Effective Monday, October 2, the management of BUA Cement Plc will slash the price of its product to N3,500 per bag as earlier promised.
The price of BUA Cement was N5,500 per bag and the Chairman, of the company, Abdul Samad Rabiu, after a meeting with President Bola Tinubu in mid-September disclosed plans to cut the price.
The company in a statement said, “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 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 17 million metric tonnes per annum, BUA Cement intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.”
The company added that “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.”
Rabiu had said the price crash is part of his company’s contribution to supporting the efforts of the Federal Government to stabilise the prices of essential commodities.
The increasing price of cement has sparked criticism of the players in the industry including Dangote Cement, Lafarge Cement BUA and others. Builders have argued for reduced prices following the local sourcing of the key ingredients for the products. Raw materials for cement production include limestone, marl, calcite, shale and gypsum which are available in huge quantities in the country.