BUA Chairman, AbdulSamad Rabiu Announces Plan to Drop Cement Price in Nigeria

• The chairman of BUA Cement Plc has said that cement prices will reduce after the completion of the company's two new factories
• Abdulsamad Rabiu noted that the new plants would result in a six million-tonne combined capacity for the company
• He noted that things like insurance and freight are part of what causes the price of cement to go up

Abdulsamad Rabiu, the chairman of BUA Cement Plc has expressed confidence that a drop in cement prices would result from the completion of the company's two new factories by the end of the year.

Rabiu said this during a press conference that was held alongside the company's seventh annual general meeting on Thursday, August 31, 2023, in Abuja.

Recall that Legit.ng earlier reported that Dangote Cement Plc clarified that its cement pricing aligns with, or even falls below, the prevailing prices along the West African coastline.

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According to report, two of Nigeria’s biggest Cement manufacturers, Dangote Cement and BUA Cement, said they spent about N204.925 billion powering their generators for operations during the half year ended June 30, 2023.

Two BUA’s plant to increase capacity

According to Punch report, Rabiu revealed that the two plants are the Obu Line 3 and the Sokoto Line 5, giving the business a six million tonne combined capacity.

The BUA chairman also declared that the business would help the federal government's initiatives to lower the cost of cement in the nation.

The chairman of BUA Cement stated that the company is currently growing its production capacity and that once it is completed by the end of this year, it would increase product availability and lower pricing.

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Rabiu said:

“I understand that the minister is quite concerned, that the price of cement is high at almost N5,000 per tonne. I appreciate where the government is coming from and the frustration from all the issues in the country.

"The price of cement at N5,000 is not high. If we look at the rate of the US dollar today, to import cement will be at N5,000. The cement cost, insurance and freight to any port in Nigeria will be in the region of about $100 a tonne. So, at $100 per tonne, if you take N800 to $1, then it will be N4,000 per bag. Then the port cost, and transportation from the port.

Dave Umahi, the Minister of Works, promised last week to speak with cement producers about lowering the cost of their goods.

Contractors had complained about the high cost of cement in the nation, according to the minister, who spoke on the Channels Television programme Sunrise Daily. He also claimed that importing the commodity will make it less expensive.

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He said:

I’m going to be running figures with them (cement manufacturers) to check the cost of cement if we import it and the cost they are giving us here.

Dangote, Other Cement Producers Make Over N156.55bn Profit from Cement Sales Despite High Production Cost

Three cement producers listed on the Nigerian Exchange Limited (NGX), Dangote Cement Plc, BUA Cement Plc, and Lafarge Cement Plc have made a combined profit of N156.55 billion in the first quarter (Q1) of 2022 according to Legit.ng earlier report.

This represents an increase of 29 percent from N121.2 billion reported in the first quarter of 2021.

ThisDay reports that the retail cement prices in Nigeria reportedly rose from around N2,400-N2,600 per 50kg bag in 2020 to an average price of N4,000 at the end of March 31, 2022.

Source: Legit.ng