Cement price war rises as BUA plans to slash prices, Nigeria’s second-largest cement manufacturer, BUA Cement Plc, intends to lower cement prices by 40%, from the current N5,500 a bag to between N3,000 and N3,500.
Abdul Samad Rabiu, the company’s chairman, revealed this to the media following a meeting with President Bola Tinubu at the State House in Abuja.
According to Rabiu, the price drop is a result of his company’s support of the Federal Government’s attempts to stabilize the pricing of basic goods.
This would only occur after the commissioning of two new plants with a combined operating capacity of 3 million tons by the end of the year.
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With the addition of the two new facilities, BUA Cement will have a production capacity of 17 million metric tons per year, making it the biggest cement manufacturer in Nigeria.
The company could only accomplish this, according to Rabiu, because it makes it locally.
“Limestone and gypsum make up the majority of the raw resources we utilize to make cement in Nigeria, with energy playing a role as well. Of course, Nigeria has gas, he said.
In order to ensure that the prices of these items are reduced inadvertently, we wish to support the government in its efforts.
According to Rabiu, the two additional plants that Tinubu will dedicate in 2023 would boost output capacity to 17 million metric tons.
According to analysts, BUA Cement’s projected price cut is a good thing for the Nigerian economy because it will make cement more accessible to consumers and businesses involved in building. This might enhance construction activity and accelerate economic growth.
The decrease is also anticipated to help consumers by lowering housing costs.
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