…pending, undelivered orders to be reviewed downwards
BUA Cement Plc has reduced the ex-factory price of its product to N3,500, from N4,650 currently.
The company said the cement price reduction would come into effect from Monday, 2 October 2023.
In a statement issued on Sunday, 1 October 2023, and signed by its management, BUA Cement Plc said the decision was sequel to its previous pronouncements regarding its intent to reduce cement prices upon the completion of its new lines at the end of the year in order to spur development in the building materials and infrastructure sectors.
In the statement titled ‘REDUCTION IN PRICES OF BUA CEMENT”, the company said, “As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc 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 3,500 Naira 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 PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.”
BUA Cement said all pending, undelivered orders which had been paid for at the old prices would 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,” it said.
Chairman of BUA Group, Abdul-Samad Rabiu, had hinted at cement price reduction last month when he spoke to State House Correspondents in Abuja after a visit to President Bola Tinubu.
The BUA Chairman also announced that the company was working on adding two new plants by year-end or early in 2024, which would bring the cement maker’s total capacity to 17 million metric tons.
He said the moves are geared towards supporting the government’s efforts to bring down the price of cement.
“By the time these lines are commissioned, BUA Cement will to be producing about 17 million tonnes per annum. And with that, we intend to bring down the price of cement from its current level of N5,000 or N5,500 per bag to maybe N3,000 to N3,500 per bag,” he said.
Rabiu said BUA could only do that because it produces cement in Nigeria, with as much as 80 percent of raw materials for the product sourced locally.
