- BUA Cement will be reducing the price for a bag of cement from N5,000 to around N3,000 and N3,500
- The company's Chairman, Abdul Samad Rabiu revealed the intention afer meeting with President Bola Tinubu in Abuja.
- The billionaire is about to commission two new plants which has a capacity to produce 6 million tons
The Chairman of BUA Group, Abdul-Samad Rabiu, has announced plans to reduce cement price in Nigeria from the present N5,500 to between N3,000 and N3,500.
Rabiu disclosed this while speaking to journalists after a meeting with President Bola Tinubu on Friday, September 15, 2023, Punch reports.
How Rabiu plans to reduce cement price
According to the billionaire, the price reduction will be implemented after the inauguration of two new cement plants by the end of the year or in early 2024.
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He stated that with increase production his company will flood the market with cement thereby reducing the prices paid by Nigerians.
“By the time these lines are commissioned, BUA Cement will produce about 17 million tonnes per annum. And with that, we intend to bring down the cement price from its current level of N5000 or N5500 per bag to maybe N3000 to N3500 per bag.”
Rabiu also stated that BUA Group’s ability to produce locally, with 80 per cent of raw materials sourced in Nigeria, positioned his company to contribute to the government’s goal of reducing commodity prices.
He also mentioned plans to collaborate with Minister of Works, David Umahi to make the price reduction a reality.
Dangote Cement, MTN, 8 Other Companies Lose Over N630bn in 6 Months After Tinubu, CBN's Naira Decision
Meanwhile, in another report, Legit.ng revealed that several companies listed on the Nigerian exchange lamented significant foreign exchange (FX) losses due to the devaluation of the naira.
On June 14, 2023, the Central Bank of Nigeria (CBN), on the instruction of President Bola Tinubu, announced the floating of the naira.
This gave room for market forces to determine the exchange rate.
The decision has led to a severe depreciation of the naira against different foreign currencies, taking a severe toll on the financials of companies in Nigeria.