Business a.m
Abdul-Samad Rabiu, Chairman of the BUA Group, has assured Nigerians that the company would uphold its pledge to sell cement at a price of N3,500 per bag starting in January 2024.
Rabiu stated this while speaking to State House Correspondents after meeting with President Bola Tinubu recently in Lagos. He stated that the company would strive to make its product available and affordable to consumers, despite the various challenges faced by the industry.
“You know the price that we have set will be N3,500 per bag. You know x factory of course plus VAT and then delivered to customers depending on the region.
The BUA chief stated, “As you know, the factories that we have; one is in Edo, the other one is in Sokoto state. So for example, if you want us to deliver cement to you from Sokoto say to Lagos from Adamawa or to Maiduguri, the distance is quite far.
“So dependent on the distance and dependent on the location. You know the price changes but we intend to keep that promise.”
Rabiu further stated that the opening of the Sokoto cement plant, which is anticipated to take place in January 2024, will contribute to the expansion of the industry throughout the country. He stated that the plant would have a total output capacity of six million tonnes per year and that the increased supply would alleviate the industry’s current supply issues.
Rabiu expressed confidence that the country’s second largest cement manufacturer would overcome some difficulties it is currently undergoing, and continue to grow. He also acknowledged the role that the Nigerian government has played in facilitating the construction of the Sokoto plant and the industry’s overall growth.
On October 1, 2023, BUA Cement made a formal announcement that it would be lowering the price of cement from N5,500 to N3,500 per bag, beginning on October 2, 2023. However, there was some uncertainty about whether or not the plan would be implemented on the stipulated date. This raised questions about the feasibility of the new pricing strategy and whether or not it would be able to be carried out successfully. Some industry analysts expressed concern that the price cut might not be sustainable in the long run, given the cost of production and the volatility of the market.
BUA explained that the decision was made to spur development in the building materials and infrastructure sectors. The company further stated that it was able to achieve the price cut as a result of its increased manufacturing capacity and its commitment to making cement more affordable for Nigerians.
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