BUA Group is considering reducing the price of cement produced from its factory, according to Abdul Samad Rabiu, the company’s chairman.
The cement firm is among the producers of the product in the country that have come under severe criticism for pricing cement beyond the reach of many Nigerians who are planning to build their own houses.
The price of a bag of cement ranges from N5000 to N5500 per bag depending on the location where the consumer is buying from.
Recently, Dave Umahi, the Minister of Works hinted that federal government contractors are considering importing cheaper cement into the country.
The minister also promised to dialogue with cement companies in the country with a view to bringing the price down.
BUA and other producers were further put on the spot after the report surfaced during the week that Dangote Cement, a major cement producer sells the product at a cheaper rate in neighbouring countries.
Dangote has debunked the report.
Daily Trust reports that the BUA boss spoke at the company’s Annual General Meeting, AGM, saying the company is planning to ramp up its production capacity with the aim of reducing prices.
He explained that the company is doing this to assist the government’s economic plan, noting however that the importation of cement cannot solve the current price problem.
Abdulsamad said, “By the end of the year, we intend to have two more production lines on stream which will boost our production capacity by at least 40 per cent to 70 million tons.
“The idea of increasing production capacity is to see how we can be able to drop prices on our part to support the government’s efforts because importation will not be the best solution.
“The average price of cement in Nigeria is N4,500 which translates into N90,000 per ton or $100. So if the government threatens to start importing cement, it will even cost them more because the forex is now high and when you bring it through the ports, you must pay taxes, trucking, and other levies which will add to the price.”
