year, the management of BUA Cement Pic, wishes to announce and inform our esteemed customers, stakeholders and the public that effective today, October 2, 2023, we have decided to bring the price reduction forward. As a result, BUA Cement will now be sold at ex-factory price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants,” the statement read.
The firm said upon completion of ongoing construction of its new plants which would increase production volumes to 17 million metric tonnes per annum, they intend to review the prices further in line with their earlier pronouncements by the first quarter of next year.
The statement went on to add that all pending, undelivered orders which had been paid for at the old prices will be reviewed downwards to N3500 per bag in line with the new pricing from today and all licensed dealers should ensure that end-users benefit from this reduction in ex-factory prices as they will monitor field sales to ensure compliance.
It would be recalled that on September 15th 2023, Chairperson, BUA Cement Plc, Alhaji Abdulsamad Rabiu, shocked Nigerians, after meeting with President Bola Ahmed Tinubu and vowed that he will reduce the price of his cement brand to about N3,000 by January 2024. This news was met with skepticism and caution by many then as the company had made a similar promise two years ago and didn’t see it through.
Just last month also, the Cement Producers Association of Nigeria, had urged the Federal Government to conclude the backward integration policy on cement production initiated by the late Yar’adua administration, adding that cement availability and affordability cannot be achieved in Nigeria, if the Government fails to break “the chain of monopoly and favouritisms.”
Speaking through the National Chairman, Prince David Iweta and National Secretary Chief Reagan Ufomba, the Association warned then that there would be dire consequences if the supply end is not addressed properly, arguing that failure to do so will worsen Nigerians’ hope that the price of cement would come down.
Nigerians have applauded this announcement already, saying it was significant, despite the situation of the economy as well as production costs. They added that they hoped it would help crash the cost of building and construction and force other competitors to also review their prices downwards as well. They urged the cement company to put more efforts in market penetration especially outside major cities.
Nigeria’s biggest cement producer and distributor, Dangote Cement, currently retails for N5, 300 and above in many areas around the country and this announcement would most likely trigger a pricing war in the cement industry over the next few weeks as many end users will likely turn to the cheaper BUA Cement for their construction needs.